How Can The Retail Industry Get Rid Of Difficulties And Move Towards A Healthy And Stable Development Track?

In recent years, in the background of rapid economic development, the tradition

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Competition is also becoming increasingly fierce. According to the recently released statistics of major retail enterprises (supermarkets, traditional stores) in the first quarter of 2016, following the 2154 stores in 2015, the number of retail outlets in the first quarter of 2016 has reached a new high.

This shows that the development of the traditional retail industry is not very optimistic. In this case, where should the practitioners go? How can the retail industry get rid of the difficulties and move towards a healthy and stable development track?

Judging from the current situation, e-commerce is the most important factor affecting the traditional retail industry.

Due to the relatively small time and space constraints, and obvious price advantage, consumers are more willing to buy goods online.

In view of this threat, the traditional retailing industry mostly adopts the way of price war, trying to lower the price difference with the online commodity, thus leading the customers to return.

But this competition mode has the hidden danger of killing one thousand of the enemy and self injurious eight hundred. At the same time, the loyalty of the users is very low. Once the price war is cancelled, the consumers will lose again, so it is not a permanent solution.

The above problems are not without feasible solutions. As we all know, the dependence of business competition on channels is becoming more and more serious. The reason why traditional retail industry is in deep mire is that they have not realized the layout of the whole channel, and can not meet the personalized and diversified needs of consumers.

Then, what channels do all channels contain and how should the traditional retail industry be laid out?

The whole channel should include at least three main channels, one is offline channels, the other two is traditional electric business channels, and the three is mobile terminal WeChat mall or APP channel.

Next, we might as well focus on these three channels for in-depth analysis.

Offline channels: the backing of the traditional retail industry, the Internet age is facing profound changes.

The importance of offline channels is not difficult to understand. This is the foundation of the traditional retail industry. In recent years, some retail businesses have abandoned the offline channels and are turning to the whole line. This is not necessarily desirable. After all, the development of online businesses needs a long time to accumulate. Moreover, the offline channels still have their inherent advantages.

Therefore, for the traditional retail industry, the most sensible way is to consolidate the advantages of offline channels, and then use the Internet and mobile Internet to promote its in-depth pformation.

For example, in terms of payment, the traditional retail industry is mainly based on cash payment. In the era of Internet and mobile Internet, consumers may need more flexible payment methods, such as WeChat payment, Alipay and so on. For retail enterprises, the online store must cover as many payment methods as possible to cope with the new trend of mobile payment.

For example, how to improve service quality and increase customer turnover rate has a long way to go. For this problem, some platforms have put forward solutions based on the mobile Internet mode. Customers can automatically become corporate fans by scanning the exclusive two-dimensional code of shop assistants, and at the same time, customers and clerks have set up a one to one exclusive service relationship. Customers can always find this shop assistant when they leave the shop. New salespersons can also tell customers in time, which will enable customers to experience better service. This model fully embodies the purpose and spirit of O2O.

Of course, in this process, traditional stores can continuously accumulate user data, so as to accurately understand their consumption preferences and provide more accurate products and services.

From the above analysis, it is not difficult to see that offline channels are still very important for traditional retail industry, but the future needs to be improved through more initiatives.

In fact, a large number of e-commerce brands have begun to shop offline, making offline stores an important part of their ecommerce ecology.

At the same time, from Ali to invest in Su Ningyun business, Jingdong strategic investment Yonghui supermarket, we can not see the irreplaceable nature of offline channels.

E-commerce channels: traditional retail industry to expand the edge of the online market, we should speed up the layout.

As mentioned above, e-commerce has posed a serious threat to the traditional retail industry, but the two are not incompatible.

Nowadays, expanding the electricity supplier channel has become the consensus of traditional retail industry. By the end of 2015, 85% of China's top 100 chain enterprises began to set foot in the electricity supplier, and this proportion is still increasing.

There are many different schemes for traditional retail business to layout e-commerce, such as self built e-commerce platform, or cooperation with Jingdong and Tmall.

The implementation details of the different schemes are different. In view of the problem of cooperation between the self built platform and the third party platform, Liu Qiangdong suggests that retail enterprises should turn the electricity supplier business to Jingdong partners to cut down the unnecessary electricity supplier departments.

Although the essence of this statement is to expand Jingdong's B2C business, it is also reasonable. Jingdong, Tmall and other platforms have great influence, and the platform has been very mature.

At the same time, Jingdong's powerful warehousing and logistics system is also not available in traditional retailing industry. Efficient logistics distribution service can optimize the user experience and enhance brand loyalty, but the long term accounts also make many traditional retail businesses taboo.

