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Several Trends In The Development Of Retail Stores In 2018-2023
- Oct 23, 2018 -

1. “The same price of the same paragraph” began to pay attention to it. This is the first step in the implementation of O2O. This is not a simple four words, which means that the beginning of “big change” is also the starting point for the rise of physical stores.


2. The “direct class” joining method became popular. The traditional joining method must evolve. This can refer to UR clothing and famous products. UR defines this joining method as “class direct marketing”. The basic joining strategy is that the franchisee is responsible for the money, the brand is responsible for the operation, and the two parties share the profit.


3, pure network brand vigorously develop entities to join. This can refer to Inman, there will be a lot, 2018 is a vent.


4, community shops are sought after. In addition to restaurants such as catering, beauty salons, entertainment and other life services, supermarket miniaturization, fruit and vegetable food stores, and specialty stores are all incremental markets, and community stores are becoming more and more popular.


5, the supermarket is miniaturized. This is a trend in recent years, the community will have more and more well-known small supermarket chains, hundreds of squares, such as: Wal-Mart, BBK. Fei Niu Net + RT-Mart is a trend.


The worries of the physical shopkeepers, the collapse of the physical store, including the collapse of many factories, truly reflects the current economic downturn; but the physical store will not die, and the sales of the physical channel is definitely higher than the online Channel sales. The rise of physical stores is more specialized, diversified, systematic, serviced, physical stores, factories, and will continue to innovate to survive; eliminated the inferior quality, stubborn, and rely solely on product price difference shops (The factory will no longer have a low-cost artificial era alone).




(2018-2023) What is the development trend of physical stores in the next five years?




The direction of physical stores in the next five years, of course, is to be highly integrated with the online. Moreover, large supermarkets are likely to develop in the direction of the experience store. After all, the big supermarket has a large space and can play a gathering effect. And people no longer like to drive more than a kilometer to go to the big supermarket to shop, but like to shop at the convenience store at their doorstep. It should be noted that 5G has been widely used after five years. 5G communication has a fast transmission speed and low data, which allows customers to further migrate from the PC side to the mobile side. This will certainly promote the further development of e-commerce, and the frequency of customers using mobile phones is getting higher and higher.




Physical store traffic is more transferred to online e-commerce. More and more people choose to buy things online, which will undoubtedly put more pressure on physical stores. Especially those products with fierce competition and poor experience are not suitable for operating in physical stores. The industry with a strong sense of experience has been greatly developed. Such as the service industry, such as foot massage, restaurants, optical shops and so on. Personal service must be experienced in the field, which is not available in e-commerce. No experience will not survive, and physical stores will develop in a more experiential direction. The valve of the online store is that the experience is poor, and the vitality of the store is that it has a direct sensory experience. Only when the physical store captures the experience can it be alive.

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Old business model stores, either self-innovation and out of the new road, or directly die, replaced by new stores. The new business model does not necessarily have a high survival rate, and many business models are exploring, which inevitably leads to high mortality. The pre-exploratory shops will serve as “pioneers” and a significant portion will die.


The evolutionary speed of PC computers in the past made us see what is called high-frequency upgrade, and the speed of mobile phone evolution is faster, which shows that the replacement speed of this electronic core product is in an acceleration state. Artificial intelligence is now a star of great interest, with more capital investment, more talent concentration, wider application, and easier business realization. That means that the commercial evolution and iteration speed of artificial intelligence will be faster than mobile phones. In particular, the development of cloud computing, cloud space, and cloud data has given artificial intelligence a "feed." Then, five years later, you will find that artificial intelligence is not at all such a low energy state.




Everything needs artificial intelligence, and physical stores are no exception. Artificial intelligence will gradually penetrate into the physical store. In the future, you will enter a store without artificial intelligence, and you will not buy anything. Shops that do not currently have artificial intelligence will definitely change actively or passively in the future. Newly emerging stores in the future will be more closely integrated with artificial intelligence. China is currently developing at a rate of about 6.5% per year. In the future, there will be greater voice in the world, more resources, and the growth rate will always be maintained or even accelerated. At this rate, by 2023, the GDP level will be roughly equal to that of the United States.




