The Next Round Of Retail Competition Is "Efficiency".

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< p > the design of store stores by the national design company has changed greatly from the VI store to the store layout. Compared with the shops before the five stars, there has been tremendous changes. The storefront has been moving rapidly, the display of real machines and the package solution have been provided by young people. In June 20th, the five star electric appliances billion stores which were completed by the 3 pformation will bloom at the same time, and the customer experience and shopping impression will be disrupted.

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< p > in the whole entity retail industry will be the recent downturn in the impact of the electricity supplier, touting O2O radical pformation resulting in a short-term profit decline, five-star electrical appliance has its own way: Based on improving internal operation management, < a href= "http://www.91se91.com/news/" > /a > quality, focus on returning to the essence of retail, mining entity store innovation space.

As a result, the operating profit of five-star electrical appliances rose sharply.

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"P" to promote five-star electrical appliances in the short term to counter the trend of losses is one year ago, the president of the best buy China region, five star appliance CEO Zhou Meng.

It has just won the 2013-2014 annual retail sales figure in China due to the "retail sales return" act of "increasing sales, raising profits and reducing costs".

A few days ago, the China Commercial Daily reporter gave an exclusive interview to Zhou Meng to share his views on the current and future Chinese retail market.

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< p > < strong > < a > href= > http://www.91se91.com/news/ > > offline > /a > fusion is an inevitable trend < /strong > /p >

< p > China Business Daily: your new five-star appliance has launched a series of changes, from VI design LOGO to store group goods, category change, customer experience and so on. What kind of information do you want to release? Is change necessary? < /p >

< p > Zhou Meng: the new image of the Five Star appliance is to be closer to the young consumers.

After 80/90/00, young people have become the core customer groups of retail industry. They pursue brand, technology and fashion sense, keep them in physical stores or pull them from online to physical stores, which means that we have to develop a new generation of storefronts, from group goods to store visual image and customer experience.

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< p > China Business Daily: what about category? < /p >

< p > Zhou Meng: the category is also being reformed.

We are trying to add some products in the new store: first, expand the interconnected products with household appliances, such as all kinds of imported small household appliances, and develop their own brands and customized underwriting models to enhance their operating profits.

For example, try home furnishings, furniture, lamps and lanterns, such as soft decoration products, as well as DIY tools.

These new products will also be placed in five-star online business to expand in two directions.

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(P) overall, (category reform) is just beginning.

Our way is to set out a space, like the trial and error method, which kind of products can start more sales, and find the right products before making large-scale expansion.

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< p > China Business Daily: many people have a prediction that the standardization of appliance category attributes is very high. The future trend is that online sales are larger than offline stores. This may lead to a more serious subversion of the appliance retail industry than other supermarkets, department stores and other formats. < /p >

< p > Zhou Meng: it is hard to decide which industry will be too early to say. It depends on the difference between what you provide and online.

At present, the online sale of 3C products has a strong response, but 3C, such as mobile Internet shopping, is still subject to certain restrictions. Because of the signing of mobile phones and operators, the experience of consumers and the professional introduction of salespersons are still hard to achieve on line. At present, online businesses do not do well in home appliances. The core is that the enterprises under the line have the service capacity of large household appliances, and the distribution and installation requirements are very high.

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At present, the price of P is still won by price. Once the price has no advantage, it will not be sold. However, under the same price condition, the convenience of online does not give consumers much attraction.

But conversely, if the disruptive change of online sales is not yet completed in the short term, it is wrong for a physical store to sit back and relax. The integration of online and offline businesses is bound to be an inevitable trend.

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< p > < strong > online "irrational" suppression < a href= "http://www.91se91.com/news/" > O2O < /a > fusion process < /strong > /p >

< p > China Business Daily: the industry believes that O2O integration is an inevitable trend. The key is how traditional enterprises choose to merge.

Including the examples of success we have not seen so far.

In your opinion, what's wrong with their failure? < /p >

< p > Zhou Meng: no matter what kind of O2O mode, it can not be avoided: the flow of people under the line is down, and some people on the line have been shunted to live under the line.

The core issue of O2O cooperation is how to make consumers' demands through the integration of online and offline businesses, so that the number and demand of consumers in the same enterprise have not declined.

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< p > I think the convergence of O2O online and offline will become more rational.

After the listing of Jingdong, the requirements for return on earnings of listed companies determine their sales pattern, especially in pricing, which will be under pressure from investors.

After online pricing returns to rationality, the industry itself will have some changes in online sales and online expectations, and the whole industry is expected to return to reason.

The return of the electricity supplier to the entity should be good for the whole retail entity, but the challenge still exists on the line. If the electricity supplier returns to reason, the company can do well, which means that through the "life and death threshold", it can survive forever and challenge the entity retailer even more.

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< p > < strong > < /strong > < strong > < /strong > < strong > China Business Daily: how is the five-star electrical appliance business progresses? < /strong > /p >

< p > Zhou Meng: Five Star Appliance online business includes its own official mall 5star.cn and flagship store opened on Tmall and other platforms.

At present, we are in the early stage of the development of electronic commerce.

We are now going through a small test, and it will take some time for large-scale promotion.

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< p > China Business Daily: the industry will always compare the Five Star appliances with Suning and Gome. The current online business ranking is in the top ten of the sunning cloud business. Will the time of the five star electric power power supplier be slightly slower? < /p >

< p > Zhou Meng: personally, it's not too late.

