17 signals of physical store rise will be more crazy in the future than e-commerce

The cost of e-commerce is getting higher and higher. E-commerce has developed by leaps and bounds for many years. Now the cost of e-commerce is no lower than that of physical stores: 11% for labor, 5.5% for Tmall, 15% for promotion, 12% for courier, 2% for after-sale, and financial cost. 2%, water and electricity rent 2%, plus tax, if there is no gross profit margin of more than 50%, e-commerce simply can not continue to operate.

Whenever everything is silent, there must be a powerful new life gestating. It will lead the next round of recovery.

There must be great opportunities in the Great Depression. In this age full of variables, various reversals will happen at any time.

For example, in the era of PC Internet, Taobao and Jingdong changed the lives of physical stores. However, in the era of mobile Internet, they were once again smashed into traditional enterprises. Recently, there are more and more cases of counterattacks in physical stores, such as ZARA, 7-Eleven, and the “1973 used car model” mentioned below, etc. This shows that the physical store began to quietly rise.

We must see this change.

If we now attribute the downturn of physical stores to the depression of the entire economic situation, it is obviously wrong.

In fact, the real economy was not defeated by e-commerce but lost to itself. The traditional brand of a dozen, the better the online sales, the more off-line off-store. The price advantage is the key factor, so as long as you can't make the same price online or offline, the entity business will be defeated by itself.

According to media forecasts, after six years of shuffling, physical stores have indeed reached the critical moment of survival.

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Please remember: The best business model must be born in the most outrageous era!

There is a philosophical saying in The Truth: "Man is the yardstick of all things. When humans exist, everything exists. When people do not exist, everything does not exist."

This shows that the only criterion for all things in the future is "humanity," and everything exists because it pleases people. The extent to which you please humans determines the value of your existence.

The same is true of commodities, and must show respect and concern for people. The essence of business is the transition from "sales and sales relations" to "service relations." This is a very amazing change, the opportunity for physical store recovery!

On the other hand, several large e-commerce platforms, whether Alibaba, Jingdong, or Amazon, have encountered bottlenecks without exception. The rise is the ceiling. The growth of profits tends to slow down and the market demand is almost saturated. The double 11 economy is a typical loser and earner. The price war has led China's retail industry to a non-profit era. While e-commerce is destroying the traditional economic structure, it is also swamped by itself.

The advantages of e-commerce are also disappearing. Now the cost of opening an “online shop” has exceeded the cost of physical stores. For example, for Taobao, the cost per customer is about 80 yuan, but the price of many products Not to 80 yuan!

At this time, as most of the “physical stores” are unable to understand themselves clearly, the business is constantly declining, which leads to the continuous decrease in the rent of the “physical stores”. As a result, the cost of “shopping” has been rising, and the cost of “physical stores” has been declining. The two have finally reached the same level.

Until now, the two have finally reached the same starting line! Everything is zero and fair competition.

In the future, the business is competing for consumer groups born in the 80s and 90s. This group of people has no shortage of material and products. They need a kind of “caring”. This kind of care requires face-to-face communication and touch. reflect.

This is exactly the biggest opportunity for a "store"! If you give me a stack, I must bet that the physical store will win.

Because the core business advantage is changing from "price" to "service," but how can "e-commerce" rival the "physical store" than fighting for service? What's more, let's think about it again, if we walk in the street, if not Rows of shopkeepers, which is a kind of sense of loss?

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E-commerce is a physical store with a "price" counterattack, now physical stores need to use the "service" to regain a bureau! Japan has also had a physical shop recession period, but after several years of adjustment, a new and stable rise, the current China Just like Japan in the same year.

Starbucks was once counterattacked by COSTA and a dozen theme cafes, but after the design has undergone a full-scale transformation, the more theme-themed and more experienced theme store model has once again taken over the market. Let's take a look at ZARA, which is also buying clothes, but it has rejuvenated the clothing store.

The reason why many physical stores are still paralyzed is because they have not yet woken up. Has been fighting prices, fight facade advantages. In the future, those homogenized products will become less and less competitive, and only those physical stores that can provide users with unique experiences will stand out. Under this trend, many e-commerce companies have also been forced to go from the line to the line, opening a physical store to provide consumers with a place to experience, make up for their shortcomings.

