In line with the trend of the times, the battle between old and new retail from the perspective of logistics

In line with the trend of the times, the battle between old and new retail from the perspective of logistics

On the evening of February 16, at the 19th annual meeting of the 2019 Yabuli China Entrepreneurs Forum, Hema Fresh CEO Hou Yi and Duodian Dmall Chairman Zhang Wenzhong, founder of Wumart Group, had a dialogue on the transformation of traditional supermarkets into new retail. talk. At the meeting, Hou Yi said that Hema will continue to rely on big data and artificial intelligence to improve supply chain efficiency and store operation efficiency, and strengthen the two-wheel drive model of store and home. For a while, a lot of discussions have been raised about the relationship between new retail and traditional retail and the future development of the two.

Bruno Pavlovsky, president of Chanel’s fashion department, once said: “The best experience of Chanel happens in boutiques. We are not sure whether consumers can fully understand us through the cold electronic screen.” And the poor experience he said is also This is why Chanel has not blindly followed the crowd and launched online channels over the years.

When it comes to the combination of online services and offline experience, one has to think of new retail. Relying on the internet, through the use of advanced technologies such as big data and artificial intelligence, it upgrades and transforms the production, circulation and sales process of commodities, and then reshapes the business structure and ecosystem, and provides online services and offline experience. And the new retail model of deep integration of modern logistics has ushered in an unprecedented “explosion” in recent years.

During the outbreak of new retail, some people believe that in the era of “Internet +”, new retail will definitely replace traditional retail. However, some people believe that the future road of the “old and new” retail model must be a road of cooperation, collaboration, learning from each other, and resource exchange.

So first of all, will new retail replace traditional retail? the answer is negative.

1. Different addresses

For new retail offline stores, location selection is not as important as traditional retail stores. In Hou Yi’s words, as long as there are households in the site selection area.

Breaking the law of location selection of old stores, the offline stores of new retail will deal with the city grid, which often only needs people within a three-kilometer radius of delivery, because 3-kilometer delivery has developed from high-frequency takeaway to driving Low-frequency drug distribution, from distribution itself as an auxiliary value to distribution as a value-added service, the convenience brought by it greatly promotes the flow of goods. Just like the road is repaired, the number of cars will naturally increase. Traditional retail stores have strict requirements on the flow of people, business flow, spending power, and location. In terms of location selection and placement of stores, it can be said that the two are not in conflict, and there is no replacement at the practical level.

2. Consumer groups are differentiated

In terms of new retail, some people in the industry say that new retail emphasizes the concept of “cloud business”, from shopping with “feet” to holding a mouse and touching a mobile phone with “hand”, to shopping with “mouth” voice, Shopping with “eyes” in VR and shopping with “brain” ideas. The channels for shopping continue to increase, from single channel to multi-channel to synergy of all channels. Therefore, its consumer groups mainly focus on young groups, whose consumption habits are more convenient and fast, and the experience of services and the quality of goods tend to weaken; while traditional retail consumer groups focus more on middle-aged and elderly groups, and their consumption habits are more Pay attention to the quality of goods, purchase experience, and service quality. Therefore, the targeted consumer groups and consumption habits are different, and it is impossible to replace them.

“After two years of efforts by various Internet startups in the O2O era, consumers have now generally accepted the APP order-to-home model, because it is more convenient for him to come, choose more convenient, and purchase more convenient. Therefore, we believe that the retail industry today is still Without digitalization, if there is no home model today, these retail industries will definitely withdraw from the market. In the future, the retail industry will be fully digitalized, fully Internet-based, and fully integrated from store to home. This is an inevitable trend in the development of the retail industry.” Hou Yi believes. He also believes that today’s post-80s and post-90s have chosen the Internet in an all-round way. It is believed that the post-50s and post-60s will also choose the Internet purchase mode, because due to the popularity of smartphones, the home mode must be the preferred mode for people of all ages.

