The key to analyze from two aspects, cost, profit.
1, all generated sales must be subtracted from the cost is profit, so if the cost remains high, it is no money to earn, the physical store house is the biggest cost, but also the biggest pit, with China's real estate bubble, the rent of the store is also several times or even more than a dozen times, but the problem is that the key is the population dividend is not seen to grow, so the cost of this is the inflated, which is the Renting an apartment costs a lot more money in vain. And then after N times of reversal, the transfer fee is even more astronomical, so that the original high rent to add insult to injury. Secondly, the staff work, 3000 down the salary, you have no need to open, even if you come to you to do, that is not long to do, which also includes the problem of food and housing, a little bit of store to 5 insurance, and then a little bit of the big one has to have a gold. However, even so, this still belongs to the low wage range, will not be cherished by the staff. Then there is the store's decoration, you make money poorly, things simply no one wants, because everyone has a good image to attract others, you do not keep up with the grade, nature will be eliminated. And the cost of decoration from tens of thousands to hundreds of thousands of dollars, only you can not think, no you can not install.
2, to talk about profits, so many years past, a lot of things have risen in price, but the price of the things you sell did not rise, and you do not dare to rise, and even more so, in the price reduction, or in the improvement, quality and quantity, in disguise, so your pressure will be great.
Overall on the one hand, costs continue to rise, while on the other hand, profits continue to go low, so that the plight of the business will allow countless people to go out of business, countless people working for the landlord, countless people in the fortunate white work.
It is not easy to open a good physical store, he is a systematic project, every step of the way, we must have a professional level to do, otherwise the bubble of the receiver.
The physical store business is becoming more and more difficult to do for the following reasons
First, the cost of the more and more high, one with the rise in housing prices, the cost of rent has risen sharply, the second is the cost of renovation with the rise in prices has also risen sharply, the third is that the cost of staff is getting higher and higher, no three or five thousand dollars can not be recruited employees; four is the cost of raw materials with the rise in prices is also getting higher and higher, and five with the increasing regulation of tax administration, tax and fees, and the cost of raw materials. Tax management is constantly standardized, the cost of taxes is also on the rise.
Second, profits are getting lower and lower, income - cost = profit, high cost profits will be low, low income natural profits are also low, resulting in low income there are two major reasons, one is with the counterparts of the vicious intent to fight, a large number of customers diverted, less traffic natural income is also less, the second is because of the low price of e-commerce and peer competition, resulting in a reduction in gross profit of the product, resulting in lower income.
To sum up: income is decreasing, costs are rising, resulting in more and more difficult to do business in the physical store.
In 2019, if you don't upgrade your brick-and-mortar store's customer acquisition model and profit model, business will be even harder to do. Therefore, in 2019, we should start from how to improve customer flow and how to improve product profitability, one is to increase customer flow with the new diversified means of attracting traffic, and the second is to improve the competitiveness of the product, so that people do not have me, people have me fine, people fine me new, people new me different in order to improve the profitability of the product. As long as you do these two things in 2019 business will be good.
To know the specific details, please pay attention, I will continue to share "how to low-cost attraction of physical stores" and "how to effectively enhance the profitability of the physical store products" and other dry goods.
Thank you for the invitation!
It is said that the physical store business is not doing well, the online Internet e-commerce big brother Alibaba in the opening of Tmall store, box Ma Fresh Life, Jingdong is also in the opening of brick and mortar stores, offline brick and mortar business is affected by the economic environment, the masses of the consumer level is reduced, coupled with the malicious competition between peers, 2019 brick and mortar business can usher in the spring?
In fact, there is really no need to be so pessimistic, after all, the entity business is the foundation, people shopping offline social attributes will not change, will only change the integration of change, it is impossible to be replaced, will be back to brilliant! 2019 entity business will be better to do it, "more" don't want to do it! Doing business is always success or failure, year after year, there is nothing better to do, the key is to look at your choice of projects and marketing tools.
As a shopkeeper who opened his own store for 6 years, we will discuss some of the pros and cons of the physical business in 2019, and give some direction to the friends who have already opened a store or are ready to open a store.
First of all, I'll talk about what 2019 will help the entity
1, the state's support for the entity, the state in 2019 in terms of funding and policy have a clear support, especially micro and small enterprises, precise irrigation is the most entities;
2, "Electronic Commerce Law" landed on the ground and implemented, increased the threshold of entry of e-commerce, so that e-commerce profit margins are reduced
4, focus on the consumer experience, now, 90, 00 as a new consumer group, treat new things more curious, and pay more attention to the experience, and this experience only to the physical store.
