The Retail Industry Is Heading In The Direction Of O2O.

Retail sales fell year-on-year, and most of the key retail businesses grew negatively year-on-year.

Retail business is not optimistic.

The slump in retail business has long been evident in the news reports of big business shutting down stores over the past few years.

In October 2013, WAL-MART announced that it would close 25 stores with poor performance in 2014.

In May 2013, Tesco closed off the Zhenning store of Tesco, Jingan District, Shanghai.

In August 2014, the Wangfujing store of Carrefour chain store, Yuet supermarket, was officially closed.

Once powerful

It seems to be in the twilight years.

The reasons are multifaceted. Rents rise, wages rise, economic slump leads to insufficient consumer demand, and so on, all of which are the reasons for the sluggish retail industry.

But the most important reason is the rise of the electricity supplier.

If not the rise of electricity providers, cost increases can be made up by price increases.

Insufficient consumption can be stimulated through holiday promotions.

But, the electricity supplier has come, everything has changed.

Even if it does not improve, compared with online products, it is not competitive. Where dare to raise prices?

The power of the sales promotion of the electric business is so large that the traditional retailing industry is far from enough.

Pure

The supporting point of their survival is the reduction of paction costs.

Every innovation of the electricity supplier is to reduce paction costs.

When the paction cost is no longer reduced, it is when the electricity supplier is stagnant.

Traditional retail industry has no advantage in reducing paction costs.

Rent and labor costs are rigid constraints.

However, the traditional retail industry has its special advantage, that is, its satisfaction with human emotional needs.

Man is a social animal.

The rich social activities in virtual cyberspace can not meet the psychological needs of face-to-face communication between people in reality.

Shopping is also a socialized demand for people.

In this sense, shops can not disappear.

If a store wants to survive and develop better, it must create more shopping experience, diversity, richness and spiritual pleasure.

From merchandise to shopping environment, and then to shopping guide services, all give customers a new experience.

Such experience can not be found in virtual space, and no virtual social activities can be replaced.

The pformation of traditional retail industry to O2O can not only satisfy the leisure experience needs of people shopping under the line, but also enjoy the convenience and convenience of online shopping, and both of the two will not necessarily lose at the same time.

There are already 020 aspects of exploration by retail enterprises.

Even electricity providers are trying the 020 mode.

Perhaps, for the retail industry, 020 is the main business mode in the future.