How Far Can The Electricity Supplier Go To The Physical Store?
Now, there is a chill in the domestic commercial entity store.
According to the Ministry of commerce data, the sales growth of 5000 key retail enterprises in 2014 was only 6.3%, down 2.6 percentage points over the same period. The growth rate of professional stores, supermarkets and department stores decreased by 1.7, 2.8 and 6.2 percentage points respectively. Although the shopping center was slightly better than the 7.7% growth rate, it also slowed down 4.5 percentage points over the same period last year.
In the first half of this year, the sales volume of the 5000 key retail enterprises increased by 4.6% over the same period last year, a 1.7 percentage point slower than the same period last year.
What's wrong with the physical store? Can the entity store it?
Dilemma: is it a partial phenomenon or a general trend from "full bowl to full" to "just enough to eat"?
In July, the heat wave of Wangfujing street in Beijing was ppiring, and the shopping arcade on both sides of the street was cool.
This is not the cold air conditioning, but the cold of popularity: whether the Wangfujing department store or the new Dongan market, the friends department store, the customers in the shop in twos and threes, it seems careless; some salesmen or chatting together or playing cell phones alone.
"This is not the two day in a day!" said a senior saleswoman in the Wangfujing department store.
"Before, we only need to open business on time.
In the past two years, customers are getting less and less. Even if they are trying to sell, they will finally be fed up. "
From Xidan and China World Trade Center in Beijing to Nanjing road and Huaihailu Road in Shanghai, from the first tier cities to the two or three tier cities, from the east coast to the inland of the Midwest, sales of physical stores are going downhill.
In Guangzhou, Beijing road was once the most prosperous commercial distribution center. Today, there are few people in department stores. Many famous international brands are missing.
In Hangzhou, intime department store is located in the famous Wulin Square, from one level to the top. Too quiet shopping environment makes reporters very uncomfortable.
In Changsha, Ping halls, Wangfujing, spring department stores, new Century Square and other large shopping mall around the May 1 square are also cold and clear.
According to the data of China's general merchandise business association, in 2014, the profits and profits of the 101 member enterprises decreased by more than 15%. At the end of the year, the total assets, operating area, employees and other indicators were also declining, and the operating area decreased by 6.6% compared with the same period last year.
According to the China Chain Store Association, the number of stores in China's retail enterprises doubled in 2000.
However, since 2010, the turning point of physical stores has begun to emerge, and the retail industry has entered an interval of "declining sales and declining profits".
From 2010 to 2014, the growth rate of chain 100 sales continued to decline, with annual sales growth of 21%, 12%, 10.8%, 9.9% and 5.1% respectively.
Seeing department stores, the daily traffic volume is obviously reduced, and holidays are also hard to see.
Customers don't buy much, they carry fewer and fewer bags.
Look at franchised stores, clothing stores and electrical shops all over the streets.
Bosteng has shut down more than 5100 brand stores in the country in one year.
Look at the shopping malls, once full parking lots, except for the weekend, parking vehicles have become thinning. In the past, dozens of people queued up before the cash register, and now the idle shopping cart is stacked up.
According to Rui Yide, China commercial real estate research center, since last year, 38 large chain stores will be closed.
The most popular department store brands are Baisheng and Marsha, each of which is 5, followed by Ito Yang Hua Tang and 4 stores.
Beijing, Hangzhou, Qingdao, Tianjin and other cities closed shop seriously.
The survey found that in 2014, the major retail enterprises (including department stores and supermarkets) closed 201 stores, an increase of 474.29% over the previous year.
There are 23 stores and 178 stores in department stores and supermarkets.
In the past, the "one shop hard to find" commercial street was difficult to rent.
In 2014, among the top 100 chain stores in China, 23 enterprises closed more stores than new ones.
The number of official workers in the top 100 enterprises decreased by 0.3% compared with that in 2013, and the number of enterprises that have reduced employment has exceeded the number of enterprises increasing employment.
