The O2O battle between shopping malls and electric dealers

In many people's eyes, Wanda through the O2O into E-commerce seems to be a shopping mall in the sense that they have been a serious threat to the electric dealer, hoping to compete with the electricity business, through this way to gain a competitive advantage. So based on my experience in the retail industry and in-depth practical research to do a superficial analysis:

First of all, the first to understand in China's Wanda-represented shopping malls, shopping malls are a variety of retail business complex combination of the three major industries are supermarkets, department stores and services (including catering, hospital line, fitness, etc.).

America's large and small shopping malls have more than 40,000 homes, mostly in the suburbs of the United States, the so-called shopping malls are defined as: a group of small and large stores together, the stores independent, but unified management. There are two kinds of open and closed (enclosed) shopping malls, Mall of America in the 50 's with the supermarket industry and the department store chain and centralization of the development began, the sustainable development of shopping malls make the commercial retail business more rich than ever, the largest shopping center for Mall of America, there are eight department stores and thousands of small and medium-sized shops, and 40 million people go shopping every year.

The development of shopping malls in the United States shows that the main challenges of shopping malls are like department stores and contribute very much to national travel and shopping, which is why countries around the world are strongly supporting the development of shopping malls. China's shopping center development is also in recent years, the most rapid in Dalian Wanda, as of 2012 has opened Nationwide 66 Wanda Plaza, the cumulative possession of 12.9 million square meters of open property, become the world's second largest real estate enterprises. No department store has cooperated with Wanda in the course of the Advancement of Wanda Plaza, make Wanda in the beginning of the establishment of their own department stores-thousands of department stores (renamed in 2012 as Wanda department stores), but by the centralization of the centralized system, Wanda department store development is not smooth, although through Wanda Plaza to open the number of stores up to 57, To become the largest department store in China, but its single store revenue is not because of the number of open shop has been promoted, in the industry only a few more than 100 million. Far less than wangfujing, silver Taihe and Parkson These traditional old department stores.

Of course, as a department store, it is urgent to be in danger, in Wanda Plaza and Wanda department store in the high speed of the development process, several top department stores have issued their own shopping malls strategy and E-commerce strategy, in the hope of shopping malls and the development of electric business under the double pressure, so that their main industry- The Department of general merchandise can gain the competitive advantage in the future to have sustainable development.

Department stores and shopping malls in China are all developed in the form of commercial real estate, unlike the American department store, which is developed in the form of buying hands (quite a department store), so that the advantage of department stores is the management of commodities in a single product, which cannot be replaced by shopping malls in the short term, It can even be said that American shopping malls do not want to establish such a competitive advantage in the past, after all, the advantages of shopping malls in commercial real estate and comprehensive management of multiple industries. As a result, department stores and shopping malls to form a very good complementary, and then form a synergistic development, in such an environment to a certain extent also fought for time and electricity business enterprise competition, which is also Amazon in the department store has not been a good reason for growth.

In China, the situation does not exist, department stores and shopping malls become a direct competitive relationship, coupled with the competition of electric dealers, the entire department store industry into a kind of before the Wolf has a tiger situation. So we can see that Wanda Group chairman Wang and Ma Yun to 100 million of the share of the gambling power can not exceed 50%, because for Wanda, the competitive advantage of the shopping center is so obvious, and with the brand merchant line under the online price integration, the future development of international tourism, Must make the shopping center to appear the blowout type development, but the network currently obtains the performance by the price superiority will be reassessed and the definition, the network user experience is no longer three-dimensional, the list type catalog sale appears somewhat thin. Coupled with a rise in income, where people pay more attention to health, food and entertainment (which is the biggest part of the shopping center), it is a new trend to turn to recreation and shopping in the tropics.

At the same time, the development of mobile terminals to the traditional commercial real estate retail industry to see new opportunities, this is also O2O has been really more efficient, lower conversion costs to achieve the technical basis, but for shopping malls, the only leisure and entertainment into the realization of O2O, at best, is only an entity of the group buying site, The business model seems too small for the conglomerate, which has sold billions of millions. So as I have experienced in the department store industry, Wanda in the electric business is the plot is a year online can do tens of billions of, online can do thousands of million on the scale of the department store, through the integration of service products (catering, hospital line, fitness, hotels, tourism, etc.) to obtain a large number of people, Through more systematic experience of the electronic business integration of more comprehensive way, so that its Wanda department store can rely on the rapid development of electricity, and the formation of higher consumption frequency and user stickiness become the real strategic focus of O2O.

Of course, for the electric dealers and the big guys in the department store, it is not difficult to see through this, so through a variety of practices or their own advantages to force the retail industry under the line, become the electric business enterprise itself in the O2O development process under the line service, through the redistribution of benefits and online scale advantages and operations, The management cost Advantage unceasingly attracts the brand merchant to distribute the resources to the electric business enterprise more, becomes the electric business enterprise O2O strategy very important link, next is through the electric business platform development after obtains the stereoscopic experience and the large-scale return line opens the shop to form O2O inside closes the ring the brand merchant, In this process also for the electric business enterprise this strategic layout plays a very crucial role in demonstration.

As a result, it seems hard to conclude that a shopping mall represented by Wanda will win the Battle of O2O, and that it becomes less certain that electricity dealers will be able to replace the shopping malls with the support of brand makers. In the normal business logic, the commercial social structure and the competition balance, the shopping center and the comprehensive electric power quotient in the competition mutually promotes, the study and the development becomes the biggest possibility, as I once wrote "The flat retail World" generally, the line and the line end is standing on the same competition line, In the next 5-10 years in the brand merchants online retailers and offline retailers to promote the completion of price synchronization and balance offline and offline sales system, we will usher in a flat retail world!