The Whole Retail Business Is Changing: Ali, Jingdong, Suning'S Retail Pformation Strategy

The collapse of the giants, in addition to dying from internal decay, is most likely to be the result of the trend of the times. Netscape Co, NOKIA, Sun Company and so on are better than others. In the face of the tide of the times, once they can not keep up with them, they will be eliminated and disappear.

According to the data of the National Bureau of statistics, the total retail sales of consumer goods in 2016 totaled 332316 billion yuan, and the annual online retail sales reached 51556 billion yuan, an increase of 26.2% over the previous year. In 2015, the year-on-year growth rate of online retail sales was 33.3%, and the year-on-year growth rate of online retail sales in 2014 was 49.7%.

A clear trend is that as the popularity of e-commerce is getting higher and higher, the growth rate of electricity providers in the whole social consumer goods retail market is gradually decreasing, which is obviously unwilling to see by Alibaba, Jingdong, Suning, vip.com and other electronic business platforms.

Therefore, in the past two years, Alibaba, Jingdong and Suning have been expanding their boundaries and moving towards the entire retail market.

Gome, Huarun Wanjia, big RFA and other traditional retail outlets

Tycoons have also launched the "Internet +" road to try to break the anxiety of the current retail business.

On the one hand, the overall upgrading of the consumer market, on the other hand, is due to the complexity and diversification of consumers' purchase scenarios, and the third is the integration of online and offline.

To keep pace with growth, performance and share price, traditional retailers are keeping up with the new era. Data, payment and information murmurs are also increasing. Consumers, businesses and friends are changing. The beauty and health care industry is the top priority of consumer goods retailing. It is also a product with high consumption frequency. How does the beauty care industry change?

Ali, Jingdong, Suning's retail pformation strategy

According to the statistics of 107 retailers with more than 1 billion yuan in revenue, the 7 companies, including Ali, Jingdong, Su Ningyun, Gao Xin, retail, Gome, vip.com, Yonghui supermarket and so on, achieve a total revenue of 850 billion 11 million yuan, accounting for 50.74% of the total revenue of 107 listed retail companies, accounting for 2.56% of the total retail sales of social consumer goods.

Like the usual law of the Internet industry, the head office has grabbed most of its revenues and profits.

Alibaba, Jingdong and Suning cloud merchants have been very sensitive and forward-looking to the changes of the entire retail market. In recent two years, they have put forward a new retail strategy.

Ali: new retail.

In October 13, 2016, Ma Yun mentioned in the "2016 Hangzhou cloud habitat conference" that the era of pure electricity will soon be over. There will be no e-commerce in the next ten or twenty years, instead of "new retail".

The combination of online and offline logistics will lead to new retail sales.

At this point, the whole Ali's strategy in the retail market is around the "new retail" mentioned by Ma Yun.

On the new retail side, Ma once mentioned a classic saying, "new retail is all online and offline", but in fact, in the past one or two years, Ali is also constantly laying the market under the overweight line. Ali said it will open 10000 Tmall stores nationwide within one year.

Jingdong: unbounded retail.

In July 10, 2017, Liu Qiangdong published a signed article "the fourth retail revolution" in the magazine "finance and economics". The article mentioned that in the next 10 to 20 years, the retail industry will usher in the fourth retail revolution.

The retail infrastructure will become extremely plasticized, intelligent and collaborative, and promote the arrival of the era of "unbounded retailing" to achieve the upgrading of cost, efficiency and experience.

From the point of view of the path, what Jingdong wants to change is the whole retail context and a comprehensive retail service provider.

Suning: smart retailing.

In March 9, 2017, Zhang Jindong said in his speech on "vigorously promoting the pformation from physical retail to smart retailing" that future retail is smart retailing. It also said that "smart retailing is to use the Internet, Internet of things technology, perceive consumption habits, predict consumption trends, guide production and manufacture, and provide consumers with diversified and personalized products and services".

In addition to Alibaba, Jingdong and Suning, Gome is also carrying out the "new retail" pformation. In the evening of May 15, 2017, Gome announced that the Chinese name was changed from "Gome Holdings Limited" to "Gome retail Holdings Limited". It can be seen from a more famous name.

In this big change in the retail market, Alibaba, Jingdong and Su Ningyun merchants are obviously moving faster than traditional retailers. There are both anxieties and industry innovation drivers.

How to pform the field of health care and beauty?

Ali, Jingdong and Suning stir up the "spring water" of the retail market. As part of the entire retail industry, the health care and beauty industry is the top priority of the retail market.

According to the data of the National Bureau of statistics, the total retail sales of cosmetics in China reached 2049 billion yuan in 2015 years. Apart from cosmetics, the field of health care also includes personal care, body health, household products and so on. In each specific category, there will be many subdivisions, and there are many brands in every comprehensive / subdivision area.

