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In 2018, These Six Retail Stores Will Usher In A Full-scale Outbreak!
- Sep 26, 2018 -

Ebay has completely lost China, Martha Department Store has retired, and Belle has withdrawn from the market... In 2017, domestic physical stores continued to scream, and “close, stop, merge, and turn” became common words in the real industry. The store tide has spread in almost all industries and there have been no signs of abating.

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Many people continue to sing the decline of physical stores, claiming that the end of the real industry is coming.


However, "Shenzhou has a thousand sails on the side of the boat, and Wanmuchun is in front of the sick tree." Some physical stores are dying, and some physical stores are rising.


The six major physical stores to be discussed below will not only counter the tide of closing stores in 2018, but also ushered in a full-scale outbreak.

01


New retail supermarket: box horse fresh

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Box Ma Xiansheng is Alibaba's new retail format for the complete reconstruction of offline supermarkets. As the overall burden of the retail industry moves forward, in the past year or so, the box horses have grown up against the trend, and almost every city that has a box of horses will be crazy.


Box horse is a supermarket, a restaurant, and a vegetable market, but such a description seems to be inaccurate. Consumers can go to the store to buy, or you can place an order at the Box Horse App. One of the biggest features of Box Horse is the fast delivery: within 3 km of the store, it is delivered to the door in 30 minutes.


Box Ma fresh students open in the residents' gathering area, ordering shopping needs to download the box horse app, only support Alipay payment, do not accept cash, bank card and other payment methods.


The biggest difference with traditional retail is that box horse uses big data, mobile internet, smart Internet of things, automation and other technologies and advanced equipment to achieve optimal matching between people, goods and fields, from supply chain, warehousing to distribution. Box Horse has its own complete logistics system. This is the new retail idea that Box Horse provides to all walks of life, and it also makes the retail industry in the confusion see hope again.


At present, the business of Box Horse Fresh has been extended to 13 first- and second-tier cities such as Beijing, Shanghai, Shenzhen, Suzhou, Fuzhou and Guangzhou. The sketches of the new retail have been successfully sketched.

02


One Stop Mother and Baby Shopping Center: Kids King


Since 2015, China’s maternal and child market has experienced an explosive growth. Especially in the multiple opening of the second-child policy, per capita disposable income growth, and consumption upgrades, the market demand for mothers and children will continue to rise. The child king's performance is the most eye-catching.

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Kid King is an O2O maternal and child retail brand specializing in one-stop shopping for moms and children aged 0-14 and providing a full range of value-added services.


Since its establishment in 2009, the child king has been guided by the needs of his mother, and has built two online and offline service platforms: offline stores, currently more than 200, with an average store area of 5,000 square meters, accounting for nearly one-third of China's total. 100,000 square meters of Shopping Mall; online is the APP launched in 2015, the download volume has exceeded 6 million in 2017, and the content communityization of the online maternal and child field has begun to take shape.


Kid King has always defined himself as a company that manages customer relationships. The most important carrier and organizer of this customer relationship management is 5,000 childcare consultants. They are the bridge of emotional bond and trust between the child king and the members. The top-level childcare consultants can generate 10 million yuan in revenue a year.


At the end of 2016, the children's Wang Xinsan board was listed, and the market value of 14 billion yuan was exceeded that day, which made it the first company with a market value of over 10 billion in the maternal and child retail sector.

03


Pet Medical: Ruipai Pet Hospital


In the past 10 years, the size of China's pet industry has grown by more than 12 times. The annual increase in new pets far exceeds the population growth rate, increasing at a rate of around 12% per year. The growth rate of pet medical institutions is as high as 23%.


According to the "2017 China Pet Industry White Paper", in 2017, the number of pet families in China reached 59.12 million, and the number of pet dogs and cats reached 87.46 million. A large number of pets can live a healthy life, and quality pet medical services are especially critical.

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After more than 20 years of development in the domestic pet medical industry, the competitive landscape has begun to appear, and the Ruipai Pet Hospital has developed rapidly. Founded in December 2012, Ruipai Pet Hospital is a large-scale chain agency specializing in the operation and management of pet chain hospitals. It is headquartered in Tianjin.


On May 24th, Ruipai Pet Hospital announced that it has obtained a strategic investment of 350 million yuan from Huatai New Industry Fund, US Goldman Sachs Group and Tianjin Ruiji Biological. At present, Ruipai has 13 management companies, covering more than 300 hospitals in 40 cities, covering pet medical, beauty and pet food, and supplies sales. The annual number of consultations exceeds 2 million.

