The Physical Retail Industry Is Changing Into A "Leftover" Era.

Practicing internal strength is fundamental

"Cold" is an obvious portrayal of the retail industry in 2014.

According to the statistics of major retail enterprises in the first half of 2014, the main retail enterprises (excluding home appliances and appliances) closed 158 stores in the first half of 2014, far exceeding the number of 35 stores in 2013.

In 2013, it was also the first year in the industry survey of China Chain Association.

Even with the introduction of a large amount of preferential sales promotion activities, most retailers still have to face the severe test of how to complete the established sales target under the electricity supplier.

The grim fact of "cold" has prompted many retailers to make changes. BBK invested in cloud monkey, Yonghui supermarket in Fuzhou's 8 stores to test micro stores, Huarun Wan also plans to re launch electricity providers early next year.

A lot of retailers have invested heavily in O2O to fight against the decline of retail industry. A notable fact is that there are no special cases of O2O in physical retail pformation, including the big tycoons such as Suning and Wangfujing.

According to a survey conducted by the China Chain Store Association in August this year, 67 enterprises in the top 100 chain companies launched the business of electric business, but 56% of them sold less than ten million online in 2013.

73% of the top 100 companies have opened the official WeChat, but the number of subscribers of the 80% enterprises WeChat is less than 50 thousand, which is very insignificant compared with the customers of millions of tens of millions of customers.

When the performance of the entity is poor, and the pformation of the whole channel is becoming more and more intense, it is still the foundation to build a store and improve its own advantages. Therefore, Guo Geping proposes to take the wisdom retail and embrace the new consumption era.

Guo Geping thinks, "wisdom retail" basically includes consumer, store and supply chain three levels.

On the consumer side, the Internet gives consumers more rights, including large data collection for specific needs of consumers. Smart retailing enables enterprises to more effectively acquire customer data, link customers more, and improve customer stickiness and loyalty.

Retail entities can strengthen the management of members, better develop and maintain their customer data, and use their membership system to get data on customer consumption behavior; stores are not just selling goods, but also focusing on experience; and supply chain should also focus on efficiency.

Smart retailing is dazzling and colorful at the front end, but it should be more sober and meticulous in the background.

When the growth of sales in the industry is declining and the price war of electronic commerce is coming and going, it is necessary to practise the basic skills so as to be able to fight back better.

Many enterprises are also aware of this. In the use of membership data, Huarun launched a big upgrade campaign for members, at the expense of rebuilding the 17 million member system. Carrefour also introduced Carrefour one card attached card, which is universal.

From the data and drainage aspects of customers, BBK Group Chairman Wang Tian also plans to invest one billion in three years to create one hundred million users.

Wanda found that children's theme stores and boutique supermarkets are becoming new growth points of main stores through big data analysis. Through big data analysis, Wanda can accurately portray "consumer portraits" reflecting consumer's consumption characteristics, including their consumption routes, preferences and so on.

With the analysis and classification of these data, Wanda can provide brand businesses with precise marketing push triggered by factors such as time, related consumption and geographical location.

In building the internal strength of supply chain, Jia Jia Yue is a leading enterprise in the industry.

Jia Jia Yue Wang Peihuan, chairman of the board of directors, said that in recent years, the first step is to reduce the intermediate links, directly purchase from the manufacturers, classify the suppliers, the proportion of direct purchase from the factory has reached 83%, and create their own brands, because China is now in the era of overproduction, and the export of foreign trade enterprises has been greatly affected. Now, there are very good opportunities to make private brands in China, and now the sales of its own brands reach 13%.

In terms of fresh products, Jia Jia Yue has been insisting on achieving direct sourcing at the source. They have implemented base procurement and traded directly with farmers instead of wholesalers, in order to reduce costs and losses and reduce intermediate links.

In the past, the procurement of Jia Jia Yue was always a point to point negotiation. Now they adopt the practice of big base and increase output in the best place of origin.

Usually, Jia Jia Yue will manage the order form with the growers at the beginning of the year, and control their production process. For example, Jia Jia Yue has a grape base in Wenzhou. This place is very suitable for grape growth and tastes good.

But the grape yield of this plantation initially was large, but the quality was poor.

Jia Jia Yue signed a contract with the plantation for 5 years, specialized training for it, lowered the unit output, improved the taste and quality, and finally brought up the price of the product.

Today, the original more than 300 mu orchard has developed to a large base of more than 2000 mu.

Five Star appliances also rely on customer experience to maintain better sales performance, and when the appliance platform rises, it does not give in.

Jingxing, vice president of Jiangsu Five Star Electrical Appliance Co., Ltd. introduced five star electric appliances business mode from traditional "business site" to "operating commodity", and took the initiative to meet the electricity supplier. Through the adjustment of commodity structure, increasing the innovation of the proportion of characteristic commodities and self operated commodities, we gained profits and sucked the passenger flow.

Five Star appliances first upgraded in image, and its new flagship store opened in Xinjiekou, Yangzhou, Nanjing stone tower and Nantong South Street. It adopts a brand new LOGO, and its corporate color is bright blue. It is named BIG BLUE blue flagship store.

