Retail Business Is Changing! What Does Historical Change Mean?

Some changes in the retail industry can be promoted to the height of major changes. Three aspects must be satisfied. One is innovation, that is to say, this change should produce a completely new way of retailing, organization and management, and gain a dominant position. The two is the impact. That is, the new retail organization and way of operation will have a strong impact on the old organization and the old way. At the same time, it will also affect the change of customer shopping mode and the adjustment of the relationship between the manufacturers. The three is the extensive nature, that is, this change is not pient, but extends to a certain space and extends to a certain time.

From these points of view, four major changes have occurred in the history of western Retailing.

First retail change: the birth of department stores

The first major change was marked by the birth of a modern department store. The academic community called it the "first revolution of modern business", which is of epoch-making significance.

Although department stores were called innovative management practices, they now seem quite common, such as the system of marked price and merchandise exchange, luxurious store decoration, free access to customers, excellent service for customers, equal treatment for customers, large shopping malls, numerous display commodities, several commodity departments, and integrated management.

But these reforms have been a qualitative leap for the traditional retailers at that time.

1, fundamental changes in the way of sales.

The department store is the first modern mass marketing organization to implement new sales methods in the history of world business. Its new sales method is summarized as follows:

(1) customers can freely and freely enter and store stores.

(2) the sale of commodities is marked by "marked price", and all goods have price tags, which are sold to all customers at the same price.

(3) display a large number of goods so that customers can choose at will.

(4) goods purchased by customers can be returned if they are not satisfied.

These sales methods seem to be a very common thing now, but they are brought about by the birth of department stores and their pformation to retail sales.

2, fundamental changes in business.

The biggest feature of department stores that appeared at that time was that there were several different commodity departments, which were like a "shop group" under the roof, that is, many commodities were divided into departments according to commodity categories and departments were responsible for organizing the purchase.

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Moreover, department stores mainly focus on daily necessities, and carry out a comprehensive sales organization.

According to different commodities and different sales locations, although each part of the business scale is not large, but because it is concentrated in a business body, so the scale of the comprehensive operation is larger than the previous grocery stores and specialized stores.

Therefore, the comprehensive operation of department stores is also one of the fundamental changes to adapt to mass production and massive consumption.

3, fundamental changes in organizational management.

The traditional urban retail stores and rural grocery stores are not only self-employed, but also self-management, money and material management.

Different from this nature, department stores, because they operate a number of commodities at the same time, have a large scale, so their business activities are divided into relatively independent professional departments, division of labor and cooperation are carried out, while management is carried out in a hierarchical way. Enterprises have unified plans and principles of organization and management, and are then executed separately by a number of functional management departments.

Therefore, under the capital plan and control, department stores are organized and managed according to the series of commodities.

The two and second retail changes: the birth of supermarkets

1, revolutionary changes

The supermarket marks the outbreak of a retail revolution, which has the following effects on the innovation and development of the retail industry as well as the changes in the whole society.

(1) open shelf sales are popular.

Open shelf sales, though not the first creation of supermarkets, was developed by supermarkets. The supermarket's self selected shopping method, as an important means of competition, not only impacts the original retail form, but also affects the new retail formats. Later, discount stores, warehouse stores and convenience stores have adopted open shelves or self-service.

(2) people spend much time on shopping.

With the increase of women's working hours and the reduction of their leisure time, people no longer regard shopping as a way of leisure, requiring shopping to be more convenient and faster. Supermarkets just satisfy the new requirements of people, and gather all kinds of commodities originally distributed together, which greatly saves people's shopping time, and enables people to spend their limited leisure time in activities such as tourism, entertainment and fitness, creating a brand new modern lifestyle.

The unified settlement and related commodity display implemented by supermarkets also greatly save people's choice of goods and settling time.

(3) a comfortable shopping environment.

The orderly, clean and comfortable shopping environment created by supermarkets has replaced the formerly noisy and noisy fresh food market, making people believe that buying any product can enjoy the pleasure of shopping.

(4) promoting the pformation of commodity packaging.

Open shelf self selection has forced manufacturers to carry out brand new packaging design, expand packaging, logo and other aspects of competition. There have been many brands of large and medium sized packages, beautiful decoration and prominent logo. This also makes shopping malls look more orderly and beautiful, creating a good shopping environment.

