No Longer The Entity And The Electricity Supplier Read The "4 Characters" Online.

Economist Bailey proposed a theory called ratchet effect. It refers to the irreversible nature of people's consumption habits, that is, it is easy to adjust upwards, but difficult to adjust downward. Especially in the short term, consumption is irreversible and its habit effect is large. In the current domestic consumption environment, the same is true. Under the epidemic situation, it will further catalyze the consumption habit of online and offline convergence. This consumption habit will continue to affect the self transformation of retail formats.

　　 First, accelerate the "go to the border" from O2O to the new retail line.

Under the outbreak of "cloud shopping" fire, brand dealers and retailers are going their own way to start the war of defense.

Retailers. Retailers over the epidemic during the comprehensive transformation line. Earlier, Yintai and Taobao jointly invited thousands of shopping guides to live at home. The number of consumers who broadcast live 3 hours a day was equivalent to 6 months' service flow.

Branding. Many brands such as Estee Lauder, Lancome, NIKE and so on have launched the online shopping guide. Through the introduction of WeChat online membership and WeChat spike, Taiping bird has realized half of the sales of stores suspended to 10 million yuan. Lin Qingxuan created over 145% performance in the same period last year.

The data of these counter trend growth also let us see that the retail mode of people's freight yard has been reconstructed under the change of consumption environment. Calm down and ponder a question: why is the retail environment under online and offline changing?

We took our view back to 2011, when the typical group buying model of O2O rose. At that time, the volume of Chinese group buying websites reached 23 billion 700 million in a year, but then came the pattern of O2O becoming a burning money. Many companies of O2O concept collapsed under the condition of capital loss. Then the integration form of online and offline becomes diversified. From the very beginning, online traffic, data and information are transformed to offline businesses, and then combined with online and offline development to achieve a dual mode of offline experience and online sales.

In essence, the explosion of online and offline integration is far from being underestimated. By 2016, Ma did not say that there were only new retail outlets. Over the past 3 years, we have been concerned about the emergence of a large number of new modes of enterprises.

Taking box horse as an example, we built a brand new business model, which is a typical combination of online and offline. At present, the proportion of online traffic in some box stores is 60%. The horse horse CEO Hou Yi said that the ultimate goal of the box horse is to turn the flow under the line into the flow of the box horse.

Another way is to "stock up" as the core of love inventory, and fully tap the private sector traffic. Different from the traditional e-commerce platform, its new business model can accurately connect businesses and small B terminals (shopkeepers), through small B (shopkeepers) private domain traffic with goods, to achieve goods to find people. For more than 2 years, the performance of love inventory has been running all the way, and has accumulated more than 1 million 500 thousand shopkeepers and nearly 10000 merchants. On a competitive track, it runs its own way.

　　 Two, consumers "online" has become the mainstream, forcing the transformation of retail formats.

According to analysis, the transformation of business models is based on traffic changes. The main driving force of online and offline accelerated convergence comes from the change of consumption habits. Consumers' online 'has become the mainstream. It is forcing the transformation and upgrading of brands and retailers in the retail format, bringing new models of innovators the chance to overtake.

Let's look at two sets of data:

WeChat accounts for more than 1 billion 150 million of its monthly active accounts, and more than 300 million of its active users. Last year, 800 billion transactions were created.

The latest Ali 2020Q3 report shows that the number of mobile monthly active customers in China's retail market is 824 million, and the annual active consumers in China's retail market reach 711 million. Earlier, Tmall Taobao President Jiang Fan also said that the Internet demographic dividend has not ended.

At present, the "online" of consumers is irreversible. This "online" has no longer distinguish between electricity supplier or entity. There are obvious boundaries between some brands and retailers that we have contacted before, entities and electricity providers, and there is a phenomenon of "robbing customers" among them. Before the traffic volume, there will be no entity and electricity supplier in the future.

　　 Three, there is no further thinking of entities and electricity providers under the "full staff online".

What is "full staff online"? According to the relevant media, under the new retail environment, the relationship between the three people in the freight yard has been reshaped, and the original "routine operation" is no longer applicable to brand dealers or retailers. New changes have taken place in the top-level design, mode, organization and operation. "Full staff online" is a new business model based on the consumer's online and offline contact path to mobilize all staff to participate in "selling" and achieve high viscosity, high efficiency and high transformation.

