How Can Entity Retailers Get Out Of The Cold Winter?

Fresh products have always been the main attraction products for physical retailers, especially large supermarkets, which attract consumers most. Nowadays, Internet technology has made it easier for people to shop.

In the future, shops will attract the most attention in this Expo. The use of face recognition technology makes marketing more precise, self-help checkout, electronic price tags and other new technologies to make consumption easier.

Sudden rise

It has brought a great impact on the physical retail industry.

In the face of the depressed market, how can the entity retail enterprises get out of the cold winter?

How will the consumption pattern change in the future?

What is the future retail store? How does the entity retail enterprise "Internet +" "+ what"?

In the seventeenth China retail Expo held, face recognition has achieved new technologies such as precision marketing, self checkout, electronic price tags, spectrum controlled LED lighting, unattended shops, etc., and put people in future stores.

This is an era of sudden emergence of an electric business. The Internet has changed people's lives and changed people's consumption behavior.

In the face of the impact of the electricity supplier, the physical retail enterprises face enormous pressure, and there has been a "closed shop tide" for some time.

But we have also found some new changes. Online businesses and offline enterprises are working hand in hand to jointly develop the consumer market, and physical retail enterprises are changing and merging, reconstructing retail value and striving to get closer to consumption.

In the "Puzzle" entity, retail innovation changes.

"The environment of China's retail industry has undergone tremendous changes, especially in the last 3 years, in the face of the rise of the electricity supplier, the entity retail business has gone through three stages:" invisible, despised and can not understand ".

But it is gratifying to note that chain enterprises continue to explore the road of pformation and development, and have entered the stage of "feeling dry".

Guo Geping, President of the China Chain Store Association, said that since the beginning of this year, the physical retail industry has continued to grow at a low speed, while the line continues to diverge, but the growth rate has slowed down.

The online and offline convergence development mode has become a trend. Especially under the influence of major strategic cooperation between Suning and Ali, Yonghui and Jingdong, the offline channel of physical retailers has been counterattacked by the "traditional mode of drag" as the "advantage under the new O2O mode", and its value has been further released and revalued. The entity enterprises actively pform and innovate business models, and strive to maintain their advantages and sustain growth in the new round of development.

Faced with the "Puzzle" of pformation, many enterprises have begun to explore.

Zhang Jindong, chairman of Suning cloud business group, reminds entities of retail businesses that enterprises should do O2O, do not fall into two extremes of thinking, one is the theory of quick victory, that is, to be a website and to become a APP is "Internet +"; another is the fast death theory, which considers the Internet myth, and believes that the entity business has no Internet operation, so it can not become the Internet.

He said, "the pformation of physical retail enterprises is a protracted war. We need to have strong IT R & D capability, build a nationwide logistics service network, and build a nationwide supply chain operation capability".

What is "Internet +" plus? After 6 years of pformation, Suning's first practice is "+ channel", adding channels such as PC and mobile terminals to enrich customers' entry, followed by "+ goods". In the past, shops store tens of thousands of goods at most, and now there are 15 million kinds, covering electrical appliances, supermarkets, mother and baby, department stores, etc., third is "+ services", reconstructing online operation, and turning offline services into Internet, creating financial cloud, data cloud and logistics cloud.

Through these innovations, Suning's operating income in the first 3 quarters of this year was 93 billion 570 million yuan, an increase of 17.44% over the same period last year, and online sales of 31 billion 340 million yuan, up 80% over the same period last year.

Combined vertical and horizontal lines to accelerate convergence

This year, the news of the merger and reorganization of the retail industry is constantly increasing, and online and offline businesses are accelerating convergence. "Marriage" has become a key word.

In the seventeenth China chain industry conference, "O+O" has become the most concerned topic for entrepreneurs.

Sanjiang shopping club Limited by Share Ltd is the largest super retailing company in Ningbo. Chen Nianci, the company's chairman, has worked in the retail industry for nearly 40 years.

He told reporters that in 2009, they founded the Sanjiang shopping network, and they could also sell products online.

