to understand what is "the limit of lawn effect", let's first understand what is lawn effect.

it refers to how much turnover can be produced by the area of each ping (the total number of ping occupied by the counter). It is an important parameter that we use to measure the operating efficiency of shopping malls.

Online shopping mall plaza, take department stores as an example. Different locations in the stores attract different customers. The entrance to the first floor is usually the most attractive place. In such a prime location, counters that can earn the most profit must be placed, so you will find that the first floor of department stores are usually high-profit cosmetics counters and glasses counters.

Then what is the Pingxiao Revolution?

for internet companies, the cost structure is basically positively related to the number of employees, so everyone attaches great importance to "human efficiency", that is, the annual income created by a single employee; The cost structure of offline retail is basically positively related to the auxiliary area of the store, so everyone attaches great importance to the "floor effect", that is, the annual income created per square meter.

if we say that no matter how hard we try, the annual income per square meter can't cover the company's rent, it's obvious that the company is losing money. We should either close the store or look for a low flow, reduce transaction costs, optimize products, and add new product portfolio lines to improve the efficiency. Offline, different locations, different formats and distinct levels.

nowadays, many well-known e-commerce brands on the internet also open offline stores. Amazon, Dangdang, Taobao, JD.COM and SF have opened offline stores one after another, and some of them have succeeded and some have failed. We don't talk about the winners. The reasons for the losers are very complicated. From the retail point of view, the "transaction structure" of the original format has not been broken, and the "flat efficiency" is less than the "rent bottom line".

how to break through the "floor efficiency limit" and exceed the "rent bottom line"?

we can change the low frequency of purchase to high frequency. For example, I am the offline store manager of Handu Yishe, and users come to the offline store to see clothes. I can guide users to take more products by strengthening the training of salespeople's words. In view of the upcoming new models, online and offline simultaneous distribution is allowed. In addition, offline stores put popular styles in the most conspicuous places through store design and layout, so that more users can see them. With the help of the marketing of salespeople, combined with.

think about the experience of doing e-commerce. Online store assistance considers "human efficiency", the income created by each employee. In order to improve this value, I remember that I had to arrange training for customer service every week, including communication skills such as taking away more, urgent purchase, urging payment and after-sales. At the same time, I also ask the customer service staff to submit the statistics on the number of consultants, customer service problems, customer feedback, customer evaluation and other contents of the week every Saturday, so as to adjust and optimize the shortcomings of the operation level; There are also training and use specifications for new marketing tools in the background; If there are major marketing activities, customer service will be trained in advance and quick words will be prepared; Finally, I will occasionally invite the company's factory technicians or salesmen to come over and explain the working principle and usage characteristics of the products to the customer service. These are all kinds of means to actively improve people's efficiency.

To sum up, the core of new retail is to optimize the transaction structure, improve efficiency and break through the "horizontal efficiency limit" through all online and offline methods.

PS: Did you find that many times we may not know a lot of business knowledge, but you and I in it have already used it unconsciously and done these things.