This is the essence of "consumer upgrades": the retail industry has moved from an era of transactions to an era of relationships. Businesses can move up and down in physical stores to create an unparalleled consumer scene, but e-commerce is through computers. Trading with smart phones makes it difficult to provide consumers with a unique experience that they must seek to break through!

This is the essence of “demand escalation”: Consumers need to transform from a sense of satisfaction with products to spiritual satisfaction. In the past, people moved with people. Now it is a matter of people's heart. At that time, the merchant's culture, innovation, experience and feelings will all make the hero useful!

The 17 signals prove that physical stores will be a major trend in the future.

1. The government promotes entrepreneurial boom and supports the rise of physical stores

In the past two years, a series of policies on supporting "double creation" have been introduced in succession, which has greatly stimulated the upsurge of private entrepreneurship. According to statistics, in 2015, China registered an average of 11,600 newly-registered enterprises every day, with an average of eight companies per minute. This may be the biggest wave of entrepreneurship in human history. And a large part of them chose to start business stores. The wave of entrepreneurship in 2016 will continue unabated, and the tide of entrepreneurship will continue in 2017, because this is the trend of the times.

Many retail executives and managers choose to start their own businesses under this wave of entrepreneurship. Even young people who have just graduated from the community can raise funds to open cafes. The tide of commercial real estate business is quietly changing the competition and the rules of the game.

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2. The rise of physical stores, label changes

Artisan spirit, scenes, fast fashion, feelings, details, and services have become the labels for the rise of physical stores.

In the era of mobile internet, consumers' preference and pursuit of consumption are all actually reflected in the click-through rate. The most popular transformation direction of physical stores this year is Japanese-style craftsmanship, or interesting or sentimental scene experiences, fast fashion that meets popular needs, and details and services.

These elements have been increasingly used in the physical store development system, and now have become counterattack tags. The experience advantages of physical stores are greatly noticed.

3. Online and offline shuffling are nearing completion

In the context of emphasizing global vision, there are too many benchmarks to learn and too many counterattacks. Japan also had a period of decline in physical stores, but after a few years of adjustment, outlets have a reasonable layout, prices are transparent, and service-related illnesses have risen steadily. Consumer demand for e-commerce is naturally not strong.

And these are precisely the basic satisfaction of China's e-commerce companies, which cannot be met by the current physical stores. The current China is just like Japan.

China's six-year physical store shuffle is nearing completion, and the high tide of the store has already passed. Even China's department stores have been counterattacked and risen. The popularity of Parkson's Youke City Plaza in China is a turning point.

4. Increased competition from commercial real estate developers

More brand developers are willing to reduce rents for good brands.

China Commercial Real Estate, more than 30 foreign-funded commercial real estate developers and more than 40 domestic-funded commercial real estate developers have established a well-established business management team. This decade is also an era of reigns.

From the data of 2015 alone, there are nearly 35 million square meters of shopping malls inspected throughout the year. Today, more and more developers are willing to use the flow of businesses to drive rents and influences in order to obtain rents. Long-term mall growth and overall valuation.

5. Display value of offline shops is increasingly valued by local businesses

The value of the display experience in physical stores is increasingly valued and has become an advantageous weapon for the brand to break through the development bottleneck. There are merchants directly out of the experience shop, only to cultivate the next generation of brand consumption and emotional communication, and even businesses directly rent out stores to create an experience-style offline fitting experience shop.

Tmall, three squirrels and Dangdang have to open physical stores. The core is to let consumers experience more new products to promote online sales. Professional chain store management sharing, search chain operation management.

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Dangdang's first store in Changsha is 1,200 square meters, and it plans to open 1,000 in three years. Even the president of three squirrels said that the physical store of the next three squirrels will reach 1,000+, and frankly the store will make more money than online stores. This may be for e-commerce, online customer growth is likely to have reached a bottleneck, and then do not fight the physical store market, it really lags behind.

6. Good brand is rising in a group

In China, the rise of domestic-funded restaurants has become a new force for physical stores. For example, Xiaonan Guo's six deputy licenses, and grandmother's 11 deputy licenses, the introduction of the unique catering deputy license has opened up the market and gradually win the future.

