The Retail Market Under The Electricity Supplier Effect Is Seriously Injured, And The Store Is Constantly Looking For Ways To Break Through.

It is understood that with the development of the electricity supplier, many shops have been closed down, and fewer and fewer shoppers are shopping in the mall, and the shopping mall is empty.

The electricity supplier has attracted countless consumers to go online shopping. In order to retain customers, the store is also developing new highlights.

It is reported that in 2016,

Up to $22 trillion, of which only 8.6% (about 1 trillion and 900 billion US dollars) was generated in the retail business.

By 2020, global retail sales are expected to reach US $27 trillion.

Among many retailers, Central Group, the largest department store and store operator in Thailand, is trying to adapt to the reality of online shopping.

The company has put forward a new concept of "store as theater operation", which combines innovation and technology to enable consumers to experience more pleasure when shopping in Central department store.

"Nowadays consumers are not only concerned about products while shopping, but also want to feel the latest shopping experience.

Convenient and fast is what consumers want now.

At the same time, they also hope that the seller can provide and meet the individual needs of individuals.

Iyawan Leelasompop, vice president of marketing at Central Group, said.

Unhappy voice in foreign retail market

Asian retailers are watching closely the development of their counterparts in North America.

Today, Asian retailers have seen North American electricity suppliers swallow up the profits of many large chain retailers, leading to the closure of more than a dozen shops by some household brands.

And also saw another trend in the North American shopping mall. Fewer and fewer shoppers were shopping in the mall, and the shopping mall was empty.

"This is not a cyclical issue."

Jason Mudrick said.

The scale of Jason Mudrick's Mudrick Capital Management is 1 billion, which specializes in investment in non-performing assets.

"This problem will exist for a long time. This will be an eternal trend.

This is the impact of Amazon and will continue. "

In 2015, there were 6400 in the United States.

Close.

In 2013, chain clothing retailer American Apparel had more than 200 stores in more than 20 countries, with a total sales volume of $633 million, but now it is bankrupt.

In January 2017, American Apparel was sold to Gildan, a Canadian clothing company for $103 million.

Rue21, a clothing chain retailer in the US, has 1194 stores in 48 states. It announced that it will close 400 stores this month (April 2017).

Also struggling in the plight are the most popular brands in the US, American Eagle, the first American leisure brand Abercrombie & Fitch and the American youth products retailer Aeropostale.

JC Penney, Macy's and Sears in order to adapt to the changing style, but also in order to switch to electricity providers, the mass shutdown of the entity store in the United States.

Macy's plans to close 68 stores, which will lead to the loss of 10000 jobs.

JC Penney has shrunk from 1104 stores in 2012 to 1013 stores in late 2016, and plans to close 138 other stores in 2017.

According to industry data, one month in February 2017,

30 thousand employees have been laid off.

Combined online and offline, the effect is doubled.

KPMG Asia Pacific consumer market leader Anson Bailey said in Hongkong that technology development has promoted the development of e-commerce, and the impact on the retail market is coming to Southeast Asia. However, retailers in some areas are still not aware of the threat posed by the development of e-commerce.

Anson Bailey quoted Mike Tyson as saying, "if you don't do anything, you will be affected by this impact."

"We see that these traditional enterprises are going to be defeated."

But some people will succeed, he says, and they focus on doing something different, such as adopting a O2O strategy and working with a new partner.

"Consumers still want to feel and touch the product in the shop.

Stores will not die.

Millennial shopping is different from the older generation, but they still cherish the shopping experience in the store.

Moreover, even electric business players start to build an entity flagship store, and when they shop online, they launch the store address to get consumers' trust.

Anson Bailey said.

Mr Kruh agrees with Anson Bailey. He said: "business providers need to do more than just online business.

The two channels online and offline are equally effective in creating consumer awareness and demand, especially when the two channels work together.

Asian retailers try different strategies to survive.

E-Mart, the biggest retailer in South Korea, cut its stores for the first time in 24 years last month (March 2017), will sell some of the loss stores, but is also looking for the right place to open a new store and look forward to better performance.

China's main physical retailers increasingly use Internet technology.

In order to expand its physical sales, China's e-commerce giant Alibaba bought a 25% stake in Intime Retail Group (Group), a listed department store operator in Hongkong.

After that, Intime Retail (Group) began its new business model.

Alibaba's inventory control system and direct purchase channel have removed middlemen, so that Intime can reduce prices and compete with its competitors.

Central Group also adopts a two pronged strategy, paying attention to offline and omnidirectional channels.

The concept of Central 4.0 of Central Group attaches importance to internal online shopping and store digitalization, aiming to provide sellers with a 24 hour online shopping experience.

"We can't just sell products."

Ms Piyawan said.

"Central wants to sell experience, which consumers can not buy online.

We want to be such a mall -- people come to our mall like part of our life, not just shopping.

When Central introduces iPad, salesmen can use iPad to overcome language barriers when encountering foreign tourists.

Central has also pformed some shops into the personalized areas that consumers like.

For example, beauty and nail care services will be distributed in women's clothing department.

In addition, when buying home decoration, they can help consumers to sew their names onto their pillowcases and sheets.

In the children's wear department, the floor of the floor is decorated with materials for children's safety. Children can try them first before parents buy toys.

Also, the second Saturday of every month is the children's day of Central. There will be some activities to attract parents to take their children to the store.

In 2016, Central spent 100 million baht to make user interface more user friendly.

Central plans to increase its online products from 100 thousand to 500 thousand in the next 5 years.

"The goal is to increase online pactions from the current 1 million to about 3 million times a year, increasing the online sales of 1% to 15%."

Ms Piyawan said that this year's goal is that online sales account for 5% of total sales (up to 47 billion baht).

Central has also renovated two shops in Bangkok, namely Central Plaza Bangna and Central Plaza Pinklao, and has set aside another 3 to 400 million baht in Nakhon Ratchasima Kh, a new Central department store in central and southern Thailand, and has also restored the CentralPlaza Rama III in Bangkok.

Opportunities for growth in the Asian market

Although department stores attract a lot of people, many people come for their "exhibition hall" functions. These people go to the shopping mall to "inspect" the goods, take pictures of the products, and then buy them online.

This sounds bad news for the physical store, but there is an encouraging "reversal" - consumers will also find products online, compare prices and buy products at the physical store.

It is said that millennial consumers are more susceptible to online feedback from social media and peers than older consumers.

KPMG has discovered a surprising thing after investigation: millennials are more susceptible to offline channels.

Millennial generation is 25% more likely than baby boomers to see products before buying online.

Despite the sharp fluctuations in the retail market, there are good news. In the long run, the Asian market is quite positive.

In 2005, economists said that total household consumption in Asia was 7 trillion dollars, and it is expected to grow to 33 trillion dollars by 2030.

This figure is equal to the total expected value of the US market and the total expected value of the EU market.

"I am not going to withdraw to Manchester (in northwestern England), because our business is growing in Asia."

Mr Bailey of KPMG said in Hongkong.

The number of middle class in China has increased a lot.

China's high net worth individuals (assets over 10 million yuan, or 1 million 450 thousand US dollars) are about 1 million 400 thousand people - 4 times that of 2010.

Meanwhile, in 2016, about 120 million of overseas travel was from mainland China, and Southeast Asia was one of the favorite destinations of these Chinese tourists.

KPMG predicts that the number of overseas trips will increase to 200 million by 2020.

"Are our retail businesses ready for these future customers? How can we better serve the future Chinese consumers?" Mr Bailey said.

"Consumers are looking for something other than shopping experience, and sellers have to think about how to provide consumers with new experiences."

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