What Are The Self Rescue Schemes Of Physical Retail Under The "Black Swan"?

The "new coronavirus" epidemic became the first black swan in 2020.

The terrible thing is that after the black swan incident, the butterfly effect is followed. The black swan + butterfly effect is bound to bring about tremendous business changes.

The epidemic, department stores, brand stores, cinemas, catering, tourism, offline training, offline entertainment, public relations activities and other industries have suffered a devastating blow. But after a forest fire, new forces will also be born.

In other areas, retail sales have been hit hard. For example, every year, a large number of merchants will hoard goods to cope with the consumption boom during the Spring Festival. However, affected by the new coronavirus, people will no longer visit relatives or friends to buy gifts this new year, so they will surely lose their fortune.

Li Ling, a well-known retail expert, thinks that the impact of the epidemic on retail industry is obvious. First, in the short term, shopping malls collectively reduce business hours or directly shut down for several days, which directly affects sales in the first quarter of the industry. Second, greatly increased the operating costs of enterprises. With the increase of inventory caused by poor sales, small and medium-sized enterprises are likely to go bankrupt. Staff scheduling loss of rhythm also increases costs (retail is labor intensive). The increase in financial costs is also inevitable. Third, the steps of enterprise operation and development have to be adjusted. In the medium term, be cautious. At present, the era of rapid growth of China's retail industry has passed, and the ability of the retail industry to resist disease and recovery will be slightly worse.

Li Ling believes that in the long run, China's retail enterprises need to reflect. The retail industry has a great guarantee for people's livelihood, especially in major disasters. For example, how to protect basic life products, reduce consumer panic and stabilize supply? For China's retail businesses, there is still much to do in terms of commodity research and development, logistics and distribution, home service and price control. (source union business network)

Where there are difficulties, there are opportunities. Faced with this epidemic, our retail businesses need not be too pessimistic. In other words, this is also an opportunity for many retail enterprises to upgrade.

Taobao was founded in 2003 during the SARS period, and the Jingdong began to do business in January 2004. Ma Yun has a better exposition of challenges and opportunities: "during SARS, no one should think of this as an opportunity, but we should think of what troubles we have encountered and how we can help everyone."

In the next 3 months, most retailers will carry out self rescue actions. In view of this epidemic situation, there are many plans from the angle of enterprise management and management. The author also contacted several senior new retail experts, and summarized the self rescue plan for the entity retail store for reference.

　 1. self rescue scheme for stores: upgrading of store business scenarios

Online store business to carry out contactless sales, local real time distribution advantage

A brand customer of beauty makeup industry admitted that the sales performance of all offline stores during the Spring Festival period was about 2 billion, but recently there have been a large number of stores in the whole country which are "0" achievements. Employee wages, warehousing costs, and rental costs still need to be borne as usual. At present, they are eager to line up their store business as soon as possible, and reduce the loss of stores by developing online social retail. This is a true portrayal of most retail entities at present.

During the epidemic period, physical retailing really did not have business, but logistics Express was at its busiest time. There were numerous estimates of masks and medical health products. The "instant delivery" under the epidemic situation is particularly important.

(1) the daily fresh and fresh data show that from the new year's Eve to the fourth day of the year, the platform's actual transaction volume is 321% higher than that of the same period last year.

(2) the order volume of Ding Dong buying vegetables is thirty higher than that of the same period last year, which is more than 300%.

(3) box horses are fresh throughout the country, and the stock preparation during the Spring Festival is 5 to 10 times normal, which is 2 times the Spring Festival in previous years.

(4) the order quantity of Suning vegetable farm is three to five times that of a normal quantity.

In the face of the fact that orders are surging, it is also essential for riders to protect themselves and consumers. All local life platforms have launched instant "contactless distribution".

Taking the US group as an example, its "contactless distribution", when users place orders, can negotiate the designated location of goods with the rider through the order remark, telephone, App instant messaging system and so on. After serving, the rider will notify the users to pick up their meals by telephone and App instant messaging system. Meals for hospitals are served by contactless equipment such as cupboards.

So we all predict that as long as the express logistics can be restored to normal level before the Spring Festival, online businesses will grow substantially. The epidemic is restricted by the consumption scenario and the transfer of consumption demand, but the consumption power of the public is still there.

Most of the traditional e-commerce platform delivery is across the city, but the express logistics will be delayed or even interrupted by the epidemic, which can not meet the urgent needs of some customers.

At this point, if the brand chain store realizes the online business of the store through a small program, customers can place orders under the small procedure, the order is automatically allocated to the stores near the consumers, and then arrange dada or Shun Feng for 2 hours of "contactless flash delivery", which will not be affected by the epidemic situation and greatly improve the efficiency of distribution.

That is to say, in the extreme weather conditions, the biggest advantage of physical retail in the face of virus outbreaks is closer to local consumers. If the stores are regarded as the front-end stores through digital system, the order fulfillment time of stores will be the shortest.

The author can say with certainty that in the face of this endemic epidemic war, "offline store business online" is imminent. The head of shopex, a brand digital transformation service provider, said that during the Spring Festival, many brands of IT departments were called. They all hoped to advance the original chain store O2O system on-line plan to meet the tough challenges of the physical stores in the coming months, and they would spare no effort to drain all the members of the store to the online platform consumption through marketing.

