Look At The Retail Industry From Home Business: Mode Selection Is Very Important.

An epidemic has led the entity retailing industry to argue for a long time whether to get home or not.

Faced with surging online orders during the epidemic, fresh supermarket operators are not happy enough, but managers who do not build the system regret it, saying that the first job after the outbreak is to build an online platform.

However, a new controversy has emerged. That is, physical retail business in the construction of online channels, in the end is the choice of self-help or other O2O platform?

Adhere to the self view that the platform, commodities, data, team and so on are all their own, and they can control their fate. Moreover, they think that the epidemic has made consumers regain "education", and it will be easier to promote self-employed APP in the future.

However, the third party insists that the third party platform's traffic, technology and performance capabilities are all ready-made, so that the professionals can do professional work.

These two points are reasonable in a sense, but from today's situation, self run and three party go hand in hand can be a cost-effective way.

　　 There are two reasons.

1. physical retail starts from scratch to make an independent APP. Without saying anything else, where traffic comes from is a big problem. Even if everything goes smoothly, enterprises will have enough financial support to cultivate a APP that can be justified. It will take at least 2-3 years. At this time, which enterprise can afford to wait until that time the day lily is cold.

2., if you put all the treasure on the third party platform, the line will be fast and the flow will be enough. But some bosses always feel the grass of duckweed is controlled by others.

Self employment is slow, and the third party platform is fast. Therefore, at this stage, the physical retailers must catch up with the general trend of online layout.

There is such a set of data in the analysis report on the impact of the new crown pneumonia on the retail industry. 8 online retailers, who have already opened online channels, have basically increased their online business by more than 2 times during the epidemic.

Careful observation shows that these 8 are the top retailers in the industry. Among them, there are 6 supermarkets. The 6 supermarkets in addition to wumi are fully self operated online channels, and the other four are self operated + third party platforms.

The data of 35 self retailing enterprises exploring self operated electricity supplier enterprises show that after spending a lot of manpower, material resources and financial resources, the 35 retailers' self employment projects ended either in failure or in the third party platform, forming a self run + third party mode.

Now it is still insisting, either to become a giant, or to rely on giants, such as suning.com, Wumart, Yintai, incredibly home, five-star electrical appliances, and so on. The online layout is no longer purely self run.

After 10 years of Internet rubbing, none of the retail businesses is just fooling themselves.

Then the problem is coming. It's easy to say that WeChat can rely on WeChat applet or APP, but there are many different platforms, and the characteristics of each platform are different. How should we choose?

　　 How do retailers choose the O2O platform?

Choice is a very important thing. It is easy to choose. As for the O2O platform, there are mainly 14 points in the market: the Jingdong, the US and the hungry.

　　 Let's take a look at their characteristics:

1., from the point of view of traffic volume, the United States and the United States, which rely on the new US and Ali ecology, have the advantage of Jingdong. But there are differences in the distribution of traffic. The US group and the hungry are at present due to the dispute of takeaway, the traffic in the station is more oriented to catering. Jingdong's home and many points are more focused on the supermarket format, and it is a direct return to business. If there is any change in the future hungry distribution and the US mission, we need to look at their overall strategic direction.

2. from the perspective of performance capability, the US group, Jingdong, and hungry have their own distribution teams. There are not many points. If they are on-line, they need to form their own or find the first three cooperation.

3. from the perspective of cooperation depth, Jingdong is free to choose whether to go deep into cooperation or not. For example, hunger and business partners, distribution methods, digitalization and so on are free to choose; similarly, Jingdong home, for example, the retail business and Jingdong to the home of cooperation can be customized, can only cooperate with logistics, also can only use Haibo system, also can deep docking. Many points also have similar functions, while the US group is relatively simple, or sales commission mode.

4., from the perspective of openness, the US, the hungry and the many are single channel cooperation. Jingdong's Haibo system can help retailers to manage multiple platforms. Of course, the local life of Ali is also the direction of its breakthrough. Therefore, there is a deep cooperation between retail enterprises and hungry ones, so there are also possibilities for expansion to Alipay and mobile sites.

5. from the perspective of its own business conflict, the US group, hungry, and many have their own businesses, to some extent or in conflict with the region. Jingdong is the only pure service platform in these companies.

Of course, the choice of third party service providers should be based on their own circumstances and goals. At present, according to the market situation, the entity retailers can be divided into five categories. Different types of retailers have different directions to choose third party platforms.

　　 (1) no choice.

This type of entity retailer refers to those who are already giants or have Internet giants as backing. For example, suning.com, Carrefour, big RH mart, box horse, Wumart, and American group elephant are fresh.

They have no choice but to choose their own platform, but they have many advantages. Because they are their own homes, they can develop rapidly without any cost. At this point, the choice of belonging to the Department of Ali is hungry, Tencent Department of choice of the United States or Jingdong to the home, the Department of choice for more.

For example, Carrefour China, after being bought by suning.com, did the first thing to let Carrefour withdraw from the Jingdong platform, then quickly butted with Suning. In February 5th, Carrefour "1 hours" access suning.com APP, store 3 kilometers, the user orders can enjoy 1 hours of extreme speed service.

