Where Is The Cross Border Advantage Of The Entity Store?

The rise of the electricity supplier has led to a decline in sales of physical stores. In fact, what is the essence of competition between online stores and physical stores? Rather than cost-effective competition, it is easier to compete. It is obvious that the Internet provides a cheaper and more convenient shopping platform. Even when the stores fail to see consumers, consumers have been kidnapped by online stores.

Under such circumstances, it is more difficult for a physical store to pull back a game.

But many advantages of physical stores are unique, such as experience, instant consumption (immediately owned), visibility on the ground (local market brand effect).

The assets are relatively heavy.

But because of this, in terms of technology and cost, "entity store + Internet" is much easier to achieve than "Internet + physical store".

It is much more difficult for an online store to open 100 entity stores online and form O2O than 100 stores to add a website to form O2O.

This is also the reason why suning.com [micro-blog] is more successful than the following.

No matter "Internet +" or "+ Internet", there are three difficulties in building O2O business model with entity store as the bottom line: 1. store cost; 2. line customer source; 3. product price performance ratio.

The key points are second points.

If we can solve the second problem, we can have a higher tolerance on the cost of building a store, and build a cost-effective product.

Obviously, not everyone is a local tyrant. They can throw thousands of gold like Shun Feng.

Is there a set of methods that can achieve low cost, fast construction and store establishment, that is, high quality customer protection, and obvious advantages in operating costs?

After our exploration, we think there is.

That is: cross border integration, scene renewal, chain operation and compound profit.

Import commodities, for example

The industry is growing very fast now, but the cost of each franchised store is very high. The source of passengers should be accumulated from 0 and the risk of operation is also great.

The auto beauty (washing car shop) industry has become a red sea because of oversupply. More than 80% of the car wash shops have difficulty in operation and have strong desire for pformation.

The two industries have the same target customers.

If we integrate the two, we will pform the existing car wash shop with a better source base into a compatible car wash business.

Shops allow consumers to pick up their cars when they wash their cars.

Online shops have the ability to appear in front of customers in the first place, and pboundary shops that directly pform different industries to customers have the ability to appear before customers before they find the goods.

My personal experience has proved that changing faces will not become a barrier to traditional businesses who are struggling to survive. Cross-border operations have significantly increased the total sales and profits of stores and reduced the operating costs of individual sectors.

The two plates promote passenger flow, and significantly increase the total volume of passenger flow, so that the two plates have established a more obvious competitive advantage than the franchise mode.

Can cross boundary integration turn from 2 to N? This is also a topic worth studying.

Choose an industry that has the same customer base as its own business and integrate it into a cross-border store.

Integrated objects need to have the following conditions: 1. products and services are just needed, just need to gather customers; 2., competition is fierce, survival is difficult, change desire is strong; 3. target customers are the same, business scenarios (such as street shops, office buildings or factories) are also the same or compatible; 4., two kinds of businesses develop without conflict at the same time, but also enhance the customer experience; 5., the update of the scene will not affect the original business traffic.

If this integration is well designed, it is possible to form an unlimited extension of imagination.

Of course, becoming an excellent integrator does not mean that it can become the beneficiary of integration.

This involves the topic of core competence in its links.

This is another heavy topic for the sales industry.