In recent years, information about physical stores can be found everywhere, and transferring and renting stores on the street has become the norm. There are even some stores that have just opened less than a month ago and have been labeled for transfer. The reason for this, many people will answer is the impact of e-commerce, high rent, high cost and so on. It always rains all night long when the house leaks. Recently, the state introduced the "liberalization" of the stall policy, the majority of brick-and-mortar store operators "worried". The reason why the "diffusion economy" has become a craze is closely related to the overall social environment. The sudden outbreak of pneumonia disrupted the original plans of many companies and job seekers. In order to stabilize employment and promote economic development, most regions across the country have lifted their bans on "spreading the economy".
Where do brick-and-mortar stores go from here, given the boom in the stall economy? How to capitalize on the 'diffusion economy'?
First, the impact of economic expansion
The benefits of stalls: convenient for the public, active market, high transaction efficiency; increase jobs is conducive to increased entrepreneurship, easing the pressure of social employment; enrich the lives of the people; and, at the same time, promote the development of the urban economy.
Disadvantages of stalls: there is no specific industry standards, often to the detriment of consumer rights and interests; stalls affect the city's image, resulting in traffic jams; there are security risks affecting the comprehensive management of the city. Expansion of the economy provides intangible benefits to the real economy, under the policy of encouraging stalls, store rents may be reduced. High rents eat up about 30% of the gross profit of brick-and-mortar stores, and high rents can eat up more than 50% of the gross profit of brick-and-mortar stores. You don't have to pay rent to set up a stall. Since there is a place to do business, many people are more reluctant to spend a lot of money to rent a house. This means that there will be less demand for stores in the future, which will also curb price increases by landlords, and rents will presumably decrease accordingly.
Secondly, the gathering of people
expanded the entrance of people flow, bringing more customers to the physical store owners. In the past few years, we will find that some big shopping malls are losing popularity and lack some vitality. With the return of the ground-floor economy, people will stroll around idly. On the one hand, it is a matter of sentimentality; on the other hand, it is a matter of spending some money on things they like. Just as people return to the mall, they bring the traffic to the brick-and-mortar stores.
Third, the ground floor will bring some online shoppers back offline. Many people choose to shop online mostly because it is cheap and convenient. But the unpleasant experience caused by many couriers in the transportation process will make people expect the carpet. Compared to online products, products on the floor will not be too expensive or even a little cheaper. The most important thing is to buy right away, which is better than the online three-day receipt of goods. The offline return of users will be fed back to the physical store owners. In addition, brick-and-mortar stores can also set up stalls at the end of the market to increase trading opportunities. Users can set up stalls at the end, digest their inventory and withdraw cash in the process. At the same time, with more night spots, the opening hours will be extended, which will facilitate more transactions.
Third, brick-and-mortar types in the stall economy
Service and entertainment industries such as beauty care, fitness, education and training, and entertainment (KTV) all profit from the stall economy. With the opening of stalls, the possible drop in rent not only reduces costs, but also increases foot traffic, making the overall consumption of the whole service sector pick up.
Consumer entities such as restaurants, fruits, clothing, groceries, handicrafts and small electrical appliances will find it difficult to make up for the price disadvantage they had in the pre-stall days because their tastes are different and their spending levels are different. In the short term, it is true that they may divert some of the popularity of street stores or shopping malls. But in the long run, they are facing different customer groups and different dimensions of competition. The impact caused by melee is very limited. Instead, it will bring.
Four, the advantages of the physical store is different from the stall
1. Fixed store is a symbol of personal brand. The reason why often use "local selling" this pejorative term, because of the uneven quality of goods on the ground stalls, counterfeit, after-sales service is not guaranteed. The physical store has its own brand, there is a fixed store endorsement, you can get a higher level of trust, to ensure that after-sales service, more obvious in the professional segmentation of the clothing consumer scene.
2. The core of the profits of brick-and-mortar stores is the repurchase of old customers. Distribute the core profits of the flow of people, most of them are obtaining customers, is a one-time passing consumption, so it is difficult to form a repurchase, prone to weather and other factors constraints. However, due to the special characteristics of physical stores, customers form a repurchase mentality, such as barber stores. Usually after consumers cut their own satisfactory hair once in a store, more than 90% will choose to serve themselves in the future.
Fifth, the physical store how to take advantage of the economy
The ground floor economy is coming on strong, but the physical store will certainly not wait in vain. On the contrary, the popularity of the ground stall economy can also force brick-and-mortar stores to innovate their business and management style. When online shopping and e-commerce just took off, brick-and-mortar stores also complained. But it turns out that after many years, there is no longer a difference between online and offline, and brick-and-mortar stores have evolved into the "new retail" era. Is it possible to proliferate the economy as the next "new retail"? I don't know, but it is certainly necessary to change our thinking. The 17th Party Congress taught you the strategic idea of "going out and bringing in". "Going out"
What is "going out"? This "go" does not mean that the Party Congress to have a high level, to go to their own store, go out and "grinding gas", in line with this boom. Policies to promote the stall economy around the world do not stipulate that only individuals can obtain the right to operate a stall, so joining the tide of stalls is a choice.
In fact, some restaurant chain brands have already started to do so. Yum's KFC and Pizza Hut, both in China, quickly "developed" circular food carts with freshly ground coffee, burgers and other breakfast items, as well as mobile ordering and quick pickup. McDonald's has also joined the ranks of the stalls. According to many consumers, McDonald's booths can be seen in many office buildings and shopping malls downstairs, selling meals and KFC; almost, in addition to McDonald's food trucks to subway entrances, and occasionally set up stalls near subway entrances to do activities. Each employee pushes a McDonald's cart and swings it from 6am until it is withdrawn after 9:30am. These compete with the freshly ground soy milk and pancake fritters from the next-door stand.
