The competition between electric winner and shops

The 2012 "Double 11" festival, only the cat and Taobao to set up the so-called history of the highest, up to 19.1 billion yuan retail transactions record, became the hottest topic, but another hottest topic recently was born.

December 18, 2012 at the 2012 CCTV Economic figures awards ceremony, and the election of Alibaba chairman Jack Ma and Wanda Group chairman Wang on "Whether the electricity dealers can replace the traditional shop management" debate. Both sides also for 10 years after the Chinese retail market share can be more than half, Hao set the "domestic history of the highest 100 million yuan gamble."

Can electricity dealers replace shops

Wang and Ma Yun to gamble, triggered "10 years later whether the electric dealer can replace the shop" hot discussion. So the traditional retail industry is really so vulnerable, and the electrical business can be triumphant, by leaps and bounds, until 2022?

Put into, hit advertising, price war, rob the market, every time "double 11 war" seemingly hot, in fact, behind the cost of a sudden rise in income. Data show that the current 55% of the domestic small and medium-sized manufacturers in the loss of the state, which is the same as today's buy net, video network industry. Low prices can not be the only means of electricity, so the loss of money to make a yell is obviously difficult to long-term, although the short-term users can get benefits, but in the long run it is not good for the healthy development of the industry. In many people's eyes, as long as a computer, a network, a person, not a storefront, you can become the electricity business, the money rolling in, the fact is far from it. In addition to the server, personnel, operating expenses, standardize a little, but also to create warehousing, improve logistics and distribution, but also to the cat, Taobao and other big ping Taiwanese pay a variety of "taxes and levies." Now with the O2O mode (off-line business model) of the popular, some more powerful electric dealers have also been established offline experience shop, which makes its operating costs are increasingly heavy, the future risk is more and more big, comparable to the traditional retail industry.

The electric business model also has imperfections and short boards. Although the "double 11" period, the electric business enterprise has created the sales record, but the traditional retail enterprise still has the irreplaceable superiority in the consumer experience. Now consumers most emphasis is experience, such as in the market can repeatedly try to wear a variety of beautiful clothes, for many people are very attractive, this is not available online. The integration of traditional retail enterprises is also difficult to reach. Now consumers are no longer satisfied with shopping, but also need to set taste, leisure, entertainment, fitness and other multi-level shopping enjoyment, which is also the domestic shopping malls into the climax of one of the reasons. Data show that at present, China's construction of shopping malls in the world's largest, which shows that the electric business is growing, the traditional retail industry is also in follow-up.

Also, despite the rapid development of the electric business, but for the brand of the retail industry to settle down, the traditional retail still has a greater advantage. At present, most high-end brands are not stationed in the cat and other electric platform, still choose its location and the traditional retail channels, also proved this point.

Moreover, in the boom of the electric business, the traditional retail industry will not be "without a fight", there is still a "great leap forward" possible. The experience and comprehensiveness of traditional retail enterprises is irreplaceable, how to play this advantage is the key to gain market share and keep ahead. In fact, in order to meet the needs of customer diversity, to cope with the double attack of sales decline and cost rise, more and more traditional retail enterprises decided to break through the original extensive business model, gradually began to cover department stores, supermarkets and entertainment and other forms of shopping malls to transform, through the combination of multiple industries to expand the Let the retail industry maximize synergies. At present, many retailers with strong financial strength have opted for the expansion mode of "Retail + Real Estate" from the property purchase. Information shows that if the retail enterprises own properties, operating costs will be lower than the rental property 20%~40%. Like China resources million will be pharmaceutical cosmetics shop, the Pacific (601099, shares bar) coffee, OLE supermarkets, China Resources Hall, wine cellar, such as 6~7 a combination of industry, unveiled in Guangdong, Beijing and other large shopping malls, hit.

In addition, the traditional retail industry in order to achieve better development, can also actively through new technologies to change its adherence to the traditional model for many years, with higher than the electricity quotient of new technologies, in an invincible position.

Complementary integration can win

The industry pointed out that both consumers and electric business enterprises, the price war has become increasingly "aesthetic fatigue", the electricity business consumption will gradually return to rationality. At present, E-commerce retail sales accounted for only 6% of the total merchandise, although the growth rate is very considerable, but to a certain extent, its attractiveness will become weak, profits diluted, the growth rate will correspondingly slow down.

Therefore, the electric business can not be too optimistic, the traditional retail industry should not be too pessimistic, each has its own strengths and short. For most brands of businesses, electricity and traditional shopping malls have advantages and disadvantages, should not be an "either or" choice problem, but should form complementary advantages. The contradiction and amalgamation of the new and old retail models, in essence, is not who replaces who, is a process of complementarity, promotion and integration, the traditional retail industry is more unlikely to be completely replaced by the electric business.

However, some experts pointed out that the two men, MA and Wang debate "electricity market share can be more than half," is actually a pseudo proposition. There is a lot of controversy about the sales scope, the statistical calculation route, the method and the statistic data of the survey organization. Horse, Wang Gambling, or the establishment of a CCTV entertainment news, not too serious.