What Do Electric Giant Companies Really Want To See?

According to the world clothing and shoe net, recently, Mary Meeker, a Wall Street securities analyst named "the queen of the Internet", said in the 2017 Internet queen report that the number of offline retail outlets has broken 20 years' record, but Amazon and other e-commerce giants are "going against the potential" to set up offline stores, and the number of Meeker stores is increasing.

The same is true of China, though China is now

In the major markets of the world, penetration has increased fastest, accounting for 15% of the total retail sales of social commodities in the whole country, but Alibaba, Jingdong, and other electronic giants have been distributing retail outlets under the hot line of retail business.

The e-commerce giants of the online entertainment industry are turning their eyes to the line so that many people do not understand. Under the line is not expensive rent, poor service and low profits? What exactly do they want to see?

After doing the bookstore, Amazon also does the store.

Recently, an article in Wall Street noted that after a period of trial operation,

Two grocery stores in Seattle are officially open in the US, and Amazon has opened a physical bookstore in New York.

At present, Amazon has 7 physical bookstores, and plans to open another 6.

Although not very successful in China, Amazon is a well deserved supplier of electricity in the world.

Amazon's sales amounted to $136 billion last year, according to research firm Slice Intelligence, which accounted for 43% of us online sales in 2016.

Thanks to the continuous improvement of its performance, Amazon's share price rose to a record high of $900 in April this year, making Amazon CEO Jeff Bezos the second richest person in the world.

In the case of retailers moving to the Internet, Amazon has begun to dig deep lines. What is the reason?

An important figure is that seemingly offline retail is pushed by the industry, but from the accounting point of view, it is a different situation. EMarketer data show that last year, global retail sales amounted to $22 trillion, while e-commerce retail accounted for only 1 trillion and 900 billion dollars, less than 10%.

China's highly developed electricity supplier accounts for only 15% of the country.

This shows that there are still huge business opportunities under offline retail.

Online competition is heating up, and the demographic dividend of the Internet is gradually diluted. The Jingdong will also focus its attention on the line.

In April 10th, Jingdong group CEO Liu Qiangdong announced that the "million Jingdong convenience store program" was officially released. In the next 5 years, Jingdong will open more than 100 convenience stores nationwide.

Half of them are in the countryside and in every village.

This is the third offline cooperation project that Jingdong plans to launch after 1 Jingdong home appliance stores and 5000 "mother and child experience stores".

The offline layout of Jingdong is also well understood from the current status of China's Internet development. The US delegation CEO Wang Xing said: "China's Internet users account for more than half of the total population, and it is unrealistic to rely on the increasing number of Internet users to pull the market."

The competition in the second half of the Internet has shifted from the demographic dividend to the user value drive. In the future, providing users with more personalized and self-service services will become more popular.

This is also the logic of Jingdong. The community convenience store has a small particle size, and it is also a service terminal closer to the user's life. Using community convenience stores to manage user relationships and service users will become the key to enhance the competitiveness of enterprises and the pformation of the Internet. This will be the main trend.

And it should be noted that the convenience store, store and experiential shop in the community also have the function of linking online and offline. For example, consumers can enjoy shopping at the convenience store in the community. They can enjoy the preferential price of online marketing activities and purchase goods directly. If they are satisfied with the radiation range within 1 km of convenience stores, they can also place orders on the platform and purchase goods to provide distribution services by convenience stores.

The future retail competition, whether online or offline, will be the competition of services.

Millet's "great leap forward": 1000 stores in 3 years

Millet is another example.

As the most successful Internet brand of online marketing, Xiaomi's expansion from online to offline can be viewed from another dimension.

In April 19th, millet held a new product conference. Lei Jun announced at the press conference that the target of opening 1000 millet houses in the past 5 years was invalid. Instead, it was changed to: 1000 online stores under 3 years!

Millet's self-confidence is not without roots.

In February this year's Yabuli forum, Lei Jun, chairman of millet, said, "I think the business mode of millet should not be electricity supplier, it should be new retail."

Lei Jun's new retail starts from the retail outlets of the layout upgrade line. Since February 2016, Xiaomi has begun to accelerate the retail business under the layout line, all of which are self operated by millet, and by the end of 2016, it has already opened 51.

In these self operated shops, there are already seven or eight stores with a turnover of over 10 million, and the home of millet is already the second highest entity in the global area.

The reason for Xiaomi's selection is simple. Indeed, millet has created a brand new business model. It has made use of the Internet's fast and low-cost marketing and gained a lot of fans.

But the threshold of Internet marketing is low, and soon it is copied by friends. After two or three years, everyone will have no sense of freshness. The spread of traditional channels and offline retail outlets is not so easy at this time.

