The Traditional Retail Mode Is About To Collapse, And Half Of The Enterprises Will Be Eliminated.

With the beginning of a pformational pformation, the next 50% of retail businesses and brands will be eliminated.

Seize the value chain control at the time of change

The success of a company depends fundamentally on its control over the entire value chain, from the beginning of brand creation to the end of brand consumption.

Some companies can fully control the value chain, and some companies are trying to control the value chain.

Although control is not necessarily defined as actual ownership, control is of vital importance.

The success of the advanced stage depends on the control of all aspects of the value chain related to the consumer: create value jointly (follow up visits and surveys to consumers, etc.), constantly adjust and reshape the expectations of consumers, distribute commodities, and finally present them to consumers.

Prerequisites: create a good consumption experience and keep iterating.

Successful enterprises can create a good consumption experience, which is not just a product of high quality.

Service or shopping experience.

For example, we notice that when customers hear brands like Joe, totality, Disney, apple and so on, they will be very excited and expect to have the experience of consumption and shopping.

In fact, we have studied the biochemical characteristics of the human brain's nervous system which can affect behavior patterns, especially consumer behavior.

The results show that these brands can peak a chemical reaction in the brain.

Therefore, when consumers hear these brands, they will rush to rush to these stores.

For example, KM fashion and Starbucks can stimulate a neural experience, which leads to popular fanaticism. This experience is closely related to five senses of human beings and the most important "sixth senses" (thoughts and triggering emotions).

The nerve connection between Starbucks and KM is a good example: there are long queues at the Starbucks gate, but the McDonald's and other coffee shops nearby are very few.

The clothing industry is slack and business is slack, while KM, which sells fast fashion clothes, has been popular among young people and has repeatedly seen panic buying.

Therefore, it is only a basic requirement for today's retail industry to provide products for consumers and understand the target consumers at the same time.

Excellent competitors can provide consumers with neural connections.

Everywhere: building distribution advantages

A successful company has the advantage of distribution, that is, providing brand value services to consumers at any time, anywhere and in various ways.

With the in-depth study of consumers' trigger point (sales point), we find and define what is excellent distribution.

As mentioned earlier, consumers can have access to goods and services in all directions because of the gathering of merchants in the market. The Internet and other distribution platforms have quickened the speed of consumers' access to goods and services.

Therefore, a brand new concept, "preemptive distribution", has emerged, that is, accurately knowing when, where, and how long the consumer will have consumer demand, leading the other competitors to display the goods and services faster in front of consumers.

Leveraging successful leverage: value chain control

To achieve neural connection and preemptive distribution, we must achieve the complete control of value chain from brand creation to consumption.

The value chain control can make the enterprise integrate into a series of wonderful elements in the operation process, promote the formation of the nerve connection, grasp the key interaction with the consumer, get the information feedback of the consumer, so as to design the product and the experience as a whole.

Similarly, the rapid evolution of multiple distribution modes and the rapid application of new technologies can not be separated from value chain control.

It is noteworthy that people think that controlling the value chain is owning a value chain.

In fact, it is not.

In the analysis of successful enterprises, we find that most enterprises have a highly effective collaborative value chain between product suppliers and producers.

However, the creator of brand value continuously seeks the creation, distribution and display of brand value in an active or passive way, so as to achieve the control of the value chain.

Business principles: detonate sales boom in the declining trend

The retail industry wants to achieve good results in the third wave. We believe that the coordination of the following three strategic management principles is essential.

1. Neural connections: retailers and consumers are expected to have full access to goods.

The service must be higher than the consumer's expectations.

Businesses must implement one or more of the five consumer value changes and create a "experience" together with consumers. This experience can establish a permanent relationship with the five senses and the six sense.

Neural connections are an integral process of experience, including anticipation before shopping, excitement in shopping and satisfaction in consumption.

For example, when young consumers are ready to enter Starbucks to buy a cup of coffee or enter KM to buy seasonal fashion costumes, this link has started naturally. This is a dynamic process that needs constant consolidation and adjustment.

When products, brands and services can establish neural connections with consumers, enterprises can lead their competitors.

2. Preemptive distribution: refers to providing products or services to consumers in full accordance with the manner, place and time required by consumers before competitors.

Preemptive distribution requires businesses to quickly consolidate and consume time and provide products or services to consumers.

Preemptive distribution requires businesses to quickly consolidate their neural connections with consumers (or brand promises).

By definition, this requires integration of various distribution media, including distribution for rapidly expanding international markets, to form a rapid distribution network.

3, value chain control: if we lose control of the entire value chain (from value creation to value consumption), any direct consumer oriented enterprise can not achieve high-level neural connections and preemptive distribution.

Value chain control refers to a vertical integration (not necessarily owned) and controllable business model.

In fact, the three principles can form pformative synergy, which not only enables enterprises to maintain competitive advantages, but also promotes the extraordinary growth of enterprises.

What needs to be clear is that any one of the three principles or two independent factors can not make the enterprise succeed. It must be guided by the value chain control, and the other two principles cooperate with each other to take effect.

In order to quickly and effectively meet the growing demand of consumers and enable enterprises to win market share in the competitive market, these three strategic management principles must be implemented by enterprises.