How Will The Retail Industry Go In The Future?

Xin Yi Jia and Ren Ren Le, Huarun, known as the three largest supermarket in Guangdong, has an annual sales of 18 billion yuan, with over 100 stores, ranking 14 in China's chain.

Today, a bankruptcy declaration announces the formal end of its 22 year history.

Its decline is not sudden. Last year, the capital chain broke up and large scale suppliers procession to collect debts, which caused a sensation in the industry.

Recently, the Changsha intermediate people's court announced that the new Hunan Jia Jia company officially entered the bankruptcy liquidation process.

Many people in the industry believe that the bankruptcy of new one is the death knell of the physical retail industry and the curtain of death.

Not necessarily, in waves.

In the declining voice, the retail business owners are just as frightened as they are, and the industry is a bit of a stir.

The failure of a business to make the whole industry back is a mistake.

Unveiling a new bankruptcy

The blind expansion, mismanagement and strategic mistakes are the cause of death.

WAL-MART, the 18 billion year old giant, collapsed.

According to the world clothing shoes and hats net, 1995 is the starting point of China's modern retail industry, such as

Carrefour, Metro and other foreign giants began to enter the Chinese market.

Some excellent local businesses, such as BBK and Suguo supermarket, also started at this point.

This year, the first new supermarket was opened in Baoan, Shenzhen.

With the price of the people, Xin Yijia is loved by the majority of consumers. In the past 6 years in 1995~2000, it was quickly distributed in Shenzhen and became the leading enterprise in the region.

Its speed is known as "Shenzhen speed" by the media.

After 2000, Xin Yi Jia began to develop in the foreign market, based on Guangdong and facing the whole country.

In 2003, Xin Yijia had more than 50 branches in the whole country, and its sales volume reached about 5000000000, ranking first in Guangdong.

At that time, the new Yijia supermarket was no less popular than WAL-MART today.

According to the statistics of China chain store association over the past 100 years, the sales volume increased from 11 billion yuan to 18 billion yuan in the 8 years of 2005~2012, and from 79 stores to 116 stores, and the top 100 ranked 14.

In 2011, Li Binlan, the head of his company, entered the "Hu Runnv rich list" and ranked thirty-seventh in 4 billion yuan.

Since then, the sales volume of the new one is much lower than that of a year.

In 2015, it sold 15 billion yuan, 102 stores, sales and stores declined for two consecutive years, ranking fortieth in China's chain.

In 2016, in the list of top 100 companies, there was no new image.

Instead of being brilliant, they were exposed to serious shortages, closed shop closes, cash flow difficulties, laundry wages, suppliers' debt collection and so on.

In the month of July alone, at least 50 suppliers held up tens of millions of "white rods" to recover payments.

As a matter of fact, as early as 2008, new Yijia had ushered in its closing shop tide, and even the supplier showed that the new one 80% shop was not profitable.

By 2017, the new national store has been reduced from 42 last year to 18, and has been renamed "Yue Hui Hui".

A notice of bankruptcy liquidation of the Changsha intermediate people's court is a terminating sign for the fall of the new one.

A new "suicidal"

The collapse of the giant is undeniable from the impact of the electricity supplier, but in the new Jia Jia death case, the internal factors are far greater than external factors.

The new rapid expansion has hidden the hidden troubles of its own business management.

After the economic slowdown in 2015, the new excellent performance plummeted, such as the breakup of capital chain, strategic mistakes, and management confusion, which broke the beautiful bubble.

1, internal management confusion

Xin Yi Jia chose the rapid expansion route from the very beginning. The more unstable the foundation, the longer the chain of business management was.

If we want to find a balance between parity and profitability, we must reduce operating costs and strengthen institutional constraints.

However, the new good management is very chaotic and corruption is serious.

The management does not make good use of the stores, and makes every effort to help them fight. The Ministry of personnel, in order to get more gifts, can open doors for employees and approve more vacations. The managers of the market make rents to buy hot and sour powder and put up stalls to lower the shopping malls in order to earn more money.

According to a new employee who left the office, there was a saying inside that, as long as he worked in the purchasing department for one or two years, he could basically buy a house and a car.

In the retail circle of Shenzhen, many companies are reluctant to recruit employees with a new background.

Xin Yijia has publicly stated that the increasing store rentals and manpower costs have led to a 10 percentage point reduction in company turnover.

In the later stage, Li Binlan's lack of stock incentive for professional managers team, the large number of relatives and townsfolk launched the impact on the original professional managers team, and also led to the loss of some senior executives.

2, frequent strategic mistakes

In the late 90s, in order to learn from the management experience of western chain supermarkets, Xin Yi Jia hired a "foreign team" to guide the operation. However, these "foreign experiences" were not suitable for the new supermarket which was close to the people's livelihood.

When Xin Yijia opened its stores to 10 provinces, the bottleneck of logistics began to appear.

In 2004, Xin Yi Jia had conceived the logistics system built by himself, covering the whole country, but at that time it was impossible to achieve financial and material resources at that time.

In desperation, we had to entrust the third party logistics. At that time, the logistics service was immature and the process was not perfect enough to satisfy the demand for fresh and aquatic products distribution.

After that, Xin Yijia expanded rapidly from the supermarket chain to the department store format. The front line was too fast and the management level and the supply chain development did not catch up with time, so that the national and multi format business models could not be freely controlled.

