Entities And E-Commerce Cooperation To Strengthen The Pformation Of Physical Retail Is Not Easy.

In May 25th, China's top 100 retail list was released at the twelfth China retailer conference held in Chongqing in 2016.

Reporters at the scene learned that the list of China's top 100 retail companies, the net profit growth rate of listed companies has narrowed down.

Of the 24 retail listed companies, 16 showed negative growth in net profit, accounting for 66.67%.

In fact, since last year, the integration of the retail industry has been strengthened, but the declining trend of physical retailing has not yet improved.

There is a view that the urgent need to solve the problem is actually "tax reduction". When the economy is declining, both developed and underdeveloped countries will take a measure, that is, to lower taxes, and there is still room for the current tax reduction measures.

On the evening of May 24th, the twelfth China retailer conference, jointly sponsored by the China Federation of Commerce and jointly organized by the Chongqing Municipal Commerce Commission, opened in Chongqing. The theme of the conference was "open innovation, deepen integration and enhance the value of physical retail".

On the 25 day, the General Assembly released the list of top 100 retailers in China in 2016.

Among them, it is particularly concerned that 16 of the 24 listed companies in the top 100 companies have negative net profit growth, but the net profit growth rate of listed companies has narrowed down.

This shows that the decline of retail industry in recent years has not fundamentally improved.

According to the world clothing and shoe net, the release of the top 100 list also reveals some characteristics and trends of the current retail development: first, cooperation between entities and e-commerce providers is strengthened.

2016 is the year when the electricity supplier and the entity cooperate to land, such as Tmall and Yintai business group.

Integration and development, Jingdong came home to join hands with Auchan partners to push the "million convenience store" project with O2O.

Secondly, the department store sales growth is still low, and the pformation is urgent.

Such as Tianhong upgrade Tianhong Shennan store, pformed Tianhong Discovery, will lock the consumer group "80 after" women.

The growth of supermarket formats has been slowing down, and the innovation mode has become the choice of many supermarkets, such as Yonghui expanding the proportion of fresh processing.

In addition, the data also showed that sales growth slowed last year, but the growth rate slowed down (100 enterprises achieved sales of 4 trillion and 820 billion yuan, an increase of 18.5% over the same period last year, representing an increase of 3.9 percentage points over the same period last year).

Among them, the growth rate of electricity providers has slowed down significantly, and retail stores have picked up slightly.

Despite the fact that the physical retail industry is getting warmer, the fact that we have to face up to the fact is that although there are only 6 electricity suppliers in the top 100, the sales scale reaches 2 trillion and 470 billion yuan, contributing 83.5% to the total sales growth of 100 retail enterprises.

There are 88 retail entities, with a sales scale of only 1 trillion and 810 billion yuan, contributing 9.7% to the overall sales growth of top 100 retailers.

The pressure on physical retailers is evident.

In addition to the above pressures, retailers are facing unprecedented challenges due to many factors such as the downside of economic environment and structural adjustment of consumption demand.

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Yin Hong, deputy director of the Department of circulation development of the Ministry of Commerce, bluntly pointed out: "influenced by many factors, such as rising operating costs, structural adjustment of consumption demand, rapid development of online retailing, and so on, the main indicators of retail industry, especially the physical retail industry, have slowed down.

"The speed of opening stores is slowing down, and the speed of closing stores is speeding up. Traditional retailing has been greatly affected."

Ren Xingzhou, the former director of the Institute of market economy of the State Council Development Research Center, said, "but this is also a natural adjustment. I think closing shop is not necessarily a failure, it is a self adjustment and self repair."

Faced with the downside of the industry, there is a view that for the physical retail industry, it is now necessary to "reduce taxes". When the economic growth rate is declining, both developed and underdeveloped countries will adopt a measure to reduce taxes.

Yin Hong said this year, the physical retail industry will benefit from the landing of the trillions of Yuan reduction plan.

In fact, external environment alone can not really solve the problem.

In recent years, China's physical retail industry has gradually exposed the prominent problems of extensive development mode, insufficient effective supply and inefficient operation.

This is also the internal cause for physical retailing to get into trouble.

Therefore, how to innovate and pform into a required choice for the breakout of the physical retail industry.

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As the most active and market oriented industry in the circulation field, we should innovate in terms of business mode and technology application.

Yin Hong said, "entities and electricity providers have gradually moved from a competitive relationship to a competition. The advantages of online business flow, information flow and capital flow should be gradually combined with the advantages of service, experience and logistics under the line."

The innovation of traditional retail industry is easy.

Innovation also means high risk and high knockout rate, and physical retailing is not easy.

In response to the "Internet +" model of the retail industry, Ren Xing Zhou said, "we did a research, and some of the" Internet + "shops in the physical store burned a lot of money, but the real success was not too much.

"From the inside of the enterprise, the core problem is the lack of internal strength."

Yin Hong said frankly, "the department store has adopted the management mode of entering the store and the joint point deduction for a long time. The supermarket has adopted the mode of toll fee for a long time, and has lost the purchasing power and pricing power of the commodity, the business operation ability has declined, the effective supply of goods and services is insufficient, and the operating efficiency is not high.

In addition, the cultivation and digitalization level of private brand is also insufficient.

"All these problems require retailers to adapt to the trend of online and offline integration and cross industry convergence as soon as possible, and use advanced technologies such as Internet and big data to drive enterprises to achieve strategic pformation, mode reengineering and service upgrading."

Yin Hong further said.

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