Traditional Retail Is Thinking About Self Salvation.

In the economic slowdown, e-commerce diversion, coupled with

In the doldrums, many retail businesses are in the predicament of closing stores and pforming.

According to the statistics of 72 retailers, the total sales volume in the first half of the year increased by only 2.48%, and the net profit of the 6 retail enterprises was negative. At the same time, the main retail enterprises closed 158 stores in the country.

The new wave brought by the mobile Internet has further deepened the sense of crisis of traditional retailers. While reflecting on the outlet of traditional retailing, they are also holding together to keep warm.

In October 17, 2014, the 2014 business alliance, which was sponsored by the joint venture network, was "joint initiative" - a retail platform for entities.

On the same day, Yintai and Lianshang network launched the lotus lotus action for China's retail industry. Tianhong, Ginza, BBK, Jia Jia Yue and other well-known traditional retailers held together, claiming to fight double eleven.

At the meeting, Ma Qihua, chief executive of Song Yuan Business (the vice president of Yintai group, nearly 30 years' retail experience) made a speech on the theme of "the reasons why retail entities are facing difficulties and how to deal with them".

He believes that traditional retail is in trouble, not just the impact of the electricity supplier, in addition to its own limitations lagged behind, there are diversified consumption and diversification of consumer channels formed by the diversion of consumption.

In the face of difficulties, the self salvation of traditional retailing needs to be modernized: differentiation, shopping centralization, self run and Internet.

The following is the speech of Ma Qi Hua, and the tiger sniffing has been abstracted and edited.

(Ma Yun Wang Jianlin) this gamble is clear to everyone. In fact, such a gamble is a kind of stimulation to our retail entities. This stimulation makes us think much like a place like this.

Actually, what I want to say is that the two respected Chinese giants are actually not the people in our physical retail industry, but what we lack is our retail opinions.

Physical retail dilemma is not just the diversion of e-commerce

Quite a period of time, due to the rapid development of Internet technology, e-commerce has mastered and created a special context, so that we have lost many opportunities to express, or this expression is relatively weak and relatively fragmented.

Of course, the most important thing is that in recent years, our physical retail industry, especially department stores, including supermarkets and shopping centres in the ascendant, no matter how hard we try, sales performance is actually falling down.

Of course, we do not exclude our outstanding individual enterprises.

I think it is mainly caused by the diversion of consumers, the diversification of consumption and the diversification of consumption channels. It does not mean the diversion of pure e-commerce to you.

We can think about our National Day holiday, how prosperous the tourism market is, and our purchasing power is actually very strong. Everyone travels abroad to spend money desperately. Why do we still have such problems in our domestic retail market?

What is the way of self salvation in retail industry?

Differentiation and shopping centralization

I have seen a figure, probably four to five thousand department stores in China. In addition, the Chinese chain association has issued a number. The number of new shopping centers will reach five thousand next year. That is to say, the two figures add up, we do not consider other supermarkets, supermarkets, department stores and shopping centers together ten thousand.

Whether it's a department store or a shopping mall, now everyone knows that the brand is homogeneous.

To solve the problem of differentiation, it is not difficult to narrow down the meaning, that is, the differentiation of location planning. First of all, we start our business planning by business, that is, we need differentiated planning and positioning.

This is actually easy to talk about, but it's not difficult. The real difficulty is landing. When we finish the combination of the format, we will do what we want to do. We will not ignore the investment difficulty. In essence, the biggest problem is the supply problem, which is what the upstream enterprises can give you.

As a matter of fact, our overall design, research and development and operation of brand are still lacking, and we still lack a lot. So we can choose a very small area. It is not caused by the hard work of our business people, nor by the laziness of our investment staff, so differentiation is still a good wish at present.

We must face this reality.

Now I think a relatively fast development is the experience type of business, almost no now, has grown up, and this kind of format gives us some new choices, including catering.

At present, shopping centers, department stores, and even large supermarkets are actively introducing these experience formats, including catering, including children, including parent-child education, so I think we need to work together to enrich our products in this respect.

I believe you have seen a lot of visits abroad. Let me give you an example. I once ordered a number of Japanese supermarkets. His ballpoint pen SBU reached 600, and a ballpoint pen reached 600 SBU. How much do we have?

