Where Should The Traditional Retail Enterprises Touch The Net?

Nowadays, traditional retailers can no longer despise the power of online retailing.

No doubt.

It is a revolution of traditional circulation mode, and customer flow, information flow and capital flow can be directly solved on the Internet.

From the perspective of the proportion of China's electricity providers, the proportion of retail origin is very large, and the proportion has increased rapidly.

It should be said that the introduction of e-commerce almost changed all aspects of retail enterprises.

As a matter of fact, at present, the traditional retail enterprises are paying tuition fees, and their short board benefits are becoming increasingly obvious.

Retailers are being dragged into a business game that can not be extricate themselves. The competition of undifferentiated competition and the high promotion cost make businesses overburdened.

But not jumping into the hot e-business world means losing the future.

"Do not do electronic commerce is waiting for death, making electronic commerce is seeking death". The marketing magic spell again appeared ten years ago. It is not only the question of doing or not doing, but the question of survival or death.

What should we do? Is it more investment or negative response? What is the future of traditional retail enterprises? Nowadays, a wave of closure is coming, and the predicament of retail enterprises can be imagined.

The hidden meaning of "touch net"

Pei Liang, Secretary General of the China Chain Store Association, pointed out that the development of e-commerce platform has become the trend of the times.

Some websites that specialize in B2C e-commerce have posed a threat to traditional retail businesses.

Among them, household appliances, books and middle and low end

The impact is particularly obvious. "

In fact, even if we are involved in e-commerce, because of the unfamiliar with the field of network marketing, the intensity of investment in the daily operation process is far from enough. Therefore, e-commerce is always hard to see a gratifying improvement.

If electronic commerce is exactly the same as traditional retail, and electronic help is just to help build a website, e-commerce will suddenly be offset by the significant improvement of the industrial chain's innovation and efficiency, the dissemination and initiation of the Internet.

This is also the reason why the phenomenon of "traditional enterprises doing electric business, entering a dead one" is popular in e-commerce circles in the past few years.

It is true that the vast majority of traditional enterprises have a good idea of developing e-commerce, but knowing it is very important. In the end, they do not know where to start. Because retail enterprises do e-commerce is absolutely not a simple shop in Taobao. E-commerce involves the whole system of enterprise e-commerce solutions, such as sales, ERP system, promotional activities, brand marketing, inventory management, logistics distribution, payment management, supply chain management and so on.

It is undeniable that the e-commerce system of retail enterprises can not be built by itself is the hidden secret of the net.

In fact, many traditions.

E-commerce is only regarded as a marketing tool. They tend to set up the electricity supplier department under the marketing department or marketing department, while others use E-business as a channel to digest inventory and over season goods. Some companies regard e-commerce as a new business, and such companies often set up e-commerce subsidiaries.

"From the recent practice of physical chain enterprises doing online retailing, we have come to a relative consensus that physical chain enterprises should operate online or operate independently."

Pei Liang thinks, however, domestic traditional enterprises lack the goods of their own brands, and homogenization and low-level competition are a big bottleneck and challenge to the traditional retail enterprises which rely on the existing commodity network to carry out online sales.

"From the present point of view, although many traditional retail outlets are entering the network, they are generally faced with two problems. First, compared with other websites specializing in B2C e-commerce, there are almost no price advantages, and the homogenization of goods is serious. Second, the outlets of traditional outlets are distributed in a geographical location.

With the increase in the number of consumers on the Internet platform, the traditional retail logistics system may not be able to match the higher density distribution.

Pei Liang analysis thinks.

The network sales platform has its own characteristics, the trust of the payment platform, the worries caused by consumers' inability to feel the goods, logistics cost and express efficiency, after sale service and so on will become the restricting factors of traditional enterprises' development of e-commerce.

Cao Lei, director of the China Electronic Commerce Research Center, said that traditional businesses could not completely move the operation mode of the entity store to the Internet.

In short, it would not be a good result to do the same thing in line with the following lines.

Nowadays, traditional retailers do not prepare well before they touch the net.

Therefore, it is unavoidable for the collective to be in a dazed place.

Channel conflict

As we all know, traditional retail businesses have always hated the development of e-commerce, because some buyers like to see a certain item in reality and then go to the Internet to go after the card.

Traditional brand entrepreneurs always feel that e-commerce is online retailing. They have a disdainful attitude towards opening an online shop in Taobao or building an official online shopping mall. E-commerce can not win the attention of business owners in a short time.

Indeed, the traditional retailers' attitude to online shopping is ambiguous. In fact, there is a hidden dilemma that retailers can hardly adjust in the price system: online shopping centers mainly rely on low prices to attract consumers, such as Jingdong Mall (micro-blog), Amazon (micro-blog) and so on. However, once the price of online shopping malls is too low, they will have an impact on the sales of physical stores.

However, the traditional gross margin of the retail industry in China is relatively low, which relies mainly on the scale of sales to dilute the cost and drive profits. Once the sales volume falls, the profitability of the enterprises will be greatly affected.