Lei Jun said, "an indisputable fact is that even in the mobile phone market accounted for 50% of the total market share is only 4%.

Today, traditional retail and traditional channels are still 80% of the market, which is the biggest problem encountered by millet, that is, how to break through the barriers of business mode.

Ma Yun's new retail

In 2016, Ma Yun put forward five new trends in the Hangzhou yunqi conference: new retail, new manufacturing, new finance, new technology and new energy, and said the five new developments in the future will profoundly affect China, the world, and all the future people.

Regarding the first retail sales, Ma Yun's point of view is that the era of pure electric business has passed. There is no e-commerce in the next ten or twenty years. The only thing is new retail, that is to say, online and offline and logistics must be combined to produce real new retail.

The new retail concept has just come out and has been ridiculed by many manufacturing chiefs. But with a careful analysis of the current retail environment and format in China, you will find that there are several trends that are very obvious. First, the online and offline industries tend to be unified and professional. Two, the large retailers will be faced with integration and reorganization. Three, experience consumption and personalized service are integrated into consumer life; and the four is the more intelligent and technological production of enterprises.

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And we should pay attention to the development of Alibaba.

Over the past two years, Ma has steadily increased its real business, from Hai Tao supermarket to O2O's fresh supermarket, to open coffee shop, to joint Peng Xin opened experiential shopping mall, then to Sanjiang and to buy KFC and take part in the regional super business overlord shopping in February 20, 2017. In February 20, 2017, the Alibaba announced its formal strategic cooperation with Bailian Group, which was regarded as the first step in the new retail sale of Ali group.

New retail emphasizes efficiency, personality and experience. Taking experience as an example, after putting forward the new retail concept, Ma immediately opened a new retail entity shop belonging to Tmall: the fitting room, the whole shop occupied nearly 2000 square meters, and Tmall's 100 hot clothing, shoes, bags and cosmetics brands, designed 5 high value theme areas.

New era of demand

Which is the mainstream of the future?

In the wake of the big business tycoons, WAL-MART, the world's largest offline retailer, is actively moving into online business. In 2017 alone, it bought shoebuy in January. In February, Jingdong's shareholding ratio increased to 12%, and Moosejaw was acquired; March bought Modcloth.com.

The reason for WAL-MART to enter the electricity business seems simple. 90% Americans live in a WAL-MART supermarket within 10 miles (about 16 kilometers). There is no shortage of them under the line, and online is a good supplement.

In a sense, this is the requirement of offline integration of new retail lines, and the combination of Internet service supremacy and offline experience and convenience.

Warby Parker co chief executive Neil Blumenthal (Neil Blumenthal) said, I do not think the retail industry is dead, but the ordinary retail experience is dead.

The Internet giants are gathering experience.

Take millet as an example, after upgrading the "millet home" from "service store" to "offline retail store", millet created an open shopping method without shop assistants, and accessories products are on the shelf. Users can take away and pay the goods directly from the shelves after experiencing the samples and information, without the need of salesmen, which greatly improves the shopping experience in the store.

Amazon is also upgrading its shopping experience through technology.

Amazon's physical grocery store Amazon Go is very different from traditional retail stores. All kinds of hi-tech add ons enable customers to walk out of the store door with goods, without paying the bill, and the whole payment process will be completed automatically.

This grocery store is equipped with machine vision technology, which can determine what products the user buys. By combining pressure sensors and face recognition technology, the whole pricing process can be completed. Amazon will deduct money directly from customers' online accounts.

Neil Saunders, general manager of Conlumino, a retail research firm, once said: "the checkout channel has always been the lowest part of the physical store shopping experience.

To save this process, we can not only save a lot of manpower costs, but also make consumers pay more satisfaction.

Every big business tycoon is actually a big data company. They not only mastered a lot of consumer data, but also have profound data and technology understanding ability, as well as the technology and application ability based on all these.

The electricity giants use the precise data of China's hundreds of millions of online consumers, such as their spending habits, consumption levels and residence, to create user profiles and accurately match products with users.

BankRate.com Hamrick Mark, a senior economic analyst, commented on Amazon's offline strategy. "Data is becoming a new source of crude oil and a valuable resource.

Amazon integrates its data into offline world to expand its leading position in global retail business.

This is also the business logic of online and offline integration. The electricity giant will use the collected data to channel energy under the channel. Through the accurate matching of big data, users can just place the order, and they can deliver goods to him immediately from his nearest retail store. Even if the user has not placed the order, big data will know what you will buy, so as to prepare for the stock in advance, and solve the inventory backlog and the trouble of logistics pportation thoroughly.

From the online to offline development, integrating traditional channels with new technologies, the future retail will be more efficient, and the era of demand will soon come.

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