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Is It Inevitable Under The Regression Line? Entity Business Will Rise In 2018 !
- Oct 18, 2018 -

The world of business is full of unknowns. Although the impact of e-commerce has caused certain pressure on physical stores, in recent years, giants have entered the store under the line, and new retail is opening up a new pattern in the market. There are more and more cases...

The emergence of “new retail species”


Too many physical stores are still fighting prices and fighting channels, and under the influence of the new retail megatrends, these "tricks" will no longer work! Only physical stores that offer customers a unique experience can stand out.


In recent years, the competition among giants such as Alibaba, JD.com, Tencent and Suning has become increasingly fierce in the field of fresh food. This year, the new retail species, including Ali's Box Horse Fresh, Jingdong's 7-FRESH, Yonghui's super species, and Suning's Su Xiansheng, have accelerated the pace of opening stores.


Compared with traditional formats, new species pay more attention to customer experience. On the one hand, through the novel store design, the visual value of the store's “face value”; on the other hand, the biggest difference with traditional retail is that these “new retail species” grafted catering, technology and even entertainment, relying on big data Technology and advanced equipment such as the Internet of Things, to achieve optimal matching between people, goods and fields, from the members, commodities, transactions to the supply chain, fully realize refined operation and digital management.


Many brands cross the border, test the water to open a shop


In the future, consumers are no longer buying products, but buying a lifestyle and brand culture. The physical store is more about giving consumers a psychological + material dual experience, while visual perception + psychological stimulation is electricity. The business can not give!


And this is the core strength of the physical store. Therefore, companies from different fields have chosen to test the water to open offline stores. Traditional retail companies such as Wang Laoji and Xu Fuji have opened stores that sell their own brands of drinks and pineapple cakes; Handu Yishe, Dangdang, and three squirrels have always been online, and they have seen the market consumption. In order to establish the brand effect, they have opened stores online; even the "second-yuan" target group's "gels have joined hands with Rosen, Pacific Coffee to launch themed convenience stores and theme cafes...


The previous businesses of these brands are rarely involved in the offline field. In recent years, we have been laying out the line, hoping to enhance the brand image with the help of offline stores, and hope to attract younger generations of consumers through offline experience.


In the new middle class, experience is more important than price


Insiders pointed out that China's current number of new middle-class families has exceeded 300 million. At present, the mainstream consumer groups in the market are gradually shifting to the new middle class, and the physical business is undergoing a major turning point. In their eyes, the price is not the primary consideration in consumption, and the sense of value of the brand or store to consumers is more and more important.


New middle-class consumption, with a clear experience color, is to make yourself better, regardless of content or external, and then to experience the beauty of the world. Under the premise of satisfying material life, they put more time and money into self-cultivation, and more and more goods and services related to experience in consumer spending.


At the same time, offline stores are significant because consumers are increasingly focusing on experience. In the future, the new middle-class production not only pays attention to the consumption experience in the physical store, but also pays more attention to the environmental space of the physical store after the consumption upgrade.


E-commerce operating costs exceed physical stores


In recent years, the impact of e-commerce on physical stores has been overwhelming. The bosses of many real enterprises have turned to the Internet or changed their lines because of the low cost of online and the high cost of renting offline.


However, this phenomenon has changed with the increasing cost of e-commerce and the active pursuit of physical outlets. Although e-commerce does not have rent, it has to operate on the cable, including advertising, activities, personnel, customer service, express delivery and so on. The cost of opening an online store now exceeds that of a physical store, and the cost of getting a customer is getting higher and higher. Not only that, since last year, many Internet brands have extended their “hands” to the offline and launched the O2O integrated marketing strategy. The gap between traditional brick-and-mortar stores and e-commerce is also beginning to shrink.


In contrast to physical business, rent reduction has long been a consensus. In the past two years, even the landmark shopping malls have been adapting to the trend, giving businesses more discounts, and there are many top shopping malls such as Hang Lung, China Resources and Ryan.


Local brand upgrade and rise


2017 is the first year of the rise of physical stores. Consumers are no longer buying products, but buying a way of life. Physical stores are more about giving consumers a psychological + material dual feeling, while visual perception + psychological stimulation are not available to e-commerce. .


Last year, traditional brands such as Taiping Bird, Haishu House and Li Ning began to transform and expand their stores last year.


In addition, in the past two years, local designer brands and emerging fashion brands have begun to attract attention and continue to squeeze more market share. Many newly established brands have successfully entered the shopping centers of major cities and are very concerned about the interaction with the shopping centers. Moreover, in addition to having a good reputation, these emerging brands have attracted many consumers, and they also know how to use Internet thinking to spread through social networks such as WeChat friends and Weibo. This brings popularity and vitality to the shopping centre.


The country vigorously develops physical business


Under the trend of gradually reducing the profit of the mobile Internet, the development of "offline scenes" and opening up "online and offline scenes" has become a new industry slogan and breakthrough. And the country is also pushing for retail reforms, and policy blessings will add momentum to the physical business that is undergoing transformation.


Nowadays, the process of opening a store and the government approval are simplified, and the brand of a store with fans and influence is more likely to obtain capital support and help expand.


Many retail executives and managers have chosen to start a business in this wave of entrepreneurship, and even young people who have just graduated from the society can raise funds to open cafes. Commercial real estate entrepreneurship is quietly changing the rules of competition and games, and seeing business opportunities in subversion.