After saying that the advantages of opening a brick and mortar store in 2019, let's look at what pitfalls to pay attention to when opening a brick and mortar store in 2019?
1, high prices, high rent
For the entity, this is a big pit, increasing the cost of opening a store, and high prices, the young people's wallets are emptied, do not dare to consume, compressed consumption, the most consumer potential of the group consumption is weak, the impact on the entity can be predicted;
2, the uncertainty of the trade war
Last year, the impact of the trade war. Driven by the direction of the entire economy, perhaps when you did not find out, they have already fallen into the pit;
3, social security costs will rise significantly
2019 social security payments unified by the tax department levies, according to the minimum wage to pay social security is already a thing of the past. The cost of labor is often a major important expenditure to open the entity, before you can social security to do some profit difference, there is some profit, but now social security payment unified by the tax department levy, destined to increase the cost of opening the entity.
As the saying goes, the benevolent see benevolence, the wise see wisdom, entity business is the foundation of society, will eventually rise again, there are always many ways to make money, such as the arrival of new retail like Ma Yun, with the help of artificial intelligence, the Internet and other technological advantages, we must dare to try and utilize the new technology, improve operational efficiency, reduce operating costs, focusing on goods and services, to create value for consumers.
Winter is about to pass, will spring be far away?
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The physical store Business is becoming more and more difficult to do, want to open a store in 2019 must pay attention to, no matter what industry to open a store, you must want to where your guests, how to do attraction article, guests to the store also need to do to retain guests program, must think of ideas to retain guests for a long time, and finally guests can take advantage of the merchants, these are all to do you in going to have to open a store does not lose the probability of investing in more and more cautious to be able to, business loss have The following reasons
One, the cost of the more and more high, one with the rise in housing prices, the cost of rent rose sharply, the second is the cost of renovation with the rising prices also rose sharply, the third is the cost of staff is getting higher and higher, no three or five thousand dollars can not be recruited staff; four is the cost of raw materials with the rising prices is also getting higher and higher, five is with the continuous standardization of tax administration, the cost of taxes is also on the rise.
Two, profits are getting lower and lower, income - cost = profit, high cost profits will be low, low income natural profits are also low, resulting in low income there are two major reasons, one is with the counterparts of the vicious intent to fight, a large number of customers diverted, less traffic natural income is also less, the second is because of the low price of e-commerce and peer competition, resulting in a reduction in gross profit of the product, resulting in lower income.
To sum up: income is decreasing, the cost is rising, resulting in the physical store business more and more difficult to do.
In 2019, if you don't upgrade your brick-and-mortar store's customer acquisition model and profit model, business will be even harder to do. Therefore, in 2019, we should start from how to improve customer flow and how to improve product profitability, one is to increase customer flow with the help of new diversified means of attracting traffic, and the second is to improve the competitiveness of the product, so that people do not have what I have, people have what I have, people have what I have, people have what I have, people have what I have, people have what I have, and people have what I have in order to improve the profitability of the product. As long as you do these two things well in 2019 business will be good.
Rent has actually begun to drop in the last three years, and stores and malls that don't take the initiative to drop rent are hard to survive, and those that do are not necessarily able to survive. I say a real example of shopping mall stores, before the electric rent of 4000 yuan / month store, the door passed by the daily flow of target customers more than 1600 people, now down to 3000 yuan / month, the door of the flow of only more than 300 people / day, you count the price of a single flow of traffic, the rent of this store is equivalent to the original more than 20,000 / month. The reason lies in the smart phone derived from the online shopping, takeaway, etc. so that consumers contact entity frequency is greatly reduced, which is very scary, why before the store rent we feel expensive, but the business is very good to do, now cheaper but more and more difficult to do. To put it bluntly, Ali Jingdong and the United States these are online real estate developers, as the saying goes, under the big tree, now is under the big tree dead light. Ali said that the world is not difficult to do business, but the essence of the competition of these e-commerce Ali is a price war, the enterprise reasonable profits can not be guaranteed, because you can not fight than your low price and quality of cheap, the bad money to expel the good money, the result is that the world is not a good business. The original business ecology is like the human body, there are arteries, capillaries, business is a hierarchical ecology, now all the resources to the head of the gathering, the business system has been damaged. The Internet has his efficiency, but excessive Internet is not a good thing worth reflecting on society as a whole, I can not imagine a future only rely on couriers and takeaways linking thousands of households, each family unit of the two points of a line of the society's commercial activities can be more prosperous.