The "cold current" not only invaded China's real business, but also some large foreign retail companies.
At the beginning of this year, Penney Company, the US chain giant, announced that it will close 39 stores during the year and reduce the number of employees simultaneously.
Tesco said it will close 43 unprofitable stores this year.
Hof, Germany's largest department store chain, shut off the store in succession.
The average growth rate of Japanese department stores in the past 5 years is -1.5%.
"It is an indisputable fact that the growth rate of most physical retail enterprises is declining."
Pei Liang, Secretary General of the China Chain Store Association, thinks that from the perspective of the development status, from the operating income to the profit ratio, the entity store is facing unprecedented difficulties, and the "golden age" is gone.
Many shops will be more difficult if they fail to respond promptly and effectively.
Challenge: from "no other choice" to "pluralism of channels"
Online retailers
Impact or chronic illness?
"Online shopping is so convenient, who still runs all the way to the mall to buy things?" in the 100th cargo of Nanjing Road, Shanghai, a shopping guide stared at Taobao mobile in his cell phone.
She claimed that she had been fascinated by these two years.
online shopping
。
Many customers at the store just try clothes and sizes, try them out and go home and place orders online.
"The physical store has become a fitting room. Is it good?"
Many people believe that e-commerce is a competition and diversion, resulting in a reduction in sales and a decline in sales.
There is some truth in this view.
Data: at present, the retail line seems to be ice and fire.
National Bureau of statistics data show that in May this year, the national retail sales grew by 38.5% over the same period last year, which is 34 percentage points higher than the 5000 key retail enterprises in China.
Compared with popularity: by "double eleven", "double two" online shopping carnival, Tmall, Jingdong and so on gathered a large number of "fans".
Some electricity providers sell more than one store a year.
Young people gradually get used to "light mouse, easy shopping" life.
However, the dilemma of the entity store is attributed to the impact of the electricity supplier, which is not comprehensive.
"The electricity supplier is a factor, but it is by no means the only factor."
Shen Danyang, director of the Research Office of the Ministry of Commerce, said.
From the macro perspective, with the slowdown of China's economic growth, the growth of household consumption is slowing down.
In 2014, the total retail sales of social consumer goods increased by 10.9% in real terms, 0.6 percentage points slower than the same period last year.
In the first half of May this year, the total retail sales of consumer goods continued to decline to 10.4%.
The decline in consumption growth has brought pressure on the operation of physical stores.
From the micro perspective, technological advances, consumer upgrades, and mobile Internet, electronic payment and other new applications, triggering revolutionary changes in shopping habits and retail mode.
The imitative wave style consumption is no longer fashionable. Personalized and diversified consumption is becoming mainstream. Retail channels are more diversified. Some shops are closed and quit.
For the embarrassing situation of Guan Dian Chao, there are several viewpoints in the industry.
Cycle theory.
"All walks of life have development cycles, and real businesses are no exception."
Wang Xiaodong, director of the Department of trade and economics of Renmin University of China, said.
In the early 90s of last century to the first 10 years of this century, it was the most spectacular period of physical stores.
In the past few years, the real estate market was hot, and some supporting businesses took a ride.
But because of no worries about sales, many shopping malls have become a truly "indifferent" shopping mall: before they were built, they did not plan properly, and seldom considered shopping experience when they were built.
In the center of Shenyang, there are Huarun the Mixc, summer palace city square, Washington world, Joy City, and Hang Lung, Jiali and Bailian.
The shopping center with a total area of nearly ten million square meters makes Shenyang's per capita retail business area close to that of developed countries.
However, the rapid expansion and homogenization of many large shopping malls in Shenyang are stranded by insufficient tourist resources.
After the blowout development, the real business pition to a more stable and more competitive mature period.
"Who knows who will swim naked when the tide returns?"
The dilemma of "foreign department stores" in China is not just a matter of acclimatization.