Over the past few years, the impact of the electricity supplier has hit. With the rising of new retail formats such as "box horse fresh", "super species" and "Huarun V+", traditional enterprises have been upgrading and pformation. Supermarkets, department stores and other departments have introduced mobile payment.

But there is hardly any change in the new one.

3, lack of core competitiveness

Once the new good price is close to the people, it has won the favor of the vast number of consumers. But in the current development of electricity supplier and the homogenization of commodities, the price has long lost its competitive edge.

Service and experience have become the core of consumption, and the stores with better service experience are getting better and worse, and poor ones will be eliminated.

When the media investigated new Yijia, many citizens generally reflected that the new decoration has never changed. There is no special feature. The brands that are stationed there are not much different. Compared with other supermarkets, they are far better than others in terms of category, characteristics and activities.

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It's not physical retail, but mode.

The new one fell down and set off a wave of declining retail sales.

Recall, from 2012, the retail winter sounded the alarm.

The growth rate of most department stores and supermarkets is declining. Under the double pressure of domestic economic slump and the rapid development of electricity providers, the days of offline retailers are not as good as a year, many large businesses fall in the market.

While the entity retails mistaken for the online impact, the business giants are silent.

As early as 2014, Alibaba began to retail under the layout line.

In 2014, it was invested in Yintai, the largest department store chain in Zhejiang. In 2015, it invested 28 billion 300 million yuan in Suning group. In March 2016, the investment box was fresh, and in November, it invested 2 billion 100 million yuan to get 35% stake in Sanjiang shopping in Zhejiang chain supermarket. In February 2017, it reached a strategic cooperation with Bailian Group.

The Jingdong entered into Yonghui supermarket in August 2015; in 2016, it established 3 entity stores in Beijing and Chongqing: "Jingdong and Beijing election space"; in early 2017, it reached cooperation with China UnionPay and set the target of 50 stores in the next year; in April, Liu Qiangdong announced on the personal headline that Jingdong will open more than one hundred 000 convenience stores in the country in the next five years.

Today, the so-called high momentum, constantly affecting the entity retail business, has gradually encountered development bottlenecks, although online pactions continue to grow every year, but the growth rate is slowing down, the traffic dividend is not as good as before, more and more electricity providers consider the development line.

At present, the current situation of the retail industry is that the offline industry wants to run on the line, and the line wants to run down the line.

Where is the problem of physical retail sales?

For more than 20 years, the rapid development of traditional retail enterprises is "channel is king". Retailers charge various fees to suppliers, reflecting the ignorance of retailers' cost of products and the lack of discourse power in upstream supply chain.

Like the fall of the new best, most retailers do not know the true cost of the product. They can only simply and rudely take their cost in a variety of background costs, such as the deduction of points (department stores draw a percentage commission on sales) and the bottom line (the minimum monthly sales of the Department store and the resident to ensure that the minimum commission) is passed to the supplier.

Once the normal operation of the enterprise is confronted with difficulties, the supplier will not act as a buffer for bankruptcy and the Savior of retailers for a long time.

So instead of physical retailing, it's not the mode.

In the final analysis, the most fundamental reason is the combination of formats and the marketability of products.

How will the retail industry go in the future?

At present, the biggest trend of retail industry is to rely on each other online and offline, and embrace development. Through the precision and experience oriented mode, the consumer demand can be met and the consumption upgrade can be realized.

At the same time, there will be the following trends in the future retail industry:

1, the entity store will turn from passive to active.

The impact of Taobao on the entity lies in the "price" and "experience". The impact of Jingdong and Tmall lies in the aspects of "price", "experience", "enrichment" and "quality".

One hour service, the next day, rich products and other experience, more suitable for customers' immediate needs.

Why is the line going down the line? The bonus period is partly due to consumers.

The electricity supplier can never replace the real scene experience brought by the entity store to consumers, not to mention the maintenance and repair of goods after sale must rely on local service providers.

The entity store has an indispensable consumer experience advantage. In the process of online and offline integration, the entity store will gradually turn from passive to active, and the electricity supplier will become a new tool of physical store grafting.

2. Self strengthening capability

The biggest drawback of the traditional mode in the current development is that it can not provide products around the needs of users.

In the future, more and more enterprises will choose their own mode of operation. Enterprises will rejoin the back-end supply chain, and form a chain of integrated operations in commodity purchase, warehousing management, logistics distribution and final sales, which is conducive to quick and smart response to consumption changes.

The strategic cooperation between Alibaba and Bailian Group is an example of all-round cooperation in six fields: full format integration and innovation, new retail technology research and development, efficient supply chain integration, member system interoperability, payment of financial interconnection, and logistics system coordination.

3, further enhance efficiency

The development of retail industry will further change from scale to quality and efficiency oriented, and the pace of optimization and adjustment of retail industry will be further accelerated.

An important reason for the continuous replacement of retail formats is that each new format can replace the latter, which is related to cost and efficiency.

Only by greatly reducing costs and improving efficiency can enterprises have better profits and better cash flow to upgrade.

In the future, more retail enterprises will reduce the retail price by reducing the channel links, increasing efficiency and reducing the frequency of trading and logistics.

Written in the end

A lot of shops, shops and shops in the retail industry are like drums and flowers.

They may mean the withdrawal of sadness, or the rescue of the broken arm, or the shift of the focus, or the mediation adjustment.

The times have changed, but the retail sales around the world have left some more excellent companies after the big shuffle. We should reflect and reflect: not physical retail, but your physical retail.

More interesting reports, please pay attention to the world clothing shoes and hats net.