What is the future direction of the entity retailing industry?

I think these two problems are more ambitious, but it is necessary to think, so I try to answer.

Let me answer the second question first. In my understanding, the entity Retail model will not die out, but the immediate and earlier physical retail model will die, these two points are no doubt.

Prior to the advent of electricity dealers, physical retailing (such as department stores, supermarkets, shopping malls, stalls) is almost the only way for consumers to buy retail products. During this period, the core mission of the entity retail enterprise is to use the shortest time to sell the most products to maximize profits.

In this process, smart companies will be based on the stage of consumption, to decide which categories to add, the elimination of which categories, and the impact of consumers on products, not only limited and slow. The fate of most retail products is ultimately determined by high-level corporate meetings, and most retail products are ultimately used to express the authority of research and development capabilities in their respective fields.

In the final analysis, this period of physical retail is not only monotonous, cold or more overbearing. For industry enterprises, the operating mode is the same; for the user, the big consideration is: close and cheap; for upstream suppliers, there is misery, in particular, a large number of supermarket chains, the many suppliers tortured desperately.

But internet-based E-commerce has revolutionized the rules of the game. They have robbed the supplier and robbed the customers, all of the information asymmetry on the basis of "close to Home" and "low price", have become unattractive.

A large number of more standardized commodity market, is Taobao, Jingdong, a shop, and so carved up, because these goods, is not required to the user's brain products, a single guest year consumption is relatively stable, so normal people will choose the logistics rather than go to the supermarket to carry back. In fact, this has put a large part of the physical retail enterprise's life.

So what happens to the entity retail business? I tried to answer the first question.

In my mind, the real retail industry in the future development direction of three:

One is to sink to the community, go to the user side;

The second is to integrate into the complex, to create a perfect multiple closed-loop experience;

Third, upgrade stores, do not sell products to sell the content of pain point.

This in fact involves three areas of competence:

First, deep excavation of large data, precision production, precision marketing.

Second, cross-border thinking, to maximize the stakeholders to pay for users to create more surprises for users.

Third, the business community, focus on the complementary and extension of the line.

Wang and Ma Yun's electricity quotient and entity dispute, once became the topic of popular debate, now cold thinking, electric business is still a big unstoppable, and physical retail is increasingly confused, including Ali, Jingdong, Shun Fung and so on in various ways in the physical field troops enclosure, the boundary between the entity and line is increasingly blurred.

Actually, that's the real answer. That is, the entity model is very important, it is very likely to exceed the estimated share of Wang, but unfortunately, most of these entities will not be transformed from traditional retail, and this part of the mission will be more clear o2o thinking and user thinking of the next generation of retailers to complete.

Wen/Hochang