Therefore, the loss of physical stores is mainly due to the wrong ideas. I have opened a physical store and worked as an e-commerce. Although I often don't recommend you to open a shop now, the environment is mainly bad. A friend spent hundreds of thousands of plates and opened a bathroom brand store. Although I have been doing bathroom water and electricity for many years, I am not familiar with brand bathroom. It is not appropriate to blindly enter the market industry after such decoration.
In fact, physical stores still have great opportunities! Most of the thinking of opening a shop can't keep up with the development of the times!
A few friends are making snack bars in Hangzhou, and they find that the products should be exquisite and convenient. A friend supported about 70% of the turnover with a cake in a shop! This will never be considered in the glorious period of physical stores, because the flow of people is stable, the transaction rate is high and the competition scope is small! It's different now. Generally, the delivery distance is 5 kilometers according to the takeaway. In theory, the diet within 5 kilometers forms a competitive relationship! Therefore, you should consider the single product thinking, consider the scale of tens of millions of single stores, maximize the output per square meter, maximize the unit output, and achieve the ultimate! This is beyond the imagination of ordinary shops now, and there will be no such thinking height, but the reality has indeed changed! As for rent, house prices are rising, and the cost of rent is also rising. Many shops are busy working for landlords all year round! In fact, at the beginning of your choice, you must consider the rent, the flow of people and the operation mode of your own products. It's not good if the rent is expensive, but it's good if the rent is cheap. You should fully grasp what is the key point of your operation mode!
For example, Zara's fast fashion in clothing is the most expensive to open a top brand store, but its customer unit price is much lower than that of top luxury goods, but it can support such expensive rent! There is another kind, the goods bought from 10 yuan are generally within 20 yuan, but renting the store in the best position in the most central business district requires matching! This is beyond people's imagination. This type of brand has been forgotten, you can go and have a look!
Continuing our thinking, besides catering, we see that many types of shops are closing. In fact, we have to understand that the competitive relationship has changed! For example, in the home building materials and real estate aftermarket we are talking about, in the Internet era, your competition scope is not 5 kilometers, but 60 kilometers, which means that there can only be a few in this area, of course, it is a large area to close stores! For example, clothing, your competition scope is national competition, but there is a very interesting phenomenon. Some women's clothing stores with good eyes have not been affected, but have expanded their scope! In fact, because women's clothing is not standard, there are too many popular styles, and the information exceeds the limit of human choice, but it has brought a long tail effect to women's clothing stores!
It's not that the physical store business is difficult to do, but that the times have changed, the mode of operation and competition have changed, and the main thinking has not kept up with the times! Many people see the closing tide, but I will find a once-in-a-lifetime opportunity!
Wrong idea.
Although the real economy is very difficult now, everyone is shrinking the front line, but you don't see that many platforms are now grabbing the offline market, indicating that offline business is promising.
For example, in the clothing industry, many stores have closed this year, and even the market has closed. Why? Keep the old thinking unchanged! Of course, I also received a great impact and learned from it. The market can't change, I can only change myself. After two years of thinking, I designed a fashion complex project of "a thousand factories and a thousand stores" to communicate with many end customers. Everyone likes it. Isn't this looking for someone? A person always has limitations. If we unite a few thoughtful people, things will get smoother and smoother!
The essence of a physical store is to race against real estate. Many physical stores are profitable by virtue of the appreciation of the property itself. For example, opening a shop may have been tied up years ago. But with the appreciation of real estate. It only needs a turnover fee to make a fortune. So many stores, especially chain stores. They are basically doing real estate business. Just like many bookstores don't actually make money by selling books. But more is to make money by selling coffee. The essence of a physical store is real estate business. If you can't run, he will definitely lose money. The so-called execution is the speed at which you race against real estate.
