The Retail Industry And The Media Industry Have Been Rich Together, But Now They Are Both Sinking.

The United States issued a commentary on Thursday, saying it used to be Retail Together with the media industry, it has become rich, but now two big wheels are sinking.

RowlandHusseyMacy, born in 1822, is in the United States. textile industry When it began to go downhill, it opened R.H.Macy&Co. on Sixth Avenue in 1858, before the birth of SacramentoBee, a social news newspaper. Then the media such as RockyMountainNews, AtlantaJournal-Constitution, SanFranciscoChronicle, SanAntonioExpress-News and so on were born after spring rain, and the retail and media industries also opened up a period of mutual feeding for a century.

But... 2008 in the past 10 years after the financial crisis, the global economy is sluggish and even has the risk of a great recession. The rapid development of the Internet has broken the information barrier, and the spanformation of lifestyle has also made the traditional Clothes & Accessories Demand growth has shrunk dramatically, and retail and media industries have become the two most battered industries. What's more sad is that the two industries have entered a mutual injury period from the previous feeding period. As we all know, the main source of income of the media industry is advertising, and retail advertising has long been a major part of it.

According to reports, Macy 'sInc. (NYSE:M) Messi department stores cut half of its traditional media advertising, worth more than 100 million dollars. According to the BorrellAssociates data of the consulting firm, the Macy' sInc. Messi department store's print advertising in 2015 was $233 million, and this year it will be reduced to 112 million US dollars, shrinking 51.2%, and this is just a Macy 'sInc. Messi department store. KipCassino, vice president of BorrellAssociate, said that Macy 'sInc. Messi store used to spend 25% of its advertising budget on print media, and now this proportion has dropped to 15%. Meanwhile, the group's investment in digital advertising has risen to 681 million US dollars, or 23%.

Print media has actually become the most useless media for retailers. In fact, Macy sInc. sInc. store has been experimentation in the Christmas season in 2015, which further strengthened the determination of the largest US Department store to cut print media and put it into the embrace of Facebook and Pinterest. The latest launch of Macy 'sInc. Messi department in the New York Times is recruiting temporary workers to deal with the possible strike action of 5000 employees in New York stores. This is more of a "political implication" and is expected to affect the negotiations with the trade unions.

There is another reason for the reduction of print media. Like all today's commercialized brands, Macy sInc. Messi department stores have their own media, whether they are Internet platforms or customer loyalty programs, which can convey new products and discounts to consumers. At the same time, retailers also need to make huge investments in technology.

But perhaps the most important reason is not what these digital media replace traditional media, but that the customers in the media industry are becoming poorer.

According to data, as of the first quarter of April 30, 2016, Macy 'sInc. Messi department store revenue fell 7.4%, from 6 billion 232 million US dollars in the same period last year to 5 billion 771 million US dollars. At the same time, Macy 'sInc. Messi stores will expect EPS to decline sharply from $3.80 to US $3.15 to US $3.15 in the fiscal year 2016, while reducing revenue expectations by 2% to US $26 billion 540 million, and the same store sales growth for the same year has been reduced to -4%--3%, which was expected to be -1%.

In addition to Macy 'sInc. Messi department store, from the performance of us department stores in the first quarter, it is almost impossible to see a good performance. It is not just the United States, Britain, China and other retail giants and the traditional retailers and online retailers most similar to the fierce market competition. Therefore, traditional retailers will no longer spend a lot of money on traditional media advertising as before.

In addition, the biggest advantage of digital media and traditional media is that they are more precise. In fact, print media and outdoor advertisements are more localized, rather than more brand or image advertisements.

The former hedge fund manager, CNBC host JimCramer, commented on the "sinking" of the media industry and the retail industry. The media and retail industry all know the advent of the Internet era, but they all think they will not be affected. They think they can join the trend of the Internet and then defeat those pure digital competitors. But in today's us, 75% of digital advertisements are taken away by eight pure digital platforms such as Google, Facebook and Instagram. Those traditional media industries with their own digital platforms can only get a small share.

Commentaries believe that print media and department store models will become history, but they will not end soon, because at present, no matter print media advertising comparison digital media, or traditional retail comparison electricity supplier, the former is still in the industry dominant position.