Why Did Costco Expose The Lies Of New Retail?

Costco opened its first store in Shanghai, and the applause was not the least. If you fight for it, you will find that there are two main lines of retail competition: Costco, which can be called "cost-effective" party, such as Xiaomi, the famous brand, and the founder, are openly inspired by Costco and take Costco as the idol. Ye Guofu, the founder of the famous and excellent product, came out personally. The tribute to Costco, written by fan mentality, easily harvested 10W+, proving that this route has a broad mass foundation.

There are many concrete analyses that do not favor Costco. For example, the Chinese have become accustomed to the convenience of the electricity supplier and the express delivery. They are not suited to the weekly drive purchase mode. The current craze is just fresh and hard to sustain. But those who observe these words carefully will find that they are often another force in the retail circle -- the "new retail" party with the most experienced scenes.

Popular news pays attention to reversal, and sure enough, the news of Costco queuing back card was on the front page some time ago. Some people think this is a face Costco, but my view is just the opposite.

During the opening period, apparently, some of the people who rob the special price of Moutai are relying on resale of profitable cattle. They destroy the order of the stores and seriously affect the normal customers' shopping experience. They should be warmly welcome to withdraw their cards.

No longer noisy, no longer need three hours queuing in the Costco to truly usher in its target customers - middle-class families.

In this regard, members of our group's comments are more classic: we can take the bull's rob as a flash.

　 Let customers return to stores, who has a better plan?

In fact, whether it is "cost-effective" or "new retail", the essence is the differential competition of traditional retail. Compared with traditional hypermarkets, Costco's featured SKU and extreme price make sense, so the new retail display and shopping experience can be perceived.

The controversy between these two routes is a common and pressing problem for retailers: how can we get customers back to stores?

First, let's see what solutions are offered by "cost-effective" and "new retail".

The core of the Costco business model is to attract people to become paid members with competitive products. The more members, the larger the sales volume of single products, the stronger the bargaining power of upstream procurement, and then further reduce the price and form a virtuous circle.

This pattern does not look complicated, but it can hardly be duplicated.

When you have no loyal members and no sales guarantee, what are you going to do for procurement negotiations? Simply subsidize low prices, sell more and lose more. Once the subsidies are stopped, users will finish off their wool and beat their asses.

Doing membership retail is a bit like doing community and social networking in the Internet field. The reputation of "extreme cost performance" is not made in two days. Especially in China, where the reputation level is generally not high, consumers have gone through too many businesses to create a wave of market and many businesses that do not receive dues or throw prices at the bottom price to destroy the price system. These are the doors to imitate Costco. The sill became abnormal.

Even though there are numerous research articles on the market, Costco has become the most thorough selling shop in the world, but for more than 40 years, no one has been able to recreate a retail brand comparable to it. Even WAL-MART, which has a strong supply chain advantage, its Sam member store is also a tiger.

　 Decoration really upgrade, product fake upgrade

Looking at the new retail solution, the logic of the new retail market is very mysterious. It is necessary to reconstruct the human freight yard and attract customers with better shopping experience. However, no one can understand how to restructure it. So everyone put their strength in the latter part of the sentence. Instead, "attract" is replaced by "attracting eyes".

So in practice, "new retail" has become a very good "set meal". Specific can be summarized as: decoration and transformation, display density is reduced, the net red goods get the line to sell, increase scanning code purchase, delivery to home service. A standard new retail supermarket was born.

The first box horse that did this really got a lot of people watching it. At that time, a lot of people in the industry had been wondering about it. Recently, box horses have quietly changed, including limiting the daily free distribution of one single item, and collecting second shipping fees. At first, the rhetoric of killing the convenience store within 3 kilometres around was clearly a laughing stock.

Many new retailers change their thinking in order to change, and they often make funny jokes. For example, there are bakeries in the pursuit of minimalism, high style display, directly open up the finished bread in the air, for customers to buy - even the basic health requirements have been ignored, this is a lot of laymen's work.

With the proliferation of the "new retail package", more businesses can not even attract the attention of the bustling people. They seem to forget that one of the important reasons why traditional stores are boring is homogenization, the same products, the same display, the same price.

And the "new retail" that follows the trend of transformation is just for the customers that the X brand detergent powder has been placed before the door. Now the blue hundred X Cola has been put in the door, and the cost of decoration and transformation has been spread into the daily products such as fruits, vegetables, meat and eggs.

Decoration really upgrade, products only fake upgrade. After a little examination, it was blown away by the rain.

　 Retrogression of retail core value

Is there any value in transforming scenes? Yes, of course.

But most of the "new retail" environment has gone up to a higher level (although the value of homogeneous upgrading is also limited), the products are being upgraded and the cost of retrofit should be added to commodity prices to allow customers to pay. What is the difference between the robber logic and the income of traditional stores? They are all cost shifting, putting their interests first.

Such a new retailing is also backward in the core value of retailing.

What is the core value of retail? Because closer to customers, retailers can better serve customers and recommend new products to customers. The traditional channel theory is that although the A brand is advertised every day on TV, but entering the store, the B brand has bigger pavements and more promoters, so it can intercept sales at the terminal. Almost all the first successful brands in China are channel brands.

Now, who has a stronger influence on customers? We often hear that XX products have been recommended because of a big V, because some of them have been fired up. Do you have any impression of what new brands and new products are made by new retail channels?

Many so-called new retail stores even need to store their own products in the store for their own draining, after the introduction of traffic, and then ponder over how to sell more profit products, to realize the flow. Close to customers, understand customers, and retail basic skills of customer service are forgotten by people's freight yard.

Originally, "new retail" has not been successful, but the road to go seems to be the same, and we all place our hopes on it. The landing of Costco broke this illusion.

Many people's sense of collapse, like a poor cook, is pushed to brainwash. If you want to cook a good meal, you need to buy a set of equipment. When the equipment is bought home, it is waiting for the dishes to become delicious. Suddenly, I heard that the next door aunt could make a big meal with only an old iron pot.

Who will eat this dish that looks beautiful and tastes so hard?