The Traditional Retail Industry Will Be Withered In The Future.

The 2014 is a good harvest year for e-commerce.

This year, Ali,

In 2014, the total turnover of "double eleven" Tmall exceeded 57 billion; as of the end of the three quarter, the size of China's electricity supplier market reached 2 trillion and 950 billion, an increase of 17.7% over the same period last year.

Correspondingly, the path of traditional retail industry is quite difficult: in the first three quarters, the growth rate of retail sales of social consumer goods was only 12.04%, reaching a new low in the past 5 years.

"Actually, we witnessed the ups and downs of China's retail market in the past year, but I don't think the economic situation is bad or the electricity supplier is too strong, but the traditional department stores are too weak. China's retail industry still has huge room for development."

Faced with unprecedented changes in consumption, CEO Daniel Chan of Yintai business group said.

Also this year, with the traditional business tycoons such as Yintai department store and Wanda Department store as representatives, the breakout and pformation of China's retail industry are taking place.

Adjust the way of thinking, adjust the way of operation, adjust the layout of the format.

This year, for the retail industry, opportunities and crises coexist. Gains and losses coexist, development and disappearance coexist, joy and anxiety coexist.

So, what is the performance of Daniel Chan and his team in the complex business situation this year? How do they know about the increasingly fierce competition in 2015? The Zhejiang online reporter interviewed CEO Daniel Chan of Yintai business group in this new phase of 2014 Zhejiang enterprises.

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Electricity providers are eating away from the traditional business of the retail market?

From 2003 to 2013, China's retail industry has gone through the golden period of ten years.

Data show that in the four fastest developing years, the average number of stores in the chain stores above designated size increased by an average of 35.1%.

Industry observers believe that the retail industry is the beneficiary of China's economic reform and opening up. It enjoys three dividends: the dividend brought by the rapid economic growth, the dividends brought by China's urbanization and the demographic dividend brought by the huge population base of China.

Today, dividends have been exhausted.

On the one hand, it seems that the successful experience of retail companies before making profits seems to be difficult to achieve again; on the other hand, it is difficult for them to work.

The rapid development has become a nightmare for many traditional department stores.

According to statistics, in 2013, 38 general merchandise retail listed companies in the A share market realized a total operating income of 431 billion 515 million yuan, and realized a net profit of 10 billion 892 million yuan.

The "double eleven" one day only Tmall and Taobao platform created a paction volume of 35 billion 19 million yuan, when Alibaba realized a net profit of 3 billion 562 million dollars, equivalent to two times the total net profit of the listed companies.

In 2014, the successful listing of Alibaba once again created an unprecedented sensation. With the increasing volume of e-commerce, many people worry that the traditional retail industry will be further eroded in the future.

Taking Yintai as an example, according to the company's semi annual report, the total sales revenue of Yintai business group in 1-6 months is 7 billion 917 million yuan, up 1.7% from the same period last year. The group's same store sales (which mean the sales of mature shops for at least one year) fell by 2.4% on average, and the profit of the parent company was 507 million yuan, down 30.7% from the 732 million yuan recorded in the same period last year.

It seems that everything is explaining the decline of traditional business.

But Daniel Chan didn't look at it this way.

"Actually, we witnessed the ups and downs of China's retail market in the past year, but I don't think the economic situation is bad or the electricity supplier is too strong, but the traditional department stores are too weak. China's retail industry still has huge room for development."

What he said is not without reason.

The implementation of the national economic restructuring strategy will focus on expanding domestic demand, especially consumer spending. CICC's research report believes that the consumer sector is still promising.

So, "practicing a unique martial arts" has become a problem before all retailers.

"We are the fastest growing industry online. At least in this industry, it is innovation and pformation, the most thinking and action.

It may be hard to say what success is, but at least you start to do it. "

Daniel Chan told reporters, "our idea is to do first.

In 2013, "double eleven" cooperated with Tmall and Taobao, and others felt that "your brain is not flooded," but the final result was our cooperation with Alibaba at the beginning of the year.

Daniel Chan's ideas are very pragmatic.

It's no use standing there without talking.

Standing on the spot will never reach the finish line. You must go forward with your legs. "

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Multi stride in the retail industry

Indeed, Yintai is running forward, and the rapid replication of shopping centers as the main force is a major focus of its change.

"In 2009, chairman Shen Guojun and a group of US executives held a meeting in Wuzhen. The Wuzhen conference was a turning point.

We have set the thread of innovation and change. "To adapt to the consumer experience and one-stop shopping needs, we focus on the development of experiential shopping centers.

