Why Did He Say That The Efficiency Of China's Retail Industry Has Not Improved In The Past Ten Years?

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In China

Today, with the pformation and upgrading of digitalization, consumption is facing upgrading and channels are undergoing rapid changes.

In this process, there is no lack of passion and innovation in the industry, but also full of hardship, confusion and anxiety.

At the turn of retail pformation, Peng Jianzhen, deputy chief programming officer of China Unicom and the Secretary General of the China Chain Store Association, jointly launched the "retail truth" column, which analyzed the nature of retail and interpreted the industry hot spots in interviews, and brought different thoughts to the industry.

Don't be surprised! We often encounter such a situation in our daily life.

For example: the same farmer mountain spring 500 ml mineral water, in Shijingshan District, Beijing, a foreign supermarket selling price is 1.5 yuan, and in the separation of couples shops, the price is 1.3 yuan, surprisingly, similar scenes are everywhere.

Chinese retailers have been keen on learning from Japan. In the past few years, the gap between the core competence and operation level of our convenience stores has not narrowed compared with that of Japan.

At present, there are 5 convenience stores in Japan, and the number of stores is half of that in China, but the total turnover of Japanese convenience stores is 5 times that of China.

So that Liu Zhongjian, a Chinese convenience store veteran, went to sleep all night after studying in Japan. He wrote down five experiences and sent a feeling of "similar form and distant spirit" between Chinese and Japanese convenience stores, which triggered China.

Collective discussion and reflection.

Today, China has entered a highly mobile internet society. 753 million mobile Internet users decide that our retail mode will not be the same as foreign countries.

Because of this, China has become one of the most active retail innovation countries in the world.

It is an indisputable fact that being active does not mean a comprehensive lead.

We must wake up to the gap with foreign counterparts in terms of business operation, supply chain, private brand and so on. Of course, this is also our future opportunity.

Over the past two years, various new concepts and new slogans have sprout up, and various new modes and new businesses are emerging, and new kinds of new technologies and equipment emerge in endlessly.

But the actual operation of two years has made the industry clearly aware that these so-called new concepts, patterns, formats and technologies are merely processes or means, and Chinese retailers, both online and offline, should pursue a result: improving retail efficiency.

Efficiency is the fundamental factor in determining retail competitiveness, and digitalization is one of the main means to help enterprises improve efficiency in the future.

Data show: from 2008 to 2017, ten years ago, there was no essential change in China's chain top 100 in terms of customer unit price and human efficiency.

The retail efficiency of physical retail has been hovering between 20 thousand and 22 thousand. In 2017, China's top 100 chains had a flat effect of 21 thousand yuan.

Although the online and offline integration has made considerable progress, there is still room for improvement in efficiency.

With the promotion of China chain operation association, more and more retail enterprises are carrying out digital pformation.

Many enterprises have invested a lot of manpower and financial resources in the past two years to integrate online and offline. But in general, there is no strong correlation between the online businesses of many enterprises and their own physical stores and businesses. Besides the online harvest and payment links, the integration of business and information technology is not high.

Lack of digital operation and maintenance of the whole chain, the output and efficiency of enterprises have not improved significantly.

Objectively speaking, in the first stage of digitization, more enterprises are realizing the process from scratch. After tracking the digital pformation of retail enterprises, we find that the digitized pformation of most enterprises is still in the initial stage, that is, the 1 stage of digitization.

At this stage, the reconstruction of the three elements of "people's freight yard" has just begun:

To establish a connection with customers, to open up all channels of customer service online and offline, so as to digitally confirm customers.

From the past, we don't know who the customer is, and now we have a clear idea of who the customer is.

To realize the digitalization of commodities and achieve the status of online sales and promotions of goods.

Retail businesses are constantly appearing in innovative formats. They tend to invest in decoration and equipment, make stores more cool, display more beauty, and enhance interaction with customers to make customers feel better.

In the implementation of digital 1, retail enterprises have made many explorations, and will surely take some detours.

At this stage, the pformation of enterprises is more reflected in the front end. Although the interaction with customers has increased, new formats have emerged one after another. In the 1 stage, the efficiency of the retail core has not been solved.

