Big Retailers Have The Ability To "Encroach" Supply Chain

Almost all of the retail businesses, including department stores, home appliances, supermarkets and so on, have a common rule: facing all customers.

We also take supermarkets as an example: to satisfy people's three meals a day is the location of most retail enterprises in fresh management.

But what group is the common people? Is it the common people? 20 year old people and 50 year old people, will the demand for three meals a day be the same?

The legend of Le Cheng's life was cut down from the first 1800 varieties to 1500, 1300 and 1200. At the beginning, the colleagues did not understand, and questioned that such a subtraction product would definitely affect the sales performance.

But what is the actual situation? There is an increase in sales, but there are still many unsalable goods, which indicates that there is room for adjustment.

Wang Wei, general manager of Le Cheng, also asked for the next product to be downloaded, and only selected more than 1000 varieties with the highest demand of target consumers.

Actually, it is not easy to do addition, and subtraction is even more difficult.

This kind of business practice that most companies agree with nowadays is not only to take market risks, but also to test the ability of operators to control each commodity.

Niche or distinctive location stores will be more market, or anti risk capability will be significantly enhanced.

In 2016, the retail industry should take this as an important topic to study.

Although developed countries such as the United States and Europe have giant companies in every industry, many distinctive shops or small businesses are also alive, and there are even hundreds of old businesses.

Therefore, from another perspective, China's business will also be like the developed countries, and has really reached the era of long term coexistence of individualized and niche enterprises and large enterprises.

Retailers should no longer try to fantasize about satisfying the consumption needs of all groups. We should say to you again: that era is over! We need to have a clearer brand positioning, effectively subdivide users, find the main target customers, and label the group so that their stores can match the characteristics of this group and attract them.

Yonghui supermarket has been holding shares in recent years or holding Shanghai vegetable group, focusing on foreign trade import and export business Shanghai East Exhibition International Trading Company and some other upstream manufacturers, and is still looking for commodity manufacturers' m & A opportunities.

At the same time, after the introduction of strategic investor milk company, its global procurement supply chain has been at the forefront of the domestic supermarket industry, and in 2015 signed a strategic cooperation agreement with Jingdong to establish a joint procurement mechanism to get through online and offline.

All these actions indicate that Yonghui has begun to reverse the new supply chain integration from upstream to seek new development space.

Another retail company, BBK, set up 6 overseas companies in Hongkong, Japan, the United States, Australia, New Zealand and Germany in 2015. It has established trade relations with dozens of countries such as North America, Europe, Oceania and Asia, and has established logistics strategic cooperative relationship with Chongqing New Europe Express Line and Hunan Europe Express line. Logistics warehousing has been established in Guangzhou, Ningbo, Zhengzhou bonded warehouses, Hongkong and other countries, and Japan, so that the whole channel global procurement layout is basically formed.

In fact, this not only provides a more powerful commodity sourcing resource for its global purchase, but also brings qualitative changes to the differentiation of goods in the next store.

Not to mention Huarun 10000, Huarun department itself has the upstream commodity resources, as well as the purchasing channels of Hongkong supermarkets and the acquisition of overseas commodity resources after China's TESCO business.

Is O2O really like the so-called economist Xu Xiaonian saying, "is it 2 sides on both sides?" I don't think economists speak cross talk. This kind of popular opinion should not be derived from a strict economist.

Besides, I don't think Xu Xiaonian really knows what O2O is.

The attempt and deep participation of these enterprises in the supply chain will play a crucial role in the innovation, category management and differentiated operation of the stores in the future.

What is more important is that 5 years ago, maybe everyone was doing the supply chain integration. But to be honest, retailers did not yet have the ability to integrate supply chain. Since 2016, large retailers have begun to have the ability to "encroach" the supply chain. Meanwhile, the quick iteration of commercial game rules has also made prospective retailers start to break through this aspect.

and

What the colleagues need to pay attention to is that, like Yonghui and other enterprises, the exploration of the supply chain still conceals greater ambition and plot: that is, through the control of upstream commodity resources, the service, cooperation, merger and absorption of all kinds of channels in the future will be realized.

Of course, it is not yet possible to judge whether their experiments will be successful, but imagine that once the success is achieved, the future business structure of the entity may be rewritten.

It is worth noting that these O2O enterprises are all Internet companies without exception. They have many common characteristics: no core technology and product support, no clear strategic planning and profit models, serious homogenization of products and services, serious disconnection under the online and offline businesses, and investment by relying on concepts.

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Just like Zhou Hongyi, chairman of Qihoo 360 company, said: the world's VC invested money to improve the life of users in China's big cities.

At the same time, some brain O2O enterprises such as dripping and fast, 58 city and market, public comment and American League, and so on, before the cold winter came, they beat their battered rivals quickly into a family to reduce or end invalid competition to seek a way out for the future.

The merger of these giants means that the young soldiers in these industries have come to an end.

However, when

Enterprises in the field of O2O blindly follow suit craze in the past, the enthusiasm of the capital regress calm, O2O will really usher in a benign development space, and the entity retail enterprises will really have the strength to O2O.

More importantly, the O2O projects of these Internet companies actually have not created new demands, but are trying to satisfy the demand in another way through the Internet technology. The entity chain enterprises have both the O2O gene and the advantage, and the ability to create new demands.

When the market is changing from chaos to standardization, the business mode of O2O no longer takes charge of the frivolous war of burning money. With abundant offline resources and online retail entities that are gradually exploring the way, it can effectively integrate resources into its own O2O business, and find a foothold in the market through the dual differentiation of business mode and product service.

So when the flashover of the Internet bubble dissipated, the chance of turning the entity retail business might also come true.