Who Will Be The Big Winner In The Growth Of Physical Retailers?

In the era of rapid rise of the electricity supplier, the profit growth rate of entities is declining. So in this era, who will win the shopping center and the electricity supplier?

According to the latest monitoring data released by the China National Business Information Center, 50 key large-scale retail enterprises in the first half of 2016 are shown in China.

The total volume decreased by 3.1% over the same period last year, down 4.2 percentage points from the same period last year.

Faced with the downward pressure of the economy and the impact of the electricity supplier, some physical retailers have chosen to "bet" shopping centers, hoping to expand the new market space by enhancing the consumer experience.

At the same time, the electricity providers are gradually showing signs of weakness, and the way to create festivals and low price promotions gradually lose their freshness.

This year, during the 6 / 18 electricity supplier big promotion period, more than 3000 shopping centers formed "3000+ entity business alliance" for the first time to enter the site of the e-commerce platform, sounding the assault charge of the entity against the electricity supplier.

Decline in physical retailer growth

Operating costs continue to rise, the rapid development of online retail......

Under the influence of multiple factors, the physical retail industry entering the 2016 still faces unprecedented challenges.

According to the China National Business Information Center, in May 2016, the number of retail sales of major retail enterprises in China dropped by 6.1% over the same period last year, the growth rate was 8 percentage points lower than that in April, and 9.2 percentage points slower than the same period last year.

In May, the number of retail sales of all the major retail enterprises in China increased by only 21.

According to the category, the retail sales of food decreased by 2.8% compared with the same period last year; the retail sales of clothing decreased by 7.2% compared with the same period last year; the retail sales of gold and silver jewelry decreased by 12.3% compared with the same period last year, a decrease of 6.9 percentage points from the previous month, a 18.2 percentage point lower than that of the same period last year, and a decline of 14.2% in household appliances retail sales, a 27.5 percentage point lower than that in April, down from 3.9 percentage points in the same period last year, and the retail sales of cosmetics decreased by 1.1% over the same period last year.

In April this year, "2016 joint venture network conference and Global Retail Innovation Summit", the joint business network released the "main retail enterprises (supermarkets, department stores) statistics" in 2015, the report shows that in 2015, the main retail enterprises in China under the influence of multiple factors, closing shop tide is still uninterrupted. In 2015, China's retail industry has entered a new era of rational shop and active shop.

In the 93 listed retail companies listed in the 2015 retail sales list, as of the end of March 2016, there were 88 companies that published annual reports or newsletters. According to the two indicators of revenue and net profit, the drop in revenue was 47%, net profit fell 60%, revenue and net profit fell 33%, and the loss was 15%.

Zhu Dan Peng, a researcher at the China Brand Research Institute, told Nanfang Daily that at present, retailers can not interact with consumers simply because they provide shopping. They need to build an ecosystem of retail industry with value chains and experience chains and more value-added services.

"Physical stores should think of ways to" absorb powder "and allow more fans to come to their places for experiential consumption, which is the trend of development.

The rise of new shopping centers

Shopping centers are favored by physical retailers in the environment of traditional retail sales.

Previously, WAL-MART, Wumart and other retail giants have set foot in shopping centers.

The retail giant's frequent shopping center, also known as the commercial complex, is a commercial form that combines many functions such as shopping, entertainment and leisure.

Compared with traditional supermarkets and department stores, apart from the huge volume, the shopping mall's main feature is that its shopping function has been reduced to a small proportion, while entertainment, leisure and other experiential services have occupied a large number of business areas.

According to the statistical data of the Research Institute of the Commercial Real Estate Institute of search network, as of June 30, 2016, a total of 161 large and medium-sized commercial projects were opened (excluding 30 thousand small commercial projects and various professional markets under 30 thousand square meters), an increase of 11.8% compared with the same period last year.

In the newly opened commercial projects, luxury high-end shopping centers decreased significantly compared with previous years. However, the number of new shopping centers with shopping centers with super background in department stores increased significantly, and the number of large commercial projects with an area of 100 thousand square meters was also increasing.

Among them, Wanda served as a typical representative. As of June 25th this year, only one of them has opened 143 nationwide.

