Li: The development of retail chain enterprises in e-commerce era

In order to forecast the development trend of franchise in the new Year, China Chain Management Association launched the "2011 China franchise Investment Boom Survey", the survey target includes 78 domestic franchise headquarters, 24 franchisees and 7 industry experts. Survey found that in 2011, the growth of the franchise will be basically maintained in more than 10%, 1/3 of the enterprises will join the development rate set at more than 20%. The boom survey also found that the concessionaire's enthusiasm for the expansion of overseas markets has been unprecedented, with 15% of the franchise headquarters opened overseas, and more than 30% of companies plan to recruit overseas franchisees. In the online retail business development, 2/3 of the franchise has set up an online sales platform, most of the company's online sales are in the total sales of less than 10%.

With the expansion of strength, some brands of large shops, proprietary shops in the store rents, high transfer fees, terminal operations, talent training, logistics and distribution, image follow-up, such as investment in huge, will bring talent, capital and other levels of pressure, and limited income and extensive management can not digest this pressure. The chain companies surveyed generally believe that labor costs and rent rise is the biggest problem this year, and increase the strength of new product development, the management of fine detail chain stores, expanding online sales channels, is to ensure sustainable growth of the main means.

Offline channel, store fine management is the key

China's traditional retail chain enterprises are mainly divided into two types: one is as a modern retail chain terminal channel business, such as department stores such as Yintai department stores, Paris Spring, Rainbow, New World, Carrefour, Wal-Mart, 7-11, professional retail terminals such as Gome, Suning, and the other is a large chain of terminal brand manufacturers, such as the major luxury brands Louis Vuitton lv, GUCCI, Montblanc, mass consumer goods, the United States, Red Dragonfly, O ' Connell, Belle series brand, Li Ning, Nike, including food and beverage service brands such as KFC, Starbucks, real Kung Fu and so on.

The advantages of retail chain enterprises depend on their size, sales share, urban coverage, the number of single shops. The formation of this advantage means that the chain enterprise not only establishes the brand influence on consumers, but also establishes the purchasing advantage, that is, the good mining and supply relationship with brand manufacturers and suppliers. To occupy a certain market share, the business management model is more mature chain enterprises, the focus is not to expand the number of new stores, but to enhance the quality of the operation of a single shop and sales, shop refinement management is particularly important. Chain Enterprise is very important a core competitiveness is "brand" for brand recognition of new customers or old customers, in the store management focus on new product development, improve customer service quality and brand influence, is the focus of fine management.

Chain operation, expanding online sales channels is the trend

In the development of E-commerce in full swing today, the Chinese telecom, Gome, Suning, the United States Granville, Youngor, Jack Jones and other entity chain enterprises have waded into e-commerce, some have made initial success. In addition to the traditional retail chain enterprises need to keep up with the pace of the times, from the traditional offline business rapid development to offline, online business combined mode. At the same time need to integrate their own advantages of resources, innovative business model, learn two legs to walk, seize the market opportunities, to avoid competition in the face of the risk of being eliminated.

Currently keen on E-commerce chain enterprises to electrical appliances and department stores of enterprises mainly to food and other fast-moving consumer goods (FMCG) chain enterprises such as Wal-Mart, Hualian, 7-11, etc. for online shopping does not attach importance to, reflecting on the low margin of the product category, E-commerce for traditional retail migration role to be slower, In addition, FMCG brand manufacturers in order to protect the interests of traditional channel members and product Price system considerations, also do not want to sell their main products online.

In fact, the chain retail enterprises to actively develop online sales channels, more of the new network to buy brand promotion. Part of the habit of online shopping customers are forming under the line to see Goods (brand, model), online search for goods, three comparison of consumption patterns. This consumption pattern does have a certain impact on the offline store, but the strong chain of enterprises and brand manufacturers are no longer entangled: the rapid rise of the Beijing-east has proved that manufacturers can not stop the lure of low-cost sales of online shopping platform, chain retail enterprises naturally understand, rather than let others dig their own corner, It is better to let the digging corner still in its own warehouse.