"The whole industry is paying for the craziness of the first place."
Demand theory.
"The waist is bulging, and the vision is high.
The change of physical stores is, in the final analysis, a revolution led by consumption demand.
Pei Liang said that in the past, the entity store was in an advantageous position or even monopolized in the consumption process. Even though the shopping environment and experience were not ideal, consumers did not choose.
With the upgrading of consumption, the demand for physical stores is not only complete goods, but also comfortable environment. Not only is the quality assured, but also the sale and after-sale services are intimate; not only for shopping, but also for movies, delicious food and playing parent-child games.
Moreover, the concerns of different groups are divided.
Faced with the endless demand, entities have to make adjustments to cater for them, and some of them are still "unable to find north".
Before and after the May 1st, this year, the department store of Shanghai Nanjing road ushered in the 97th anniversary day of commemoration. The shopping center planned the "buy 197 send 197" activity carefully, but the customers did not buy it. "Yongan,"
Zhou Hong, a university teacher, told reporters: "sales promotion has nothing new.
You see, a plain long sleeved sweater is priced at 1499 yuan, and it is several hundred more expensive than the online shop. There is not much room for selection. It is always those brands. I was very disappointed when I went around with my friends.
Cost theory.
"In the past, the increased operating costs of retail businesses could be pferred to consumers by raising prices.
Now, the price of commodities is more pparent and the cost of pferring them is much more difficult. "
Tao Heng, general manager of Beijing good neighbor chain store Limited, said, "the price hike is hindered. Some shops that have lagged behind in management have to stop shop and stop the damage, upgrade and pform them to optimize the process."
The increase in rent and labor costs is the main reason for the rise in the cost of retail businesses, and the cost of wages for employees in the first tier cities has doubled.
For the retail industry with an average profit margin of 2% to 3%, this is a challenge that cannot be avoided.
Mode theory.
"The days of physical stores are sad, and the backward retail mode is also a big problem."
Tao said, once upon a time, supermarkets could hang out discounted posters to wait for customers to enter the door. Now we should take the initiative to attack by using two-dimensional code and other Internet means. Before, department stores could import factories into stores and engage in joint ventures, and now we need to advocate customization and specialization.
From selling goods to selling services, selling experience, sticking to the "three feet counter" to the full channel marketing, business models of businesses are becoming more open and innovative, and those enterprises that respond slowly, adapt late and have old ways will not grow up.
It can be seen that some physical stores or customs or pfer are inevitable results of economic restructuring, direct reflection of the evolution of consumption demand, and the inherent requirement of upgrading business models.
There are both objective laws of the development of retail industry and a variety of factors.
Opportunity: from "standing on one leg" to "walking on two legs" is it inevitable to eliminate or to go against the trend?
"The decline in store performance is the trend of the times", "physical stores are doomed" and "entity shops will become the fitting rooms of online shops".
The chilly shop is surrounded by many "empty" views.
"It is not a period of extinction, but a period of adjustment and pformation."
Zhao Ping, deputy director of the Consumer Economics Research Institute of the Ministry of Commerce, believes that after a round of adjustment, most of the enterprises eliminated are not suited to market competition, and those left behind will release stronger vitality.
From the perspective of consumer demand, the market potential of physical stores is still considerable.
"Shopping is a way of life, spiritual consumption, not backward leisure."
Tang Jiansheng, Deputy Secretary General of the Shanghai Consumer Protection Committee, said that some consumers like to shop online at home, but some consumers prefer shopping to shopping malls. The latter can satisfy the social needs of shopping, entertainment, leisure, catering and traveling, so that consumers can face-to-face purchase, own and use commodities.
"Online consumption and physical store consumption are completely different."
Li Yingwei, director of Planning Department of Beijing Joy City, said that the network is a two-dimensional space, and the physical store is the 3D world in real life.
Some products may not be noticed on the Internet. Once placed in a physical store, they can produce a "suction eye" effect at once.