Many fast-fashion brands in the retail sector, such as 9 deputy licenses of Inditex (ZARA parent company), 6 deputy licenses of H&M, and sub-licensing for market segments, have also opened up, and cross-border cooperation favors more popularity through the main brands. The channels and influence of the same can also achieve better development opportunities.

7. The best time for physical store development is coming

According to the major work arrangement of Wanda Group in 2016, Wanda will basically achieve corporate transformation in 2016 and become the model for the world’s first large-scale real estate company to successfully transform into a service industry enterprise. The success of this transformation can only be waited for Wanda Group 2016 briefing.

Wanda has opened 26 games a year, and this year it will surge to 55, and it will be even deeper into third- and fourth-tier cities. For example, in Shanghai, nearly 30 shopping malls opened in 2015, and this year it is expected to open 88 businesses. This is an era of full-scale growth in commercial real estate.

The government loves to gather and operate business districts. Today, there are more and more malls, and there are more choices for businesses. Of course, rental costs have more room to operate.

8. Take-out model to greatly increase the physical store

The mobile internet take-out model is helping businesses to increase revenues unprecedentedly. The original store's radiation range has been greatly expanded, the business volume has been greatly increased, and even a single store has grown several times. Whether it is a roadside shop or a big shopping mall, they all stand on the same starting line, and the click volume is the word-of-mouth value.

Today even 70% of the profits of merchants come from mobile delivery orders, such as Huang Taiji. Nowadays, the take-away trams of trams are full of major cities. If you do well, you can earn more than 10,000 yuan a month. It can be imagined that the profits of businesses have increased.

9.90,00 after the era of consumption opened

The comfortable family environment makes the young Chinese generation’s money concept weaker, prefers advanced consumption, and has a strong ability to accept new things, and is more adaptable to the mobile internet consumption model.

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Clothing: The pursuit of brand personality, highly Internet-based.

Food: Focus on characteristics and experience, favoring fast fashion consumption.

Line: Both appearance and quality, with brand awareness.

Travel: Aspire to freedom, limited spending power but love to travel.

Entertainment: Super entertainment, happy to accept new entertainment.

Nowadays, after 90's and 00's, the preferences and habits of consumption have been greatly different. It is the best time for the current physical store to counterattack and rise.

After 30.5% of the 90’s think that they are homes, 62% of the 90’s most favorite leisure and entertainment methods are for the home to go online at home. After the 90th time, the top 3 in the self-evaluation is independence and struggle.

10. In the new middle age, culture, innovation, experience and feelings are as important as prices

Price advantage has always been the core of e-commerce counter-attacking physical stores, but now more and more middle-class families, the Internet links the world, once brushed gold Chinese Aunt began to map abroad, consumers have long been subtle changes.

The most popular commercial real estate in these two years is Taikoo Li, Shin Kong Place, Eslite and Joy City series. It is the humanities, innovation, experience and feelings that are playing. This is what consumers really need now. Even Wang Sicong, the so-called entertainment discipline inspection commissioner, has been famous for "tearing," and it's okay to shred other people. His own product experience is not good, and the same tearing is reflected in the fact that commercial real estate is not so simple to sell or sell.

11. You can also become the richest person by opening a shop and opening a calf

The owner of ZARA this year, Amancio Ottga once climbed to the top of the world’s richest man. Inditex's dozen brands rely on ZARA to suck enough gold. Telling global investors that commercial real estate retailing can still make big money, you can't just be too low for you.

Wanda Projection Institute and Children's Playground; green space for sea import supermarkets; Fosun invests in the German fast fashion Tom Tailor and the secret of Malaysian food; fancy is China's consumer potential and future growth, and opportunities such as Amancio O'Connell Specially earned more.

12. Behind the large-volume store closure is the strong rise of new local brands

As we all know, some old brands closed 10,000 stores in 2015. In 2016, the Internet gave more content such as graves to startup companies. However, we must know that behind the closing of the store, more emerging brands are rising.

This piece of retail, the local fast fashion hot air, UR, MJstyle in a major counterattack. The local designer brand and the emerging tidal brand are also eye-catching and continue to squeeze more market share.

This piece of catering is the year of the rise of local fast fashion restaurants and star stores in the past few years. Grandma, Xiaonanguo, Suzhehui, Pangu catering, 57 degree Hunan, and sea fishing have a chance to become Yum!-like global restaurant groups.