At present, third party service providers have been combining different tools to transform the retail enterprises into "full staff online". We notice that, unlike previous SAAS platforms such as self built mall and small program, they pay more attention to the use of private domain traffic. However, most of the combined tools expand the exploration and utilization of private domain traffic under the premise of their own functions. It is very difficult to maximize the potential of private domain traffic. For the brand dealers, dealers and self-employed businesses who are in urgent need of private domain traffic management tools, a systematic one-stop solution may improve their efficiency more quickly.

We take the "love silk" as an example of the business incubator of love inventory. The functions such as private domain traffic management, brand activity release, guided shopping live training, and live direct selling of consumers can quickly integrate their private domain traffic with brand dealers and retailers, so as to achieve "full staff online" and achieve efficient transformation.

According to our understanding, the "war epidemic" for retail businesses, the great pressure is cash flow. In order to help the new fast adaptation mode of entity brand and speed up the return of business funds, to the end of March, silk provides free service for professionals, fast examination and quick training. But the important point is that businesses should take the initiative to change and embrace new models.

In view of the transformation of retail enterprises, we think that we need to think from many aspects.

Consumers' online and offline overall "online" duration will determine the brand's survival space. The survival of the fittest in the market will redefine the rules. "Consumer online" is no longer on the general line, but includes consumer electronic commerce and physical shopping all contact path. The longer the consumer contacts a brand, the higher the transformation will be.

Breaking the existing organizational rules, from top to bottom, "online" is the foundation of self transformation. The most important link is to break up and reorganize the organization and realize the unity of thinking. Let's take GREE as an example. Last year, Dong Mingzhu opened the store in person, and at the same time led GREE's 90 thousand employees to set up a personal online store. As mentioned earlier, Lin Qingxuan, the founder of sun Lai Chun's first live broadcast, attracted more than 60000 people in 2 hours, with a total sales of nearly 400 thousand (equivalent to the sales volume of 4 stores under one month). CEO first did it on his own, and the staff naturally caught up.

In the spring of private domain traffic, the size of the flow pool will determine the competitiveness of the brand. According to our understanding, most of the brand businesses actually have their own CRM system, and their customers' information also has some accumulation, but the activity is not high. The transformation of electronic business platform still relies on public domain traffic. But this epidemic directly tells us the importance of private traffic. Some shoes and clothing enterprises, through the activation of private domain traffic, the contribution of the old customers to more than 8, to achieve inverse growth.

We can see that with the help of public domain traffic can be rushed out in a short time, but the size of private domain traffic pool will determine the brand's long-term competitiveness in the market. In order to help brand businesses rapidly expand the private flow pool, silk serves as a professional tool for managing private domain traffic. By helping businesses transform offline shopping guides to online, it sets up a proportion of the sum of money and materials for its shopping guide, and effectively touches online consumers. With the help of the explosive power of private domain traffic, silk has improved sales efficiency and helped more businesses enter the "full staff online" mode.

Soft power becomes the weight of future competition. Planting grass is a popular trend. The establishment of private domain traffic pool requires operation. Systematic "online" new operation will become a new kinetic energy for continuous transformation.

Hardware tools are the foundation, and how to transform effectively through operational methods is the key. In order to meet the needs of consumers, strong sticky and strong communication, whether in product introductions or human solicitude, has become a key factor for consumers to grow grass. The head of the Department of love inventory said that they are constantly optimizing the "soft power" of the system operation for different industries and different categories. Take the community operation as an example, businesses should form their own methodology, and gradually enhance their goodwill (grass planting process) to enhance conversion and repeat purchase rates.

For example, in the fast fission link, the salesperson of the merchant can also transform the intention C end consumer into a shopkeeper. In the product segment, if merchants have different product mix needs, they can choose freely through the strong supply chain solution of love inventory.

For online retailers, organizational change, private sector traffic and soft power, we all think that retailers need to pay attention to transformation.

　　 Conclusion: turning point wins

When technology and business are changing at the same time, there will be an "inflection point" which will lead to exponential growth. We believe that the epidemic has accelerated the rapid integration of online and offline businesses, and the retail format is also in the turning point of transformation. "Full staff online" will become an important strategy for businessmen to change their minds. Whoever can quickly grasp the bonus will get the first mover advantage.