Physical Retail Industry "Cold Wind" Environment Fission Forced Retail Format Innovation

tradition Physical retailing How cold is this round of "cold winter"? WIND data show that as of the end of October this year, 56 Commercial and retail companies announced three quarterly reports, of which only 20 companies achieved year-on-year revenue growth, and 26 realized net profit growth. Among them, Nanning department store, Xinhua capital, Ren Ren Le, chengshang group net profit fell more significantly, down 435.18%, 385.41%, 82.58%, 55.62% respectively. Friendly group, happy purchase, Ginza shares, Tianjin persuade industry, Xinhua Department store, Hualian Union supermarket, and big business share net profit fell by more than 40%.

Further to Guangzhou, Guangzhou, one of the two largest listed department stores in the world, has 5 billion 440 million yuan in revenue from 1 to September this year, a decrease of 3.9% compared with the same period last year. Net profit was 164 million yuan, up 8.72% over the same period last year. The first three quarters of Guangzhou friendship business income was 623 million yuan, down 16.56% compared with the same period last year, net profit 41 million yuan, down 5.89% compared to the same period. Even the most important retail season, the National Day golden week, has been hit by "Waterloo". Statistics from the China National Business Information Center show that during the National Day Golden Week this year, the retail sales of 100 major large retail enterprises in China decreased by 9.6% compared with the same period last year.

As for what innovative formats are likely to win in the new round of market competition, Chen Yuefeng has mainly mentioned four formats in the forecast: "small and beautiful" format has become the direction of transformation, cross border electricity providers are in the ascendant, and physical retail will usher in the timing of O2O power, and large retailers will initially have the ability to "encroach" supply chain.

Chen Yuefeng said that the "small and beautiful" format was ranked first because of "satisfaction". Minority demand It's the future. China's business will also be the same as that of developed countries, and has really reached the era of long term coexistence between individualized and niche enterprises and large enterprises. Retailers should no longer try to fantasies to satisfy the needs of all people, but to have a clearer brand and customer orientation. Some excellent retailers have already been on the road of transformation and become "roadside professional shops", baking, snacks, fruits, cosmetics, mothers and babies. With specialization, delicacy, differentiation and convenience, we can better cater to the new consumption demand.

What is even more exciting to the industry is that in September 2015, the one hundred orchard of the small fruit shop represented the 400 million A round of capital investment such as sky chart capital, which became a clear proof of the commercial value of "small and beautiful" format. There is no doubt that the era of big change in retail industry is coming, but Chen Yuefeng finally reminded: "the more capital is in the era of great subversion," Internet The most frenzied moment of electricity supplier spoiler, the more we want to endure loneliness, we can not resist temptation, seriously do every store, is still the biggest cost of our existence, is also the biggest value that we can still exist in the future.

It is precisely in the background of the traditional physical retail industry that it is in a predicament and confusion that Chen Yuefeng's recent prediction of the development of traditional chain retail industry in 2016 has attracted much attention. He first proposed that a basic judgment is that the momentum of slowing growth in the retail industry will continue. It is not yet clear when the next high growth cycle will come, but at least not in 2-3 years.

"Business rules are no longer in place. The electricity providers are capitying on the retail princes." Chen Yuefeng wrote that despite the interaction between big business and big retailers in the past two years, this is not a good thing for the physical retailers to reproduce the value of offline channels, but the traditional business operation rules are shattered. The electricity supplier is fully equipped with capital to make the big retail princes ability, and the large chain retail enterprises are becoming the vassals of the Internet enterprises.

In Chen Yuefeng's view, the concept of traditional business circles has been completely overturned and commercial property rents are expected to decline. The era of consumers' consumption habits is changing, and the era of "businessmen without domain" really comes. The success of future stores will no longer depend on geography, but how much you know about consumers and attract consumers. In addition, environmental fragmentation has forced innovation, and there has been no way out for physical retail enterprises. Therefore, in 2016, it is possible to see that the offline businesses have made innovations in O2O.