Self run

In fact, I had many exchanges with many investment institutions and investors. They had very quick thinking, or they had very rich contact information. When they made investment reports, they always denied the department stores, or our supermarkets were doing joint ventures. They had been talking about this for four or five years. Five years ago, they said that the joint stock system of department stores has come to an end.

He said that the homogenization of such stores was classified as joint venture.

The joint venture system has come to an end, because thousands of stores have one side, because its gross profit margin is relatively low, so to do self employment, self run can change this homogenization.

Of course, this is a very good desire. Why? Self employment can solve some problems of differentiation, which can effectively raise gross margin. But I think that such a strategy alone can not change the development of this industry.

What do I think are the big reasons or what are the fundamental problems? We lack some basic preparation.

Before 80s, we were still planning the economic system. The development of the real retail industry took thirty years. In the thirty years, the industry has developed to the present. We have broken the original martial arts, or the basic skills have been broken. We have no team to buy and buy, especially department stores.

Our older generation of purchasers will buy goods and have self-discipline, but now our purchasing agents and store chiefs ask ourselves, will you give him one hundred million or two hundred million to go shopping?

Where to buy and where to sell? We must have channels to buy, and we just lack channels.

At present, who is the largest retail chain group in China? How many stores does he have? We are not such a large supermarket or chain supermarket. We have counted one hundred department stores.

If we are to consider self employment, we must first consider the issue of self operation mechanism. I do not have to put it in detail. It is a must and at least need.

Take the example of Messi.

Messi is currently 840 stores, the highest peak of about 900 stores in the year, now 840 stores.

This is a very good access, is a channel, I order, I buy goods to have a place to sell, I need to have a considerable access to reduce my operating costs, this requires us to constantly investigate our own short board, we must build a good mechanism for self operation, second must have a good team, third, the biggest hardware problem is our access channel problem, if the access channel problem is not solved, our other long characteristics are very difficult to achieve.

And Messi has such a channel, it has a strong backstage support system, I believe we went to see Messi colleagues should know.

It has been acquired through mergers and acquisitions, especially in 04 or 05 years.

In 2006 and 2007, it realized a drop of 176 million and 450 million dollars in cost, which is the power of channel.

Of course, we can not decide everything through channels now, but channels are carriers. What can we do without channels?

Internet based

Especially this problem is now particularly valued, because the electricity supplier is too strong.

Just now, I feel that Huang always talks particularly well about the share of the Internet in the retail business of physical distribution, while the physical retailing industry is willing to let go. This is the first revolution from the revolution to the present.

Is the internet our salvation road? I don't think this is. The Internet is just a tool. It is, of course, a representative of the advanced productive forces.

So I think the Internet is right, I also very much support, we are constantly exploring and using various means.

Now one of the more clear ways is O2O, whether positive or negative, I think this revolutionary and non revolutionary is a false proposition, and the real it is a tool, a tool, all kinds of innovation, I think I have to build on the advantages of the entity sale industry, our advantage is the distribution of physical stores with special geographical location.

We have a lot of considerations when we are siting, we are exploring the branches, and the physical retail industry has considerable advantages, so we must develop our O2O on the basis of our own advantages.

And my personal feeling is that it is a kind of intelligent shopping, which is built on a data platform, digital fine management, intelligent experience and online and offline interaction.

And all of this is centered around our customers and around our customers.

Our aim is to sell goods and services and sell them well.

So there are no special ways to deal with it. I am just thinking about it. From the objective reality, I talked about the problem of channel just now. So I think this solution to a big problem is objectively speaking. Our industry concentration is too low. Our single store is very difficult to do business, and the cost of regional chain is very high.

The orientation of "four modernizations" is to integrate the retail complex.

I think we need to study basic technology, establish a scientific business analysis model and enhance operational capability.

Including myself, when I met with a decline in performance and encountered problems in KPI, what was the first thing we thought of? Vigorously promoting sales, desperately discounting, and desperately doing activities. You raised a group of alpacas, and I put a group of pandas.

And we have seriously recognized the importance of reviewing our analytical models to review our daily business indicators. What is the problem of our daily business indicators? Is our analytical system scientific? We have all learned some methods of operation in Japan, Taiwan and Korea. Are there any scientific models for our opinion analysis? We can imagine that if we do not have a good analysis model, if we don't know the operating parameters clearly, how can we judge our economy?