Can The Retail Giant "Touch The Net" Make Profits For Consumers?

WAL-MART is not the first entity retailing to seize the Chinese online shopping market. In recent years, traditional retailers have accelerated the "touchdown". In 2010, the top 100 list showed that 34 chain enterprises had launched online retail sales, and the scale of sales was about 3 billion yuan.

Recently, WAL-MART, the world's largest retailer, has abandoned the Jingdong, a famous online shopping company that has long been in love with China. It wants to flash marriages with "1 store", one of the fastest growing e-commerce enterprises in China, thus successfully completing its plan to enter the Chinese online shopping market.

WAL-MART is not the first entity retailing to seize the Chinese online shopping market. In recent years, traditional retailers have accelerated the "touchdown". In 2010, the top 100 list showed that 34 chain enterprises had launched online retail sales, and the scale of sales was about 3 billion yuan.

Insiders pointed out that under the increasingly pressure of entity operating costs, the online shopping market has become the "Noah's Ark" of many retailers. "This adjustment of traditional retail industry is an important step in the modernization of business circulation enterprises, which will help to speed up the upgrading of its industrial structure". It is pointed out that more and more retail department stores will open up online shopping market, which will help reduce the turnover link and reduce the high cost of channels, thereby reducing the price of goods and giving consumers the benefits.

Trend: traditional retailers accelerate "touches"

A few days ago, WAL-MART announced that it had officially become a 1 shop. The company's current agreement is to buy a small share of shop 1. The transaction is expected to be completed within 60 days. In the first quarter of this year, WAL-MART, which continues to maintain its 12% growth in China's performance, will gain another new growth point if it succeeds in entering the field of e-commerce in China.

It is understood that traditional retailers compete in the field. online shopping The war on consumer market has long been opened. Recently, Gome online shopping center announced a strategic partnership with Alipay, making full efforts to enter the field of e-commerce. These traditional home appliance stores have increased their investment in online shopping centers. Apart from building its own online retail platform suning.com, Suning also tried to join forces with Dangdang. Besides Gome's online shopping mall, Gome has already spent tens of millions of yuan on the acquisition of the shopping network.

In addition, Carrefour has opened an online shopping mall, which has launched online shopping business in Gubei restaurant in Shanghai and the National Exhibition shop in Beijing. Sam, a WAL-MART based member shop in Shenzhen, has also started online business.

Regional traditional commercial enterprises are also catching up with the online shopping market. The official of Guangzhou shopping mall online mall said that the company tried to conduct e-commerce business in the second half of 2008. After 2 years of trial water, Guang Bai Department Store increased investment this year to develop online shopping business. The company has just set up its own e-commerce plate alone and set up a special company operation last month. "According to the company's plan, in the next few years, the online shopping market will reach 1 billion yuan. Internet Retailing It occupies a certain market share.

It is understood that in the top 100 enterprises in 2010, the number of touting enterprises has increased to 34, and the scale of sales has reached about 3 billion yuan.

The sudden increase in factorial costs forced the retail giants to change.

Insiders pointed out that behind the online retail of traditional retail enterprises, in addition to the threat of emerging online home appliance retailers, another "forced" factor is actually increasing operating costs of physical stores. {page_break}

According to the China Chain Store Association, statistics show that in 2010, the average rental cost of chain businesses increased by about 30%. Competition for quality network resources and soaring property prices have led to a sharp rise in rents, and limited profits have been rentled by rents, resulting in a slowdown in the number of new outlets.

Labor costs are also rising. Sampling statistics for top 100 companies show that in 2010, labor costs rose by an average of 15%. In addition, the high rate of staff turnover and the resulting investment in recruitment and training also increased significantly.

Guo Geping believes that the traditional retail industry has many advantages in online retailing, including purchase channels, brand influence, shopping experience, after-sale service and distribution logistics system.

However, according to a survey conducted by China Chain Store Association Electronic Commerce In the business, the traditional retailers have the following disadvantages: first, the lack of technical level. Network retailing has stronger requirements for technology. There are different practices in the network construction, marketing technology, consumer analysis, data mining technology and other traditional retailers' information systems. Two, there is a lack of professional teams. The traditional retail enterprises are obviously not enough to invest and equip the network retailers, some of them just give the retail business to the information department, and the three is the lack of marketing experience. Most of the traditional retailers' understanding of network marketing has not yet started. Online retailing has already divorced from the traditional retailers' limited shelf space in meeting the personalized needs of consumers, which is difficult for traditional retailers to adjust in the short term.

Gu Guojian, a professor at Shanghai Business School, believes that virtual retail and physical retail are two types of retail competition. Under certain conditions, these two types of retailers can achieve reorganization and coordination of business chains. In the initial stage, the entity retailing enterprises should make clear the overall strategy of "entity stores and network stores", so that online retailing should become a supplement to physical retailing.

The Ministry of Commerce intends to subsidize the "national team" to intervene in the online shopping market.

"We all see the future development trend and Prospect of online shopping in this new format. Only when there is an opportunity, will retail department stores enter." The official responsible for the online shopping mall of Guang Bai department store said. The rapid growth of Internet consumer market in recent years has made many traditional commercial enterprises drool.

According to a report released by Kearney, a leading global consultancy, yesterday, from the 4 billion 900 million yuan in 2004 to 213 billion 400 million yuan in 2009, the scale of e-commerce market grew rapidly at a compound annual growth rate of more than 90%. Based on the market forecast of Analysys International and AI consulting, China's e-commerce market will exceed 11500 billion yuan as of 2014.

According to the latest data of China Electronic Commerce Research Center, as of December 2010, China's e-commerce market turnover has exceeded 4 trillion and 500 billion yuan, an increase of 22% over the same period last year. Among them, the scale of online retail market transactions amounted to 513 billion 100 million yuan, an increase of 97.3% over the previous year, accounting for 3% of the total retail sales of social commodities. The center also released a report that China's online retail market will enter a new stage in the next two years. The volume of transactions is expected to exceed 10000 billion yuan for the first time, accounting for more than 5% of the total retail sales of social commodities in the whole year.

Guo Geping, President of the China Chain Store Association, said: "online retailing is also a carrier of traditional commerce. From the US market, more than half of the top 10 Internet retailing companies are B2C websites operated by physical chain enterprises. In 2010, in the UK's online retail businesses, 6 of the top 10 companies ranked on the basis of the number of visitors had physical stores.

It is reported that the Ministry of commerce is drafting a document on "supporting traditional commercial enterprises to enter e-commerce". The plan is to set up special funds to subsidize the "national team" enterprises including Beijing Wangfujing, Shanghai Bailian and Wuhan Zhong Bai, which will enable more retail enterprises to intensify their efforts to develop the online shopping market.

Previously, at the national level, "the opinions of the general office of the State Council on accelerating the development of e-commerce" and "the opinions of the Ministry of Commerce on accelerating the development of e-commerce in the circulation sector" have promoted e-commerce as an important measure to stimulate domestic demand and expand consumption.