Li Ling: Retail Industry Also Needs Innovation.

On the morning of October 13th, 2016 Fengyun will be held at Hilton Hotel, Hongqiao, Shanghai. It is reported that this storm will take "marketing revolution - sharing symbiosis and co creation" as the theme, and divide marketing and experience, marketing + traffic, marketing + technology into three special fields to find the best combination of marketing and commerce.

It is not in the rivers and lakes, but there is always a legend in the rivers and lakes. It is more appropriate to use this sentence to describe Li Ling. Hangzhou Tower shopping center, Zhejiang Yintai Department store And Shenzhen Huarun the Mixc project, the industry has expressed its admiration for its performance. Positioning Hangzhou Tower high-end line, help intime department store chain, and create the first national performance counters.

Today, Li Ling begins with the old story at the scene of the storm. Retail The flow of people, logistics and material flow.

　 The following is a summary of the speech.

Sorry, I am actually an outdated old gun. Today I would like to talk about some ideas and old stories. The old story starts with "new" from the first word. Now every industry and every industry speaks of new, new enterprises, new models, new thinking, new marketing, and all kinds of new and new ones. What else do you think after hearing it? I don't think so.

Since last year, the state proposed innovation and entrepreneurship, and I was particularly disgusted. This new feeling gives me the feeling of abandoning everything, just like buying a new dress and throwing away the old clothes.

I think innovation is an instinct. Everyone will be creative, everything can be innovating, and innovation is very important to respect the past. We should find problems from old ones, old enterprises and old ones, and improve them. You don't understand the old ones. You don't understand what old Yintai is. You don't understand what is the problem of intime department store, what do you do?

New, everywhere, new is instinct, new and continue. So today, I make my introductory remarks on the "new" understanding. I hope you will not pursue the clouds and enjoy the historical precipitation.

Just like this conference, the conference was very traditional and for many years, but this year's guests appeared in the manufacturing industry, no longer confined to department stores, commercial real estate, supermarkets, but with manufacturing, this is an innovation. It is in the past experience that there are deficiencies, we have to change, to try, I respect such a new.

As long as any enterprise exists today, especially for more than five years or more than ten years, he must have many, many new ones. You have to think that he should be thrown away.

Next, let me start with my old story, which is also the theme of today's stream of people, logistics and financial flows. I want to attract people, take away logistics and leave money. This is what I did in Hangzhou Tower shopping mall in 1990s. But when I arrived in Yintai, I almost talked about it every year. Why did I talk about it every month? Why? Because Yintai is an enterprise that attracts young people very much. He is famous for his large number of people. What is the use of abortion? Can he take away logistics and save money? At that time, we bought the whole department store. In Hangzhou, some customers make suggestions. Why not buy them directly? But there is no logistics here. There is only a stream of people, no logistics, such a simple reason. But when I left, I went to Huarun to talk about the flow of people, logistics and money.

When I left the retail industry, I left the department store in 2004 and left the retail industry in 2009, but I have always been a consultant in this industry. I have been a consultant in department stores, commercial real estate, and even many. brand Business consultant, consultant of clothing, children, jewelry, catering, has also been a consultant for large retail investment companies. In this process, I always emphasize stream of people, logistics and money flow, but it is hard for people to understand. With such a simple consensus, there are not many people who accept such a simple truth.

Who was the first person to say the flow of people, logistics and money? Do you know? I believe you all know the story of "lots, lots or lots". This classic is known to everyone. The person who said this is the founder of Hilton Hotel, Hilton brothers. Hilton was a large hotel group. When he was successful, many people asked him why he was successful. He said: location, location or location.

More than 100 years ago, businessmen told us how important the location is and what the location is. Location is the window to attract people. Because the location is good, it is easy to attract customers, because location is easy to display goods. So, you find that business has been "location, location or location" for many years. In fact, there is not much innovation, but it is still here.

As regards the importance of location, logistics and finance, the importance of location is a commercial classic. It is a commercial rule and no one can avoid it. Whether Chinese and foreign enterprises, large or small enterprises, no matter the new and old enterprises, no matter the catering industry, retail industry, hotel industry or even the so-called modern business, they will even become obsolete e-commerce. And "location, location or location" will not be out of date, because it has returned to the origin of business. Any market economy business should pursue this source, stream of people, logistics and financial flow.

Monopoly economy is not the rule, it is another rule, that is to control resources. I have you, I live, you die, this is monopolistic business. When I want to do business, I hope that the traditional retail industry will run out of business and monopolize the business, not the business of the market economy. Market economy should pay attention to the flow of people, do well in logistics and make good money. When you are in the financial industry, you say all banks want to die. This is the concept of monopoly economy, not the concept of market economy. Business is slowly and slowly going step by step.

Today, I will focus on stream of people, because any business starts from the stream of people, and the flow of people is very important. To attract people, it is easy to say, easy to use, no need to invest in the cost. But what's the point of not moving logistics?

I just got from Hangzhou Tower to Yintai, because Hangzhou Tower was a relatively high-end shopping mall, Yintai should be a popular shopping mall, and in 1999, Yintai, the market was not so mature. Many people could not see clearly the consumption ability of young people. We feel that young market is not so good to do, so do it, a variety of activities, all kinds of tricks to attract young people to come.