It's not that the way of thinking is wrong, nor is it that the mobility is bad. It is the times that beat the physical store. E-commerce has subverted physical stores. Physical stores have become history, and there is not much room for survival. The goods on the Internet are extremely rich. Easy to click and buy at any time. Small profits but quick turnover, information disclosure. It is also comparable. Even small pieces of a few dollars are delivered to the door. The prevalence of e-commerce is the general trend and irreversible, except for a few physical stores, which cannot be replaced by the Internet. Most of the others need to transform or integrate Internet resources. For example, barbershops should also increase customer stickiness through WeChat socialization, restaurants should use Meituan take-out platform to increase traffic, hotels should use Ctrip platform to increase traffic, home appliance stores should do offline experience in JD.COM, after-sales service stores should install them, supermarkets should pay for Ali's fresh terminals, vegetable markets, early stalls or special food snacks by scanning codes. Ordinary retail stores can only be transformed into online sales and live broadcasts, and even commercial real estate giants have also transformed.
The reasons for the loss of physical stores need to be analyzed in detail. There may be many reasons for the loss, one of which is execution or thinking mode. The main indicators that constitute the profit and loss of physical stores are operating income, commodity cost, labor cost, rent, utilities, taxes and fees, etc. If the income is less, it will lose money, and if the cost is high, it will lose money. In short, it will make ends meet.
Thinking mode is a strategic issue, which plays a decisive role, such as the choice of industry, the location of shops, business model and so on. How to conform to the development trend, step into the right track of the industry, avoid direct competition with e-commerce, and choose differentiated business projects. The way of thinking determines the income level.
Execution is a management problem. Work under the established management mode and management system framework, such as work and rest time, promotion activities, etc., should be closely combined with consumer demand or seasonal fluctuations. Execution mainly determines the cost.
Therefore, in most cases, the reason for the loss of physical stores is that the way of thinking is not good at changing with the general trend and deviating from the trend. In rare cases, it is caused by insufficient execution.
There is a saying that change is the only unchanging truth. The same is true for opening a physical store. You must adjust your business ideas and business model at any time with the development of the market.
There are many reasons why physical stores can't work, which have nothing to do with execution, but with the way of thinking:
1, the store rent is high, the labor cost is high, the rent only goes up and down, and the expenses of physical stores are getting higher and higher;
2. Consumption growth is weak, and the impact of e-commerce is serious. Physical store business is difficult to do. Not only the shops in the streets and alleys are deserted, but even many shopping malls are deserted;
3. The convenience of network communication makes the price of goods very transparent, and it is difficult for physical stores to generate big profits as they did three days ago when they were closed.
4. It is common for physical stores to close down, but there are still some physical stores that are struggling with bad business;
5, thinking closer to the mobile Internet business, like new retail, like new service industry is the way out.
Answer over
First of all, I want to say that the world is not black and white. Both execution and way of thinking may lead to losses.
In the era of internet economy, it is really a blow to physical stores without internet thinking. Where is the future of physical stores?
Yes, transformation. The Internet is open, just a tool to break the news barrier, and the physical store with Internet blessing will be even more powerful.
Physical stores do word of mouth, and Internet traffic will be the next issue that both physical stores and Internet stores should consider.
I think business is not as good as it was a few years ago. On the one hand, online shopping now diverts some consumption, and rents and wages are higher than before. Third, in recent years, the scale of urban construction has increased, and there are more shops along the street, so there are naturally more people doing business. Generally speaking, people's total consumption expenditure has increased a lot in recent years. Compared with previous years, one operator serves 1 10,000 customers on average, and one operator serves 10 customers. Naturally, the latter cannot make a profit.
Many physical stores have problems with their way of thinking. They only pay attention to the immediate interests and calculate the expenses such as labor and rent. Time is too high. They can't wait to recover the cost as soon as they invest and start making profits. As the saying goes, when customers come, they will "knock" hard.
Physical stores used to be the economic driving force of food, clothing, housing and transportation. With the development of Internet, the emergence of e-commerce platform and the dispersion of consumer groups, the impact on physical stores has been too fierce. The problem of many businesses lies in the aging thinking mode and subjective degradation.