Daniel Chan said.

According to the data provided by Yintai business group, there are 33 department stores and 20 shopping centers in the country, and 15 new stores in 2014, of which 10 are shopping centers.

"The two formats of department stores and shopping centers are not mutually exclusive, but we still have synergistic development within them.

In some newly developed shopping centers, there are still department stores, some of which are not obvious. This is a shopping mall on the side of the department store, but the general direction is that both sides can play their respective advantages to meet the different needs of customers.

On the other hand, the way of Yintai O2O is also continuing to explore.

In March 2014, Ali group and Yintai business group jointly announced that Ali would invest strategically in Yintai business with HK $5 billion 370 million.

The two sides will integrate the advantageous resources and construct a set of future business infrastructural systems that will open up the online and offline businesses to help promote the two-way convergence of the entity business and the Internet economy.

The two sides will also form a joint venture to speed up the construction of the system.

Daniel Chan put forward the concept of "four modernizations" on Yintai's O2O.

"I talked about Yintai's" four modernizations "before, which is a common topic before all retail businesses:" digitalization, pan channelization, platform and entertainment ".

This should be an important problem that all traditional retail enterprises need to face and solve in the so-called O2O or pan channel process.

Digitalization refers to converting the product information into a digitalized format acceptable to many platforms, that is, the "universal language" in the so-called data era. Pan channel refers to the organic vertical closed loop formed by multiple channels, such as department stores, shopping centers and Yintai networks. The platform means that Yintai will share with its peers a series of products based on the integration of online and offline thinking; "as for entertainment," Daniel Chan said, "what do we sell in the future? Apart from integration, we should bring more joy to everyone.

People, whether online or offline, do they want to buy beautiful clothes? They need to wear them out. They can't shake them in front of the computer or interact with the society. So socializing and entertaining are also our ideas.

Based on Daniel Chan's "four modernizations", Yintai has also made many substantive Explorations: launching the lotus lotus action entity to grasp the change of Chinese consumption, launch the theme of "Hello big children" in May and June, and create a "Shopping Festival in China".

According to the reporter, in 2014, the "China Shopping Festival" only sold for more than 1 billion 400 million days in six days, an increase of 13.5% over the same period in 2013, and nearly 7 million people visited the lower stores of Yintai line.

In fact, apart from Yintai, many traditional retail giants have realized that the electricity supplier is the general trend.

Just this year, Wanda combined Baidu and Tencent jointly funded the establishment of Wanda electronic commerce company. The three giants joined forces to O2O. At the same time, the big business group also launched a high-profile network of "tin dog", announcing the march into O2O.

China's offline retailing industry is trying to get rid of its superiority in the golden development period of ten years and collectively seek its own breakout and pformation.

However, the industry believes that for the traditional retail industry, O2O is in the beginning stage, "they must find the corresponding business mode, in order to achieve the smooth layout of O2O.

Many enterprises blindly copy other enterprise's mode, which is doomed to be a no return road. After all, O2O should tailor itself according to its own situation, which is the biggest challenge of layout O2O. "

Daniel Chan also said that whether it is the development of department stores to shopping centers or the development of shopping centers to the electronic business, these are just means. "Our aim is to serve customers first and adapt to the changing needs of consumers.

We feel that we have changed a lot in recent years because consumers are also changing a lot. We still keep up with demand. "

As Ito, three foreign trade hall in Chengdu, said in the new year's speech, the retail industry is an industry that makes customers happy. Tomorrow's answer lies in the hands of customers.

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Review 2014

In March, Yintai Business joined hands with Alibaba. The two sides planned to work together to build a joint venture to launch the O2O product "Yintai Bao".

In August, Yintai business was selected to be the top 500 of China's 2014 private enterprises and the top 100 of China's private enterprise service industry.

In September, the first business of Yintai business was fully connected to Baidu BaiduEye and co operated and explored in the field of intelligent business.

In November, Yintai launched an initiative for China's retail industry. It shared the theme of "China Shopping Festival" from November 11th to November 16th, and announced that "Yintai Bao" was open to the industry and advocated the integration and sharing of industries.

At the beginning of October, Yintai business and associated business network jointly launched and joined the national regional retailers to launch a joint big promotion on November 11th -16 to create the Chinese Shopping Festival.

Annual speech

O2O is a vertical closed loop, not who depends on who is a two-way flow. O2O should not simply be online to offline, nor should it be simply offline to online.

Online and offline is a world, indivisible, should be a two-way flow of closed-loop, that is, "okay to okay".

"Four modernizations"