Setting up a stall outside can make up for the disadvantage of a poorly located brick-and-mortar store, and is an effective way to broaden access to customers by changing the business model from one of passively waiting for traffic to one of actively searching for it, but at no significant increase in cost. Perhaps, in the future, we would like to see more mobile stalls from Burger King, Starbucks, Uniqlo, HM and even Chanel, we can see the "go out" to understand the physical store area near the hot spot area of the stalls can be used as a store brand diversion and publicity entrance, can make up for the location of the defects. If the physical store wants to stall to win the competition, and another point of operation is to provide differentiated products and value-added services that the other side can not be achieved, then you need to do something "imported".
"Bring in"
What is "bring in"? As the name implies, it is to attract flow to the store, provide differentiated products and value-added services that manufacturers can not achieve, and attract customers to the store. For example, in Haidilao, a large portion of customers go to the store to experience thoughtful catering services and peripheral services; another example is the box horse fresh food, to provide customers with optimized matching of ingredients, seasonal activities, community delivery and other value-added services, to improve customer trust. On the other hand, street vendors with an average of only 2-3 employees will be overstretched in the face of such value-added services, which is the advantage of brick-and-mortar stores. Of course, in addition to their own brand advantages, but also need to do some necessary marketing activities, in order to really "bring in". Let's take two real-life examples: the stall economy is booming, where do brick-and-mortar stores go from here? How to utilize the "diffusion economy"?
Case 1: Fruit X Present Fruit Store Promotion
Fruit X Present is Xiamen's first new fruit retail brand, and its stores are located near streets with many vendors, such as vegetable markets in major residential neighborhoods. There are many vendors in the same industry as deus?ex, and the store has more than 350,000 on tap. How? With the advantages of its own orchards of quality supply channels, sales networks and logistics centers, launched a community spike model: on the one hand, relying on a variety of stores deep in the community, the community has a need to buy and a certain carrying capacity of people, such as Mabao and community shopkeepers, the first to launch the spike through the spike promotional activities provided by the store WeChat official account. "The seasonal fruit combination was originally priced at 29 yuan, but now Spike is only 9.9." Based on the interpersonal network, the spike scale of the whole community was rapidly expanded and more traffic was continuously introduced; on the other hand, promotional and courtesy activities were carried out during the second killing period, i.e., all the customers who participated in the second killing through scanning and successfully purchased were also entitled to receive a portion of fruits in the second killing week. Once this onerous activity came out, the store was packed with people who came to exchange their products.
Fruit X Present will be highly integrated online and offline, with weekly in-store activities online, allowing the community to experience and shop with confidence and pleasure. The effect of community fringe is so remarkable that it has become a dark horse in the new retail fruit industry. With its "small but fine" business model and closest proximity to consumers, it has become one of the hottest businesses in the retail industry. In the fierce competition among small traders, they have gained a place in the market, and quality and low-priced products are their foundation. At the same time, they work with a combination of activities to output the appropriate body of knowledge and enhance the relationship between customers and stores. Compared with fruit vendors, the quality of products is different, pesticide promotion and other food safety issues are doubtful, and there is no price advantage. And fruits are generally heavier, the lack of distribution capacity is the Achilles heel of the ground vendors.
Summary: brick-and-mortar stores relative to vendors, quality advantages and quality assurance is incomparable. Physical stores need to take advantage of their own advantages, with some attraction marketing, to achieve the effect of increasing revenue. In the case of spiking activities, use the official WeChat account to share through social circles. Users have to complete the set tasks in order to gain revenue, which points to fission. Different combinations of points of interest and fission methods can be planned for various activities.
Case 2: Xiamen CXX Cafe svip activities
CXX is located in the busy pedestrian street, nearby, drink CXX guests will feel that this flavor is specially created for ta. After all, every step of details from equipment to raw materials to finished products are strictly controlled. Recently, they launched a super membership card program. "For $19.90, you can get two lunchtime tea bags, 2 cups of Master Coffee and a dessert at the original price of $120. Meanwhile, for $9.90 you can enjoy the $9.90 member price for any coffee and the $1 'Buy Anniversary Coffee of the Day' super benefit. Passersby can take advantage of its location by scanning the store's QR code to participate in the svip. as soon as the event was launched, a long line formed. What is the future of brick-and-mortar stores in the booming stall economy? How to capitalize on the 'diffusion economy'?
Summary: Using low-cost attraction activities, you can bring people into the store, scanning and following the store's WeChat official account through promotional activities, and converting individual customers into store members. This method is also a coffee drink compared to street stalls, but it is highly competitive with its own value-added activities and sculpting of taste quality.
Summary
The economic network is contextual and fluid, and the upper layer can only blossom when the wealth of the upper layer is accumulated. So the vendors, as the bottom tier of businesses, should be allowed to set up their stalls first, to repair the damage caused by the epidemic, to repair the bottom tier of businesses, so that the middle tier of stores can recover faster. So in the medium to long term, it will nourish the stores. Stores also need to take advantage of the opportunity to convert this nourishment, increase the number of store-to-store visits, promote new purchases, and continue to close deals, which is an important criterion for a merchant's healthy development. The social marketing tool focuses on "fission retention and data analysis" in product design to meet the needs of merchants for publicity, customer attraction, diversion, fission, activity operation and data analysis, and to realize stable revenue growth with low-cost marketing