Why Can A Physical Store Be Defeated By Itself?

In fact, the entity store was not defeated by the electricity supplier, but was defeated by itself.

They just don't know, or they don't want to know.

This has to reveal the secret of that year.

In 2009, I gave an electronic commerce platform Merchants Department store category, the degree of enthusiasm is the terminal store is higher than the agent, the agent is higher than the brand dealer.

Terminal stores only give settlement price, do not control our retail price; we certainly sell much cheaper than the physical store, and it is the new product of that year.

In 2010, Tmall double 11 did a good job. Many famous brands began to attach importance to the network channel. The vast majority of them were old stock goods, and the industry terminology was: clear tail goods.

A certain brand of women's clothing in Guangdong was sold at the price standard of Tmall, which was 50 percent off last year, 60 percent off of the previous year, and the settlement price for us was 72% off last year, 80 percent off the previous year, and the retail price was the same as Tmall.

By the way, most consumers do not know that we are buying the old stock, only knowing that we are cheaper than the physical stores.

In the second half of 2011, it was also the women's clothing brand, which mainly attacked Tmall channel, and produced a large number of styles for Tmall. Of course, the price was much cheaper than the physical store.

My wife said that she would not buy this brand in the store. The Internet is much cheaper, and the quality and style are not bad.

In 2013, the brand of women's clothing was bought pretty well online, nearly 1 hundred million, but offline stores began to grow.

Year-on-year overall sales increased little, and profits fell a little.

I also found a rule: the traditional brand, the better online sales, the more offline outlets.

If you remember correctly, Lining, seven wolves and other brands, some department stores, began to scale off stores.

The women's clothing brand owner is also very confused, and has been trying hard for several years.

Completely separated from the line, it can not stop the decline of the entity store.

Why is that so?

I share this dress brand briefly. The rate of increase is about 5 times, and the rate of increase is about 4 times.

But online competition is fierce and the amount of money to go online is about 3 times the actual retail price and about 2.5 times the activity cost.

Even if product segments are made, most consumers' perception is that online shopping is cheaper because it is really cheap.

This is a typical case of a physical shop being defeated by oneself.

But I am pure.

To the whole channel, a law has been summed up: if online and offline can not achieve the same price, then the entity store will be defeated by itself.

This theory applies not only to brand dealers but also to channel providers, such as department stores, large supermarkets, specialized shops, etc.

This theory should also apply to most retail products.

I find that many traditional brands always think that the entity store is defeated by the electricity supplier.

This is a problem of thinking level. "The physical shop is defeated by the electricity supplier" is the superficial phenomenon. "The physical shop is defeated by oneself" is the fundamental reason; the former is used to look for the external environment reason, but the latter is accustomed to change itself.

After so many years of observation, 99.9% of the people are the former, which is a great pity.

Remember, the main road is to Jane.

Conversely, online and offline channels can achieve the same price with the same price, and the physical store is likely to rise.