The 2015 China shopping center development report jointly released by the China Chain Store Association and World Bank Richard Ellis shows that there are 323 construction projects in the country, with a total construction area of 32 million square meters, and 9 of the world's top 10 shopping centers in China.

In the next 1 to 2 years, there will be more than 300 shopping centers covering more than 100 thousand square meters in these cities.

"Physical retail, especially

These years have been developing in full swing.

In the view of Pei Liang, Secretary General of China Chain Store Association, entering the new consumption era, the younger generation has become the main force of consumption. They are more interested in quality, brand and taste, thus promoting the rise of shopping centers and other formats.

However, Pei Liang also reminds us that the huge challenge facing shopping centers is excessive supply and excessive competition.

"At the moment of great changes in consumption habits, shopping centres just satisfy consumers' one-stop" needs.

Zhu Danpeng said that shopping centers with multiple functions such as shopping and entertainment will have better potential for development in the future due to their strong collection capability.

In contrast, traditional hypermarkets and department stores show significant performance declines.

"At present, the low price of the entire e-commerce platform has forced the upgrading of the physical store. I think this is something that all physical stores should do.

From price to value, from simple shopping to experiential enjoyment, this also marks the growth and upgrading of Chinese consumers in the shopping trend.

Some people in the industry believe that the commercial complex snatch and divert the flow of traditional business circles. The ultimate trend will be outside the community business, and the commercial complex will become the mainstream of the commercial format.

"This trend has been proved by the practice of business development in Europe and the United States: there is no independent department store outside the metropolitan area in the United States."

Who will dominate the shopping mall and the electricity supplier?

In addition to fighting for market share, new shopping centers will also challenge the existing market structure.

There is a voice in the industry that, with the rise of the new shopping center format, the electricity supplier will be attacked.

"In 2020, who will dominate the shopping mall and the electricity supplier?

A few years ago, the representative figures of the shopping mall and the electricity supplier industry had had a gamble of over 100 million yuan.

Now, though the time limit is not yet reached, there is a new answer to the reality.

At the 2016 China shopping center and fashion retailing development forum held recently, Pei Liang, Secretary General of the China Chain Store Association, said: "at present, the electricity supplier is gradually showing signs of weakness. Physical retail, especially shopping centers, is developing vigorously, becoming the preferred place for urban residents to consume."

As a matter of fact, with the development of low price promotion of e-commerce, loss of freshness is gradually lost, and holiday spots are overcrowded. Many consumers begin to return to the mall, and about 35 friends go to nearby shopping centers to enjoy "slow life".

According to eMarketer data, more than 92% of the millennials will choose to shop in a physical store.

They all share a common feature of their desire for individualization and instant gratification.

But they will not totally reject online shopping. 59% of the respondents said they would like to shop online.

"In the Internet era, the retail industry has been changing, and despite the hot electricity supplier, it is still missing in a very critical area, that is, the shopping experience."

Insiders said that in the next few years, retailers would be very likely to reduce excessive concern about the electricity providers and turn back to the sales of physical stores.

As a matter of fact, experiential consumption is becoming the biggest advantage of real business compared with offline consumption in the development of commodity business which is becoming more and more obvious and the competition of retail products is more intense.

For example, in many shopping centers opened in the past two years, the theme blocks with strong sense of experience have been added, such as concept stores, collection shops, entertainment, parent-child, sports, fitness, personality customization, education and training, cultural creativity, and so on, and have achieved good business results.

Wu Jie, general manager of Beijing new Yansha Commercial Co., told the media: "modern consumers need a platform to enjoy life and feel new concepts and new trends. Shopping centers are just such platforms, which provide consumers with a situational atmosphere, including all life and social elements, and provide consumers with time to share with friends and family."

This year, during the 6 / 18 electricity supplier big promotion period, more than 3000 shopping centers formed "3000+ entity business alliance" for the first time to enter the site of the e-commerce platform, sounding the assault charge of the entity against the electricity supplier.

Data show that, in the three days of 6 / 18 activities, the total volume of pactions under the "3000+ entity business alliance" line was 8 billion 840 million yuan, and the total number of passenger trips in the physical store was 388 million passengers. The peak of passenger flow appeared on the day of June 18th.

"The growth trend of the electricity supplier has slowed down. This year, the growth rate of Ali is about 20% and 30%, which accounts for about 12% of the retail sales.

