E-commerce strong forced palace traditional business

The tide of times, mighty, all things in the world, this extinction long. Ancient "Because of the collection and the city", "because of the city and set", to the modern business tide, can laugh proud, for the knowledge of the times, homeopathy and as a person.

Three waves of traditional commerce

The first wave: department stores. China's first ever-built department store was born on October 20, 1917 in Shanghai's Nanjing Road, opening day, crowded, shopping and visitors a stream, once caused the road jam. After Shanghai, Guangzhou, Beijing, Wuhan and other place of the department store explosion-like development. The rapid development of department stores, completed the whole society more than half of the retail volume, the department of Industry became a well-deserved king of the state. Department store prosperity, is a lot of personal stores began to appear large-scale closure, in addition to individual features of the Hundred years old shop can still stand, the vast majority of personal stores struggling with low profit margins, or the brink of life and death. The first commercial tide came too fast, most of the business operators do not have the strength to change, under unprepared to change, towards extinction.

The second wave: supermarkets. Supermarket is a new business after the department store, the first supermarket in China in 1983 opened in Haidian District, Beijing. At the beginning of the development of supermarkets, many operators of supermarkets are not recognized, and some even disdain, the reasons for three:

1, shopping without guide;

2, a large number of goods fully open shelves optional;

3, the price is generally lower than department stores.

(This situation is very similar to the current situation of electronic commerce and entities)

But there are also some people who follow the trend to actively try to develop the local situation by the department store mode of the supermarket industry. Over the next few years, the operators who are willing to change are developing very well, and the operators who are not following the trend are increasingly embarrassed. The entire retail industry ushered in a big shuffle, a number of regional leading department stores, and the development of supermarket retailers rapid growth. Today, the supermarket industry has surpassed the general merchandise industry, the reign of the Chinese retail.

Third wave: Chain. The adoption of standardized business methods and the implementation of Central group management is a more efficient form of retailing with a group of identical brands. Chain has a variety of forms of business, such as Wal-Mart, Carrefour, such as the representative of large-scale integrated brand supermarkets, operating a major category of goods-oriented gome, Suning and other brands of professional stores, such as a brand of Li Ning, Haier and other brand stores. Foreign chains appear in the middle of the last century, is the supermarket development after 20-30 years after the rapid development. China's chain of development has been directly introduced from foreign experience, the rapid development of supermarkets in just a few years after the chain, the recent years of rapid development. Chain core role is a category segmentation, with the following three characteristics:

1, to Brand as a chain of identification;

2. Unified price and service system;

3, in quality and after-sales service to make a unified commitment.

(1th corresponds to the unified Web site for electronic commerce, the latter two points fully consistent with E-commerce)

Chain division of the original industry category line, so that it quickly become the leading shopping place in people's lives, quickly grabbed the department stores and supermarkets market share. At that time in the department store profit of the dominant low home appliances category has now been the chain division, clothing from the original industry is part of the new sector, cosmetics from the original industry is also gradually separated from the new industry. The emergence of the chain of business, so that the time is gone, the loss of most of the site by the chain occupied.

Three major characteristics of business development

The three waves of traditional commerce illustrate the three characteristics of business development:

1, the new industry once appeared, fitter State will be a large area of death (compared to the present e-commerce, so that the traditional business into a large area of business difficult situation);

2, generally speaking, the new business state five years will split fitter state nearly 30% of the market (compared with the current e-commerce is in the rapid development of the first 2 years of the stage, is gradually dividing the market share of fitter);

3, fitter state will not die, but to follow the wave and change (compared to the current department stores, supermarkets and chain does not disappear, but follow the tide, more and more department stores, supermarkets and chain operators into the emerging e-commerce, the future result may be that most business must be achieved through E-commerce).

Now the development of E-commerce is also in line with the above three, the emergence of e-commerce to make the traditional enterprises into difficulties, divided part of the fitter state of the market share, long industry does not disappear but must follow the trend of development.

The fourth wave of commerce: electronic commerce

In the middle of the 90 's, the rapid popularization of Internet and the application of mobile technology have formed the fourth business Tide: e-commerce. This is not a small innovation, but a change from the inside out. Internal processes are administrative, and their external processes change history.

Internationally, electronic commerce is developing rapidly. The United States is the earliest e-commerce development of the country, the current growth trend of e-commerce is still very obvious, is close to the general merchandise industry; Japan's e-commerce development closely followed the United States, the current development of a steady upward trend, but also close to the department store industry; At present the scale of electronic commerce has surpassed department stores. Korea's traditional channels and online channels parallel shopping sites faster than the sheer growth of internet shopping, a large number of traditional enterprises have done e-commerce sites to seek survival and development. It can be seen that e-commerce in the rapid development of the general trend.