"The business of brick and mortar"?
Thanks! Try to answer their own views
One, to be divided into industries, if the food industry, if the area of high traffic, brick-and-mortar business is just as hot
1. Even if there is such a delivery of takeaway such as Meituan, but the production of takeaway is still in the physical store, not to mention the fact that many stores are online and offline at the same time to blossom. Of course since ordering online and having people who specialize in delivering food is going to affect many people who go to the store in person, is going to have some impact on some stores!
2. If the local population flow is not big, then the impact will not be big, itself not many people to dine!
Second, the daily necessities, in this case the price is not too expensive items, generally more in the online purchase, many people are afraid of the trouble in person to go to the store to buy, one is lazy, two is busy.
The high price, the value of the items, I believe that the person still personally go to the physical store to buy more people, one is to personally experience and check it out, the heart is assured!
Three, different groups of people are not the same way of consumption, especially after 70, 80 and later these young people, basically all day cell phones are not away from the electronic payment, online order shopping has become a habit. They generally seldom go to the physical store shopping.
In summary, the business of the physical store by the impact of online shopping is indeed very large, the physical store business is indeed more difficult than before.
Fourth, the business of physical stores will be good in 2019?
1. According to the current situation of social development, the business of physical stores is not much better. After all, young people are used to online shopping.
2. Again, with the development of intelligence, a part of the original manufacturing industry will be transferred to the tertiary industry, business entrepreneurship will be relatively increased, the competition will be fierce, the population flow of a place is generally not a substantial increase, so the business of the physical store will not be better than before.
Because, one, two, three, four, five line of the city development speed is different, different areas of the flow of people is also different, different industries will be different, a region of the population below the age of different and so on. All of these situations will have an impact on the business of the physical store.
Finally, I still hope that the online and offline business is booming, and the wealth is abundant!
My answer is that the business of brick-and-mortar stores will become more and more difficult.20019 will not be good!
Why do you say so?
1. The impact of the mobile Internet. Now is the era of mobile Internet, as long as people move their fingers, you can shop online, shopping has become very convenient and convenient.
2. Online shopping is a trend. Now a lot of young people are shopping online, this is a trend, we usually say that you can't fight the trend with your advantage, we can only follow the development of this trend.
3. Physical stores do not have the advantage of online stores. Online stores can be sold all over the country, as long as you move your fingers, no matter where you buy, the system will be recommended to your local purchase of the seller's products. Basically, if you buy today, you will receive it tomorrow, and definitely the day after tomorrow at the latest. Good online stores in different platforms have opened several stores, compared to physical stores these costs are still cheaper than physical stores.
3. High rent pressure on the physical store can not breathe. First and second-tier cities rent tens of thousands to hundreds of thousands of dollars, every year in the rise, the money earned by the physical store is not enough to pay the rent.
So 2019 is not good for brick and mortar stores either.
Where personal views are not, please friends correct the message.
The probability is that the general industry will not be better in 2019.
Affected by a variety of aspects:
1. According to the world environment, 2019 is a year of change and with turning qualities, full of risk and full of opportunities, recall the words of Li Ka-shing a few days ago, 2019 is considered to be a crisis in all directions
2. The economic environment is not good, the direct impact of the consumer downgrading of consumption, the consumption of the number of amounts will be Down, which of course has an impact on the real economy
3. less affected by the industry, may be distributed in the basic level of life, want to catering, clothing, tightly around the aspects of life
In this environment, as ordinary people can do is, sink down, in 2019 to find opportunities, because the time of the crisis, is often also the beginning of the turnaround, cheers to the small partners
First, by the international economic environment downturn and trade war and other factors, the domestic economy in 2018 is facing many challenges, the variables increase, although there are business doing well, more people in the increasing variables become worse, business is miserable, the physical economy and the online economy is so.
Second, the rapid development of the online business economy has squeezed the living space of the real economy. To open the store, for example, the major e-commerce platform is not only cheaper but also door-to-door delivery, people can realize shopping without leaving home, and this convenience fosters customer stickiness that makes the physical storefront customers were a large number of diversion.
Third, people are not optimistic about the economic situation, began to reduce consumption, before going to store, people gradually do not go to shop, the business of these stores is slowly cold.