E-commerce has a certain impact on traditional retail channels in the near future. For example, under the line to see goods, online procurement consumption model, but in the long run, E-commerce is a strong chain of retail enterprises into the "future" tool: The use of offline brand influence to obtain online shopping preferences crowd, and the use of online purchase of registered users and consumer data, The expansion and integration of the upstream and downstream of the industrial chain. Therefore, the strong retail chain early electric shock, and the establishment of electric business marketing team and system, is a strong retail enterprise inevitable choice, this is the chain of strategic shuffle of the key turning point: positive adaptation, can enter the future, passive, may be eliminated by the electric business revolution.

How does chain operation combine effectively with electronic commerce?

In order to realize the effective combination of e-commerce and chain enterprises, we must adhere to the three principles of cooperation: the principle of integrity, requiring that all parts of e-commerce and chain enterprises should be coordinated and operated in a unified whole. "1 1>2" scale principle, two enterprises must follow the cooperation of the overall benefit must be greater than the first two enterprises respectively of the benefits of the sum. The principle of complementary advantages, e-commerce and chain enterprises have advantages, in cooperation to produce the principle of maximum economic benefits, in the integrity of the principle of the foundation, retain the original advantages, each holding the director, the need to seek common development.

E-commerce website can be established in a short time, and the establishment of physical logistics distribution network is impossible to complete in a short period. Chain operation after years of development, with a sound and perfect service system and logistics distribution system, is the development of E-commerce, especially the model of the basis and protection. In the chain business based on the customer model can fully meet the demand for delivery time. Consumers only need to pay online payment and as required to fill out personal information, e-commerce companies will be based on consumer information to assign the nearest chain operators store delivery and related after-sales service. If there is a barrier to network payment, the branch can collect the payment. Chain Management Enterprise's strong logistics system can help E-commerce to achieve low-cost delivery of goods and send timely, channel unimpeded, can better solve the online retail facing the distribution problem.

Chain management, in addition to better for e-commerce to solve the problem of logistics and distribution, we must strengthen their own construction, to achieve information, networking and automation:

The internal information construction of chain enterprises is the basis of effective cooperation with electronic commerce. The information construction within the chain enterprise is to establish a management information system based on the intranet of the enterprise, and better manage the various departments of the enterprise, realize the informatization and high efficiency management of the business activities. The chain stores only have developed information system, can make the logistics distribution efficiency higher.

Chain operation of the network, one is the operation and distribution network Network, expand the scope of services, improve delivery speed, while reducing logistics costs. The second is the computer communication network of the chain management system, including external network, intranet and Internet. The automation of chain enterprises is mainly to combine advanced technology, equipment and Computer Management system, use computer to manage and control the whole process of logistics operation, realize network distribution, reduce the error of logistics and distribution, improve efficiency, facilitate information real-time collection and tracking, and improve system management and monitoring level.

The development of chain enterprises is based on the electronic transformation of business activities and the improvement of information processing efficiency, while the development of e-commerce is based on the development of physical logistics distribution system. E-commerce and chain operation of the virtual and the perfect combination of the formation of a three-dimensional, multidimensional network system, so that a variety of advantages of the network more prominent, not only effectively solve the logistics bottlenecks, but also improve the status of the chain operation. Give full play to e-commerce and chain management of their respective advantages, increase cooperation, broaden the field, will make both the pace of development, to achieve a win.

How does the chain enterprise face the competition and conflict of the traditional electric business enterprise?

In recent years, the annual sales scale to maintain 150-200% growth of Jingdong Mall, to Low-cost strategy happy enclosure, triggering a series of household electrical appliances products, once again triggered the industry's network channels and entity channel Competition and integration of the discussion. Jingdong Mall's strategy is the E-commerce enterprise commonly used expansion strategy, but brings two big problems to the entity enterprise: one is Skyworth and so on the appliance brand needs to face the network channel to bring the market price disorder to cause the string goods the question, how controls the network channel and the entity channel stability; the second is Gome, Suning and other household appliances retail giants face how to deal with the low-cost E-commerce giants such as the challenge.

