Traditional Retail Industry Wants To Save Itself, Developing Online And Offline Dual Channel Marketing

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< p > the traditional retail industry has raised the tide of mergers and acquisitions in the face of crisis.

Wuming and bubo lotus, Huarun Wanjia and Tesco jointly joined hands. After the completion of the purchase of Spring Department Stores by the controlling shareholders of Wangfujing department store, the new world department store acquired 100% stake in Shanghai Hui Department Store Co., Ltd., and took the Paris Wujiaochang spring store in Shanghai.

In just a few months, the massive tide of mergers and acquisitions has made the traditional retail industry constantly refresh.

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< p > more choices are aimed at the online market.

Faced with the strong impact of the electricity supplier, retailers accustomed to complex organizational structure and traditional operation mode began to consider pformation, and they invariably turned their attention to the Internet.

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< p > O2O (Online To Offline) will combine the opportunities of offline business with the Internet to make the Internet the front desk for offline pactions.

In this way, line service can be used to pick up passengers on the line, consumers can use the line to screen services, and pactions can be settled online.

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Under the trend of the traditional retail business embracing the electricity supplier, Suning, the largest household appliance retailer in China, has its own calculations. < p >

Zhang Jindong, chairman of Suning cloud group Limited by Share Ltd, bluntly said that after experiencing the physical retail stage represented by chain operation and the virtual retail stage represented by the electricity supplier, the retail industry is entering the O2O era of virtual and real integration. "Upgrading or merging the single shopping experience that has been online or offline has awakened the deep and all-round shopping demand hidden by consumers."

To this end, as early as last June, Suning began to claim the same price as online and offline. What has been achieved since six months? According to the 2013 third quarter earnings report recently released by sunning Yun, there was a major loss in the quarter, which was the first quarterly loss in Suning in the past 6 years.

Although the loss can not be attributed entirely to Suning's strategy of getting through online and offline, the pformation of the traditional retail industry represented by Suning will further affect the pattern of Chinese business and is closely related to the interests of consumers.

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The data provided by China Chain Store Association (P) show that since 2012, the growth rate of retail industry has obviously declined.

Since 2013, the trend of slowdown has not changed, and in some areas and parts of the format, the pressure on enterprises is increasing.

China's Chain Store Association, which is in line with the Ministry of Commerce and approved by the National Bureau of statistics, conducted a typical survey and statistics of trade and industry. From the gross profit margin situation, each sector in the three quarter of this year dropped by 0.6~1.7 percentage points over the same period last year.

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< p > another data is from the China Internet Network Information Center (CNNIC).

The Research Report on China's online shopping market released by the agency in 2012 showed that China's online shopping market paction volume reached 12594 billion yuan last year, an increase of 66.5% over 2011.

By the end of December 2012, the number of online shopping users in China reached 242 million, and the proportion of Internet users to online shopping increased to 42.9%.

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< p > the "big guys" of traditional retail industry have to consider the road of pformation.

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< p > online and offline prices are regarded as an important part of Suning's pformation.

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< p > in the view of Cao Lei, director of the China Electronic Commerce Research Center, the online and offline prices are the same: first, breaking the price of online shopping; two, changing the habits of consumers; and three, opening up a new path to balance the new and old businesses in the retail pformation.

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< p > although the exploration of online and offline prices is quite noticeable, its effect is not satisfactory.

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Less than P, the customers in the shop were much less than before. When people were buying things online, they only bought digital products. Later, large household appliances could also be bought online.

After implementing the same price on line and offline, there was no significant increase in the number of guests in the store.

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Less than P, it is more anxious for Suning to get the figures in the earnings report.

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< p > at the end of October last year, Suning released its third quarter earnings in 2013.

According to the report, Suning's operating income and net profit both declined in the same quarter, and suffered the first quarterly loss in the past 6 years.

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Jia Penglei, editor in chief of the news portal, "P" > a href= "http://sjfzxm.com/news/index_s.asp" > Electronic Commerce < /a > editor in chief of the billion mobile power network, analyzes the difficulties and resistance of the implementation of the O2O mode. First, the profit structure of the traditional offline retail is mainly composed of the reverse flow of water and the rent of the field. All the business activities revolve around this profit structure. But after the implementation of O2O, the combination of offline operation and online business means that the profit structure needs to be changed, which poses a great challenge to the management and coordination ability of the enterprise.

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< p > Second, the traditional retail enterprises emphasize the tough process management and execution, which has become its cultural gene. However, the conflict between this advantage and online operation may become a disadvantage.

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< p > Third, < a href= "http://sjfzxm.com/news/index_s.asp" > Suning < /a > is not an enterprise that produces and sells itself, it needs suppliers to provide goods.

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< p > Cao Lei is optimistic about this.

After implementing the O2O strategy, the operation and management of offline businesses will go through a difficult stage. After all, the terminal price is reduced as low as "a href=" http://sjfzxm.com/news/index_s.asp "shop" /a ", and it needs to pay higher costs.

In the short term, the negative effects of O2O on offline businesses may be more.

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< p > no matter online or offline, consumers always pay attention to price, quality and service when shopping.

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< p > Jia Penglei said, for the traditional customers of offline business, merchants should emphasize the unique advantages of offline services, carefully manage customers, provide more customers' care, and not just open a membership card.

In this way, consumer quality and customer stickiness have been improved, and there will be more "repeat customers" in physical stores.

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