"In the physical store, the customer has a real contact with the commodity space, which in itself is the value of the physical store.
Especially for women, the fun of shopping is wonderful.
"We have only one number of clothes and shoes in every shop, and we have a new product in a few weeks. The rate of crash is very small, which brings a lot of customers who want to be personalized."
Zhang Jingjing, a saleswoman at a new world shopping mall in Chongwenmen, Beijing, said.
"I'm 35 years old, and some so-called online explosions are not for me," says Bai Xi, editor of a magazine who is visiting here.
Speaking of taste and character, dressing will add a score to the workplace image.
From the development of the whole industry, the physical store is expected to hit bottom.
"Survival of the fittest is the rule of the market, and it is normal to have progress and retreat."
Wang Zhibin, executive vice president of Wanda Commercial Management Limited, said that the comprehensive shopping center, for example, does have a total surplus in the whole country, but the shopping center that meets the personalized trend and is praised by consumers is far from meeting the demand.
The real business will go ahead in a more robust way.
Tang Jianian, President of Carrefour China, said: "there are still new opportunities for big stores in China, especially in the three or four tier cities.
In fact, even though some of the most popular e-commerce providers have gone through a certain stage of development, they have begun to focus on the role of physical stores.
In Beijing's Wangfujing and Qianmen Street, jumei.com stores are constantly moving.
"Stores under the layout line attract consumers to the store, bringing them unique experience.
Develop brand loyalty through interaction with consumers.
Jumei.com President Chen Ou said.
From a technical point of view, the store can counter the trend.
"We can walk on two legs online and offline."
Fu Yuehong, chairman of Beijing first commercial group, said that at the end of marketing, the concept of Internet was introduced, and the channels such as official website, WeChat, micro-blog, client and electronic interactive screen were used synchronously. The preferential information was pmitted to consumers at the first time. At the end of the sale, shops were opened to explore, for example, the shop of the first Yansha mall, there were different theme activities in different seasons.
Reporters in the survey found that there are bright spots in the cold current, many shops operate well, the trend of differentiation is obvious.
In terms of format, supermarkets and convenience stores are better than department stores.
According to the China Chain Store Association, in 2014, the sales of top 100 top selling enterprises, mainly supermarkets, increased by 6.5%, and the stores increased by 5%, higher than that of the department stores.
It is noteworthy that the sales of convenience stores grew faster, and the number of convenience stores in the top 55 stores increased by 7.8%.
From the perspective of enterprises, Chaoyang Joy City has been steadily increasing in the past 5 years. In 2014, sales jumped to 2 billion yuan, up 30% over the previous year. In the same year, Yonghui supermarket's sales and profits grew by more than 20%.
WAL-MART global president Dong Minglun said that as of the end of last year, WAL-MART has realized the growth of market share in the category of stores in 8 consecutive quarters.
Beijing SKP (Xinguang heaven and earth) has achieved remarkable success. Last year, it ranked first in the national shopping malls / shopping centers with sales of 7 billion 500 million yuan, sitting on the top of the "most profitable department stores". Wanda Department stores opened 24 new stores in 2014, totaling 99 yuan, earning 25 billion 600 million yuan, an increase of 65.3% over the same period last year, becoming the star of the Zero selling industry.
"Entity store sales now account for 90% of the total retail sales of the country, and practitioners account for about third of the total employed population of the third industries. Whether it is promoting consumption or steady employment, the entity store will still play an important role."
The Yellow Sea's former Assistant Minister of Commerce said.
Benefit the people's livelihood, the entity shop is indispensable.
A physical store is convenient to buy directly.
Emergency relief, supply and market stability are the responsibility of the physical store. Especially in the vast rural areas, physical stores support the basic livelihood of the people.
The Yellow Sea believes: "how can the electricity supplier develop? The unique advantages and functions of the entity store can not be ignored."
Freshmen: from "one shop to one side" to "each director" is to stick to the original position or accelerate the pformation?