Moreover, once a businessman completely gives the product to the channel, especially the online self operated channel, it is very likely to lose the right to speak.

Therefore, for the traditional retail industry, the expansion of e-commerce channels should be as many as possible, and can not be limited to a single platform and mode.

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Mobile channels: how to expand the mobile business is crucial to the retail industry

In recent years, with the development of mobile Internet, the importance of mobile channels is also unquestionable.

Data show that as of the end of 2015, the number of China Mobile shopping users reached 364 million, an increase of 23.8% over the same period. It is estimated that by 2018, the size of China Mobile business users will be close to 500 million.

There are two main reasons for the rapid growth of mobile e-commerce. First, with the rapid development of intelligent terminals and mobile Internet, the convenience of mobile shopping is becoming more and more prominent. Moreover, mobile shopping can bring more discounts and more exciting shopping experience. Second, at present, a series of mobile e-commerce platforms have emerged in China. Under the vigorous promotion of these platforms, consumers' acceptance of shopping through mobile terminals has also greatly increased, and users' mobile shopping habits have been formed.

2015 is the year when APP, a mobile e-commerce provider, has sprung up. In addition to Taobao, Tmall, Jingdong, Dangdang and other old electric providers in the mobile terminal layout, there are many successful people based on the mode of mobile business: one is the shopping guide platform based on mogujie.com, Chu street and vip.com, relying on the selection of products to optimize the shopping process of consumers, so as to achieve the purpose of drainage for merchants; one is the self operated electronic platform represented by honey buds, Xiao Hong Shu and Dali, all products are directly run by the origin.

With the increasingly fierce competition in the electricity supplier business, the layout of mobile channels has become the new rule of electric business enterprises to create a new vertical electricity supplier.

For example, a fresh electric business platform with a red orange orange has been used as a living network. Since 2015, mobile channels have been laid out. Unlike the vertical platform, the mobile terminal's main battlefield is in APP. Originally, life network extended the strategic layout of mobile terminals to WeChat's huge flow reservoir.

In April of this year, the life network was distributed by WeChat distribution.

In the case of zero promotion cost, the original life net was passed through all stores and group Tools + three level distribution commission system, and online for one month, the number of orders reached 50000.

For WeChat distribution, many people will not be surprised.

We believe that in the mobile Internet era, the electricity supplier presents three important characteristics of content, scene and socialization. WeChat, a social gene, is a platform of "artificial flow", and becomes a battleground for traditional retail enterprises to enter mobile terminals.

The growth of WeChat's third party platform has promoted the development of information technology, systematization and platform development.

The WeChat three level distribution system, represented by Renren shop, can help enterprises realize the explosive growth of fans at a geometric level in a short time, and gather fans on the WeChat platform of enterprises to realize privatization of traffic.

For example, if I become a distributor, I recommend shops to friends and friends, and I can get the corresponding commission after the paction. Through this benefit sharing mechanism, we can stimulate the sharing and dissemination.

To sum up, the application of Renren's social business model is based on trust, product edge and social interaction and commission incentives to drive sharing and sales.

Compared to APP's high cost of promotion and the aggravation of the phenomenon of burning money, WeChat's third party distribution platform provides more possibilities and stronger universality for the pformation of traditional retail enterprises in the mobile business.

According to statistics, taking the micro bar store as an example, there are more than 250 thousand merchants entering the platform, with a turnover of 3 billion over the platform. There are many famous traditional enterprises such as Moutai, Wahaha, AOKANG, La Sha and Yao Sheng Ji.

Overall, WeChat's three tier distribution mode allows traditional retail enterprises to quickly deploy mobile terminals at the lowest cost and better cope with complex and mobile business environments.

For the famous traditional enterprises such as Moutai and Joyoung, they attach more importance to the pulling effect of this distribution mode on sales volume, which is complementary to the existing regional agents and offline stores. This is not the embodiment of the O2O concept.

For some SMEs, they value the marketing promotion effect of this model on brand reputation, because this mode reduces the cost of channel investment and marketing, realizes the connection between people and goods with the help of mobile Internet, and deepens consumers' recognition of their brand reputation. Compared with the promotion of sales volume, it is a huge intangible asset.

In recent years, under the background of rapid economic development, the traditional retail industry has faced unprecedented challenges. To get rid of the difficulties and go back to a stable and healthy development track, we must have a full channel layout and expand the market with more abundant channels to get users.