Of course, image is only external, and commodity is the foundation.

The flagship store also listed commodity innovation as "key Mr.", and the main force attacked the 3C and small appliances categories that were more impacted by the electricity supplier. The differentiated commodity strategy based on high-end import electrical appliances, health appliances and fashion tide cards was determined to deal with the homogenization competition.

At the same time, the new products also refer to Jingdong and other core electricity pricing from the price strategy. More than 95% of the SKU price is lower than or flat online price, group goods satisfaction rate, order fulfillment rate is over 98%.

These new products have greatly driven the passenger flow of five-star electric appliances, and have also explored new profit growth points.

Convenience store outlook

"At present, the convenience store is the whole.

The most favored ones are the ones that are most confident.

Pei Liang, Secretary General of China Chain Association, said.

In 2014, the China Chain Store Association and the Research Report on "2014 China convenience store development" jointly compiled by Nomura Research (Shanghai) Consulting Co., Ltd. showed that in 2013, China's retail industry continued to suffer from double pressures of slowing economic growth and rising costs. The total sales volume of 100 enterprises in the 100 enterprises grew by 9.6% overall, while that of large supermarkets and supermarkets was only 8.7%. The growth rate of convenience stores was mainly represented by 18.2% of the sales growth rate of enterprises, ranking the highest in the whole retail industry.

The rise of convenience stores has a direct bearing on the growing trend of Chinese urban consumers in pursuit of high quality and convenient consumption.

According to a questionnaire survey conducted by the Nomura Institute in July 2014 for urban consumers in 3 countries in China, Japan and the United States, the proportion of consumers in China is always the lowest, and the price is always cheaper and cheaper. "Even if the price is more expensive, the proportion of goods or services that are convenient to choose" is slightly higher than that of Japan.

Consumers save more time for shopping and eating out, and spend more time on leisure and entertainment. The convenience store service just suits the needs of consumers.

President three house Xiu Xiu believes that Rosen's rapid development in China is mainly based on three facilitation: the convenience of time, the convenience of safety and the convenience of commodities.

For example, what customers need after entering the store can be found, and when they check out, they can immediately go to the counter to settle accounts.

Now in Jiangyin, Jiangsu Province, Rosen opened shop in August this year, and its sales day is 6 times the average daily sales of local convenience stores, so far it is still 3~4 times.

In this city, Rosen's target is 10 stores in the year.

At the same time, many convenience store enterprises have also carried out some attempts to adjust and expand their services, including pforming their stores, strengthening their shopping experience, integrating online and offline businesses, extending the service of the stores, and strengthening the service projects in the community, so as to enhance the service ability of the convenience stores and improve their sales performance.

The 365 convenience store of Hebei Dalian lock commerce Co., Ltd. has 400 convenience stores in Hebei, mainly marketing activities in Shijiazhuang and Tangshan.

In 2013, they found that the main consumers of convenience stores were mainly young people and white-collar workers. Their access to information had changed from original planarization to full channelization. In 2013, July, the public platform of WeChat was established. At the same time, visitors were encouraged to join WeChat through the platform of stores. They also launched activities such as fan meeting and so on, and went out to the shopping malls and offices for WeChat's promotion, including cooperation with universities.

During last year's Mid Autumn Festival, Thanksgiving Day and Christmas, fans participated more than 30%. At the end of November last year, WeChat fans broke 100 thousand.

At the same time, with the rapid development, the emerging convenience stores also encounter various development problems, such as the strengthening of fast food. On the one hand, the definition of the industry is relatively vague, and the provisions on food safety are not suitable for the convenience store.

There are many administrative barriers and regional barriers in terms of service content and project growth.

There are many departments involved in the increase of service items, and the examination and approval procedures are also cumbersome.

In addition, the pressure of rising labor costs is unavoidable.

The Chinese Chain Store Association recently conducted a survey and analysis of the operation of 24 convenience store businesses. The results show that compared with 2012, the average gross profit margin of all enterprises increased by 0.67%, the average single store sales increased by 2.3%, while the ratio of all costs increased by 8.2%, and the growth of cost was much higher than that of sales.

The future of convenience stores is unlimited, but challenges remain heavy.

"In today's changing consumer behavior in China, a better understanding of consumer psychology, including where they shop, how to shop, and how to make purchase decisions, is crucial for retailers and producers."

Nelson, vice president of China, has said.

Following the continuous "closing shop boom" in the first half of 2014, negative growth began to be a major problem that plagued the retail industry.

According to Wind statistics, as of October 29th, 88 retail businesses announced the three quarterly report in 2014, of which 31 business retail enterprises net profit fell, accounting for 35%.

The journalist launched a survey to the heads of dozens of retail enterprises. More than half of the executives said that the sales of golden week decreased compared with the same period in 2013. About 30% of the enterprises maintained stable or slight growth (the main growth came from new stores), while less than 10% of the enterprises indicated that the rally was obvious.

"National Day sales decision"