As I said in 1999, the richest man in China did not rank the richest man in any foreign country. We found that the average age of the richest man was getting lower and higher, and wealth became more and more popular among young people. Then, this time there was a young intime department store. I also do promotional activities, a lot of people. But after the end of the activity, the flow of people did not turn into logistics. Why? Great cost, security and safety, and risk. Why? It is not enough match. The customers you want and the customers who can turn to logistics are not matched with the customers you are doing sales promotion activities, so the cost is great. There are many, many measures to solve this problem step by step, win logistics, and finally leave money.

The sufficient flow of people is the premise of logistics, but nowadays people pay much attention to the stream of people. Attracting people is an entry. It is wrong to think of the new business, the thinking of the Internet and the thinking of new business. We will attract people at all costs. I tell you, as a past person, I think it's easy to attract people, so it's OK to put money. A VIP card can be done by everyone. Buying money is a threshold for customers to pay for your VIP card, which restricts the flow of people. Then you send it, everyone sends it, like a pie, but many people will not. If you don't want to pay him the money, take a piece of it for you, ten people will grab it. I think the Internet is the way to do this. This is the subsidy. Because they simply think that as long as there is a flow of people, everything will be there. All investment companies consider the flow as the only index to consider how much the project cost and enlarge it infinitely.

I have a problem that I do not want to understand, that is, Internet commerce and our traditional business. Our traditional business has a balance, but Internet business is not. I haven't found it. I hope to be here on the Internet to tell me how the balance of the Internet is calculated. We are sales gross profit margin, the remaining gross profit cost = profit. I do not see the specific figures of Internet Co, yes, theoretically, the larger the flow of people is, the larger the logistics industry will be. But where is the control point of the cost? When we attract people in the transition, we find that the cost is very large, and the cost is very high, and the conversion rate is very low. We have done such experiments, we have done such an industry, we have this experience.

The net was full of cars, making it a little chaotic. Now they are back, and the two have merged. Today when we talk about retailing, I will talk more about cars. I took several Shenzhou buses last year, and every driver told me a very good story. They love the Shenzhou special car. They love this industry and they love our customers. I was very impressed. I wrote micro-blog and WeChat. This year, I went to China for four times yesterday. None of the drivers said anything good about the company. Why?

Did you know that you have been on the Shenzhou special car? Have you ever sat in dripping, fast, Uber? I only look at employees' experience. When an enterprise, employees do not say hello, do you go far? You raise more and more funds, and your market is getting bigger and bigger. Why do your employees not love you more and more?

If you do retail business here, in fact, many of them are like this. The boss is making a fool of himself outside the house, but the employees are fighting for money. This is the economic mode. There is no distinction between modern and traditional. Why is traffic increasing and valuations higher? Employees' happiness is getting lower and lower. I asked a very stupid question, "bad business, then you go?"

He said, yes, very soon, but where to go? I came from Beijing, and I also met a big investment guy. I asked him a question. Why do businesses lose their long-term interests when they lose money when they have money?

Do you think there is money for you to deduct the interests of employees? NO, you should turn your money into logistics and flow to the financial market. This is called business. Otherwise, it's not business. Don't talk to me. I don't talk about politics. I don't even talk about monopoly economy. I don't understand.

I come from Hangzhou, Hangzhou is very fond of traveling, saying that the Hangzhou municipal government has Internet thinking. Their understanding of the Internet thinking is to reduce tickets, reduce entry barriers, let people in, and then make money in it. They say Hangzhou doesn't want tickets. West Lake walks along and eats a lot. Do you agree?

I think that is not the Internet thinking, this is business, this is business thinking, business is doing so, to maximize the attraction of suitable customers, and then control our cost, regardless of cost, I think the Internet thinking. Of course, I am talking about Internet thinking, 100% is all wrong, although everyone clap bricks, because I do not understand, but I understand business.

When you give me the idea of Internet, I will tell you, isn't that what our business does? In 1993, when it started retailing, it began to fight against counterfeiting. Do you know what the most fake products are now? We will start to ban the bill. We will try to make the suppliers feel comfortable. Only the suppliers cooperate with us, our department stores will have something to do. There was a period of good fear that with Alibaba, with Taobao, no one in our business would buy anything.

Many years ago, at a conference in Wuxi, I said that a department store, a supermarket, any retail liquid, as long as there are suppliers to supply you, as long as customers buy your stuff, they will not die. Don't worry about the day when something is sold on the Internet and the supplier gives up you. That's the day you die. Why did the supplier give up you? Because you pumped too high, then you cut it down. After a little reduction, it is important to say that the boss will scold him.

When I recently asked a store in Beijing that there were about 200000 copies of our VIP information, we asked the number of VIP guests who visited the store five times a year on average. How many? He said less than 20 thousand. He said, our boss thinks that this base is not big enough, it should be 2 million, but the activity is 10 thousand, and the increment of the card is very easy, but it doesn't make much use. The big cost does not bring you wealth and money. Such sales promotion, such a way of thinking, has long been abandoned by our traditional retail businesses and traditional businesses. But now we all regard him as a new one and should carry forward it.

The purpose of my participation is to make my mind more realistic and to become more scientific and not to pursue clouds. I want to be down-to-earth and business will have a future. Cost control is always the most fundamental thing in business. Of course, how to control is very particular. Our department stores clearly have tens of millions of profits and say that I have been defeated. Who said we were defeated?

Future coordination will not be defeated. As long as we return to our original source, our minds must be more active and our minds must be practical. Market economy is always open. Any challenger is welcome.