A perspective of China's consumption market capital map and current situation

Traditional market is based on its own huge market, at the same time because the traditional market belongs to the category of human just need and long-term belongs to the hot spot, just because the traditional market is currently in the extensive low-end competition and so on, so it is not always a detailed understanding of people. This is a reporter's second article on China's consumer market, in which reporters try to see the Chinese consumer market capital map and the status quo.

The classification and pattern of China's local service consumption market

The first thing to define is what the local consumer service market is.

If only from the consumer goods market, this concept may be relatively large, all of the materials belonging to the human consumption of material production is actually counted as consumer goods, and used for reproduction of material materials, is counted as industrial consumer goods. But this category obviously belongs to the category that is difficult to say clearly by the word, and also does not belong to the profession category which the reporter discusses. China's local consumer service market, the reporter argues, it is very difficult to know exactly how big this market is, but it is generally believed that the market is at least a trillion-level one, since it is entirely based on localized consumer services. Everything based on the local market for eating and living (why not wear, because the category of wear does not belong to the service category) are local consumer services.

Look at the specific classification of the local market: industry, industry, region, value

Classification of the industry: chain of direct business, chain-joined industry, non-chain large-scale single shop, pop industry. At present, China's local consumer service market is the most type of the last one, basically pop, occupy at least 90 of China is the pop form. Chain Direct business State has just arisen, into the brand system is rare. Join the state is also in the extensive initial stage, but has appeared a larger size of the franchise, but not chain-scale single shop is the most important besides pop local industry, based on the local assets more than the majority of the boss of the current situation.

Industry Classification: Because this industry classification more, I black horse only inventory with certain investment value and reference pointers of the industry. Catering, KTV, hotel, beauty (covering nail, SPA, Bath foot, hairdressing), auto Service (covering car wash, car repair, 4S shop, etc.), cinemas, dentistry, education and training, supermarkets and so on.

Value system classification: Divided into high-end, midrange, low-end, etc.

Geographical classification: These local consumer services expansion or existence path, with obvious regional color, such as some only in southwest China, Southeast region, east, north China, east and so on. Therefore, the decision whether such local consumer service organization is suitable for the big path lies in the broad spectrum.

Representative category and brand specific analysis

Dining is undoubtedly the largest category in the local service market, not one. This from all buy, O2O services from the beginning of the food can be seen. The idiom cloud: the people take food as the day. So catering is the most important part of the consumption of all people, but also the most inseparable from the ring. Catering is different from other local services, its separate list of subdivided categories is quite multiple.

Fast food: On behalf of the enterprise KFC, McDonald's, country base, feather dumplings, Jia and a product, Yoshinoya, Dicos, Master Kang private beef noodles, etc.

Chinese food (Sichuan, Cantonese, Hangzhou help vegetables, such as Dongpo Restaurant, South Beauty, Xiang-e situation, positioning are relatively high-end, suitable for business banquets. ) on behalf of enterprises: Xiang-e love, spicy temptation, a hemp a spicy. This kind of enterprise is still less than the chain, the basic is mainly local, because it is greatly influenced by the chef, there is no good cook basic can not be famous.

Western food: (including Italian cuisine, French cuisine, steak restaurant, buffet food, etc.) has a typical representative Wang Pingui Pai, Hawker come, Hao enjoy, Yuhua Western Restaurant, Salia, Barbera

Barbecue (including Korean barbecue, South American barbecue, etc.) such as Hallasan, Power Jincheng, Hans, Amazon barbecue, etc.)

Hot Pot (Sichuan hotpot, Taiwan small hotpot, Macau bean fishing) and so on. On behalf of enterprises: Dezhun, incense the world, the door, new spicy road, etc.

Cake: Good to come, Jinfeng Ching, taste more beautiful, Rosa Cake, Anderson, 21cake, etc.

Beauty salon Industry: Beautiful Garden Spa, East field modelling, Oriental beauty industry, craftsman combination, birthplace, Wenfeng beauty, etc.