"Did the entity store miss the best stage of pformation?" some people raised doubts.
"Innovation and pformation are the best times at any time."
Ji Xiaoan, chairman of the Beijing Hualian Invest-holding Company, said that as long as the entity shops are innovating closely to market demand, they will be rewarded.
Of course, the sooner an innovation and pformation enterprise is, the easier it is to grasp the initiative.
As Shadel, the father of European marketing, said, "either innovate or evaporate."
Zheng Wanhe, honorary chairman of Beijing Wangfujing department store group, believes that China's retail "cake" is big enough to rely on the vast consumer market. No enterprise can monopolize the market.
Entity stores must insist on "content is king" and create a new path.
The direction of innovation is the direction of the change of consumer demand; the means of pformation is to make good use of "Internet +" and big data.
Play the experience card.
Walking into Wanda Plaza, Tongzhou District, Beijing, I saw the crowd surging in the store, the restaurant lined up, and the cinema seats were full.
Wanda "experience" Kung Fu: shop decoration "one shop, one color", the environment is more eye catching; more than 200 brands are settled in, often stroll often new, one-stop to meet different consumption levels of shopping needs; supporting children's amusement park, 3D cinema, special restaurants, all aspects of all kinds of items to eat, drink and play.
"Business is good, experience is the last word."
Zheng Wanhe said that the new normal of consumption is that people seldom buy for buying, most of them have multiple recreational purposes.
Wherever you go, you can see not only that there are not many kinds of goods, but that the prices are not enough, such as whether parking is convenient, whether the movie is comfortable or whether the meal is delicious or not will have a great impact on consumers' decisions.
"The quality of experience depends on the service, and the domestic supply of service consumption has great room for development."
Play a good fusion card.
"It's not life to death, but to learn from each other's strengths and weaknesses."
Wang Xiaodong said that online and offline have their own advantages.
Fierce competition will push each other online and offline to learn from each other, deeply integrate and symbiosis win-win.
"Entity stores and online stores are not in conflict, the entity store will not only fade away, but will also get back to life with the help of" Internet + ".
Wang Junzhou, President of Gome, said that with the "whole retail strategy" as its goal, Gome established a line and line.
O2O
General support service platform, business continues to improve.
Online, through the whole category development, enhance price competitiveness, mining and application of big data, enhance visibility and customer stickiness; create offline experiential stores under the line, and enhance customer satisfaction in interaction.
This year, Gome will open 160 more physical stores.
"The Internet is a hot fireball. Some people are flying moths to the fire. Some people are bathing the flames of nirvana. Yonghui is willing to accept the temper of the fire.
We have opened a store wireless network, developed self-service shopping and cash collection, merchandise traceability system, and payment methods such as Alipay and WeChat payment, and tried the combination of micro stores and physical stores.
Yonghui supermarket information center director Wu Guangwang said.
"Online and offline must be differentiated, focusing on each other, and no one can replace it.
Like Wanda shopping center, which emphasizes interest and convenience, there is a good guest gathering effect.
Wang Zhibin said.
Looking at foreign countries, some early pformation entities hold the initiative.
Of the 10 top retailers in the US, 8 were traditional O2O companies.
The famous Messi department store set up an online sales system, pforming the store into a distribution center, relying on its more than 800 stores in the United States to compete with the electricity supplier giant Amazon's logistics network.
The Yellow Sea said: "integration is not a simple" Internet + business ", but rather a" business + Internet "business.
Play the pattern cards well.
"The traditional department store industry is a joint venture with brand dealers, making profits through the way of deduction, which is actually equivalent to managing the berths instead of managing commodities, with low profit margins and weak voice."
Zheng Wanhe pointed out that under the double competition between the Internet and the industry, the department store industry should speed up the adjustment mode. "Improper two landlords should be real retailers."
