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    Where Will The Traditional Retail Business Go?

    2013/7/4 20:29:00 45

    Electricity Supplier TideElectricity SupplierBrand

    < p > electricity business trend is fierce. Where will the traditional retail industry go? In this connection, Professor Hong Tao, director of the Department of trade at Beijing Technology and Business University, has accepted an exclusive interview with this newspaper.

    < /p >


    < p > Q: what do you think of the development of traditional retailing industry? < /p >


    P: A. China is a big consumer country. The total retail sales of consumer goods increased from 1 trillion yuan in 1992 to more than 21 trillion yuan in 2012. It is expected that the growth rate will slow down in 2013, but it still can exceed 23 trillion yuan, which is an important force for economic growth.

    < /p >


    < p > 34 years of reform and opening up, we have passed the history of 100 years in the retail format of western developed countries.

    At present, the retail industry is undergoing revolutionary and profound changes.

    From the top 100 retailers in China in 2012, 8 online retailers have entered the top 100 businesses.

    More than 100 billion yuan in the volume of super large retail enterprises reached 5, including Tmall.

    There are 62 entities retail enterprises to carry out online retail business.

    At the same time, smart stores, smart restaurants, intelligent farm markets, smart selling vending machines and other new forms continue to emerge, which fully demonstrates that the traditional retail industry is developing to the modern retail industry.

    < /p >


    < p > Q: will the traditional retail trade be the trend of the times? < /p >


    P: answer: at present, the physical retail industry still plays a leading role, but in the future, the proportion of online retailing in the retail industry will be bigger and bigger, and the physical retail industry may gradually retreat to secondary or supplementary status.

    < /p >


    < p > of course, this will be a long process.

    By 2015, the proportion of Internet retailing may reach 10%, that is to say, 90% of retail sales are completed by offline stores.

    By 2020, this proportion will probably increase to 20%.

    < /p >


    < p > with the increase of the proportion of online retailing, the entity store is facing pformation. The future paction may be completed online, and the entity store is mainly responsible for logistics, distribution and experiential consumption and services.

    < /p >


    P: Q: the way of traditional retailing business doesn't seem to work well. What do you think of it? < /p >


    P: answer: in recent years, traditional retailers have explored some patterns in developing e-commerce business, some of which have been successful, but most of them have failed.

    The electricity supplier did not add wings to traditional retail sales, and even dragged down the net profit of traditional retail sales.

    < /p >


    Why is p? Why do we find that online shopping websites such as Wangfujing, Xidan and Bailian did not make full use of the brand effect of the entity store until the Wangfujing department stores changed the name of "online Wangfujing" to "Wangfujing" this year.

    < /p >


    < p > this appears to be simple, but it reflects that these enterprises do not take the retail industry as an important part of their business, and have not formed a unified retail development strategy on line.

    Giving full play to the role of offline stores and integrating online and offline businesses is the way for traditional retailers to do business.

    < /p >


    P: Q: most of the electricity providers in the US are pformed from traditional retail businesses. Compared with the traditional retail businesses, why do they not compete with Tmall, Taobao, Jingdong and other electricity providers? < /p >


    P: answer: China and the United States have different national conditions.

    There is no national electronic commerce law in China. This is the first difference between us and the United States. Second, we do not pay much attention to the research and discussion of the business mode of Internet pactions. Third, the homogenization of online retail pactions in China is very serious, resulting in low price competition such as price war.

    < /p >


    < p > pformation of traditional retail industry requires seeking new development path in a practical way instead of putting on airs. Paying attention to the profitability of business models in the exploration of some new formats is otherwise meaningless.

    While adjusting the format, we should also pay attention to the pformation of development mode.

    It needs to change for the needs of consumers, but also for manufacturers, suppliers, agents, brand operators to provide a wide range of services.

    The supply chain formed by manufacturers, wholesales, retailers, logistics and consumers form a system.

    It can not be formed in form, otherwise it will not do well.

    < /p >

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