Retail Industry: Traffic Thinking Will Replace Sales Thinking

Ten thousand goods store mode is coming to an end

Reporter: from the current situation of global industrial development, whether the online retail giant such as Amazon or the offline retail entities such as best buy and Yamada electric are inevitably trapped in the doldrums of performance downturn, or revenue decline or sustained losses. How do we view this industry change?

Luo Qingqi: This shows the end of an era, or a kind of thinking, that is, the end of "selling" thinking, or even more.

When it comes to this topic, we can not avoid the changes brought by the Internet to the whole industry. There is no doubt that the difficulties faced by most enterprises are related to the arrival of the Internet age to a large extent. In the traditional era, retail enterprises can develop into "store" stores, but in the Internet era, the value of retail enterprises has changed from traditional sales to operational relationships, which is the sum total of the value system provided by enterprises, or the frequency and scope associated with users.

Generally speaking, we say that the Internet's biggest subversion to the industrial economy is openness, which is imposed on the retail industry, which is the degree of satisfaction and responsiveness to user needs. From the traditional era to the Internet age, this is a process of user awakening, or a process of rapid expansion of users' sense of self existence. Users need enterprises to change according to their needs (including product demand, purchase channel needs and distribution experience needs), because users' needs have been visually presented in front of enterprises. Therefore, to abandon the factors of global market change, the current development dilemma of the global retail industry is actually a natural feedback that does not adapt to the change of users' needs. It is urgent to upgrade from the current sales thinking to flow thinking.

Endurance and speed determine the future of an enterprise

Reporter: in the Chinese market, retail enterprises are breaking the line and offline. The whole market is becoming more and more clearly divided into enterprises with declining performance and enterprises with stable performance like Gome. What does this differentiation mean?

Luo Qingqi: Nowadays, the competition of the retail industry should be regarded as an endurance war and a speed war. The endurance war is the competition of the enterprise comprehensive operation system, and the speed war is the speed that the competition enterprise responds to the change of user demand.

　　 Internet The development of the retail industry has changed the development of the entire retail industry. This is beyond doubt, but this effect has certain limitations, and this limitation has been reflected more in the category of products. The current reality of an industry is that the electricity supplier has more advantages in meeting users' demand for small products, including clothing. In the field of household appliances, the whole channel enterprises with offline stores still have unparalleled advantages. In essence, this advantage is a personal value package, covering the comprehensive experience of products, logistics and services.

Industrial reality is true, but the root cause of the differentiation of performance is the difference of its own operation system, that is, the difference between "Endurance" and "speed". In endurance, the enterprise needs to make the strategic adjustment of the original operation system, on the one hand, to grasp the visual user data information, and to adjust the strategic direction based on this. On the other hand, we need to extend the "antennae" according to the needs of the user, where to realize the demand and where the retail is.

In terms of speed, in fact, more is the speed of strategic implementation and the speed of user experience optimization.

　　 Be divorced from user The scale of enterprises is meaningless.

Reporter: in the context of the current retail industry spanformation, how do you view the future industrial development pattern?

　　 Luo Qing Qi In fact, the industrial development pattern is not an isolated existence, but an external embodiment of essential strength. For enterprises, this essential force is actually embodied in the development strategy, which determines the future of the enterprise.

Of course, this is not a denial of the role of scale in the development of enterprises. After all, the decisive force of the whole industry has changed. The scale of enterprises can certainly decide the economy, but more importantly, whether the economy of the enterprise can be combined with the needs of users and to talk about the economy from the needs of users is undoubtedly "picking up the sesame and losing the watermelon", ignoring the main contradiction. From this point of view, the future industrial structure is certainly not formed by enterprise dominance, but a manifestation of user choice. Therefore, the dominant advantage in the market, such as Gome, which has both economies of scale and fast user satisfaction, will continue to emerge.