It is worth pondering that retail companies usually have to balance the interests of online and offline businesses, which are too heavy and too difficult to March.

Take Gome as an example, the price of its online products is basically the same as that of its stores.

In fact, the selling price of online shopping centers can be lower. It is understood that some of the products of Jingdong mall are also purchased from GOME, and Jingdong mall can sell products very low. Gome (micro-blog)'s online shopping mall can not do it.

In addition, as e-commerce and physical shops jointly use a brand to take the same purchase channels, but they are different departments. When implementing the assessment, the contradictions between the two departments are gradually intensifying.

The contradiction between the operation Department and the e-commerce department is obvious: in order to achieve more performance of their department, they never share their customers' information.

"Often when a department gets customer information from another department, it sends text messages to the consumer to purchase goods from the Department they belong to."

According to Chen Jian, manager of Information Department of Jiangsu children Wang, the competition between the two departments in sales performance is more common.

Obviously, competition between the two departments is harmful to the overall profitability of enterprises.

For traditional retailers to open online stores, online ordering and offline distribution, Zhou Yong, a professor of management at Shanghai Business School, also believes that this contradiction is hard to reconcile.

"Online shop order, but the physical shop logistics to deliver goods, physical stores and no benefits can be obtained, how can be positive.

In this way, customer service is not good and satisfaction is reduced, resulting in no advantage.

Conversely, online stores sell well, and sales of physical stores decrease. The two are contradictory. How can they cooperate? "Zhou Yong said.

On the other hand, the price system is difficult to coordinate and the great pressure comes from suppliers.

Because traditional retailers are more cooperative with mainstream suppliers, they are very dependent on traditional channels, and they also attach great importance to their price image. In order to prevent "jumping goods", mainstream suppliers are often reluctant to give e-commerce websites a lower discount.

It can be seen that there are still many ways to grope for the profit of traditional retailers.

What I'm doing now may be just a "online enclosure movement".

Puzzle of profit mode

Although e-commerce has become the mainstream trend of market development, this is irreversible.

But for retail enterprises, the industrial excitement of the early days of the electricity supplier is over.

Careful observation is not difficult to find, in this industry pattern, it seems that the whole industry has fallen into a growth dilemma: in the process of consumers looking for low quality products, the electricity providers, though naturally possessed of these attributes, can not really satisfy the differentiated user needs in the market, and can only attract consumers by simply reducing the price.

Insiders said that no matter how the electricity suppliers render, the price war has become a new round.

E-commerce brand competition means.

This is undoubtedly a big blow for retail enterprises who want to enter the electronic business platform.

From the current market situation, large and small business enterprises emerge in endlessly, which is also interpreted by the industry as a new era of industrial explosive development.

However, in this era of diversification of market players, most of them exist as a single entity product network store, and lack of a perfect source of competitiveness.

When the leading enterprises like Gome speed up their layout in the electricity supplier field, the original enterprises are forced to attract consumers through simple price cuts.

Maybe this is one of the reasons for frequent price wars in the electricity supplier industry.

However, under this development logic, these so-called electric business enterprises have developed an overdraft mode of development: attracting consumers with some low-priced products, and of course, these so-called low price products are either out of stock or only a small amount of stock, becoming a gimmick for enterprises to attract consumers.

After selling products at cost less than the cost price, these electronic business enterprises have to adopt the way of capital market financing to maintain normal operation.

In the analysis of the development bubble of the domestic electricity supplier industry, the insiders pointed out that these so-called electric business enterprises have become the industrial spoiler of capital abduction.

On the chaos of the electricity supplier industry, Luo Qingqi, an appliance industry watchdog, pointed out that most of the current electricity suppliers in the industry are separated from the supply chain system, which is an offshore short-term development idea.

According to this analysis, because of the lack of support from the industrial chain system, these enterprises can only stay at the stage of simple price killing, and rely on continuous financing to support the normal operation of enterprises.

It is in this mode of departure from the nature of industrial development that most e-commerce enterprises under the guise of so-called low prices have triggered many problems in the electricity supplier industry, exacerbating the current confusion in the electricity market.

In addition, business reputation, product quality and payment delay all affect the traditional retailers' online shopping.

When shopping in physical stores, consumers can get goods by paying the money, but online shoppers can only get goods after they have paid the money for a long time, which is a great harm to consumers' shopping experience.

Online shopping has not yet found its own profit model, which is an indisputable fact.

And many signs show that the domestic electricity supplier industry has entered a difficult position.

The traditional retailers who take the physical shops as the main means of profit, develop online shopping business, and finally return to the development of comprehensive service stores to promote the sales volume of online shopping. How to walk the E-Business?

People in traditional industries really feel the need to seriously study e-commerce under the impact of the tide of the Internet.

Facing excellence network,

As for the emerging B2C and C2C shopping websites, the traditional retail industry should really think about the impact of the electronic process on business mode if we want to make ourselves bigger and stronger in today's business situation.

In a word, facing the enormous pressure of external pformation and the urgent need of the pformation of internal management concepts, actively exploring new business models has become the general trend of business circulation enterprises.