If 30% growth rate, the impact on the retail industry is getting lower and lower, so I think the spring of retail is coming.

Ge Yongchang, founder of rebate network, said that the experience of offline retailing has a very strong advantage over the Internet at a recent Chinese entrepreneur's (Sixteenth) future star annual meeting. It is hard for online to replace the offline and maintain more than 15% or 20%.

"I feel that in the next 5 or 10 years, the proportion of 15% and 20% is not able to achieve the possibility of retail under the real subversion line. I am still very optimistic about offline retail."

Ge Yongchang said, "now electricity providers in addition to Ali and vip.com make money, other cross border electricity providers, fresh, mother and baby vertical platforms basically do not make money.

One of the reasons is that the marketing cost is very high. "

At the beginning, we felt that the cost of the electricity supplier without the store seems to be a very low cost mode.

Later found no stores, the biggest problem is no traffic.

The cost of obtaining online traffic is very high and the price pparency is relatively high.

Online has been monopolized by one or two giants, so there are fewer opportunities to do online.

E-commerce and real business tend to merge

Li Haigang, founder of geek net, wrote that it is no exaggeration to say that physical commerce has never been so lively.

Behind the bustle, in addition to marketing, there is still no need for the efforts of entity commerce in the "+ Internet".

It is understood that in the years before the official battle 6 / 18, these shopping centers have deployed the "+ Internet" solutions provided by Fei, including building WiFi, Beacon and other information infrastructure, using the Internet technology to realize intelligent and intelligent functions such as parking, shop searching, queuing, movie, and Internet operation and management platform such as access to open members, points, big data and marketing.

"It can be said that these entities are not entities in the traditional sense, but rather an Internet based and intelligent" new entity ".

Li Haigang pointed out that when the intelligent new entity and the consumers with higher requirements for quality and experience were "on the spleen and stomach", a benign supply and demand system came into being.

This not only breaks the business dilemma that the electronic business platform has to rely on low prices and rely on "making sections" to survive, but is also expected to activate the most massive entities in China and revitalize the real economy.

In Zhu Danpeng's view, in fact, from 6. 18, double 11, the development of e-commerce has encountered a bottleneck.

Some people have some bad experiences in the online shopping process, resulting in the return to the entity store.

This is the embodiment of China's consumption upgrading: it is changing from price to value.

Insiders say that traditional retail enterprises have absolute advantages in brand, resources, experience and timeliness. Although the electricity supplier represents a new direction for future business development, it can not completely replace the retail channel.

"Many traditional retailers have learned the power of the electricity supplier, and have realized the importance of combining with the electricity supplier."

Some analysts have told Nanfang Daily reporters that in Guangdong, modern department stores, Guang Bai Department stores and Guangzhou friendship have made various attempts in touches. Some small cooperation between the traditional department stores and the electricity supplier has also initially tasted the sweetness and finally changed their consciousness, knowing that the electricity supplier is a good thing, not an enemy.

For the future, the above analysts believe that whether the enterprises in Guangzhou or the traditional retail enterprises in the whole country, the combination of the entity store and the electricity supplier will be more and more diversified, and the boundary between the electricity supplier and the entity store will also become more and more blurred.

With the two sides approaching and merging gradually, the advantages of both sides can also be brought into full play. At the same time, through effective integration, this advantage will gradually appear, and entity stores will gradually get out of these difficulties in the process of combining with the electricity supplier.

In an interview with the media, Qu Dejun, President of the financial group, also believed that the real business should accelerate the embrace of the Internet, realize the interaction between online and offline, and combine virtual and reality. This is the path of innovation and development of the industry.

And the electricity supplier should also embrace the real economy, because in the increasingly complex business environment, only to provide consumers with richer formats and commodities, provide more quality services, create a better consumption experience and consumption environment, and guide consumer demand to return to the essence of business, can meet the changing consumer demand of consumers, in order to reflect the business advantages of real businesses and win the healthy and sound development of real businesses.

In the three days of the 6 / 18 activities, the total volume of pactions under the "3000+ entity business alliance" line was 8 billion 840 million yuan, and the total number of passenger trips in the physical store was 388 million. The peak of passenger flow appeared on the day of June 18th.