Bath foot industry: Chinese good son foot road, rich overseas Chinese bath feet

KTV: Happy Dee, big singer, Melody

Dentistry: Asian and African Dental

Cinema: Wanda Cinema, Golden Harvest, Orange Day

Other life services: Rongchang laundry, flat, car wash chain, supermarket, etc.

Second: The current situation of local consumer service market and the dilemma analysis and solutions

Characteristics and status of market structure: 1 fragmentation. So far, in the local consumer market, there has not been a single large, able to occupy all the mainstream market in China's domestic brands (KFC, McDonald's belong to foreign brands). The basic pattern of the situation is for local bully mainly, the national expansion of the enterprise is very few, basically concentrated in a certain region, the core factor lies in the fragmented market pattern, the root cause lies in China's extensive regional user form and the user's demand is subject to the cultural, custom and other characteristics influence, cannot achieve all the geographical unification Standard Service, The ultimate cause of the fragmentation of the characteristics.

2 The chain of consumption advocated to become consumption

The latest habit, 50-100 yuan per capita consumption characteristics become the mainstream of Chinese consumption. As I pointed out in my series of consumer articles: "In China's most extensive region, mid-range consumption is becoming the mainstream of the characteristics of the pursuit of the brand is emerging, but not enough valuable brand supply as a new issue, so the rise of these mid-range brands at the same time promote the Chinese commercial real estate pattern changes, Let a similar one-stop shopping mall rise.

3 brand consumption sinks become the biggest trend: this from the home as the representative of the brand budget hotel as the representative. After completing the one or two-line city of happy enclosure, similar brands are looking for new growth space, after all, China's one or two-line city consumption volume is very limited, this time in the one or two-line city brand mind after the establishment of the brand will continue to sink the mainstream choice, but if the realization of the brand backwards, It is relatively difficult to expand after a brand from a three-tier city or a four-line city to the north.

4 reliance on Internet Tools to subscribe to the consumption after the direction. As the most recent words, O2O is closely related to local life consumption industry, and the so-called O2O primary form is to buy and book, in the local consumption decision, the public comments has become the first consumer decision to the front entrance. and group buying this model, including the rise of the mode of delivery will greatly change the behavior of consumers, through the Internet tool booking is becoming the mainstream of local consumer life, in particular, some higher quality, better service business needs this way of booking.

5 The consciousness of service is awakening. The local consumer service industry in the past has been the impression of the majority of small enterprises, more extensive, but with the advent of the brand consumer era, if still not pay attention to the quality of consumer services, and no fine management and service awareness, it is difficult to survive in a fully competitive market. Therefore, the service consciousness is quietly awakening in the local consumer services, affected by the seabed, the basic industries are like similar services near, although temporarily difficult to learn all, but in the effort.

B service industry is still mainly people-oriented industries, and the quality of industry practitioners relatively low, work intensity is greater. And the human cost is one of the biggest costs of business owners, some even more than the cost of investment in fixed assets.

7 belong to the high fixed cost of the industry, so less favored by capital: Just like I did when I was talking to a senior investor, the investor stressed the view that, although more and more enterprises in local consumer enterprises are doing very well and occupy a larger market, because of the high fixed cost of such enterprises, Therefore, it is not suitable for the chase of the VCs with fast forward and fast out, so the relative capital is less involved.

8 The cash flow is in good condition. In the local consumer services sector, if the education and training industry is not counted into the local consumer services sector (the education and training industry is the prepaid model, the best cash flow), catering, beauty salons and other industries have the phenomenon of prepaid, is the sale of a large number of stored-value cards, so the relative cash flow situation is very good, This is also the local consumer service industry does not need to enter the source of venture capital.

