Embracing the internet has become a key point for traditional retailers to focus on today and in the future

Embracing the internet has become the key point of the traditional retailer's focus in the present and future, but in the way of the integration of the online transformation, most of the retailer's online performance, popularity and influence are still difficult to compare with the pure electric quotient. This and its products, operations and marketing, and many other electrical business concepts, technology, and in these links, the traditional retailer is the most urgent is to be from the big data and the marketing level to complement the "Short board." Recently, the reporter exclusive interview with the domestic internet large data marketing platform leader, the founder of Kosching, president of the company, listen to it from a professional electric business marketing service providers to interpret the traditional retail industry transformation and O2O tide.

Yenjuyang: How do you evaluate the traditional business response to the Internet tide?

Kosching: Traditional brands face the tide of electronic commerce can hold live. At present, the traditional brand follows the path of the electronic commerce butterfly becomes very positive.

No matter how the electronic commerce develops, the electric business and the traditional commerce are related. Alibaba "Double 11" TOP10 Sales list only one Amoy brand, the other is all traditional offline brand. From this point of view, E-commerce has promoted the development of traditional commerce, traditional brands, E-commerce has been a part of the national economy. At the same time, as an online distribution channel, electronic commerce is becoming more and more obvious than the traditional commercial channel. Users online access to the purchase of goods, is the purchasing power to the online channel.

At present, the active embrace of the electric business is often those big retail chain enterprises, more small and medium-sized regional retail companies, or large stores, business Super Retail companies, the transition is relatively weak, transition movements are also relatively slow, they are still operating his position, his place.

This will have a little "shuffle" flavor. The efficient use of new tools, such as E-commerce, could lead to significant changes in the pattern of traditional commerce. Especially now can see, BAT (Baidu, Alibaba, Tencent) all from line to line, on the one hand seek and the combination of traditional business, on the other hand built some traditional business, already had a little "big curtain pull up" flavor. Yenjuyang: The traditional retail industry before the afraid, often said that the advantages of the electricity quotient is low cost and enjoy the growth of Chinese internet users market dividend, how do you look at the profit model of the electricity quotient?

Kosching: Electric Business PK The advantage of traditional economy is not low cost, but high efficiency. In fact, the overall cost of electricity dealers is not low. The so-called cost effect comes from the scale, the real role is in efficiency. The success of Jingdong or cat [Weibo] comes from efficiency, and its inventory turnover, circulation rate, including the user search for his time efficiency is higher than the traditional retail enterprises.

What is the main future of the electricity business? Not in a simple transaction, but in the long-term operation of the user, from the user's life cycle benefits for life, this is offline business can not be compared. Traditional retail is an exhibition site, it is not easy to know who his users are. And the line from the position to the user has a set of tools, not only know who the user is, but also know the user's character, consumption, consumption, its consumption cycle can be more accurate, user stickiness is higher. The electric business enterprise almost all links can do the statistics, but under the line traditional commercial enterprise can unify the national member to manage very few.

Yenjuyang: The data show that the growth of the entire electric business sector has slowed in 2014, as can be seen from the "double 11" increase. What do you think is the reason for the slow growth of electricity quotient?

Kosching: The slowdown is due to large volume, relative to 2014 China's GDP growth is 7.4%, the total retail sales of consumer goods in real growth of 10.9%, 2014 year online retail sales growth of 49.7% year-on-year, this growth rate is still very large. The future, the growth of e-commerce space is still very large. Today, about 10% of E-commerce is still small, but it is actually affecting a generation. E-commerce began to flourish in the 2009, that is to say, 2009 graduates of the group-"85" is the main force of E-commerce. At present, "after 85" Just married, this group of people is a family inside the main spending decision makers. This is a generation of consumer behavior. The "Rent-collecting" model is a constraint.

Yenjuyang: Now the traditional retail enterprises clearly see the trend, are in the pursuit of transformation, 2014 by the industry recognized as O2O year, but because of the lack of success stories.

The industry also some reflection, that O2O, the whole channel, including large data, or the concept of more hype, that is "false." What do you think?

Kosching: O2O appears because the line can not cover the entire human life, a large number of service types or to be delivered online, pure e-commerce can not be replaced. O2O is the use of mobile Internet tools to replace the efficiency of the original so-called telephone communication efficiency, the current more optimistic O2O most of the connection is weak service resources and front-end scattered needs to do matching. Mobile phones become a bridge, become online, digital tools, (this model) is often more successful, because it can solve information asymmetry, can do efficient matching, while the service must be line down to delivery.

