He Jinming: O2O Transformation Needs To Break Traditional Thinking

China's retail industry has entered an important turning stage. The world retailing industry can be divided into three stages. The first stage is the age of manufacturers, because the productive forces are not developed and the products are short.

The second stage is the channel of the first ten years as the king era. Because of the high development of productive forces, a large number of products, who can occupy the channel and deliver these products to customers most quickly, who can occupy the whole market, and this era is still dominated by retailers. This will also lead to strong retailers and weak suppliers.

But since 2009, the market has undergone a major turning point, that is, the emergence of electricity providers and the emergence of full channels. At this stage, the phenomenon of retailers being king has been slowly diluted, and retailers' dominance has been gradually weakened in the market. This time should be the era of customers as king, because customers can be more selective. In the past, only traditional retail channels, now is a three-dimensional retail channel. The sky, underground, mobile, PC, the Internet are all available, and the purchase time is 24 hours, and can be bought at night, so the traditional store concept of retailers is weakened. After the coming of this era, I think retailers will be eliminated if they still hold their traditional thinking and do not change their retail formats.

In the transition period, the concept of O2O is being said, but how to do it is a real problem, because so far there is no O2O successful mode. So at this time, I think all strategies and thinking must be based on the strategy of strengthening strengths and circumvent weaknesses. A simple example is that in the past, traditional retailers used motorcycles, which were mainly enclosures and shops at that time, but now the cost of opening stores is huge and the market incubation period is longer. The fast opening strategy is not desirable for traditional retailers nowadays.

Everyone began to implement at the beginning of last year. O2O Strategy, which is precisely the fourth five year strategy implemented by the company, we should also consider how to take this strategic transformation. There are four formats of people's happiness, corresponding to four business units, namely, the sales department, the Department Store Department, the shopping center business department and the online shopping department. These four departments think that the first three must be gradually transformed in the original traditional mode, and the O2O online shopping department must rely on the advantages of the existing stores. So what are our strengths? In fact, the core of e-commerce is logistics, and the difficulty is also in logistics. In 2007, people began to grasp the logistics construction, and built 200 thousand square meters of large logistics centers, including traditional stores and distribution warehouses, as well as fresh centralized central processing and centralized storage of fresh warehouses.

These four big Logistics Centre About 1 billion 600 million yuan. Our listed capital is mainly used for building logistics. Of course, after the completion of the logistics center, the cost of operation has risen sharply. It will sacrifice short-term performance, but the company still insists on doing it. In the long run, the construction of the four logistics centers will be very advantageous after the completion of the construction. For example, there are no stores in the stores, and the rate of shortage and loss of commodities has dropped significantly. More than 90% of the goods in the area can be centrally delivered. There is also a cold chain system, which will be held by the end of next year. Equipment The 120 cold chain fresh distribution vehicles will achieve full cold chain distribution in the regions of North, southwest, and Northwest China. The farthest distribution distance can reach more than 1000 kilometers, so that the advantages of centralized fresh purchasing will gradually appear.

The company's O2O business unit was established at the beginning of last year, and it achieved about 10000000 yuan sales by the end of the year. This shows that it is a "motorcycle". Only the online shopping department can run very fast. The online shopping department should be the integration platform of O2O in the late stage of people's enjoyment, and then combine the advantages of the store and the advantages of logistics and distribution to develop in an all-round way. For small and medium retailers, retailers must boldly explore ahead, because the market is changing rapidly. Once we miss the opportunity, we regret it is too late.