Current Difficulties and solutions:

1 is affected by human cost and price cost. The service industry belongs to the full competition market, the gross profit margin is relatively low, the price cost and the rent cost continue to climb in recent years. For the chain of business, in the expansion, there is no suitable property to become a chain expansion of the first choice, but due to good quality of the industry is becoming scarce, so the rental scale has become the norm, which led to the mid-range of local consumer enterprises dilemma layer. While location and backyards are the biggest marketing inputs for local consumer service companies, this is the time to mainstream with social tools such as micro-credit Weibo.

2 How to standardize? The eternal thinking of local consumer service enterprises. Without standardization there will be no future expansion of the enterprise, and there will be no refinement of the operation behind. and standardization is whether the enterprise can chain and scale expansion of the wards, who can not standardize, who can not grow into scale enterprises, on the standardization of countless generations of service people's ultimate ideal. I think that to standardize the need to solve a number of core issues: a product can be standardized. If the product, then the product must be in the initial selection can be large-scale production, and can be consistent and stable supply, the production process and process of the best not rely on people, but rely on a specific machine can be achieved. B Services can be standardized. On the question of whether the service can be standardized, already have the answer, McDonald's, KFC has proved that the service can be standardized, as long as the service process dismantling to the extreme, it must be able to standardize services. C Management thinking can be standardized. The expansion of the service industry is ultimately the operational management mechanism, is there a unified set of promotional methods, market methods, crisis management methods, location methods, this set of administrative thinking will be a person to leave the end, whether can get rid of the shop long heroism, not because the store long one person's departure and lead to management level down? These are the premise of standardization, the core is the management of operating mechanisms. D Talent Management mechanism how to standardize: People's behavior is inconsistent, is leading to the service industry can not standardize the core, one investor and I said: "Why do we not invest in this kind of local service industry, because he has been affected by human factors too much, today he may be in good mood, may serve the good, but bad mood, Today's service flow is distorted. So how to make the service and talent standardization through the system incentive mechanism is the ultimate proposition that the local consumer service industry needs to think about.

3 The temptation of the outside world, this is one of the biggest problems that the local consumer enterprise encounters in the management decision. Good cash flow of enterprises, the temptation of the outside world, in I dark Horse in Chengdu, I found that many local consumer business owners are not only investment has at least one project, the investment of more and more complex, which greatly enable enterprises to diversify the dilemma, can not be consistent operation.

4 Founder's management quality and enterprise governance structure is one of the root causes of the small local consumer service enterprises. As the local consumer service enterprises are China's most grassroots and most innovative group of entrepreneurs, they are the most eager to learn a group of people, but because many early dropouts, so lack of necessary management knowledge of learning, in the early days of the enterprise can also be very good management enterprise, once the enterprise more than 7 people manage the radius ( A boss directly management objects more than 7 people, it is difficult to continue to grow, this time the need to introduce professional managers, but due to the imperfect corporate governance institutions, many corporate governance is actually pop industry, it is difficult to introduce more fresh blood to improve corporate governance institutions, so that the scale has been difficult to go up, Many investors are deterred by the strong family color of such businesses. The solution is only through the introduction of capital pains, the design of a reasonable corporate governance structure from pop like modern corporate governance structure changes, only to grow into a larger enterprise may, of course, it also depends on the founder's own will.

How do the three local consumer service companies embrace the Internet?

The above mentioned the current situation of local consumer service enterprises and the possible plight, in the advent of the Internet era, if you can not learn to embrace the Internet, it is very difficult to survive in this era, especially for local consumer services enterprises, need to understand why local consumer services enterprises need to embrace the Internet:

First of all, the traditional marketing model with natural flow and word-of-mouth mainly, and this has been unable to adapt to the new form. In recent years, the overall growth of China's consumer industry is weak, and the market is more and more fierce competition, simply rely on buying to send discounts these tools have not much effect, the bouquet is now afraid of the alley deep.

Second, online integration is a big trend: from the evolutionary history of Taobao can be seen, consumers are increasingly accustomed to using the Internet to help decision-making and consumption.

Third, mobile end products, especially Somolo will play an important role in the future catering industry, the rise of smartphones, making it possible for users to consume through mobile end.

