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Why offline physical stores have closed, Ali, Jingdong, Suning but crazy top store?

Opened a brick-and-mortar store are clear, open brick-and-mortar store is the need to simmer dock simmering time, the average person is generally very difficult to simmer to make money to hang up, but these hair Internet companies big money, simmering for three to five years without making money, so that all the small fish and shrimp dry death.

This is not to be subdivided

offline physical store closures accounted for more should be catering and so on,

This and the epidemic can not be disassociated, do not have to say too much, everyone understands

and then to say the hot spot a year ago: fast-fashion brands have to withdraw from the Chinese market or to reduce the number of stores

There are three reasons,

First, the location of all of them, and the number of stores is reduced, and the number of stores is reduced.

First, the location of the core fashion merchandise gathering place, rent luxury, even if the price reduction promotion, it is difficult to realize the revenue. Even if the sales on the e-commerce platform, but as an international fast-fashion brand price can not be pressed too low, the price of online competition pressure is very big, fast fashion foreign brands in China's business form by the online and offline double clamping.

Second, the rapid rise of China's local fast-fashion brands, in terms of quality, style, price positioning, marketing methods have been no less than the international brands, more suitable for the Chinese market and Chinese tastes, the impact of foreign fast-fashion brands.

Third, foreign brands in China, many international fast fashion brands have a strong bias against China, with their own arrogance not to adapt to the Chinese market, not to adapt to Chinese tastes and the development of China's times.

Ali, Jingdong, these two for me I think the purpose of opening stores is not in the offline retail, is still in the concept store stage, these two in the network marketing is very strong, but the e-commerce and there will be a big problem, there is no sense of physical experience, the online return rate is very high compared to the offline, then open the concept store just can solve such problems.

Suning has not done too much to understand, it does not comment.

Don't take these domestic online marketing giants and other physical stores to do comparisons, there is not much sense, the light of the financial aspect is crushing, Ali Jingdong offline stores can really make a profit? Not really, but people through the physical store to reduce the return rate of the online store is also a good choice, then again, why they can do fast delivery to solve the problem of time, a lot of credit is also because of these offline stores behind the warehouse ...

There are additions and modifications to the proposal are welcome

This shows that 1 point of e-commerce to be warehousing, this is that he belongs to their transit warehouse, that is, their business chips. And they are the use of e-commerce and big data to combine to analyze the following consumer groups, and they will only boldly start blackout, can be for this inside gross profit. But at first quite change, he lacked the integration of big data, lacked a lot of integration, accidentally can not operate, surely worth closing the store.

10 dollars of things sold 20 dollars can still earn money, this is the ability; 10 dollars of things sold 100 dollars to lose money to close, this is the trend.

For business, relying on new technologies to establish logistics, business flow, information flow, with the effect of flattening and scaling, business costs have fallen dramatically.

In the past, the retail price of goods was 100, and the factory price was 10, and the commercial cost without 90 blocks could not drive the commercial link to realize the docking of demand and production. Now the cost of business is only 10 to 20 dollars, which is the difference between Ali Jingdong Suning and traditional business.

For 2020 because of the special circumstances of the epidemic, let the real economy forced to stagnate for more than 2 months, it is indeed a very big disaster for the physical stores. And because e-commerce can reduce human contact, the recovery is also earlier than offline physical stores. For all merchants, whether online or offline, many of them did not survive the epidemic if their fixed costs were too high. In particular, the restaurant and entertainment industries are the most serious.

So why can e-commerce platforms like Ali, Jingdong, and Suning frantically expand their stores?

The main reason is that when the real consumer economy has been hit hard, businesses still need to continue to find channels to ship. The epidemic this process can see some of the advantages of the e-commerce platform, the previous did not consider the online sales of the brand will also consider the use of e-commerce platform. Moreover, the epidemic has not yet stabilized, the entity consumption will take some time to return to 2019, so the choice of e-commerce platform as a channel to ship to maintain a certain amount of cash flow is still mainly to survive.

Secondly, the reason why the e-commerce platform to expand the store is that now the overseas epidemic is very unstable, especially like the United States, such a huge overseas market, because of the epidemic consumption is shrinking. Many friends who mainly do foreign trade single before, are looking for opportunities to export to domestic sales. In order to better digest their own production capacity, the e-commerce platform is nothing more than a faster channel.

The last reason is that, as an e-commerce platform, this epidemic is also a further erosion of the market share of brick-and-mortar stores, and similar platforms like Ali can also provide new retail solutions that can significantly update the experience of brick-and-mortar stores after the epidemic is over.

Overall, the world epidemic has allowed e-commerce platforms to see an opportunity to become mainstream, although brick-and-mortar stores won't disappear, and the experience may even become better because of the added power of e-commerce platforms.

It's normal ah, the survival of the fittest, he can not provide more convenient services, cheaper goods to be eliminated by consumers.

Suning, Jingdong, Tmall's small store is actually relying on a strong e-commerce network, so they can survive.

1. others to expand the store is not just to expand the store, is to open a community warehouse ......,

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