In fact, Gome, suning and other household appliances giants once blocked Jingdong mall, but not fruit. Although Jingdong Mall's home appliance sales are far less than Gome, Suning, but E-commerce is an irreversible trend, most home appliance brands will not easily give up network channels. In the face of the trend in the early 2010, Suning and IBM cooperation to establish E-commerce platform-suning easy to buy, November 2010 Gome to buy Bowser network, the development of E-commerce. Suning, Gome and other large chain enterprises, can rely on its developed logistics supply system and scale procurement advantages for E-commerce platform to do very good support. However, like most of the chain enterprises, the problem is how to solve the chain of business model and the conflict between E-commerce model, effectively integrate the entity and network channels.

The conflict between chain operation mode and e-commerce mode is essentially the conflict between entity platform (channel) and network Platform (channel). From the management point of view, the chain of business model and E-commerce model is completely different mode of operation, and its management system is not the same. Chain Management mode is a hierarchical management mode with certain time limit and regional restriction, and e-commerce is a flat management mode which breaks through time and space. How to integrate the management of the two is a difficult problem. From the market point of view, the chain of business model and E-commerce model to face the customer overlap, and there is a distinction, then inevitably the two will produce competition. If to join the chain-oriented enterprises, joined the Chamber of Commerce scruples about the impact of E-commerce platform, it is likely to hinder the development of joining. From the point of view of core competence, the core competitiveness of chain business model stems from the huge terminal sales network and efficient chain management system, whose operation is standardized control and standardized replication; The core competitiveness of e-commerce mode originates from efficient logistics distribution system and low price network sales, its operation is to provide low-cost quality products. Therefore, the electronic commerce will disrupt the chain operation price control, may cause the price confusion and the string goods, simultaneously blows the dealer.

How to solve the above problems?

First, differentiate between industry and product characteristics. Generally speaking, the following conditions can be unified control policy: Product price elasticity is small, customers are easy or accustomed to online shopping, E-commerce Target customers and chain stores of the target customer differentiation is relatively large. such as the Shenzhen Network flower Shop, through the network ordering and physical chain distribution combination, the use of a unified price, unified procurement, unified distribution methods.

How can we solve this problem?

To Skyworth as the representative of the brand commodity providers, basically difficult to integrate two models, two channels. This brand commodity provider does not control the chain of terminal channels, nor does it control the E-commerce network channel. In China, there is no control channel means no right to speak. In fact, from the experience of E-commerce development in the United States, brand commodity providers do not need to care too much about this conflict. Because China's e-commerce is in a fast-growing period, when it developed to a certain scale, can compete with the entity chain, from the physical chain of retailers of the blockade to natural decline. In addition, it can reduce the absolute control rights of the entity chain retail enterprises and improve the bargaining power by means of the competition between the E-commerce Enterprise and the entity chain retail enterprises. However, brand commodity providers can use the logo "special" and guide the price of the way to control the price to a certain extent, to prevent string goods.

The brand chain retailer, represented by Jack Jones, can use differentiated management for e-commerce and retail chain stores. From the aspects of organizational control, the general use of the Department of Business and Group control of the form of E-commerce and retail chain independent assessment, accounting, but the implementation of monopoly wildcard, to play the scale of procurement and logistics distribution advantages. From the competition strategy, E-commerce and retail chain can adopt their own competitive strategies, including price strategy, the company's headquarters to make strategic control. The two models of the target customer difference is big, or the customer discretionary purchase strong, purchase frequency is high, can adopt this kind of management mode. It is worth noting that E-commerce execution is relatively easy to operate.

Gome as the representative of the chain retailer, its management model is relatively tricky. If the chain stores are proprietary, then can be differentiated management, using monopoly wildcard, retail outlets and E-commerce independent operation. If the chain stores have franchises, you can use the relative difference management. Network sales and regional retail outlets, network orders, regional chain stores distribution, profit sharing. This can effectively improve the enthusiasm of dealers. Customers buy low frequency, the purchase behavior is relatively rational enterprises can adopt this mode of management.

In addition to developing existing offline channels, retail chain Enterprises in the 2011 are inevitable to expand the channels of electronic commerce. How to find a blue sea of their own, to explore a combination of their own conditions and e-commerce business model is the key.

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