Four, offline marketing costs are climbing, and the traditional marketing model is uniform, difficult to have innovation and breakthrough. Need a new tool and social media to help promote and boost word-of-mouth.

Finally, the Internet marketing costs relative to the movement of tens of thousands of advertising costs, is still a relatively inexpensive consumer service enterprises to promote the effective way.

Local consumer services companies specifically how to embrace the Internet, below to share two specific cases, the following is a small city hotpot restaurant boss dictate how to embrace the Internet: to run their own social platform

Micro-blogging and micro-mail--I made two of the hottest things in the present. The choice is micro because, first of all, Weibo is really hot. Second, I think of Twitter as the best service tool.

A microblogging operation is good, key data is active rate, interactive rate, I walked the following several ideas:

First, Twitter focuses on content. Because I'm a hotpot shop. I will continue to explain the whole industry in the hot pot meal, practice, what with hot pot related interesting content.

Secondly, I put the microblogging of the public comment network. Every time I launch a new dish, I will be free to use micro-blog to send this new dish to the mass, and then look at the user's evaluation of what kind of

Third, Weibo has become a user vent dissatisfied with the export. I will encourage users to give me advice on micro-blogs, I will look at the comments below each tweet, and then all the good suggestions and comments I will make clear, so micro Bo became my best customer service platform.

And for the micro-letter play is another one of my play. Weibo itself is the property of the media more, and the micro-letter is more suitable for customer management and maintenance, my micro-letter mainly made two points function:

First, I combine my takeaway business with micro-letters. Micro-letter has a very good feature is suitable for voice calls, and now I encourage users to order through the micro-mail, order takeout, booking seats.

Second, all through the micro-trust channel to reserve seats or meals, I will have a corresponding discount, so that the function of the discount and micro-letter platform is a good combination, and then encourage users to develop the advance booking habits, so I actually pay the reservation fee to the booking site directly to the user, and long-term continuous to promote.

And another representative of local consumer enterprises, Rongchang laundry also gave their own specific ideas: The following is the founder of the Rongchang Zhang Rongyao to think about this, the following is the founder of the Rongchang: how the Laundry company to internet a text excerpt:

I started a business in 1990, 2000, we try to do online laundry with Sina, this is the first time I embraced the internet, although not successful, but from this beginning, I have been thinking about how the company and the Internet to combine.

The laundry industry has grown very fast, with sales 600多个亿 last year, but the biggest problem is fragmentation. In addition, there are a series of problems, such as heavy assets, store-length difficulties, high rents and environmental protection. To solve these problems, we invented the "four" and "networking cards" over the years.

The so-called "Four", is a dry cleaning machine shop with four clothing points. This means that only one store in five stores is a heavy asset, five stores only need a shop length, the requirements of the shop is also reduced, the clothing point control in our hands, while the implementation of the national application of the network card, through the two-step reform of the cash flow of a large concentration. This new business model solves some of the knots in the industry, and it is the second time that I embraced the Internet, laying the foundation for the O2O of today's business. The traditional laundry industry faces a lot of pain points. For example, a customer told me, because there is no parking space for two people to drive together, otherwise it may violate the regulations. In addition, the laundry shop is generally open for 13 hours, but in fact the customer in the morning when the laundry is not open, the evening home is closed.

In my opinion, the Internet thinking enterprise to customer understanding a bit like 15-year-old boys and girls fall in love, they never want each other's assets, in their eyes, you are all mine, I have all of you, and even willing to pay for each other's lives. and the traditional enterprise to customer understanding, a bit like 30-year-old woman talk about the object, meet the first time will wonder how many houses you have, what background and so on. Traditional companies talk about return on investment, but in the internet age, companies have to struggle from morning to night to figure out what the customer needs have not been met. In the face of mobile internet, life service enterprises if fully prepared, with unique conditions.

