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Why is retail business so difficult to do?
In recent years, as long as business people get together, it reflects that business is getting harder and harder, enterprises are closing down at a loss, and retail stores are struggling, and they don't know when they will survive. The domestic economy is sluggish and business is getting worse and worse. This is definitely a general trend.

It is difficult to do business in recent years, mainly for the following reasons: First, the homogenization competition is serious, such as clothing, sugar, tobacco and alcohol, catering and so on. And the market competition is fierce, and everyone is doing the same. For the manufacturing industry, SMEs should not only compete with their peers, but also compete with state-owned enterprises. Overcapacity in all walks of life, living space has been ruthlessly squeezed.

Second, with the rise of e-commerce, people can order food and shop through mobile phones, so the traditional catering industry, manufacturing industry and shops will be greatly impacted. People can buy anything at the press of a button, so why go shopping everywhere?

Third, housing prices are too high, leading to rising rents. Those who make some money in industry will be sucked away by high rents. At the same time, due to the rise in housing prices, the wages of employees will also rise, and the costs in all aspects will also rise. The market price is transparent and cannot be set too high. Therefore, the profit of doing business is getting thinner and thinner, and it is more and more difficult to survive.

We believe that it will become more and more difficult to do business in the future, the competition will become more and more fierce, and the living space will be severely squeezed. This is certain, but it is not necessarily hopeless. First of all, business people try their best to do light asset business. Now even Wang Jianlin of Wanda has begun to "light assets", that is, to gain living space by selling manpower, knowledge and financial resources. In this way, even if the business fails, it will not lose too much.

Furthermore, do business in densely populated areas, such as opening dry cleaners, 24-hour convenience stores, coffee shops, vegetable direct supply points and so on. Around large residential areas, community residents will be served in less than a few minutes. Of course, it is also possible to do clothing business, and it will be more tailored in the future. In the future, as long as customers input their physical data online, clothing stores can make the most suitable clothes for customers, and they can go to nearby stores to get them. This is a distinctive and differentiated competition.