In March 27th, "Carrefour 50 percent off home day" online promotion, activity day 09 hours 38 minutes, Carrefour home business sales exceeded 100 million, single day sales grew 428%, 71% stores to home business orders more than 1000 single.

There is also a box horse, which not only has its own APP, but also starved and Tmall flagship store, and the flow support is also not enjoyed by other businesses.

　　 (two) self strength

This type of retailer has no strong backing, but it is very strong. It is already the top ranking entity retailer. It has built its own core platform and has achieved its own good results.

At this time, their goal is to expand the impact and enhance sales. The third party platform is a supplement to their sales channels. Therefore, retailers of this type do not care whether they can cooperate in depth, or whether they are flexible or free. It is a good choice for us and Jingdong to get home.

Of course, as China's first tier retailers basically completed their first two years, now this type of retailer is almost empty in China, and they will almost always choose their own service providers in the system.

But even if we choose the service providers in our own system, cooperation is not enough. For example, Yonghui has chosen the Jingdong in the system to get home, and the cooperation between the two sides is not bad, but Yonghui is more inclined to build himself in the middle and back level.

　　 (three) thirst for traffic

This type of retail business has a certain scale, mostly a regional retail leading enterprise. It does not rely on any faction, has certain technical ability, but the proprietary online business is not doing well, and the offline business has encountered a bottleneck.

Choosing a third party platform at this time should focus on increasing traffic quickly, because large flow platforms can bring online orders to businesses, reduce performance pressure, and learn and precipitate proprietary business in these platforms.

Therefore, a number of third party platforms can be selected simultaneously to achieve traffic flow. Of course, if there is a high degree of coincidence between the store area and the brand area of the third party platforms, it is necessary to avoid it automatically.

If BBK and hungry hand, no doubt is looking for incremental sources. In November 2019, BBK reached a deep cooperation with hungry. According to the word of mouth of hungry, the "full link digitization system" built by word of mouth, which is hungry, can help operators to realize the integration of online and offline.

Wang Tian's desire for online, from his creation of the cloud monkey network, smashed the 1 billion 300 million layout O2O, you can see its high expectations for online business, although the cloud monkey network closed, but Wang Tian did not stop the pace of exploration. In 2018, BBK and Tencent cooperation, which led the industry to speculate that BBK is the team Tencent.

It was not until 2019 that we got higher than we were hungry that we should be ready to start again on the new platform. For the three party platform cooperation, BBK has always been open-minded, as if to absorb all online traffic to meet their ambitions.

　　 (four) thirst for technology

This type of retail business can be divided into two situations.

This is an in-depth version of third types of enterprises. After multiple channels, there are multiple systems docking, which requires more manpower costs and commissions. Then a technical team is needed to develop a convergent platform to solve the problem of multiple channel docking, but its technical capability is not enough.

At this time, according to the characteristics of the 4 main third party platforms listed above, it is a good choice for Jingdong to get home. Its Haibo system can handle orders from Jingdong to the United States and the United States at the same time. It can realize the order collection, picking and distribution route planning of multiple platforms in a system, so as to reduce the cost.

For example, Hua Guan, Beijing, as a small and medium-sized regional retailer, although also developed a self run APP "Hua Guan home", but Hua Guan arrived home at present only a small amount, accounting for several points of the overall online sales. Therefore, it is doing the self run APP at the same time on-line Jingdong to the home, the United States regiment, hungry and so on the mainstream third party platform.

In order to solve the problem of multi system docking, at present, the two modules of the Haibo system have been cooperated with Jingdong: the operation of the integrated channel, the operation of the central channel and the performing platform, are applied to more than 50 stores.

In operation, China and Taiwan realize the automatic synchronization of offline and online data, including commodity, price, inventory, promotion and other information; performing a terminal and a set of processes in stores to fulfill order fulfillment on online channels, systematize the picking process, and distribute all channels together to help businesses improve the efficiency of order fulfillment. In February 2020, Hua Guan's sales increased by 256% over the same period last year.

In addition, the media learned that the bee lotus also has similar cooperation with Jingdong.

　　 (five) only third parties.

This is a small and medium sized retailer with weak technical capability and small scale. In this case, we need third party platform to do a complete set of digital solutions to solve the problem of self employment and solve the third party problem.

At this point, Jingdong home, multi point, hungry is a good choice, as long as it depends on whose scheme cost-effective, more able to meet the needs of retailers.

Sun Yulong, a senior retailer, said that for most retail businesses, the current online channel construction should be structured rather than simplistic. Based on the self operated online channel, the online business capacity and customer management system should be fostering to enhance the convenience and response of the nearest retail service.

The third party channel is the right choice for the strategic choice, improving the customer contact width and efficiency of the entity retail business.

　　 Concluding remarks

To write this, readers must understand what the author means, that is, "go with the flow and act according to circumstances". Making online home business is the trend. Different types of third party platforms are different.

The general principle, as professor Zhou Yong has said, is that online businesses must be done. As for self employment or borrowing power, it depends on their own strength. Large enterprises prefer self-management and third party platforms, while small businesses can only rely on the third party platform, and self-employed as the subsidiary. Specifically, to choose which third party platform, they should look at their respective practices.