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    What Is The Future Trend Of China'S Retail Industry?

    2016/2/19 9:36:00 55

    ChinaRetail IndustryMarket Quotation

    The behavior of Chinese consumers is undergoing a qualitative change. Full channel shopping has gradually become the "new normal". This is the result of technology promotion. It is also the inevitable trend for the new generation of consumers to pursue convenience and experience.

    Retailers need to rethink where their market opportunities are and where their growth should come from.

    Enlightenment from the pformation of retail channels

    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.

    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.

    From tradition

    Business mode

    Towards a full channel business model, retailers need to build six aspects of innovation capability.

    Customer acquisition and interaction - fragmentation of consumer purchase path.

    To maximize consumer lock, retailers need to integrate digital means to attract customers, enhance service and experience differences, and retain customers.

    With the increasing availability of commodities, retailers should not only operate commodities, but also "fans", and create new attractive marketing tools and interactive experience to create the unique charm of retail brands as the destination of purchase.

    All channel category Planning -- retailers need to lock target audiences, portray consumption scenarios, understand the consumption frequency, expenditure and value appeal of the middle and offline lines of each scenario, and clarify the role of each channel in category development.

    The positioning of different channels ultimately determines the combination, price and even packaging of goods on the line.

    The introduction of new products - under the environment of full channel competition, the introduction of new products should not only match with seasonal ones, but also catch market hot spots and speed up innovation.

    The new selection criteria not only depend on offline passenger flow, sales and gross profit data, but also on line drainage and conversion data.

    New product detonating is not only a matter of category management and purchasing personnel, but also requires deep involvement in operation and marketing.

    Traditional retailers should use the new ways of explosive payment, basket combination and pre-sale reservation to improve the contribution of single products.

    Supplier cooperation management -- the relationship between the retailer and the retailer in the traditional retail industry is more based on the game of scale and brand power.

    In the new environment, retailers have to face many new issues with suppliers: how to manage online display and display, how to allocate online advertising and drainage resources, how to design online content information, how to meet the ordering and replenishment and distribution of online orders?

    In addition, retailers also need to actively develop new sourcing resources, and formulate special development plans for the potential potential resources under the offline resources, such as strengthening the direct production and standardized management of fresh sources, and developing new overseas supply chains.

    Supply chain lean operation to meet the needs of online and offline channel, reduce the shortage and increase the order fulfillment rate, retailers need to solve two new challenges.

    First, we need to establish a more precise and close demand forecasting capability, and gradually evolve from using the terminal historical sales data to predict consumer's behavior data, such as personal shopping basket data, and improve the prediction foresight.

    The two is to improve the immediacy and pparency of the inventory order data information in various links of the supply chain, and flexibly cope with the more dispersed and frequently fluctuated orders.

    In addition, in view of the different characteristics of high turnover and low turnover goods, retailers need to develop different supply chain operation modes.

    Logistics and distribution services to meet the needs of consumers for distribution, retailers need to balance the logistics cost and service level, which is particularly important for commodity retailers with lower unit price.

    To achieve the distribution economy, all channel retailers need to work hard in two ways: first, increase the order value, encourage consumers to buy goods of higher value at a time; two, make full use of local warehouses (store stores or behind the scenes stores) to reduce inventory and distribution costs.

    Luxury overseas consumption needs multiple forces to pull back.

    In fact, whether the total consumption of Chinese consumers in 2015 was 1 trillion and 200 billion yuan, or China consumed nearly 46% of the world's luxury goods, it is not surprising that China has maintained the "world first" luxury consumption for several years in a row. The departments concerned are shouting to control the consumption of luxury goods every year, but the amount of overseas luxury consumption is higher.

    Earlier, the Ministry of Commerce said that measures to reduce import tariffs should be adopted to curb the outflow of luxury goods, but only "thunder" and "rain" were not heard.

    It is undeniable that lowering import tariffs and eliminating the price gap between domestic and foreign consumers through the adjustment of tax policies is the most direct and effective way to deal with them.

    However, the measure of lowering import tariffs alone is obviously not enough.

    If we want to bring the huge consumption of overseas luxury goods back to China, we still need to launch multiple efforts to form a resultant force.

    First of all, when adjusting tariffs, there should be supporting measures to follow up.

    For example, we should refine tariffs and tax relief policies for some commodities.

    China's luxury goods tax rate is the highest in the world. At present, the import tariffs of luxury goods are generally between 15% and 25%, and customs inspection and shop inspection are also needed. Sales tax, business tax and consumption tax are also included in the sales process.

    This makes the price of domestic luxury goods generally at least 1/3 higher than that of origin.

    Therefore, reducing the tax rate of luxury goods can make most of the purchasing power stay in China.

    Moreover, the tariff or special consumption tax rate is reduced or duty-free, not only conducive to increasing imports, reducing trade surplus, but also expanding domestic consumption and promoting the overall development of high-end industries.

    Only in this way can we truly achieve the "same price" of domestic and overseas luxury goods.

    In particular, we should correctly guide the consumption of luxury goods and cultivate the luxury consumption culture.

    Luxury consumption in China not only depends on age and income, but also depends on "consumer psychology".

    The foundation of Chinese consumption of luxury goods lies in "consumer culture", not the product itself.

    In China, more luxury goods are used for etiquette and social interaction, and its biggest consumption power comes from social psychology. This just makes many people shopping abroad and shopping in the mainland have different consumer psychology.

    Therefore, we should guide domestic consumers to abandon the one-sided consumption concept of "luxury consumption is extravagance and waste", and create a relaxed and harmonious cultural environment for people's names to consume luxury goods.

    Why is China not?

    Luxury goods

    What about brands? Before we answer this question, let's look at the conditions for establishing a luxury brand.

    The conditions needed to build a luxury brand are far more complex than the general brand. It needs a strong brand operation team, understands the principles of the operation of luxury brands, has sufficient funds to support it, has comprehensive brand line support, excellent marketing means, advanced marketing thinking, and strong culture support.

    In the eyes of Zhou Yun, a researcher at the luxury research center of the University of foreign trade and economics, there is no brand in mainland China that can meet the above requirements.

    He believes that the reason why China has no luxury brands can be recognized internationally. Most importantly, our entrepreneurs lack a heart of Gao Jie, and consumers are seriously lacking in traditional Chinese culture.

      

    Retailer

    Interaction with consumers is reshaped

    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.

    The whole channel has become the trend of the times. Retailers need to actively adapt to the new way of playing and prepare strategically.

    Building a national luxury brand is the fundamental policy to curb the outflow of luxury goods.

    As a big manufacturing country in the world, China lacks its luxury brand, which is embarrassing.

    The big country without luxury brands has become the world's largest consumer of luxury goods. This contrast is a great irony to China's national industry.

    The shortage of luxury brands in China is also the crux of the consumption outflow of luxury brands.

    Therefore, we must strive to create a national luxury brand, and gradually realize the qualitative change of a big manufacturing country to a big brand country, enhance the attractiveness and credibility of the domestic brand, and let the Chinese people "get to the top of the water and get the first month", and no longer "go nowhere", and enjoy domestic luxury goods at home.


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