No accident, instant distribution industry will usher in a burst of development. Retail enterprises should find suitable cooperation platform in advance to carry out O2O system closed loop system docking. In any case, if retail companies take the opportunity to complete the online business of retail business in 2020, it will be a long-term reassurance.

　 2. store self rescue program - shopping guide social retail

Enterprise WeChat + shopping guide online shopping guide can also make achievements at home.

Chen Liping, a professor at Capital University of Economics and Business, believes that the crisis is also the best driving force for the development of retail industry. Even in the most severe winter, there is a species that is tenaciously developed. In the face of the epidemic, simple online retail will also expose short boards, and the new retail formats that combine online and offline will continue to develop rapidly.

During the epidemic period of "new coronavirus", physical retailing faced two major problems: first, there were almost 0 passengers under the line; enterprises needed to find traffic for stores; two, there was nothing to do in the original shopping guide, but wages and rents had to be paid.

The original offline traffic is actually concentrated in social media, mainly based on WeChat and jitter. In 2019, the "private area traffic" and WeChat social retail can bring good news to stores.

Zhang Yu, the head of new retail products business school, believes that shopping guides and employees are a major social traffic entry for enterprises during the epidemic. According to the brand side, most of the guide's wages are "base salary + Royalty" mode. Now there are hardly any passenger flow, and shopping guides will also have nothing to do, and revenue will be greatly reduced. In order to increase revenue, this is the best time for stores to purchase and learn to use "enterprise WeChat + shopping guide social retail tools". Moreover, many stores' shopping guide indicates that in the future, if customers do not want to go to the store to buy, the staff can make their own order delivery.

Shopping guide social new retail tool - shopping assistant, is the use of enterprises WeChat and WeChat to open up social relations and social retail function, the "headquarters + chain stores + shopping guide (employees)" private sector traffic flow pool, to help enterprises achieve social marketing, social zero sale business, online and offline member services, O2O order fulfillment, "online offline unification" and " "Unified headquarters stores" helps enterprises and brands build new or upgraded global sales networks.

Shopping assistant's functional advantage: starting from the business logic of social retail, in the enterprise WeChat, it has created a multi-function small program to help guide shopping, such as social marketing, online sales, membership services, etc.

The small program and enterprise WeChat share a shopping guide ID, shopping guide can directly add customers WeChat in a small program to become friends, to tag members, place orders, make an appointment to return visits, write off code coupons, distribute coupons, online communication, group fission, social marketing, activity sharing, developing distributors, online Commission and so on.

Shopping guide is based on the volume of sales management carried out by WeChat, and it can also sell products at home at any time and anywhere. In addition, all the work of shopping guide can be quantified and computerized in the system, which not only improves work efficiency, but also facilitates managers to optimize sales strategies in time.

　　 3. store self rescue scenario scenario requirements define "product"

Truly guided by the needs of consumers, changing product management strategies in the short term to obtain cash profits.

In 2019, many famous brands launched innovative products through cross-border joint names. These products may have nothing to do with the original products of the brand, such as Jiang Xiaobai milk tea, rabbit perfume, Wei long hot pot. All these products have been highly sought after by the younger generation. It is not difficult to understand that behind these commercial phenomena is the upgrading of the consumption concept of the new generation of consumer groups.

After 95 and 00, the consumption habits and values have changed greatly. For brand businesses, they should turn from the original product operation to the dual operation of "customers + products", and to provide consumers with the demand orientation, providing life scenario solutions, which is also promoted by the marketing industry from product positioning to upgrading.

"Consumer oriented new retail" is faster and better to meet the needs of consumers in different scenarios. Millet outlets and millet diapers are selling surprisingly well. The logic behind their products is that millet fans have the need to buy sockets and diapers in office scenes and family life scenes. Millet brand's high value design and cost-effective endorsement will speed up the purchase decisions of fans.

Friends circle is widely known that the virus epidemic is the most popular red belt. I don't need to say more about masks. I haven't bought any alcohol disinfectant products in supermarkets in three cities recently. Alcohol disinfection products will continue to sell well for a long time in the future. At this point, there are many fake and inferior products in the market. Can a qualified cosmetic company change the train of thought to customize and produce a batch of safer alcohol disinfectant products with brand endorsement, as a drainage product or even a profit product on their own platform during the epidemic?

The author believes that in the future special epidemic period, the brand should not think about selling the products that consumers do not need, but should learn to innovate, and endorse their own brand endorsement to give consumers the most needed solution to life.

　 summary

In the face of this epidemic, physical retailing will be hard to maintain if it sticks to its original business model. The self rescue plan summed up by retail experts for physical retailing is based on the three elements of "people, goods and markets", so that retail enterprises can upgrade the digital system of chain stores in special times, flexibly change their business strategies, fully empower their stores and shopping guides, and quickly develop social retail business, and take the opportunity to rebirth in Nirvana.

All contingencies are inevitable. In 2020, the black swan will make full use of instant distribution on line and line to speed up convergence. Once again, China's retail business is faced with a structural reorganization, which leads to a real upgrade.