2. Background

The emergence and development of supermarkets now seem to have their historical inevitability.

(1) the economic crisis is the trigger for supermarkets.

The economic crisis sweeping the globe in 1930s led to a serious shortage of purchasing power of residents. Retailers went bankrupt, production shrinks, shops rents were greatly reduced, supermarkets took advantage of these low rent idle buildings, adopted self-help shopping methods to save labor costs, and implemented small and profitable business policies to achieve a low price, which was welcomed by consumers at the time, who were beset by economic crisis.

(2) lifestyle changes contributed to supermarkets.

After World War II, more and more women took part in the work. People's living and working tempo accelerated, coupled with the traffic congestion in the city, the original retail stores were lagging behind. Many consumers wanted to go to a shopping mall and stop for a week to buy food and daily necessities. Supermarkets were adapted to consumers' demands.

(3) technological progress has created conditions for supermarkets.

The development of refrigeration equipment has provided the necessary conditions for supermarkets to store various fresh foods. The perfection of packaging technology has provided great convenience for customers in supermarkets. Later, the promotion and application of electronic technology in the commercial field promoted the utilization of electronic equipment in supermarkets and increased the degree of mechanization of sales.

In addition, the popularity of refrigerators and cars in western families makes it possible for consumers to buy a lot of purchases and long distance purchases.

The three and third retail changes: the rise of chain stores

Chain stores are the product of the development of modern large industries, and are compatible with the large-scale production requirements of large industries.

Its essence is to apply the basic principle of socialized production to the circulation field so as to achieve the goal of improving coordination operation capacity and scale operation benefit.

The basic characteristics of chain stores are shown in four aspects:

(1) standardized management.

In chain stores, the stores have unified shop names, use uniform logo, carry out uniform decoration, and maintain consistency in staff dress, business hours, advertising and commodity prices, so as to standardize the overall image of chain stores.

(2) specialization.

The function of chain store headquarters is chain store, and the function of store is selling.

On the surface, this is not much different from a single store, but in fact there are qualitative differences.

The role of headquarters is to study the business skills of enterprises and direct the operation of branches. This makes the branches free from the influence of experience management in the past and greatly improves the management level of enterprises.

(3) centralized purchase.

Chain headquarters centralized purchase, large quantities of goods, from the manufacturers can get a lower purchase price, thereby reducing the cost of purchase, and achieve price competitive advantage.

Because the shops are organized, they can overcome blindness in the purchase and do not need too large inventory of goods, so that they can guarantee the sales demand and reduce the inventory cost.

Each shop is responsible for selling, and there is more time and means to organize sales so as to speed up the turnover of goods.

(4) simplify homework.

The operation process of chain stores and the business activities on their posts are as simple as possible to reduce the impact of experience factors on management. As the chain system is huge, there is a set of specific operational procedures in all aspects of control, which requires the simplification of unnecessary processes to achieve half the effort.

Recently, there is a very hot business case, that is, KM fast fashion designer.

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It's just a chain store, but in just 2 years, nearly 1000 stores opened nationwide, 30-60 stores a month, and a single store sells nearly 2 times the same industry.

In this era of real economy recession and electricity supplier's surging Internet era, this speed is particularly striking.

As a phenomenon, the author raises several viewpoints on KM:

Viewpoint 1: chain retailers should grasp the new retail bonus.

The new retail era, like the era of e-commerce, started early to enjoy dividends, and started late into the Red Sea.

Point two: deliver merchandise to users.

In the new retail era, where the user is, the goods are there; instead of bringing the user to the front of the merchandise, they send the goods to the user.

Viewpoint three: how does new retail land fall?

Customer demand is driven by category refactoring, based on store operation and customer experience.

Point four: focus on cost, service and efficiency

New retail is not just putting your store goods on the shelves! In the process of traditional retail entering new retail, we have to consider 3 questions. Is your service better? Is your cost lower? Is your efficiency higher?

Finally, let's make a conclusion.

A company, a brand that dares to challenge, but all those who can make achievements must have a deep understanding of retailing. It must match the business elements reasonably into a unique business system. This system can create differential user value and considerable profit return at the same time.

And this is the essence of business.