They say that Eslite is a sirloin, but in fact, the local experience bookstores such as Fangsuo, Si Xifu, Cat's Sky City, The First See Study, Xinhua Bookstore, One-way Street, and Chinese Characters are in deep cross-boundary sentiment.

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13. The world's most popular Internet companies are in the process of restructuring the store

In November 2015, Amazon opened its first physical store in Seattle. Located in the shopping center University Village, it occupies approximately 511 square meters and places 5000-6000 books. This is the first time in 20 years and is also the general trend of popular e-commerce in the future.

The new Amazon retail store, which is expected to be open to the public in early 2017, is even more surprising:

A physical store that doesn't need to pay in line! The whole shopping process is simpler - enter the shop, choose the goods, get the goods, and leave!

What you need is only these three things: an Amazon account, a smartphone, and an Amazon Go app.

Today, several popular e-commerce companies in Europe and America relying on the rise of e-commerce companies are all restructuring their physical stores. Nasty Gal, ModCloth, Warby Parker, and Bonobos of the United States all accumulated online word-of-mouth and original accumulation, and then launched online shopping malls to create a grand strategy for the development of physical experience stores. The same applies to many high street brand e-commerce companies in the UK.

14. The rise of the new O2O business model with the same price and same price

The real economy was not defeated by e-commerce but lost to itself. The traditional brand of a dozen, the better the online sales, the more off-line off-store. The price advantage is the key factor, so as long as you can't make the same price online or offline, the entity business will be defeated by itself.

There are more and more successful cases of online and offline same-sale prices. Or UNIQLO, if in 2014, UNIQLO’s boom in Tmall led to a dozen fast fashion stationed in Tmall, then in 2015 UNIQLO's O2O model with the same price online and offline was developed. In 2016, the dual 11 UNIQLO won the women's clothing sales of the entire network. Ranked first in the rankings, UNIQLO mode will be adopted by more physical store merchants in 2017, prompting the transformation of physical retail business models.

15. More international brands entering major shopping malls in China

Take the international fast fashion brand for example, starting in 2002, gradually changing the values ​​of the Chinese people and accumulating word of mouth, a big wave struck in 0708, and gradually turned into a subversive industry. The real outbreak occurred in 11-13 years and quickly sank into second- and third-tier cities.

In recent years, high-competitive fast fashion brands have entered the market. A&F, SPAO, Forever21, TOPSHOP and Old Navy are working hard. Bebe, &Other Stories, Urban Outfitters, Victoria's Secrect Pink, and Miss Selfridge are also planning to break into the mainland market.

16. The physical store is changing. If you do not advance in the fierce competition, you will be retired.

Starbucks was once counterattacked by COSTA and a dozen theme cafes, but the change was in the moment, the design was completely changed, and the more thematic shop model was launched, gradually regaining recognition.

You won't learn a good name, not only imitation and low price. Visually measuring its mobile internet marketing, designing and displaying merchandise choices, joining modes, and the vitality of the pattern is its core competitiveness. In less than two years, 1,100 stores have been opened and revenues reached 5 billion last year.

Look at today's Yonghui boutique supermarket Bravo TH, display worthy face value, strict price control under the logistics control, food and beverage business Plaza Plaza food prices are not bargaining, Wanda, Long Lake and Chia Tai love, have counterattack a dozen old Not up to the store.

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17. More and more star-opened stores have already swept the industry

Ren Quankai's Sichuan Hot Pot, Angelabably's Baby Cafe, Shu Qikai's KIKI Restaurant, Gao Yuanyuan's Peach Restaurant, Xue Zhiqian's Shang Shang Qian Chuan Xiang, Jay Chou's French, Japanese, and Northwestern Restaurant... Is subverting the catering industry.

Chen Guanxi opened the tide brand JUICE, May Tian Tian opened STAYREAL, Jay Chou opened PHANTACI, Luo Zhixiang opened STAGE, Lin Junjie opened SMG, Li Chen and Pan Yubai open NPC, Zhang Zhen Yue Kai WNP... is subverting the traditional fashion clothing store.

The stores opened by stars have risen in the commercial real estate sector in the past few years. Stores with hundreds of celebrity venture capitals have been rising in the mainland and have become important shopping tips for shopping malls.

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