Take the laundry industry as an example, from the customer to bring laundry demand to put clothes home the whole line is Rongchang do, and we have more than 1000 stores nationwide, to fight to the end, competition or the nature of the business, such as product quality and so on. Because Rongchang is a light asset company, the previous "four" and "Networking card" for enterprises to transform the Internet lay the foundation. On this basis, we launched the "E-bag wash"-consumers in the micro-letter after the single, we will express a bag to him, no matter how many pieces, the unified price of 99 yuan. After our staff to pick up the pieces, back to the laundry factory, we give him a micro-letter, tell him the method of post-processing clothes. The clothes have the breakage, the small problem we help to solve, the big problem will consult with the customer, helps them to contact can solve the problem place. We also teach customers how to install more, how to put more cost-effective, the original complex of more than 100 kinds of laundry services unified into a simple product, customers do not have to do too much action.

The supply chain of the Internet, the benefit chain to build is not a day of work, not only by courage and decisive can be solved. The traditional PC Internet needs the technical talent, and the mobile Internet depends on the content to win, need the talented person of the fun.

Traditional corporate bosses like to be king, but mobile internet age enterprises are such: first, equality, democracy, participation, entertainment; second, from the boss to the customer, not so many levels, very simple; Thirdly, the enterprise culture is guided by the sense of ownership participation of the end users.

Although I have Internet thinking and products, but in the specific operation, or unconsciously just the Internet as a tool, but did not rise to the "Internet is a revolution" height. So we have to solve the genetic problem, the people on the shore can not operate the sea. We recently asked a 85-post young man to be the company's new CEO, and I basically became a shareholder.

From the above case, the basic can understand the local consumer service enterprises how to embrace the local consumer services enterprises, but specific what kind of thinking.

Iv. emerging trends and opportunities in local consumer service enterprises

The above mentioned so much, in fact, for the local consumer services companies, opportunities are far greater than the challenge, because of the new urbanization and commercial real estate development, there will be more opportunities for many entrepreneurs, especially the new generation of "new" entrepreneurs to represent, The local consumer service companies they created are starting to show many new types of business, and are increasingly likely to get rid of the plight of traditional consumer service companies and gain the capital's favor:

1 Local consumer services, which are deeply integrated with the Internet, are increasingly being favored by capital. Take Beijing local consumption as an example, life only send one person's reseonly, carving ye beef brisket, only online service 21cake, and rely on on-line booking of catering services Gilleford, etc. are subject to the pursuit of capital, indicating that good with the Internet to transform a production operation of a link, is the trend, And the boundary of Internet Enterprise and traditional consumer service enterprise will become more and more blurred, use Internet as tool, forge flexible supply chain system and achieve better demand management.

2 The simple individuality of the local consumer service enterprises, will also be more favored by capital, and more easily become a new standardized form. To visit the number of standardized catering, the basic products are very simple, extremely easy to standardize, they believe that the spirit of new products, is less that is more. This kind of product manager thinking, more and more favored by the capital, such as Hangzhou's local consumer service business representative Gan's food is favored by the sky map Capital to get investment.

3 For more young entrepreneurs, there is a huge opportunity for local consumer services: These opportunities include professional services such as brand dental services, brand housekeeping, and so on, which often prove to be promising if the problem of honesty is solved.

4 brand upgrades become the key to local consumer services. If local consumer companies only upgrade and service prices, the chances are relatively small. But if there are a number of new good grasp user brand consumer psychology, know the brand of entrepreneurs, local consumer services will appear more large enterprises, if unable to service standardization, product standardization, brand standardization is also the best way to achieve the rise of local consumer enterprises one of the paths, The service enterprise with the personification characteristic will be the new trend and opportunity.

The

50% is a promising service for local consumer services companies. Around the local consumer services enterprises, to provide them with similar business consulting, management training, Internet solutions, recruitment, marketing and other water delivery services will become a new entrepreneurial opportunities, with the rise of similar services, new entrepreneurial opportunities will emerge.