Discussion On Retail Manufacturing

In the traditional production and sales mode, the manufacturer controls the raw materials and technology of production, and easily becomes the leading force of the supply chain.

In contrast, the dealer's ability to influence prices is small. Distributors mainly increase sales through their own efforts, thereby increasing their income.

And in modern times

With the emergence of large chain sales enterprises, a strong downstream retailer has emerged.

With the rapid development of large retail enterprises, retailers play a more and more important role in the supply chain, and have already played the role of channel leader in some product markets.

At the same time, retailers, as the most close to consumers in the supply chain, occupy an increasingly important position in the consumer centered market.

Looking at the future situation of China's retail industry, we can see that the era of reverse integration has arrived. With the emergence of WAL-MART, Carrefour and other super terminals, the era of integration of traditional retail industry is bound to end.

The new type of retail manufacturing industry will form reverse integration in turn, and the manufacturing industry will be in the position of integration by retailing industry.

What is the development direction of the retail supply chain? What is the pformation of the role of the retail and retail manufacturing industry? What is the future of the retail manufacturing industry in China? With many problems, the reporter interviewed Professor of Capital University of Economics and Business.

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Question: what does the retail manufacturing industry refer to in the supply chain era?

Chen Liping: for example, IKEA is a custom-made product sales. It is both a retailer and a manufacturer. It has established an integrated system from retail to manufacturing.

Question: when did the retail industry begin to rise in the world?

Chen Liping: the retail manufacturing industry began in the 60s of last century, mainly in furniture, clothing and other fields.

In the 90s of last century, a discount store was established in Japan (when discount stores in Japan were a kind of price destruction, because it sold goods at the lowest price), then the retail manufacturing industry began to prevail, because at that time, the economy was sluggish, and people's income decreased, so they needed to buy high quality and low price goods.

Responding to this demand, the second circulation revolution of Japan after the war began, and the main flag bearer is some Japanese brands represented by UNIQLO.

Question: at this point, the new business model represented by the retail manufacturing industry has emerged?

Chen Liping: Yes, that's completely out of the old mode.

There were two changes in business in Japan in the 90s of last century. One is the change from collector to customer relationship, one is the pformation from goods accumulation (i.e. wholesale, purchase and purchase from the manufacturer) to the entire supply chain.

Question: specifically, what are the characteristics of retail manufacturing?

Chen Liping: like UNIQLO, 100 yuan shop, Muji, etc. are launched by retailers, the specific form is designed, manufactured and sold by retailers, in this sense, it is called retail manufacturing.

Question: in this sense, the emergence of retail manufacturing is a trend in the development of the world.

Chen Liping: Yes.

One of the most important characteristics of the retail industry is the pursuit of low price retail. In this respect, the significance of retail manufacturing is very important.

International clothing brands like Japan, ZARA and Martha in Europe are almost all integrated supply chains, thus forming new formats. This is also a retail business model innovation.

Question: what is the reason for this situation?

Chen Liping: this has much to do with the speed of innovation of retail formats in our country. Besides, economic development also has a certain impact.

China is now developing towards the retail industry with high price, and Europe, Japan and other countries are beginning to develop into the low price retail industry and to the discount stores because of the economic development and consumer behavior and aging.

Because of the continuous improvement of the income level in the process of economic development, there are some high-end supermarkets, high-end stores and brand stores. Of course, this is also a necessary process for the economic development of many countries.

In the future, with the change of consumer behavior, the pursuit of high quality and low price is also a basic choice for consumers.

For example, the development of online shopping centers, etc., but domestic innovation in terms of formats is the innovation of retailing format, and the creation of low price retail business through the entire supply chain is still very few.

Question: what do you mean is that domestic manufacturing is mainly retail, not retail?

Chen Liping: you can understand that too.

The manufacturing retail industry mainly refers to the stores and direct shops opened by manufacturing enterprises, which belong to the extension of manufacturers to the retail sector. This is different from foreign countries, and foreign countries are a process of integrated supply chain initiated by retail.

Question: what is the future direction of domestic retailing industry?

Chen Liping: Yes, this is the development trend of the retail industry in the world in the past ten years.

China also has this inherent advantage, because China's manufacturing has promoted the development of the world's retail manufacturing industry, and many retail manufacturing industries are made in China. We now have very good environment and conditions.

At present, China's manufacturing of daily necessities is the most developed in the world. Many brands in the world, such as UNIQLO, ZARA, IKEA and so on, are making their own products in China. For such a good condition, why haven't we done a big job? This reflects the problems existing in China's circulation industry.

Question: are these problems a big environment or are there problems for the enterprises themselves?

Chen Liping: there are both big environment problems and poor innovation ability of the retail industry itself.

The environment is currently in an environment of rapid economic development, a substantial increase in the level of income and an escalation of consumption.

From the perspective of retail industry, the existing admission fees, the introduction of factories and stores, and the downloading of department stores and other modes lead to the high cost of circulation. These problems show that at present, the most need to integrate supply chain and establish a new retail mode is a major problem at present.

At present, the retail manufacturing industry in Europe and the United States has already formed a trend, and China is still an era of accumulating goods, and it does not belong to the era of integrated supply chain.

To accumulate goods is to buy goods, but at present, even purchasing is not done. It is sitting at home waiting for someone to rent the counter.

This is a clear gap from foreign retail manufacturing.

Question: what is the ideal mode of retail manufacturing?

Chen Liping: retail manufacturing is mainly designed according to customer needs.

One thing to emphasize is that retail manufacturing is not suitable for all retail businesses, such as cosmetics, cosmetics and so on.

The department stores and stores that mainly wear shoes and hats are more suitable for planning commodities.

The most typical industry in the world is clothing, furniture and so on. In the comprehensive retail industry, the Japanese 100 yuan shop is still more suitable for this format.

But the big idea is to integrate the entire supply chain, including the supermarket's supermarket docking, and the integration of supply chain.

Question: what is the current situation in China?

Chen Liping: domestic perspective should be called manufacturing retailing.

Boston and so on, they launched from the manufacturers, to the development of the retail sector, there is a difference.