Due to the explosive development of e-commerce and take-away platforms, physical stores have suffered a huge impact in just a few years.
the formation of the traditional store model has gone through thousands of years, and the emergence of e-commerce shopping is only a short period of more than ten years. In the face of the sudden emergence of e-commerce, a business superbug, the general traditional stores lack resistance, leading to a sharp increase in the rate of physical store closures. Just like the Spanish flu outbreak, many people with weak constitution fell ill in batches, and 41 million people died in Europe.
according to my judgment, e-commerce has only developed for more than ten years, and the development trend of e-commerce in the future is unstoppable. At present, it is just a side dish before a big meal. The transformation of physical stores is far from in place, and the thinking of entrepreneurs is far from keeping up with the times, which means that the tide of physical stores' closure is far from over.
However, once you survive this round of influenza in physical stores, you must have stronger resistance and stronger viability. When physical stores and e-commerce companies can find their own positioning and reach a certain balance, this round of "flu" will be over.
how can a physical store survive in an environment where e-commerce is rampant?
let's take a look at the advantages and disadvantages of e-commerce and physical stores.
The main advantages of e-commerce are:
1. Reducing intermediate circulation channels. Direct access from merchants to consumers reduces costs and has a strong price advantage.
2. The display is more abundant, such as video, pictures, data and live broadcast, which gives customers a strong visual impact.
3. The transaction efficiency is high. By ordering goods and shops on the e-commerce platform through computers and mobile phones, orders can be placed quickly without customers visiting the site.
4. It's convenient to open a shop, and the starting capital is small. No facade, not even employees.
5. It conforms to the development direction of digitalization and networking in the future.
Main disadvantages of e-commerce:
1. The heads of e-commerce products are very concentrated. There are only three or five stores in the head for a page or a keyword. The head is the online "wangpu", which will concentrate a lot of traffic, with excellent business and great benefits. Merchants will hand over the profitable part to the platform for sorting, buyout, through, or brushing, so as to continue to maintain it in the head. And those small businesses that entered the market for the first time lacked brand advantages and funds. Although their products were good, their business was bleak due to lack of traffic until they closed down. E-commerce is a typical example of fattening a few e-commerce companies and losing most e-commerce.
2. E-commerce lacks customers' real-time whole-hearted experience, and it is difficult to feel richer value-added projects. For example, you can't try on clothes before you buy them. You can only rely on your feelings and imagination. For example, e-commerce can't buy personalized personal service.
3. The goods are not immediately available, and it will take several days to get them by express delivery.
4. E-commerce lacks emotional interaction with customers.
Main advantages of physical stores:
1. Physical stores are regional and easy to interact. A shop covers the range of three to five kilometers in Fiona Fang, and has face-to-face physical contact with customers. In the process of contact, we can strengthen communication and interaction, enhance emotions, and easily establish very close ties.
2. The physical store has the characteristics of immediacy, with one hand paying and one hand delivering. Especially catering, e-commerce logistics is difficult to meet the requirements of immediacy.
3. Customers can get all-round physical experience in physical stores, which can enhance the experience of touch, taste, hearing and so on, but it is difficult for e-commerce.
The main disadvantages of physical stores:
1. The transaction efficiency is low, and customers have to go to the store to buy, order and communicate in person. The process is too long to save energy.
2. There are many intermediate links, and the middlemen who take goods through traditional channels earn the difference.
3, the cost is high. Rent cost, personnel salary cost, water and electricity cost, etc.
from the above simple analysis, if physical stores want to survive and develop in a society where e-commerce is rampant, they must develop their strengths and avoid their weaknesses in order to improve their immunity. You can refer to the following points: 1. Take the high-end and high-profit route
The future physical store must be high-end, why? Because of the high end, the profit is high. Only when the profit is high can we have enough funds to deal with rent, personnel, water and electricity, and management fees. You go to the low end, can you compete more or less? Pinduoduo is so low-end that all the stalls have been eliminated. Can you be less than the intermediate link of e-commerce? E-commerce can be delivered directly by the manufacturer. Low-end means thin profits, and thin profits mean that entrepreneurs are coolies and work for landlords. It means that the ability to resist shocks is poor, which means that employees are not motivated enough and their enthusiasm is difficult to mobilize.
if your store can stand on the high end and get high profits, do you still have to worry about not being able to pay the rent? Are you still afraid that you can't find talents? What store do you think is not easy to pour now? It must be a high-end and high-profit store. For example, beauty shops, beauty skin care products have amazing profits. My beauty shop downstairs has been open for 15 years, and the shops around it have changed several times, but it has not moved. Optical shops, a few dollars for a pair of glasses, but can sell hundreds of dollars. This is just an example. You can spread it around and think about it.
the characteristic of e-commerce is low price, which is particularly attractive when there are still many poor people in the country. China people are getting richer and will even surpass the United States in the future, and there are more and more wealthy people. These people are not satisfied with buying those staple goods like ordinary people. They need better products and services, and money is not a problem at all. This may create conditions for the survival of high-end and high-profit shops.
entrepreneurs can consider massage chair experience stores, VR, AR experience stores, health stores, beauty shops, luxury hotels, luxury restaurants, homestays and other high-end and high-profit shops. 2. Physical stores should actively integrate with e-commerce.
There are many viruses and bacteria in the human body, but the reason why people don't die of illness is because after many years of integration, people are in a * * * relationship with bacteria and viruses to a certain extent, and they have reached a certain balance with each other.
as an e-commerce, it's really hard to adapt like a virus and bacteria that suddenly changes, but the reality forces you to adapt, otherwise, it's life and death.
physical stores can also serve as e-commerce. For example, you sell bathroom, open a facade in the furniture city, and set up an online shop on the e-commerce platform. In this way, both online advantages and offline advantages can be taken into account. It not only avoids the shortcomings on the line, but also avoids the shortcomings off the line. 3. Take the route of high added value
The product has its exchange value, use value and some added value. Such as brand value, service value, emotional value, humanistic value and so on.
The hot pot in Haidilao is not better than other brands, so why are so many people willing to queue up to eat? In fact, what we eat is not hot pot, but brand and service.
when you go to Nanjing, you must want to eat authentic Nanjing duck blood vermicelli soup and Nanjing salted duck. When you go to Beijing, you must eat authentic Quanjude roast duck, and when you go to Xi 'an, you must eat authentic mutton bread in soup. This is the value brought by regional characteristics, which e-commerce can't impact.
you have a "race". This shop can watch all kinds of competitions, and a few friends can interact with each other. For example, four friends made an appointment to play chicken-eating games, and after that, they would have supper and kebabs. For example, several table tennis and football friends have an appointment to watch the ball together and provide beer and supper. This kind of store is actually an offline social place, from which people can feel the fun of watching and participating in competitions by groups. How can the e-commerce be developed, and how can it impact this kind of real-time interaction between people?
when you open a store, you must consider what your store can offer that online stores can't. For example, meticulous and thoughtful service. For example, an all-round quality experience. For example, the unique cultural and artistic atmosphere. For example, unique local flavor and so on.
The exchange value and use value of products are very limited, while the added value is infinite. As long as you have the heart, you can add a lot of value to it, which will enhance the overall value. Value determines the price. When the value goes up, the price and profit will go up. In fact, e-commerce only reduces trading links and costs, but it is difficult to provide added value. Physical stores can provide a lot of added value that e-commerce can't provide, which is the advantage of physical stores.