Jing Linbo Talking About The Influence Of Internet On Retailing Industry

In recent years

Continuously hot, and constantly create a retail miracle.

The Internet is bringing revolutionary opportunities to the development of the retail industry. The growth rate of online retailing is shocking, both in the past two years or in the first half of the year.

It is foreseeable that the retail industry will make use of the Internet to achieve a new leap.

At present, online retailing mainly has the following characteristics and trends: first, scale, scale is the rapid growth of total volume of pactions, Internet users, and mobile phone users. At present, China's online retail sales have exceeded 10% of the total retail sales, and Internet users and mobile users are ranked number one in the world.

The second is the trend of platform.

Both B2C and B2B are platform oriented.

Alibaba is moving towards platform; B2C is represented by Jingdong and Suning, and these B2C are also moving towards platform.

The third is the trend of mobility.

Some people say that the mobile e-commerce provider represented by Tencent is today's e-commerce.

This makes sense.

Globally, people who use toothbrushes today are less than those who use mobile phones. This objective reality is bound to cause future mobile businesses to gradually replace the existing traditional electricity providers.

The last point is the integration of online and offline, which is an insurmountable chasm before us.

How to achieve this docking is not only breaking the cross-border integration of the territory, but more importantly, the cross border integration and the integration of industry and industry.

Jing Linbo: Yes.

The Internet has brought about the reinvention of the retail industry, which has also brought a great impact on the traditional retail industry.

In recent years, some department stores in China have been closed down.

In this regard, relevant enterprises and competent departments should have a full understanding.

Since 2013, small and medium-sized department stores have been closed down in China, and then large department stores have begun to join in bankruptcy.

An institutional survey shows that since 2014, the number of large department stores has clearly closed to 38 stores.

In June, a leading company in the department store also started a major adjustment. The headquarters will close 10 heavily damaged department stores and reduce the floors of 25 stores which are not good enough for department stores. The stores will be reduced to 50.

At the same time, some foreign department stores also failed.

This phenomenon has appeared in 123 tier cities.

The first tier cities are represented by Beijing, Shanghai and Guangzhou. The second tier cities are represented by Hangzhou, Chengdu and other provincial capitals. The three tier cities are represented by Qingdao and Changzhou.

At present, the collapse of department stores is still fermented, and some shopping centers also have difficulties in operation.

Jing Linbo: encourage department stores to explore ways to improve traditional profit models.

The experience of famous foreign department stores shows that proprietary business composed of exclusive operation and private brand can create huge profit and differentiate.

We should encourage department stores to participate in the deep management of commodities, such as "buyout" marketing of some hot brands and styles, so as to enhance the right to speak in the market and improve the profitability of enterprises.

In line with the trend of changing formats, department stores should carry out positive pformation.

For example, the department store shopping center is imperative now.

In other words, the future department stores will more and more into the shopping center elements, and eventually form the "meet the whole family service, all aspects of enjoyment", that is, shopping, leisure and entertainment, culture and education and catering in an integrated shopping center as a feature of the comprehensive department stores.

Make full use of information technology to promote online and offline (O2O) integration and interaction.

Traditional department stores should actively take advantage of new information technology means to achieve complementary advantages between online and offline industries.

Department stores can make use of big data analysis of customers, real-time dynamic monitoring, integrate online and offline resources, and provide better services to consumers.

According to the latest research findings of market research institutions, consumers in all channels are standard gold consumers.

Compared with single channel consumers, multi-channel consumers spend an average of 15% to 30% more.

Compared with multi-channel consumers, the total channel consumers spend an average of 20% more.

More importantly, customer loyalty of all channel consumers is much higher than that of the first two, and will affect more customers through social media and online activities.

In short, the integration of all channels is not simply a mosaic, but considers the applicability and complementarity of various channels, and even creates better integration benefits.

Department stores must introduce technology pformation genes, enhance their innovative ability, and prevent themselves from becoming self absorbed, so that they can evolve and avoid becoming "dinosaurs".

Local governments should fully understand the potential risks of over exploitation of commercial real estate.

With the launch of the new five year plan, it is suggested that local governments at all levels should plan scientifically and develop commercial real estate carefully, so as to prevent the excessive development of shopping centers, Oteri J, urban complexes and even e-commerce industrial parks.

We must adjust measures to local conditions, scientifically design and rational layout, and maintain the moderate coordination and stability of commercial facilities. We must avoid rushing headlong into the rush to rush forward, and we must prevent the wind and clouds from spreading.

Reporter: the impact of e-commerce is the main cause of the difficulties of department stores in China over a period of time.

Jing Linbo: to be more precise, intensified competition, excessive competition in the same industry, and the impact of the rapid rise of e-commerce are the fatal reasons for the closure of department stores.

First of all, China's commercial facilities have been growing too fast in recent years, and there has been a phenomenon of blind development.

According to the survey, the total area of commercial facilities in 50 major cities in China has increased by 80% over the past two years, reaching 560 million square meters. Obviously, so many commercial facilities can not be digested by the market in the short term.

Secondly, there is a problem of "1000 stores and one side" in China's department stores. The brand homogenization of department stores is very serious. The brand repetition rate is generally over 60%. Many department stores in the same trade circle also have more than 90% of the brand homogenization, and there is still a big gap between the goods and services provided by department stores and the increasing demand of today's consumers.

More importantly, e-commerce is developing rapidly in China. Because of its fast and convenient paction and reasonable price, it meets the needs of the new generation of consumers, and to a large extent, it occupies the market share of the traditional department stores.

Finally, under the background of the Internet, the operating cost of department stores such as manpower and rents has risen sharply, which is the last straw in many department stores.

The impact on the line is the appearance, and the profit model is the root.

In China, the profit model of department stores is basically: the department stores receive the rent as the "two landlord" and take the form of "joint ownership" to draw the sales volume from the manufacturers. The proportion of self operated commodities in most department stores is around 10%, and the gross profit margin of the first-line department stores is only about 20%, which is nearly twice as low as that of foreign counterparts.

All these operations make the department store's main goal not in commodity management, but in real estate development. Therefore, the profitability of department stores can not be directly realized, and the balance between businesses can only be achieved through cross subsidy.

The consumption environment is affected, which is an external objective factor resulting in the closure of department stores.

First of all, the downward pressure of the economy is greater, affecting the expectations of consumers. Secondly, the group expenditure has dropped significantly, especially the decline of all kinds of gift cards. For many department stores, many large customers have been lost, which has brought great impact on the operation of department stores. Finally, the price of domestic luxury goods purchased by luxury goods is relatively high, so consumers' purchases of jewellery, watches, bags, cosmetics and other luxury goods in domestic department stores do not increase and fall, and more and more overseas purchases of such luxuries.