Mckinsey: Retail Industry Should Jump Out Of Pure E-Commerce Thinking

Online or offline? This is a problem for all retailers. Many retailers use the full channel strategy. Most of them use offline outlets as display and after sales channels. In fact, most of their turnover comes from e-commerce channels.

For consumers, choosing online or offline consumption to decide the ultimate consumer behavior is far from being explained simply by "consumption habits".

But when most people are still discussing this issue, the new era seems to be coming.

McKinsey, a management consultancy, released the 2017 China iConsumer Research report 22, trying to reveal the trend of the new retail era.

In this year's report, in addition to interviews and analysis of over 5900 Chinese consumers, McKinsey has integrated forward-looking consumer experience design in this study, summarizing the new opportunities in the coming new retail era and the potential strength of brand retailers and retailers.

The report suggests that China is the world's largest online retail market, with the size of the six largest electricity supplier market in the United States (Britain, Japan, Germany, South Korea, France, France).

However, after 6 years of rapid growth, China's total e-commerce volume growth slowed down from 74% in 2011 to 19% in 2017.

McKinsey believes that one of the reasons for the drop in growth rate is that the pure online retail platform is approaching the top and the competition is becoming increasingly fierce.

There are also indications that consumers are not moving from offline to online buying in some categories, and consumer oriented enterprises have regressed in meeting consumer demand.

Wang Wei, partner of McKinsey Global senior director, said that in order to meet consumers' expectations for offline and online shopping, enterprises must jump out of the pure e-commerce channel.

"Observing the action of the electricity giant will find that they are developing multi-channel. The development mode of the pure electric business has reached a certain limitation. Our data also show that for the online shopping consumers, the first tier cities are almost saturated, and the growth rate is very fast in the low line cities.

The next question we need to think about is how to capture the whole channel of consumers.

To this end, McKinsey summed up five new trends in consumer behaviour and preferences:

First, online and offline integration.

Become the mainstream consumption mode.

The company's research data show that, taking consumer electronics as an example, 93% of consumers will first study online and then go to the physical store experience; 96% of consumers will experience or buy online.

This shows that the whole channel is a new normal, but the offline channel is still an important node of customer experience and sales pformation, and the brand should make use of the "exhibition hall" of the entity store.

"As a retail store, what is the room for improvement?" the partner of McKinsey Global director believes that the advantages on the offline side are more than after-sales service, actual experience, consumers can get instant sense of quality, and think that quality is more secure than online. Traditionally, the higher price is actually due to online convenience.

"We feel that if we want to provide a solid experience and use online assistance, we will be willing to shop online after the price and information pparency has been raised."

Secondly, consumers expect to have "Scene triggered shopping" with sex whenever and wherever they want.

According to McKinsey's survey, for many categories, situational shopping has sprung up, and the business opportunity now is whether it is convenient and natural to trigger various scenes of life into retail scenes.

At the same time, for sale pformation, "immediately available" becomes very important.

Retailers must impress their customers before they change their minds so as to increase sales.

The report also suggests that Chinese consumers have always been lovers of social media.

Surveys show that social media accounts for 85% of digital consumers, and social media increases 10% of the time spent on social media.

On the other hand, the social providers themselves, though 70% of the respondents WeChat users expressed willingness to shop in their official brand micro shops, but only 31% of the users interviewed bought goods on WeChat.

The analysis found that after realizing the convenience and security of the payment link, if we can get closer to the mainstream business platform such as product mix, logistics, service and so on, then the social business is expected to become a new growth point.

In addition, consumer demand for standard products and regular services is increasing.

Consumers are eager for more customized products and services, seeking services that meet specific service requirements, such as short term rental or short-term trial. This is particularly evident in clothing category.

Branding can make itself stand out from many competitors through the innovative service mode of water testing and the ability of customization.

Wang Wei told reporters to be in

To seek brand breakthroughs, we must return to the experience. Any consumer experience of a brand is not good enough. Sooner or later, it is impossible to become a popular brand.

"You see that all luxury goods, high value brands, and good products ensure that experience is good, including consumption experience and after sale experience.

When emerging brands are generated in the Internet economy, they can not relax their consumption experience, from pre sale to after sale experience.

If the business model based on the new retail mode is built, we should think about how to provide consumers with better experience at all points.

The report thinks that data is driving the deep individuation of consumption.

98% of the surveyed social media users had received advertisements on social media, but only 18% of them believed that the recommendation received was "good for them."

For offline shopping experience, only 10% of consumers expressed personalized service or advice in shops.

In the new era of retailing, brands and retailers should focus on the accumulation and analysis of big data, enhance understanding of consumers, provide targeted recommendation and full channel services, and improve shopping experience.

Bo told reporters: "many brands, whether through their Tmall flagship store or the official website, understand many of their consumers. By using some technical means, it is easy to pform the online consumer behavior and habits that he already knows to the offline salesmen. This interactive efficiency and humanized service can become the force of the brand."

McKinsey concludes that in order to meet the needs of Chinese consumers in the era of digital retailing, enterprises need to consider three redefinition of customer experience, namely, redefining channels: providing a pleasant and full channel experience, creating a convenient, pparent and personalized shopping process; redefining lifestyles -- encouraging consumers to better use products and actively exploring ways to improve their quality of life, so as to increase consumer participation and increase their demand for categories; and redefine products and services, providing accurate, flexible product and service models to enhance consumer preferences.

Service satisfaction.

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