China's e-commerce development has just begun, e-commerce sales form of no shopping guide, optional and lower prices and the supermarket industry is very similar, the operator of e-commerce attitude and when the supermarket appeared in the attitude is very similar. But the reality of the situation should let consumers set the right point of view, in the rapid development of E-commerce, other market share in the impact of the electricity quotient, the total retail sales of consumer goods have declined:

1, department Stores: Cat Mall, Yintai and other direct segmentation of its market share;

2, Supermarkets: Shop 1th, online Wal-Mart and other large online supermarkets on the online division of its market share;

3, Chain: Beijing and East division of the entity chain market share, Su Ning, gome face the aggressive momentum of Beijing East, had to carry out e-commerce.

In addition, there are a number of brand stores, such as outlets in the impact of the electricity sales of its overall decline of 30%, and only the emergence of goods will be a heavy blow to outlets. With the rapid development of E-commerce, the department stores will continue to decline in the future, and more and more department stores are transferred to the online sales. At the same time, department stores need to sell higher-priced goods to keep them profitable, leading to a rise in their retail price bands.

At present, China's e-commerce development in the ascendant, is expected in the next 3-5 years will be in full swing, into brilliant. The impact of electronic commerce on social economy is more clear and far-reaching than the rise of supermarkets and the rise of chain in history. Because it not only affects the rise and fall of some enterprises, more far-reaching impact on the livelihood of the nation.

As of December 2012, China's online retail market accounted for 6.3% of total retail sales of consumer goods, compared with 4.4% in 2011, according to China's E-commerce Research Center. China's online retail market is expected to account for 9% of the total retail sales of consumer goods by the end of the year, according to pundits, who predict that the ratio of at least 25% in the last three years is a good indication of the beginning of a change in retail business.

E-commerce forced Palace entity retail situation, how to deal with

The development of E-commerce, as well as in its forced palace under the real profit of the status quo, retailers, brand operators want to survive and develop, to obtain greater profitability, we must have the awareness of e-commerce.

1, the treatment of electronic commerce can not be regarded as trivial, nor as a scourge. Like the supermarket, just beginning people do not recognize, disdain Gu, to the later insight into, and then into the rapid development of the track. The development process of e-commerce is neither trivial nor scourge, but gradually grow into a new and powerful business state. It constantly shocks the traditional retail industry, which will force the traditional retail review and change.

2, comply with the trend of business development, can not stand idly by, indifferent, do not wait until the trend has been set, then to lament sigh. As a new business state, electronic commerce not only changed the human life style to some extent, but also shaken the traditional business model with hundred years history, which brought great impact to the traditional retail market, and triggered a new round of changes in traditional retailing industry. Operators should conform to the trend of business development, thinking of change, heartbeat and action, in the process of e-commerce quickly occupy an important position, from which to develop and profit.

3, physical retailer: proactive response, self-transcendence, their own life. Retailers would rather pay some price to try the electronic commerce, make scientific and effective attempt, accumulate experience. For inexperienced retailers, we can proactively seek out the company that provides the full range of the dbo power provider, and provide a systematic solution to the success of the electric dealer. The DBO provides the optimal success path tailored to the different customer's differentiated requirements and conditions, and assists the enterprise to quickly cut in and execute effectively. Through the DBO team's support and assistance, improve the success rate of e-commerce, reduce risk, less detours, rapid success, large-scale profit, beyond their own, to achieve the business era of Enterprise's own transformation.

4, brand Manufacturers: There are "crisis" also has "machine", in the face of business change to "crisis" as "machine." New brand through the electric business channel to grow into a competitive brand, the original brand is the danger of brand competition; Of course, opportunities and threats coexist, E-commerce allows brands to have more than in the Department of the era of its competitive brand opportunities. Some unwilling or not into E-commerce, may have been less competitive than their brand catch-up, and those who do not follow the brand in a timely manner, may also be made by the elimination of electrical goods. In the process of business development, some brands or industries disappear without follow up in the process of business change. For example, China's daily products, in the department store changes began to decline, to the supermarket wave period has not changed, has now fallen into decline; again, such as, in the beverage industry, many brands in the supermarket development process has not changed, and become a disappearing brand, and Wahaha follow-up supermarket development pace, now can successfully compete with international brands. And in the era of electronic commerce is even more so, keep pace with the business change is "machine", not keeping up on the "crisis." The lack of E-commerce brand building experience in the brand, can be in the dbo full service, with the help of the power trader to seize the development of opportunities.

Therefore, the traditional business operators face the trend of the electric business, should conform to trends, actively face, proactive, self-transcendence, can be successful.

Author Introduction:

Jin Xin, China's leading E-commerce leader, national experts. Zhi Xin and the public (e-commerce direction), Zhi Xin Yu Jie, the founder of cloud mud technology. E-mail: service@ec-serve.cn, Welcome to Exchange.