Supermarkets have gone ahead, Beijing Jing Kelong, good neighbors, and Shanghai city supermarket and Fuzhou Yonghui have trained a group of buyers, independently purchasing, self brand.
Recently, the two leading retail businesses in North and south, Shanghai Bailian and Beijing department stores in Beijing, have joined hands with the international professional supply chain management company, Li Feng Group, to pform from traditional department stores to self operated mode, buyout operation, and expand the development and purchase of self owned and authorized brands.
Play the positioning card.
In Shanghai Minhang District Qibao town shun Heng Plaza, a new store in the city supermarket is being stopped: homemade bread and coffee, seafood and vegetables supplied by professional cooperatives, milk powder and cookies in New Zealand.
Delicious food is dazzling.
This supermarket operates nearly 10000 kinds of goods, 80% of which are imported goods. Every week, fresh and groceries are pported by air and sea. It is the most exclusive supermarket in Shanghai.
"We sell not just products, but a way of life."
Cui Yixiong, President of Shanghai city supermarket, believes that traditional business is "universal business", and the sales target is all consumers. Now, homogenization, big road goods are not working, market segmentation and business diversification, and the business enterprises that want to "eat" all consumers will get narrower and more difficult.
Accurate positioning means there is a way out.
Since the second half of last year, Muji, UNIQLO and other specialized stores have expanded rapidly in China, with clear positioning and reasonable prices. They are aiming at the new generation of the city. Every open house is always crowded with people, and is being touted.
The pformation of a physical store depends on its own efforts and a good competitive environment.
"We are not afraid of competition, but we are afraid of unfair competition."
Li Yanchuan, President of Beijing super market chain supermarket company, said, "when we don't understand the Internet, we are playing drums in our hearts.
But when we are familiar with it, we will welcome competition.
The main contradiction now is not competition, but unfair competition on line and offline, which is not conducive to the smooth pformation of offline retailing industry.
Take imported perfumes and cosmetics as an example, tax, import duties, excise taxes and value-added tax can not be reduced.
There are various kinds of concessions on line operation. Retail electricity providers have not yet been taxed equally. In terms of supervision, they are strict in line operation, such as health permits for food and drug administration, inspection and sampling of industrial and commercial quality inspection departments, and so on.
In addition, the physical store has to pay five risks and one gold to employees, but many online stores do not have such a hard line.
Li Yanchuan believes that taxes and regulations should be more in place to avoid offside businesses and the absence of online businesses, and create a fair and pparent environment in accordance with the law, so that online and offline competition and healthy development can be achieved.
Many shop owners said that it is time to learn how to use the Internet and other new technologies, and to achieve a leaps in business.
Once mastered the Internet technology, offline enterprises will show their advantages in terms of consumer experience, price and after-sale, and have the ability to compete with online companies.
Wu Pin, deputy director of the Ministry of Commerce and political research, said, "
Internet + "
The traditional business is fully penetrated, and all kinds of formats can find their growth points. The key lies in whether they will cross the border or how to cross the border.
Ji Xiaoan said, the electricity supplier has caught up with the good times, but the entity shop does not have to be self belittling, "the physical store is not ready" is a false proposition. The traditional business integration into the Internet age will form new productivity, and promote the upgrading of the whole three generation.
Zheng Wanhe believes that the domestic retail industry will usher in a rising window period. "Just like China's accession to the WTO, we are worried that foreign supermarket entry is" wolf. "But looking back, foreign supermarkets make the competition more full, and lead the domestic retail industry to a big step.
Today, the electricity supplier has come, this is not the end of physical business, but a new starting point for real business.
Pei Liang said that the physical store is facing a big shuffle, which may present a new pattern of shopping center leading industries, convenience stores along the community, professional shops and boutiques, and online and offline integrated development.
"I believe that the shop has not only the future but also the future full of hope and vitality.
No matter what kind of format, those enterprises that are active in pformation, dare to innovate and have stronger strength will surely succeed in breaking through and win the future.
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