Retail Industry Solution 1

Motivation for the Reform of the Retail Industry

There are currently three reasons and sources behind China's in-depth and extensive retail revolution.

First, it is said that the reform of the retail industry stems from the driving force of technological progress. Since modern times, the development of western retail has undergone three major changes.Information TechnologyUnder the catalysis of the fourth major revolution is brewing, and now the western developed modern retail industry is the inevitable result of these retail revolutions. Every time the modern retail industry has undergone many changes, we can find the shadows of technological forces. It is the twin brother born along with the industrial revolution triggered by the technological revolution in the same period. Especially in the Information Age, network technology is widely used in social and economic fields, and e-commerce is emerging, this forces traditional retail enterprises to change their management concepts, management models, organizational structures, and operation processes accordingly. In China, the technical conditions that have triggered the first three retail revolutions have matured, and network technologies have gradually penetrated into every corner of social and economic life. Therefore, China's retail revolution is the trend of the times. Unlike the western developed countries, China's retail industry is undergoing a number of changes at the same time, rather than undergoing development in stages, which leads to the complexity and urgency of the change.

Second, it is said that changes in the external market environment of the retail industry lead to adjustments within the retail industry. According to the "survival of the fittest" of "Evolution of retail organizations", retail enterprises must adapt to changes in the social and economic environment before they can continue to exist and develop. Otherwise, they will inevitably be eliminated. After years of economic system reform, the Chinese market environment has undergone fundamental changes. In the process of transforming from the seller market to the buyer market, consumers have gradually become the dominant force in controlling the market, with the development of information technology, consumers' personalized and diversified needs can be fully met. If retailers do not adjust their business models accordingly, manufacturers are very likely to provide goods and services directly to consumers through middlemen. At the same time, the entry of multinational retail groups provides better customer services in a more advanced way of management, enabling China's retail competition to expand on a higher platform, these forces Chinese retailers to carry out all-round changes and innovation to win a living space.

Third, it refers to the internal structure adjustment caused by the Law of retail development in the process of economic development. From the perspective of the development path of the retail industry in modern western developed countries, the retail industry has its own development rules, such as the "retail rotation theory", "retail integration and professional cycle theory", "retail Syndrome Differentiation Theory", and "retail organization Life Cycle Theory" summarized by Western scholars, it explains the evolution of retail from different perspectives, and shows that the commodity circulation system can create new organizational forms between mass production and diversified consumption through its own development and reform, make full use of the function of coordinating production and consumption. During the period of rapid economic development in China, the self-Updating of retail organizations has led to the transformation of the retail industry. The introduction of new Western organizational forms and business methods has promoted qualitative changes within the retail industry.

Challenges for retailers

1. challenges brought about by the transformation of the retail industry.

2. challenges brought about by technological advances.

3. challenges brought about by changes in consumer demand.

4. Challenges of competition and cooperation.

Retail Industry Solution framework

 

Six major market hotspots of retail informatization Application

Based on these new development directions, various retail informatization applications and market hotspots have emerged, providing a broad stage for the development of many vendors rooted in the retail industry.

1. Supply Chain Collaboration: extending to suppliers

In the future, with the continuous support of the national "expanding domestic demand" policy, the store channel will cover the development of third-and fourth-tier cities. The expansion of stores will demand the POS terminal, store management, supply chain management, and other retail industry information applications.

Supply chain collaboration will be more important. Supply chain management is one of the key aspects of information construction in the retail industry. optimizing supply chain management, reducing enterprise operation costs, and strengthening enterprises' replenishment capabilities have become the focus of Information Application in the retail industry.

Ii. Data Centralization: Strengthen Group Control

The retail industry is now in a turbulent era of mergers and acquisitions and integration, and the data collection is also on the agenda. By collecting all business data to the group, all servers will be deployed at the headquarters, reducing the maintenance cost of a single store.

Data centralization is a qualitative leap for the retail industry informatization, from scattered deployment to centralized deployment, from non-interaction to collaboration and interaction, which is not only the deepening of applications, the deployment model is completely different from the past, which is undoubtedly a qualitative leap.

The data collection also means that a series of group management and control measures will be strengthened in the future, all of which must be supported by the system. For example, the transformation from the past distributed management architecture to the centralized management architecture involves the transformation of many management structures, such as finance, human resources, procurement, and various business aspects.

3. Business Intelligence: insight into customer needs

The ever-changing market environment, unpredictable customer needs, and massive business data make the retail industry one of the hottest industries in business intelligence applications. In recent years, the application of business intelligence in the retail industry has been greatly developed, and more retail enterprises have begun to implement business intelligence projects.

At present, foreign retail enterprises have great advantages in precise analysis of customer behavior, while domestic retail enterprises are still in the extensive management stage of member discounts. In the future, the informatization construction of large domestic retail enterprises will shift to Bi Business Intelligence Analysis System, mall layout management system, and other refined management directions.

Iv. Customer Relationship Management: increase customer stickiness

With the increasing competition pressure in the retail industry, Customer Relationship Management will develop towards in-depth mining of customer consumption behaviors. Association Analysis between front-end sales data of the POS system and consumers' consumption habits will become a new trend in the future Informatization Construction of retail enterprises. through precise research on target customers' behavior habits, retailers can provide personalized services to consumers and increase the stickiness between consumers to improve the market competitiveness of enterprises.

It is understood that some retail enterprises have tried data mining. They no longer only use information technology to grasp sales information, inventory management and supplier relationship management, instead, it entered a higher stage of trying to use Informatization for marketing.

V. system upgrading: the cycle is approaching

Although Chinese retail enterprises do not fully agree with the concept of continuous investment in informatization, many of them have come to an end after the necessary systems are purchased. According to statistics, many retail enterprises have used their original information systems for many years.

With the dramatic changes in the retail market, information technology must support these changes. Generally, 3 ~ The next five years will usher in a cycle of system upgrading and upgrading, which is now at the end of this cycle.

VI. E-commerce: important potential market

In addition, e-commerce will become one of the important trends in the retail industry's informatization investment and a potential market that cannot be ignored.

The main stakeholders of the Retail Industry Entering the Internet are divided into three types: one is the production and sales integration attempts of production enterprises to carry out direct product marketing business; the other is the expansion of Internet channels in the traditional retail industry; third, the construction of E-commerce websites for Internet enterprises, especially the "attempt of direct Internet marketing for Production Enterprises" and "expansion of Internet channels for traditional retailers", have become the highlights of the informatization investment in the retail industry.

Internet sales channels have been widely recognized by enterprises and users. With the gradual improvement of the national logistics system, the development of Internet channels by retail enterprises will become another hot topic of information construction.

Customer demand-oriented, Plan-driven, and retail science-guided Supply Chain execution

 

We hope to help you with the retail industry system architecture.

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Petter Liu
Source: http://www.cnblogs.com/wintersun/
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Retail Industry Solution 1