There is still a slight difference between the gradual development of China's electricity providers and foreign electricity providers. The Chinese electricity supplier has the savage growth flavor. By violating the commercial law, and expanding the market share below the cost price, it quickly squeezed its peers through VC and PE investment.

Five Star appliances, as a subsidiary of best buy, is a listed company after all.

It seems that online sales are limited for the time being, but at the same time, they can avoid many twists and turns. From the current online exploration of physical retailing, O2O has not yet seen one successful case.

With the development of technology, we can directly save some of our input as a forerunner. For example, the emergence of cloud services can save our IT investment a lot of money.

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< p > China Business Daily: the industry believes that by the end of 2013, the opportunity to build its own official website B2C has disappeared, but most traditional enterprises are still entering the Internet in this way. The five-star e-commerce business has built official website, and has also worked with Tmall.

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< p > Zhou Meng: from the purely practical benefits, we rely more heavily on the shops that sell on the big platforms, because there are plenty of passenger flows in the platform itself.

Official website positioning is more in brand marketing and marketing, and has not deliberately spent a lot of costs to drain.

The relationship between them is similar to the difference between opening a shop in a shopping mall and opening an independent shop on the street.

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< p > China Business Daily: however, the deeper the cooperation between physical retailers and platform traders, the more they are trapped and living on their own, and the cost of platform drainage is very expensive and rising.

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< p > Zhou Meng: containment and game are mutual.

Just like the relationship between shopping centers and tenants, physical retailers can choose a lot of cooperation partners, and the platform has many choices, which provides competitive relationship.

The core problem is that physical retailers, regardless of which platform, sell their own businesses and become leading enterprises, and platforms should also rely heavily on them.

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< p > the main cost of electricity supplier is two: Drainage cost (advertising) and logistics cost; the fatal cost of offline businesses is manpower and store rent.

Put the two in one piece, and the most cost difference is two or three points.

E-commerce is still in the state tax and invoices are not regular up to take advantage of cheap.

If the electricity supplier levies taxes, the cost of electricity providers may still be higher than those under the line.

Why does O2O have practical inevitability? After the online and offline enterprise cooperation O2O, the offline enterprises can help solve the logistics cost online, and online can alleviate the rent and labor costs of the enterprises under the line, and the cooperation between them is economically reasonable.

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< p > China Commercial Daily: in the industry, it is a false proposition that O2O is not equal to the price on line.

But in the same practice as the Suining line, it is difficult to push forward in the same price practice. What is the bottleneck? < /p >

< p > Zhou Meng: the complexity and operational difficulty of online and offline parity are objective.

The online business is still irrational competition. If a real entity is playing a game with an irrational person online and offline, the damage to the gross profit of the entity store is enormous.

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< p > < strong > the next round of retail competition is "efficiency" < /strong > /p >

< p > China Business Daily: before the Gome, Suning and five-star were the size of the stores, they are outlets, but now everyone is closing up. What is the new growth point in the next round of retail competition? < /p >

< p > Zhou Meng: the most important thing is to fight efficiency. Physical retailers are closing down inefficient stores. Online drainage is a part of the desire to share part of the online low to instinct and fight against each other online and offline. But the growth of the industry as a whole is certainly not the first ten years of high growth.

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< p > five stars focus on being the most efficient retail service provider. Our development is not higher investment and higher cost, but more is learning how to operate meticulous.

For example, some time ago, I took a team to see the retail industry in Hongkong, learning how to live in Hongkong's retail industry, and more emphasis on the efficiency of space management, as well as the efficiency of commodity display and marketing.

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< p > China Business Daily: what are the strategic plans and the key points of regional layout of the next five star electric appliance line? < /p >

< p > Zhou Meng: there is no upper limit or lower limit. Every shop I request is a valid store.

Effective stores mean that they can make money in 1 years and recover their investment within 3 years.

There are about 10 stores planned for this year.

As for the region, there are good places to make money, and roughly 7 new provinces will be selected in the current chain.

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< p > China Business Daily: under the online environment, five-star electric appliances are regional retailers who are strong and big in the region. In the future borderline market pattern that integrates online and offline, is there a new way to expand or change this positioning? < /p >

< p > Zhou Meng: at present, physical retailing does not lie in opening many stores and fast, but more importantly, how to make fine management and return to the essence of retailing.

Today, most of the hard people in the physical retail industry regard the electricity supplier as the "first threat", but we ignore two points: first, the slaughter and vicious competition between the retail entities themselves; second, the retail business itself is far from enough to manage and upgrade the quality of its operations.

It is not enough to talk about how to hold together and keep warm. But in the vicious competition of killing each other and killing each other, we should think rationally and work together.

Especially in the field of home appliance retail expansion, such as grabbing the land, everyone raises their prices, loses their sense, and signs a high lease. As a result, every household has bad results and needs to close.

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< p > < strong > /strong > China Business Daily: what is your judgement on the following retail consumer market this year? < /p >

< p > Zhou Meng: this year's retail market may still show stable and relatively prudent growth. The overall increase is relatively small, relatively difficult.

Enterprises that meet the challenges of the market will be better. The situation of enterprises that are not well prepared will be narrowed.

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< p > China Business Daily: in the past few years, the Chinese retail market will focus on the acquisition and consolidation of the big drama in the past two years. What do you think of the integration space of China's retail market? < /p >

< p > Zhou Meng: there will be some new integration, but not as fast as we can imagine.

Because China's regional differences and cultural differences are too large, each regional enterprise can survive well depending on the geographical characteristics, and the possibility and necessity of giving up will be reduced.

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