China'S Physical Stores Face Crisis Of Survival And Extinction

From the physical shops to online stores, the wave of great changes in the retail industry is hitting China.

The electricity supplier represented by Alibaba has been developing rapidly, and the lack of competitive entity shops has fallen into a lot of difficulties.

Reported that the rapid development of China's electricity supplier enterprises is due to the physical shop's business model has not changed.

The report is entitled "the crisis of existence and existence of Chinese real shops".

From the physical shops to online stores, the wave of great changes in the retail industry is hitting China.

The electricity supplier represented by Alibaba has been developing rapidly. It has long been pointed out that the lack of competitive entity shops has fallen into a lot of difficulties.

The latter calls for greater restrictions on electricity providers, and the competition between the old and new economies that the government is in is likely to become increasingly fierce.

"This is near death."

Wang Ning, shaking his head, looked at empty shops and tattered promotional posters in the shopping mall "Hailong Electronics City" in downtown Beijing.

Wang Ning's shop sells electronic machines and hasn't sold one product in the past week.

Wang Ning said, "there are more salesmen in the electronic city than customers, because now is the era of shopping online."

"Hailong Electronic City" was once the most bustling shopping street in Zhongguancun, known for its Silicon Valley of China.

But now most of the shops have shutter doors closed.

They have become victims of the rise of e-commerce such as Alibaba and Jingdong mall.

Zhongguancun as Jingdong mall and other electricity providers entrepreneurial place, it can be said to be a historical irony.

This phenomenon is not confined to Beijing.

Guangdong's newspaper reported last December that Guangzhou was dominated by clothing, and at least 500 wholesale markets were facing a crisis of survival.

It is also reported that China's real estate developer Dalian Wanda Group plans to close 10 shopping centers nationwide and reduce the size of 25 retail shopping malls.

Lining, a Chinese sporting goods manufacturer, has closed more than 1000 direct selling stores since 2012, and expects to lose three consecutive quarters.

Anta sporting goods company, which produces sports shoes and other products, has also fallen into the closing of some shops. Competition from online shopping is one of the reasons.

The pformation from physical shops to online shopping not only has a great impact on the performance of enterprises, but also has a serious impact on productivity and the labor market.

According to an American company, the Internet revolution will contribute to China's highest productivity by 22% before 2025, and create 46 million jobs.

But on the other hand, it may lose 31 million traditional jobs, which is equivalent to the total number of employment in the UK.

Director of China e-business paction Research Center

It is believed that although this kind of creative destruction is a global phenomenon, this phenomenon is developing in China at an unparalleled speed and scale.

Cao Lei predicted that the bookstore will be closed first, followed by

Chain stores, household appliances stores and air tickets are closed, and branches of banks may also be affected in the future.

When Liu Qiangdong founded Jingdong mall in 1998, the number of netizens in China was only about 2 million 100 thousand, but by the end of June 2014, it had increased to 632 million.

The reason for the rapid development of e-commerce enterprises is

Shop management mode has not changed.

"The traditional retail network in the United States has a solid foundation," said Jingdong public relations public relations. "Chinese consumers have had to take advantage of the entity shops that are lagging behind the times and inefficient.

Consumers will choose better services. "

Alibaba public relations personage also said: "China's retail sector has not been fully developed, and is in a state of war."

Physical shops are getting more anxious.

Beverage manufacturers, leaders of comprehensive enterprises operating chain stores, and China's fifth richest man, micro-blog, said at a conference last August that the oppression of the electricity providers had to pay wages, which had an impact on China's economic security.

Government departments should strengthen the supervision of electricity suppliers.

"Conflicts between the old and new economies may intensify," said Ouyang Rihui, vice president of the Internet Economics Research Institute of Central University of Finance and Economics.

He predicted that the new economy will win in the end.