Retailers Need To Actively Adapt To New Strategies And Prepare Strategically.

"Sears department store closes 235 stores, WAL-MART customs 154 stores, Messi stores closed 40 stores, Penny department stores closed 7 stores", at the beginning of 2016, a wave of shops.

The pressure of closing shop tides is a reason.

Retail giant WAL-MART (Walmart) announced that it will close 269 stores worldwide, with 16 thousand employees expected to be affected.

In the closing of the shop, WAL-MART in the US is the most affected, 154 shops will be closed and 10 thousand employees will be affected.

Of the 154 shops, 102 were WAL-MART's Walmart Express, which began testing water in 2011.

After shutting down 14 stores in 2015, Messi store, the largest chain department store in the United States, announced that the company will lay off about 4800 people and close 40 stores in various states including New York and California.

Messi's chief executive officer, Terry Lundgren, made a typical statement. "The weather in the United States has been a drag on the sales of winter clothing, while the strong US dollar has also affected passenger consumption. Last November to December, the same store sales fell 4.7%, and the performance fell more than expected."

In particular, the strength of the US dollar has reduced the consumption desire of foreign tourists.

Christmas new year sales season has always been an important moment for department stores to rush. However, under the strong dollar, foreign tourists have been greatly reduced.

Perkins, President of Retail Metrics Inc., a retail market research firm, believes that the layoffs in Messi's department store reflect an irresistible trend in the whole industry. Many retailers have observed the huge potential of the Internet and mobile end consumption in 2015 holidays, and are irresistible.

Data show that the current

Online shopping accounts for only 10% to 15% of total consumption.

JPMorgan Securities Research Analyst Matt Boss pointed out that the US entity retail store entered the pformation outbreak period, "estimated that in the next 5 to 10 years, the physical storefront will be significantly reduced, and the number of stores may be less 1/3."

Why can a physical store be defeated by itself?

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 to pform for several years. The network and the line are completely separated, and 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.

The category of consumer online shopping is becoming more and more abundant. It is no longer limited to clothing, maternal and infant hot products.

The consumer survey conducted by BCG in 2015 shows that the coverage of daily necessities, food drinks and fresh fruits in cities has not been overlooked. The coverage of mobile terminals of clothing and cosmetics has exceeded PC.

Looking ahead in the next five years, clothing, mother and baby, cosmetics and other early online categories will continue to grow at a double-digit pace, and the driving force of purchase will shift from low price to service and quality.

With the development of the supply chain, fresh and food drinks and other categories will further release consumers' potential demand for online shopping.

Consumer survey found that before the purchase decision was made, consumers had 3 incentive points and 4 search behaviors on average.

In these different contacts, half line, half line, line and line are interlaced.

Traditional retailers have more opportunities to contact with consumers. Before they enter the store, they can start draining. In the process of consumption and after sale, there are many ways to interact with consumers and provide value-added services.

Concerned about young people outside the customer - "single passenger" is already a huge online consumer capacity of customers, in the next few years, "light family" and "growing family" online consumption power can not be underestimated.

Occupy the commanding heights of categories and scenes - identify key consumers, tap the pain points of demand, focus on the core scenario of consumers, and digitally use multiple channels to create convenience and enhance experience for consumers.

In the tide of the whole channel pformation, every retailing enterprise is bound to beat waves and water, but the endowments of enterprises are vastly different, and the modes and speed are different.

The key to winning is to set aside the fog and keep away from the misunderstanding as soon as possible, carry out medium and long-term planning, make layout and implement blueprint, and then join in, constantly adjust the direction and pace, and become the leader of the whole channel era.