Therefore, the whole field of health care and beauty, like Alibaba, Jingdong, Suning and other giants, will achieve retail pformation. It will not happen overnight. It will take shape in a short time. Moreover, the retailers in beauty and health care fields are different from those of Ali, Jingdong and Suning providers. Naturally, there will be different "Metamorphosis" strategies.

As the largest health care and beauty retailer in China, Watsons's "Metamorphosis" samples are worth studying in the whole health care and beauty industry.

First, online and offline resource reserves.

In this new era of retail wars, e-commerce enterprises no longer treat "offline" or "subversion" under the line. Their new proposition has begun to merge online and offline, that is, the resources on the line have reached the summit, but there is still a huge space to be excavated under the line. Alibaba and Jingdong have been moving closer to the line from the specific layout and investment in recent years.

For health care and beauty retailers, offline is still a valuable asset and can not be abandoned at will.

Watsons has more than 3000 shops and over 60 million members in 430 cities in the mainland of China, all of which are resources, assets and details. On the one hand, offline retail stores can enhance the sense of entity experience for consumers. On the other hand, the probability of "fake" appearing in offline retail stores is very small. Consumers are more willing to buy real rather than cheap goods, and consumers' data are offline.

On the line side, it is the point for health care and beauty retailers to pay attention to. According to Claire's Internet observation, many front-line salesmen have maintained a strong sense of superiority on the line, subconsciously guiding consumers to buy from the line, which, of course, allows front-line salesmen to do better results, but it also impairs the image of their own online businesses, so that consumers do not trust the company online.

Watsons online includes

Flagship store (including Watsons global purchase 3), Jingdong flagship store, Suning flagship store, Chen's official mall, Watsons lettuce APP, Watsons China APP, covering almost all online business channels, consumers can buy Watsons products from any online channel, which laid the foundation for consumers to buy Watsons products on any scene online.

Online and offline resource reserves are the foundation of the perfect pformation of the retail industry. It is natural to be good, no, and have to be created. Pure online or offline retailers are "incomplete".

Like Watsons, there is a perfect layout of health care and beauty retailers online and offline, which will undoubtedly take the lead.

Of course, this is only the first step.

Second, integration.

Only "gold mine" is not enough. Without online and offline integration, online and offline business will be dragged because of the lengthy business lines involved. Integration is both a skill and an art.

Gao Hongda, acting chief executive of Watsons China, said that the current "retail pformation" tide, for Watsons, is to provide full coverage, including online and offline.

Watsons has launched two new services for consumers. One is the store itself. When consumers place orders on APP, they can go directly to the store to pick up the goods. Two, the lightning is sent, and the goods can be delivered to the home within four hours after the order is placed on the APP.

As of August 31, 2017, Watsons has launched lightning delivery and store speed service in Guangzhou, Shenzhen, Dongguan, Shanghai, Wuhan, Changsha, Chengdu, Chongqing and Beijing 9. By the end of October, it will cover stores in 40 cities across the country, referring to lightning service.

In the face of the currently unusually hot "unmanned retailing", Watsons also launched self service cashier service. Gao Hongda said that Watsons's self service cash register service is quite attractive at present. Through self service cash collection, consumers can feel that their privacy is protected.

Compared with the "unsold retail" of "Hai Chen Lou", self-service cashier service is more in line with the current consumer demand and market status.

Gao Hongda said that Watsons is also learning from the combination of emerging science and technology with offline stores. Watsons has launched the "virtual makeup test" service by using AR technology. It is called "Style Me to color me". As long as it sits on the tablet PC, it can automatically identify the customer's face and offer different make-up suggestions to customers.

In addition, "Skin Test to try me" service, through scientific and professional services, for customers to analyze the skin condition and professional skin care guidance, so that customers can experience a full range of shopping experience.

This year, Watsons launched an electronic membership card to open up online and offline platforms. On line members, Watsons has achieved membership in Tmall, and consumers can accumulate scores in Tmall's Watsons stores and enjoy the benefits of membership.

It not only facilitates the consumers, but also makes the data acquisition of the C terminal more detailed.

What we can see is that the integration strategy of Watsons is, on the one hand, online and offline advantages and resource mutual conductance, on the other hand, it achieves more efficient unification on data ends.

Third, consumer oriented.

Ali has new retail, Jingdong has unbounded retail, Suning has smart retail, but Gao Hongda believes that Watsons's goal is to focus on the main business, and hope Watsons will become a fashion icon. It can enhance the speed of adapting to the environment, enhance the sensitivity of the trend, and enhance the viscosity of consumers. The three goal of Watsons is to focus on the consumer.