China has 753 million mobile Internet users, minus the group of elderly people and children. China's mobile internet rate is nearly saturated.

This means that the pformation of retail enterprises must take into account this special background and pay attention to the construction of all channels and digital pformation.

In fact, apart from the formation of consumer online shopping habits, the gross profit margins of traditional retail businesses are generally low.

The reduction of passenger flow to the shops has reduced the profitability of many enterprises. Therefore, it is a realistic choice for enterprises to maintain or even grow the total passenger flow under the online and offline through digitalized pformation.

In the first stage, how did the enterprises implement digitalization? A survey was conducted by China Chain Store Association and Accenture in 2017. The survey results show that there are three difficulties in the pformation of Chinese retail enterprises.

The survey results show that 94% of enterprises attach importance to digital pformation.

However, the overall investment in the overall low level, the survey shows that most of the top 100 chain investment in the digital sector between 100-500 yuan.

At present, there is a widespread phenomenon of "front desk" in digital investment, and retail enterprises want to invest money in the places where customers can see.

And those middle and backstage technologies that are closely related to consumers, such as payment, logistics, inventory management and so on, are generally neglected.

To catch the future digital consumers, we must rely on the technical support of the middle stage and the backstage.

Only do the front desk technology and ignore the background technology hidden under the iceberg, then the digital implementation will be greatly reduced, and the pformation will not be successful.

There is another point that must be noticed by Chinese retail enterprises: the corresponding shortage of consumer demand is the great lack of visibility and controllability of retail enterprises.

Worldwide, 28% of retail enterprises can provide real-time inventory information for each store, and 41% of retail enterprises can achieve the predetermined function of out of stock products, while China's number is 4%.

3, talent bottleneck, lack of digital pformation talents.

A survey of digital talents in retail shows that 65% of the enterprise logo enterprises lack corresponding talents.

Enterprises generally believe that employees do not seem to be able to support digital pformation. In a fast and digitalized business environment, there is no "flexible team" that can adapt to the new environment and adjust themselves in time.

Digitalization 2: the core is to help enterprises improve efficiency.

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In fact, in view of the current situation of retail enterprises in the field of digital pformation, the China Chain Store Association in 2018 focused its efforts on promoting the digital deep landing, and promoted enterprises to attach importance to customer contact management, whole process digitalization and digital management of supply chain.

Many enterprises also realize that the deepening of digital pformation is to help their enterprises improve efficiency, speed up turnover of commodities, reduce inventory turnover days, reduce operating costs, increase sales and profits, and achieve a virtuous circle of retail enterprises.

In the 2 stage of digitalization, the reconstruction of the three elements of retail "people's freight yard" will be further developed.

Not only is it clear who the customer is, but also the key is to establish connections with customers, so that customers can more visit the physical stores or increase the frequency of online purchase, resulting in the consumption stickiness.

Through data matching, crowd personalized tags, thousands of thousands of faces display, recommendation and services, and on this basis, to achieve precise marketing and push to members, improve paction frequency.

On the basis of constantly strengthening the supply chain, according to the attributes of commodities, consumers can match online and offline different commodity combinations and scenes.

Quantitative analysis of goods, sales, prices, inventory, orders and other data, to strengthen the fine management of goods, speed up the turnover of goods.

In terms of commodities, the 2 stage of digitalization is to solve the core issues of "selling, selling and selling".

It is different from the 1 stage of business innovation and store upgrading to enhance customer experience. On the basis of this, the 2 phase enables store technology applications to reduce costs and enhance efficiency for layout and operation.

At this time, the store presents a seamless experience of "Online + offline, hardware + atmosphere creation, face-to-face interaction + home service".

In the 2 stage, whether or not a store adopts a technology depends on whether the technology can reduce operating costs, reduce labor costs or improve the operation level of stores.

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Digitalization is the first step to improve efficiency and improve operation level. With the deepening of digital level, the integration of digital technology and business in the future of retail enterprises has become the norm, helping retail enterprises to move forward on the road of improving efficiency.