O2O Path: The Dog Is Standing On The Physical Retail Side.
In 2014, the pformation of the entity retailer's electricity supplier came one after another.
From the flying bull network of the supermarket giant giant RFA, to the cloud monkey network of regional retail giant BBK, as if overnight, the whole entity retail industry has been moved to the Internet.
In November 8th, the O2O e-commerce platform, heavenly dog net, which was the largest department store group in China, was also quietly online after a year of preparation.
So far, the retail giants in the Chinese market, apart from Huarun and Carrefour, have opened an electronic commerce tour.
On the evening of November 13th, Liu Sijun, general manager of the big business group, vice president and vice president of Tencent, told Tencent financial and telephone interview that "big business group develops O2O electricity supplier more pragmatically and does not want to start a bigger platform from the beginning. Instead, it hopes to serve the existing retail entities of DQ group and its business stock of 170 billion yuan."
In fact, it is different from the platform based mode of the existing entity retail water test providers.
Then, what are the reasons for the big business group's efforts to push the electricity supplier strategy? How is the practice and path of tin dog network planned?
entity
Retail
Embarrassment
The latest wave of "Internet" in the physical retailing industry is known as the "entity retailer being rushed online".
Just two days before the official launch of the tin dog network, Huarun Wanjie CEO Hong Jie told Tencent financial interview that due to the impact of electricity providers and mobile providers, the industry is in need of pformation. In early 2015, Huarun will also test the water business model.
The big business group, Huarun Wanjia, and RT mart, together with Gome and Suning, who pioneered the test of water business before, these five enterprises are the most important industry leaders of the retail industry in China in the past. They also represent the direction of the development of the physical retail industry.
Today, the industry giants have gathered in the field of electricity providers. What are the reasons behind them?
Liu Sijun, a co-founder of Dunhuang network and who has served in Wanda Group and Jingdong group, believes that in the era of channel dominance, physical retailing is extremely backward in the management of retail business. This degradation of management has led to the fact that physical retailers are less familiar with commodities and consumers.
Hong Jie also expressed the same view in explaining the framework of Huarun 10000 electric business.
Hong Jie believes that many physical retailers have lagged behind the construction of the background supply chain and the stickiness of the sellers. This has led to the fact that the traditional Internet business competition for consumers has become quite easy.
"I often hear shop owners complain that stores do not sell promotions and do not advertise."
Liu Sijun said, if this happens, the total sales will shrink, and for retailers, there will be no profit without sales.
The embarrassing situation of physical retailing also occurs in the big business group.
According to the data provided by DAC, the overall annual revenue of the group in 2013 was 150 billion yuan, and the data will rise to 170 billion yuan in 2014.
Behind the growth of group data, the three quarterly report of DQ group, a listed company of DAC, showed that the company's operating income in the first three quarters decreased by 3.77% to 24 billion 436 million yuan in the first three quarters of 2014.
CICC cites data showing that in the first three quarters of 2014, the top 50 retail sales in the top 50 grew by 0.8%.
Revitalize 170 billion yuan
stock
Faced with the decline of growth, DAC decided to regain the retail industry and strengthen fine management.
In October 28th, the three quarterly report released by DQ shares showed that although the year-on-year sales showed a downward trend, the net profit of the company increased by 11.02% to 1 billion 30 million yuan over the same period.
All this is due to the intensive and meticulous management of DAC.
In the chess game where the big business group restores its retail industry, Liu Sijun thinks that the meaning of "tin dog network" is outstanding.
Liu Sijun said that since less than a week on the line, the network has already had more than 400 thousand members, and at the same time, the average conversion rate has reached more than 10% per day, which is higher than the average conversion rate of 2% of traditional electricity providers.
The reason for this achievement is that Liu Sijun thinks that the tin dog network is defined as the service entity retailer.
At present, most of the about 400000 members of the tin dog network are pformed from the original members of the big business group.
"From the perspective of conversion rate, many consumers have higher loyalty to our stores. At the same time, Tian can provide value-added services such as distribution, discount and so on. Therefore, we have higher conversion rate than traditional electricity providers."
According to the data provided by DAC, the company has more than 200 stores in 14 provinces and over 70 cities in the country. It receives 500 million customers a year, nearly 300 thousand kinds of commodities, and has more than 17 million members.
regression
retail
Essential path
In Liu Sijun's view, with the electricity business game, physical retailers can catch up.
Compared with traditional electricity providers, physical retailers lack the quality of single product and informatization, and the essence of retailing management has not changed.
Liu Sijun said that passing on the technology of electric business can help the entity retailers make up these two parts.
In helping entities to strengthen the single product and information technology, Liu Sijun, for example, said that in the past, the sale of 100 stores would not track the shopping habits of single products and consumers, and what clothes consumers had tried would not be recorded.
And tin can help the big business group to do this step. In that case, DAC can do accurate customer data analysis, so as to help enterprises further shelf management and commodity reconstruction.
In fact, in the operation of physical stores, the enhancement of flat output has always been a goal pursued by physical retailers.
Liu Sijun said, "through the data analysis of tin dog network, we will make certain consumer goods and price sensitive goods in the Internet store in the physical store. At the same time, we will sell products that are not profitable in the store to Tian dog online, so that we can make room for higher value goods for the physical store, so as to achieve the goal of increasing the efficiency of the physical store.
Of course, tin dog network will also share information with suppliers to achieve the goal of win-win.
However, it is not easy to pfer all the members of DQ group to the tin dog network, and it can not be accomplished overnight.
In this regard, Liu Sijun said, in the big business group, in addition to the increase in the infrastructure of the store's wireless internet access function, but also to the store manager put forward to encourage consumers to go shopping online assessment index, in addition, for consumers, tin dog network will also launch targeted preferential services, all of which will have a certain effect.
Although there are many challenges from the path, the big business group has set the goal of the next four years for the tin dog network.
Liu Sijun said, "tin dog network is planning to build a public electronic business platform, for the entire Chinese retail industry to export the system, management system and operation system of tin dog network, so that tin dog network is born in big business, and not only serves big business."
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