"But over the past few years, we have found that online sales have not increased much, and offline sales have been falling down for the past 3 years.

Because society has changed, consumer behavior has changed, we have not changed anything, even if there are websites, it is still out of touch with society.

He believes that the core thinking of the Internet is "fast, cooperative and open". To adapt to this era, we must change these concepts.

They took the initiative to cooperate with Jingdong, and signed the "Jingdong to home" business service agreement to jointly develop the market.

When the Jingdong came to Ningbo online, it had more than 10 thousand orders a day, and several stores had thousands of orders per day. This entity retailing company is running fast to "Internet +".

Openness, sharing, win win, and "joining the ranks" become the choice of many enterprises.

Wang Zhijun, vice president of Jingdong group and CEO of Jingdong, said that customer demand has changed, users have accelerated the "online migration", and the scale of online retailing has maintained a high growth. The total retail sales of social consumer goods in 2015 is expected to be 28 trillion and 600 billion yuan, of which 13.6% of online shopping accounts for.

At present, their Jingdong's business is to integrate businesses and shops around the 3 kilometers of customers. After clicking customers, the Jingdong's distribution staff send things from shops to home and build localized life circles.

Since it was launched in April, it has already started operations in 11 cities.

Eliminating pain points to create value for consumers

Over the years, reporters have been tracking China chain industry conference continuously. This year, reporters found that the topic of more concern among retail entrepreneurs turned into "returning to the essence of business and creating value for consumers".

In the past, hot topics such as "O2O" and "all channels" have been fading away. Entrepreneurs are more concerned about consumers, hoping to find consumers together and provide consumers with better products and services.

"The retail industry must return to the nature of business. Transformation can not be" self discarding martial arts ". Innovation is not" flower boxing and embroidered legs ".

Wang Jianguo, chairman of Wuxing Holding Group Co., Ltd. proposed that innovation should not be a campaign oriented marketing. It should be a continuous normality. Only the innovation that satisfied customers is the real innovation. Only the innovation that can arouse the enthusiasm of employees is the real innovation.

He created the children's Wang Ertong supplies (China Limited), a quasi mommy and 0 to 14 year old children's goods one-stop shopping and provide full range of value-added services, shops continue to innovate, constantly iterative merchandise, he said, "we from a generation shop to six generation shop, constantly overlay services, physical examination, culture, social networking, data, etc., let the salesperson turned into a child care consultant, so that stores become mothers and children's social networking sites.

Only by practicing internal skills can we win customers.

"The retail industry is talking about returning to the essence of business. I think the essence is helping customers improve their value."

Wang Junzhou, President of Gome Appliance Co, said: "under the new normal economic situation, the sales pressure faced by retail enterprises is extremely huge. It has never been seen in the past 5 years. The question we often ask is, where have the guests gone? The guests have been less in stores. Besides, customers choose commodities not as decisive and aggressive as before. China's family consumption tendency has changed, and it has changed more to education, health, travel and so on.

But this does not mean that there is no consumption. The retail industry should tap the demand and guide consumption.

Take the juicer as an example. In the past, they were only in the store, and the consumers did not understand the effects of different products.

They set fruit in a store, not selling Juicer alone, but selling fruit juice and selling "experience".

Chen Yougang, President of the McKinsey Global Research Institute, believes that the word "human world" is the three level of learning that is in line with the retail industry.

When the electricity supplier just arrived, the traditional retail was confused. "Last night, the west wind withered trees, the tall buildings alone, and the skyline". Then, the pressure of the traditional retailing industry was large, and the performance declined, and entered the stage of "wearing clothes and widening at the end, and getting rid of people's gaunt" stage. Now, we appreciate the essence of retail and grasp the consumers closely.

"Internet +" era is the home of real enterprises! "Insiders believe that, relying on accumulated supply chain advantages over hundreds of years, hundreds of millions of loyal users and meticulous service capabilities, entities retail businesses link up with the Internet to eliminate the pain points of consumers, which will burst into boundless potential and usher in the spring of" Internet + "era.