E-commerce now accounts for 10% of the total retail sales of consumer goods, and there is a significant development distance. How much cake companies can grab depends on being patient enough to support the development of E-commerce. The traditional retailer, because it is a backward entry, gets the user cost, the investment is bigger, has a certain disadvantage. If you want to avoid disadvantages, direct focus on the mobile Internet, direct focus on O2O, will be more pragmatic.

The emergence of new productivity can not be overlooked, may be the initial stage to explore, but this is a continuous iterative process, once the completion of an iterative cycle, the energy must be released. Now some industries "do not do electrical business and so on death, do electric dealers may find death" status, reflecting the "dark before the dawn." I still believe in "early hug, early to be reborn."

Yenjuyang: At present, there is no successful case of transformation, is it because the time has not arrived, or because the path or mode of exploration is misguided? What do you think is the reason?

Kosching: First, the top design is not very firm; second, the whole mechanism, talent structure is not match; third, the transformation of the new things is not an overnight, need to have a reasonable expectations and adequate space.

For example, in the first half of last year, we made a O2O user identification hardware project. Online E-commerce companies to cooperate with us, to pay the normal marketing costs to us, because we help them take orders, but offline supermarkets do not bear the cost of marketing, but we need to pay for the supermarket entrance fee. We visited the various sizes of the offline supermarkets, either they are more hierarchical, the store is not decided, or the lower level, does not support our solution. It can be seen that the impact of the new mechanism on the old mechanism is more the difference of concept, talent and mechanism.

So after six months of implementation, we can only give up the project, because we feel that online under the line is "two different world." Traditional retail is a "dinosaur", we have no way to effectively change them, this may require the trend to allow the "dinosaur" to change. Yenjuyang: Do you think the attitude and situation of the traditional retailers will change in the future?

Kosching: There is no change of opinion. Traditional retail areas will be divided, such as suning such a pioneer will be successful transformation, and drive followers also have new thinking changes, but also a group of outdated will be eliminated. Two-wheel drive is indispensable

Yenjuyang: In the face of the impact of the Internet, what should traditional enterprises do to truly transform and divide the cake into bigger? Kosching: Traditional retail is more accurate to say more in the "Rent" real estate business, want to turn into online retail, to go through two barriers: first is to turn into "retail", the second is to turn into "online retail."

This process has a high degree of difficulty because it is the process of resource matching between new business models and old business models. Many offline retailers do not have supply chain awareness, and no online retail companies do not value the supply chain. This is a big gap.

Yenjuyang: So in the face of the impact of the Internet tide, traditional retailers do not know how to play. The current dilemma is that physical retail profits are thin, but the cost of acquiring users is rising, and the marketing costs of the transition power market have doubled. How do you think traditional retailers break the trap?

Kosching: Changing the system is one. Traditional retailers first have to zero in their minds and participate in new games with the spirit of learning. First do not want to combine, first learn, make up the short board of the Internet, then to combine the traditional advantage. The original business logic is "the place to get the world", is now "users have the world." The original is a geographical concept of consumers, now users are mobile, online, on the mobile phone is no geographical concept of consumers.

At the same time, the capital must be "smashed". Because the growth of new users has been lower than the growth rate of the electricity quotient itself, the new user is less, will increasingly produce competition behavior, competition behavior itself is high input behavior. To grow will require more reliance from competitors "pull users" over, pull users to transfer costs-there is the cost of branding. For example, a special love to Jingdong a user, turned into Suning loyalty users, it must be to put more "red envelopes."

Online marketing is the most important thing is to build the brand in the minds of consumers position. Now a "85" customer wants to buy something, what is the first impression? This is actually a reference rate. It is difficult to change the traditional retail business from the original location into a business user. Yenjuyang: At present, whether it is from the electric business platform positioning, commodity structure or service, marketing, in fact, the line under the same game, the future growth of the industry where? How many opportunities do traditional retailers have to grab bigger cakes?

Kosching: Flowers still have the advantage of flowers, after the entrants must pay a greater price, this is the logic of the Putian. In the future, the strength of the traditional electric dealers came in, the pure electricity quotient less and fewer, the real entrepreneur will transfer to the mobile electric business, O2O and other emerging fields. In the future in the Internet traffic, mobile Access will also move to diversify, is no longer a few big portals of the world. In the 2014, it is obvious that the vertical electric quotient is more. The first is the only product will, by the only product will be encouraged later is poly beautiful products, then Mushroom street, Beautiful said, and now come out more micro-electric business platform, such as micro-shop.

At present, the electric Business enterprise mobile end of the sales accounted for 40%, usually about 30%, from this perspective, the industry is in the process of learning and growth. In this respect, traditional retailing can take a step in stride. On the mobile side, the mobile phone itself is to obtain geographical attributes, and the user is the most critical, mobile internet for traditional retail, should have more opportunities.