04


Luxury store: Prada



In 2018, the global luxury goods market has fully recovered and China has taken the lead. According to Bain Consulting, the global luxury goods market reached 1.2 trillion euros in 2017, and personal luxury goods market sales reached a record high, 32% of which came from Chinese consumers.


As Chinese consumers become more important in the luxury goods industry, Prada is stepping up its layout in the Chinese market.

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According to the fashion business news, Prada recently announced that it will open seven new stores in the SKP store in Xi'an, including three main brands Prada stores, two Miu Miu and two Church’s. This is the first large-scale opening of the store this year after the opening of the Prada Wangfujing Central Shopping Center store in December last year.


According to some analysts, Prada, as one of the few luxury brands listed in Hong Kong, may be closer to China's global luxury industry recovery engine than any other European luxury brand. Compared with the eagerness to expand the Chinese offline market in the early years, the Prada Group, which is “returning”, obviously has a more careful plan.


The omni-channel experience that Prada expects to provide is to open the boundaries at the same time, support the online order store to pick up the goods, or online to book the store's private shopping guide service. Through the secondary positioning of the brand image and the laying of e-commerce channels, Prada's strategy of accelerating offline expansion seems to be logical. The Group expects to open 30 to 40 stores around the world from 2017 to 2018 to display new products.

05


Unattended convenience store: Amazon Go



At present, unmanned stores mainly include unmanned convenience stores and unmanned shelves. The market capacity of unmanned shelves is 10 billion, while the market size of unmanned convenience stores is trillions.

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The origin of the unmanned convenience store in the modern sense began with Amazon Go, the American e-commerce giant Amazon. In December 2016, the first Amazon Go was commissioned in Seattle, USA. Based on technologies such as computer vision, deep learning and sensor fusion, the store has formed a complete set of unmanned retail solutions, creating the first “no queuing, no checkout” shopping experience.


The biggest difference between an Amazon Go store and a regular convenience store is that AmazonGo does not have a cashier. The customer enters the store after scanning the smartphone app, and the camera and sensors in the store track which items the customer took from the shelf and which items were returned. Then, after the customer leaves, Amazon will record the customer's shopping bill on the pre-registered credit card statement.


Amazon Go unoccupied convenience stores require fewer employees than traditional supermarkets. In addition to employees who prepare fresh food in the kitchen, there are only two employees in the convenience store, one of them is responsible for welcoming customers at the door, the other is in beer and The wine area checks the customer's ID card.


According to foreign media reports, Amazon will open up to six stores in 2018, one of which may be in Los Angeles. Although the opening of the store is not surprising, but this signifies that the first step for the expansion of unmanned convenience stores.


06


High-end adult store: Orange adult



With the escalation of consumption, the “sexual consumption” has gradually opened. Adult products, which have long been underestimated because of Chinese human repression, are now increasingly popular in the market, and the effect of making money is prominent.

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As the largest chain of adult products in China, orange adults have stood up to the night and become the “toon” that entrepreneurs are vying to join.


In the eyes of many “outsiders”, how can an adult shop that is usually cold and clear, one of the most profitable physical stores in the line? The layman looks at the excitement and the insider looks at the doorway.


The high profitability of orange adults is mainly in two aspects:


First, the product quality is high, orange positioning is the middle and high-end adult products, and currently has the top foreign agent of the United States CEN, Canada Swan, Germany pjur, PolyLion, South Korea List and other high-end imported brands.


The average price of adult products on Taobao is 50 yuan, while the average price of oranges is more than 460 yuan, which determines that orange and street shops and online e-commerce are not in the same competitive latitude.


Due to the quality of the products and the health and safety of the body, this determines that high-end customers will choose to come to the offline store to experience consumption, which is an important reason for the offline store.


Second, the repurchase rate is high. In order to ensure customer privacy and smooth experience, the orange store only sets up a female shopping guide. On the one hand, it introduces product knowledge, and more importantly, provides professional answers to gender issues. Based on this consumer and shopping guide. The establishment of a trust relationship can ensure that customers generate consumption every month, greatly improving the store repurchase rate.


Orange adults have entered the adult products industry since 1997. In 1982, 850 stores all over the country, no bank loans, all rely on their own funds to roll, known as the Chinese adult products industry 7-11.


The current orange expansion is mainly based on joining, each city looking for a partner, and it is expected to expand 1,000 stores in the next three years.