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    Convenience Stores Should Be Changed: Exploration Of Revaluation Models

    2015/11/23 20:25:00 31

    Convenience StoresRetailingPformationO2O

    On the whole, the convenience store industry is a sunrise industry.

    The value of this industry is not only the way to sell goods, but also more importantly, it can acquire users and provide customers with cost-effective services that keep pace with the times, and form a network effect.

    It is said that the value of the network is the square of the node of the network.

    On the one hand, this paper hopes to provide a new perspective for the capital market to think about the value of convenience stores. It also hopes that these thoughts can help convenience store practitioners reconstruct their business models and operational priorities.

    Using convenient services and rigid demand to attract customers to enter, establish customer accounts and data accumulation, and then complete the membership through the exclusive development of goods and services and the special interests of members, and use mobile Internet technology to achieve the integration of online and offline businesses, and cross sell all kinds of local life services to customers except regular convenience goods.

    At present, we have already launched online mobile payment, inquiries about peripheral stores and commodities, online shopping, store parcel picking, public utilities payment and integral exchange, cross-border electricity business, financial services and other businesses, and have shifted the interaction and marketing activities with customers to mobile applications (now mainly through the WeChat platform).

    We try to prove that the value of convenience stores is not simply based on the number and scale of stores, but rather based on the users' local life services.

    Of course, not all of them.

    Convenience Store

    Already have such a value foundation, the convenience store to complete the pformation from store value to user value, need the following considerations and deployment.

    First, user density.

    That is, the higher the density of users who can serve and cover each shop, the better.

    Service radius varies according to the characteristics of the city, but generally speaking, users within 500 meters are the core users.

    Therefore, the density of target users within 500 meters is an important consideration.

    On the contrary, if the customer needs a long walk to walk to the convenience store, the value will be greatly reduced.

    Second, given the regional market penetration and coverage, or coverage capacity.

    In the selected relatively closed market area, the convenience store only has high penetration and high coverage to complete the coverage, making the marginal revenue of various marketing activities and value-added services the highest and the lowest cost.

    Third, maintain the cost and efficiency of passenger flow.

    Convenience stores rely on store location and time convenience to obtain passenger flow. If the rent is too high or the store investment and operating costs are too high, more gross profit and income need to be maintained.

    Of course, no matter high cost / high income or low cost / low income,

    matching

    That's feasible.

    Generally speaking, higher cost requires higher passenger flow, which naturally affects the location and rents of shops.

    We believe that we should try to explore the model of lower passenger flow that can maintain the operating cost of shops.

    Fourth, the user's digitization and digitalization ability.

    The first three are targeted at shops, but most of us are in the current situation of having one hundred thousand users repeat consumption every day, but it is hard for us to know who the customers are and how many times they have come.

    So we often say that there are customers and customers in physical stores.

    The Internet business is born with the characteristics of customer digitalization, resulting in more opportunities for cross selling. Users can also operate carefully and gain more long-term and broader benefits and values.

    Therefore, the ability to digitize customers is a new challenge to traditional convenience stores.

    For example, the pformation of good neighbours mentioned earlier, after the new system was launched last year, acquired users through payment and marketing, and launched a variety of targeted marketing activities at a very small cost.

    In the first three quarters, the average sales of single stores increased by more than 20% over the same period last year, while the online value-added services that were almost negligible were 300 thousand times.

    Stores have accumulated nearly 500 thousand members, equivalent to 2000 mobile and digitalized users in each store.

    If we use the current VC valuation model for Internet Co users, this user level is already an alarming number.

    Fifth,

    user

    Recognition, dependence and loyalty of convenience stores.

    The goods that ordinary convenience stores operate generally are homogenized, and almost everywhere they buy.

    But in modern times, recognized customers are users, so we have to develop unique new products and services, such as own brand, hot and cold fresh food services, all inclusive life trivia services to stick to users, and through flexible and interesting marketing to allow long-term users to have special rights and emotional identity, so that users highly identify the stores around them.

    To evaluate the user value of a convenience store system, besides seeing the number of digitalized users and the user density of a single store, we also need to see the frequency and loyalty of the store.

    Therefore, the modern convenience store competition is not only a contest between traditional commodity development and on-site operation, but also a contest between mobile marketing and membership service capabilities.

    Sixth, cross selling the capabilities and conversion rate of products and services to users.

    As mentioned earlier, after the convenience store gets customers and completes its membership, the latter task is to investigate cross selling and liquidity of members.

    In fact, it is similar to the industries that depend on the number of users.

    Even if you get a large number of users, if you can't find effective ways to cross sell, get more income, and expand the goods and services of the stores, then the membership value will be greatly reduced.

    Therefore, it is also an important factor to evaluate the cross selling ability of a convenience store enterprise.


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