What does the consumer want? Where is the consumer? Presumably all retailers want to know the answer, but the current consumers are not the original consumers. First of all, the consumers' self-awareness has changed greatly. Consumers have basic knowledge of basic cosmetics, personal care, health care products and other information. Even if there is no cognition, they can quickly understand the basic information through the Internet. After the cognitive changes, individual differences will appear, and the needs of each user may be different. This will increase the difficulty for retailers, because it is a completely different individual to serve at this time. Standardization is no longer applicable at this time.

Cognitive changes will lead to changes in consumer buying strategies.

Secondly, the change of consumption level.

According to the statistics of the National Bureau of statistics, the per capita disposable income of urban residents in 2007 was 15781 yuan. In 2016, the per capita disposable income of the whole country was 23821 yuan, of which the per capita disposable income of urban residents was 33616 yuan, equivalent to 2.13 times that of 2007.

The increase of disposable income of residents means that the consumption level of consumers has also improved. Quality consumption is the current demand of consumers.

Finally, changes in consumption scenarios.

In the past, when there was no electricity supplier or the electricity supplier was not yet developed and perfected, consumers bought cosmetics and personal care products. They could only go to physical retail stores. This is the only way for consumers to buy. Now the scene is different, that is, if they want to buy, consumers are aware that they can buy, and the consumer's awareness may occur at any time, any place, such as walking, eating, shopping, Touchi and outdoor.

In the face of this complex and changeable era of consumers, retailers can only keep up with this change only if they focus on "consumers" and satisfy the needs of users in any scenario.

Watsons's strategy is obviously right. The environment is changing, time, place and consciousness are changing. The core of consumer service is around.

Fourth, establish consumer trends that match consumer demand.

For health care and beauty retailers, consumer service is the core, but there is still a need for more detailed and matching products and strategies. For example, current consumers prefer seafood products, and retailers are mainly self category products. For example, consumers in hot spots in the first tier cities may have enough grades for the shops themselves, and are they still the original "standardized" shops?

Gao Hongda said, Watsons is currently carrying out a grading strategy for stores, that is, according to the needs of cities and consumers, grading adjustment, for example, consumers in Shanghai prefer diversified and imported products, then the Watsons stores in Shanghai will provide more imported products to meet the needs of consumers.

Most of Watsons's flagship stores in the first tier cities are upgrading their stores. After the classification, the high-end shops will have more space to provide consumers with shopping experience, and then store in more second tier cities.

Watsons's store classification strategy, the biggest grading sign is the service itself, for example, in the first tier city shops, Watsons will give more room to provide shopping experience.

Retail businesses such as Wanning, Guerlain beauty, plant doctors, Si Fu Lan and Tang tricolor are all adopting the same standard strategy, almost all the flagship stores in all cities.

Watsons's grading strategy is obviously more in line with the current consumer demand, because consumers have changed.

In addition to the above points, social networking is also an important part of the "pformation" of health care and beauty retailing. As the highest utilization rate of Internet users, social networks are both the outlet and entry of consumers' word of mouth. At the same time, they also play an important role in increasing the number of digital assets. Without social networking support, retailers will only become a "no man's land" away from the center of consumer concern. How to make good use of social networks and access to social networks is also a compulsory course for health care and beauty retailers.

Data show that as of now, Watsons micro-blog, WeChat, a total of more than 34 million fans.

In December 3, 2016, Watsons membership card spokesperson Yang Yang fan meeting activities, Watsons used the VR panoramic broadcast mode, attracted a lot of users' attention, data show that only Watsons official live link in just an hour to break 2 million people.

For health care and beauty retailers, the current period of turbulence and metamorphosis will be reduced to "history". Consumers and times will only record the winners of the present and future, including Watsons, Wanning, Guerlain beauty, plant doctors, silk lotus and tri coloured glazed pottery. The new story is just beginning. Exploration, struggle and innovation are never obsolete.

Hindsight is a derogatory term, but it can be eliminated in the commercial arena.

The current stage of online and offline integration, health care and beauty makeup

There will be many pain points and difficulties, such as dealing with "data noise", far more complex than pure electric business enterprises, and the combination of data from online and offline will inevitably produce more "data noise". This will not only deepen the human, material and financial costs of enterprises, but also make it difficult for enterprises to filter out useful data in many data.

Gao Hongda said, "I want Watsons to become.

The pronoun of tidal current will enhance the speed of adapting to the environment, enhance the sensitivity of the tidal current, and deepen the viscosity of consumers.

In this era of "face value is everything", everyone loves "me". Everyone loves "face" and "body". It is an opportunity for health care and beauty makeup industry, but it can also be a disaster for a single enterprise.

Everything is changing. Only upgrading and self change will never grow old.

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