3. Operational difficulties are different

The rapid expansion and growth of new retail has brought “pain”… Fresh supply chain management has always been one of the pain points in the industry. On November 15, 2018, a citizen reported that Hema Xiansheng’s clerk changed product labels illegally, and Hema Trapped in the “Taggate” incident. The incident has not yet subsided, and another netizen posted on Weibo saying that he bought coconut milk that has expired two months in Shanghai Jinqiao Hema Xiansheng. The flaws in this workflow come less than a month after the last “taggate” incident.

Objectively speaking, in the process of pursuing rapid expansion, this unbalanced process of “weight over quality” will inevitably bring about many adverse effects, but “labor pains” are not only management issues.

New retail is an asset-heavy model, and its logistics and distribution costs are huge. That is to say, behind the fast delivery time, there must be huge logistics cost support. According to industry insiders, this kind of distribution cost is very rigid. Even if the scale continues to grow in the future and the order volume is sufficient, it will be difficult to offset the distribution cost per order. Whether it is the “heaviness” of cost or management issues, it is not easy for new retail to completely replace traditional retail.

4. There are differences in the scene

In addition, traditional retail has advantages such as instant consumption scenarios, “seeing is more reassuring”, offline convenience, and experience. Based on the rise of the Internet model and the development bottleneck of the traditional retail industry, the concept of new retail has been “hyped” a bit exaggerated. It is not surprising that new retail replaces traditional retail. In fact, new retail is not a brand-new business model. Its essence is the product of the integration and interaction of traditional retail industry and various factors in the new era. The future of “old and new” retail is not about who replaces the other, but “hand-in-hand” cooperation, innovation and win-win.

In fact, new retail projects centered on “catering” and “supermarkets” have “bloomed everywhere” in 2017. In addition to Hema Xiansheng, 7FRESH, Super Species, Daily Excellent Fresh, etc. have all been “airborne” in the retail industry. The unmanned retail format, which is dominated by unmanned convenience stores and unmanned shelves, has formed a “beautiful landscape”.

However, peeling off the coat of new retail, it is not difficult to find that no matter which giant is deployed, whether supermarkets and convenience stores are staffed or unmanned, and whether the transformation of new retail is traditional brick-and-mortar retail stores or online e-commerce companies, they Logistics cannot be avoided, and logistics functions must be strengthened and logistics layout expanded. The reason is simple: the current precise inventory control, smart distribution, etc. have become an important part of new retailers to improve efficiency and enhance the shopping experience of consumers.

Then, as a product that conforms to the trend of the times and caters to the development of the times, what other “new” new retails also give traditional retail any useful thinking?

Going online and exploring new channels, offline brick-and-mortar stores in the traditional retail industry are actually more difficult to meet the shopping needs of multiple types of consumers. If the traditional retail industry wants to transform, the first step should be to go online and open up new products. channel. Due to changes in time and space, consumption scenarios have become much more complicated than before, including in-store purchases, APP purchases, in-store touch-screen purchases, VR purchases, smart shelf purchases, and live broadcast purchases. Multi-terminal and multi-channel empowerment of traditional retail can better cater to consumers’ consumption habits, thereby harvesting more traffic and integrating online and offline resources.

Fastness and convenience must be valued by future consumer groups. Through various terminal channels such as pc terminal, mobile terminal, APP terminal, and small program terminal, the distance between goods and consumers can be shortened, and the most convenient and safe means are used to complete the process. every consumption process.

Digitization and intelligence The data exchange between offline and online is one of the essential differences between the “new and old” retail models. On the basis of data exchange in new retail, the data of online stores can accurately analyze and predict consumers with big data, and position consumers with precise portraits, so as to accurately lay out the front warehouse, which not only solves the “last mile” The problem also solves the space problem of the warehouse. In the end, the precise marketing of multiple terminals at the same time will be realized, the viscosity of consumption will be improved, and the purpose of improving the overall performance will be achieved. This also shows that the digitization and intelligence of traditional retail has become the focus of its transformation and development.

The new retail wave has arrived, and the traditional retail model is bound to usher in a new round of reform and development. In response to changes in future development trends, traditional retail should be more sensitive to changes in market demand, constantly explore new business models suitable for itself in the process of transformation and development, and shape a new brand image to drive the development of the entire retail industry.

The Links:   3HAC020466-001 3BSE022366R1

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