The income level has increased and the level of consumption will increase. Therefore, the physical store will inevitably upgrade the store's grades and move closer to the middle-income and middle-income groups, and the low-end stores will be difficult to survive. The quality of the goods will be further improved, and those inferior products will be eliminated. Stores must guarantee high quality in order to win the market. The high-end consumer groups will further expand, luxury goods sales will become more and more prosperous, and luxury goods stores and light luxury stores will become better and better. People have money, no longer satisfied with eating and drinking, and spending more and more money on fun.




After five years, "after 00" will go to the workplace, and these young people have distinct characteristics. As a physical store, it is necessary to cater to the personality and consumption tendency of "after 00" and make corresponding changes.




The physical store made adjustments for the “post-00”, such as the cultural and sports products that are in line with the secondary culture, the increase in the sales force and the door-to-door business, the expansion of the community's offline economy, and the provision of personalized services. After 00" is a network of aborigines, therefore, many of them prefer to look at their mobile phones at home, rather than go shopping. Therefore, physical stores will further shrink, or close to online sales.


It can be seen from the trade war launched by the United States that Western European and American countries are not willing to give up their economic leadership, which will inevitably increase the intensity of China’s economy and even launch an economic war. This means that foreign trade exports will be hit and restricted, export growth will decline, or development speed will be blocked.




People are more uneasy about property security and are more interested in financial products. The consumption of residents has further increased and the price level has been further improved. The price of commercial facades is becoming more and more expensive, and the labor costs are getting higher and higher, which leads to the pressure on store operations and the increasing demand for store entrepreneurs. Residents' enthusiasm for investment is high, entrepreneurial turmoil is rampant, and market competition is fierce, which will further aggravate the reshuffle of physical stores. Residents have more and more money in their hands, and there are very few investment channels. They have formed funds to stop the lake and accumulate to a certain extent. Once they find a vent, they will form big business opportunities. The future society is a society where everything is connected, and all people and things will be connected to a large network. At present, although the Internet has been widely used and popularized, it is far from achieving the degree of Internet of Everything.




The physical store will go deep into the community and connect to everyone. The characteristic of the physical store is that it is closely integrated with the offline, and the intensity and pressure level of the physical store competition force the physical store to extend the reach to the places where the Internet and e-commerce are difficult to reach through the offline “connection”. E-commerce platforms or e-commerce companies will no longer be satisfied with online sales, and will extend their reach to physical stores, opening offline stores or increasing direct offline connections with customers. In the future, people's living standards will get better and better, and they will find higher spiritual needs. The physical store is close to the customer or even the personal service. Therefore, the customer's personalized needs will be directly fed back to the physical store, which will have a greater impact on the physical store business direction.

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The physical store must take the initiative to connect with each customer, carry out accurate "blasting" on the customer, and develop in the direction of satisfying the individual needs of the customer and personal service. The store personalized service will be more and more abundant.




Having said that so many physical stores will face the impact in the next five years, then we continue to explore what the current physical store needs to face and how to find a way out? In the future, will e-commerce really replace physical stores? Fire Eye believes that this phenomenon is impossible. The rise of e-commerce and the decline of the real estate industry are all inevitable phenomena of social development. Only competition can make progress. Secondly, many real estate industries cannot be replaced by e-commerce, such as restaurants, hotels, KTV, etc. These industries that win by service are not available through the network. The quality shopping experience is completely different from the feeling of shopping online.




The root cause of the e-commerce business is the price, but the quality of online shopping, after-sales, and true and false have been questioned. What's more, things that need to be used urgently cannot be met at the time of online shopping. If the idea of a physical store is still stuck in the idea of creating explosives and discounts to attract users, then it can only show that your positioning of the physical store is not clear enough. Just blindly and e-commerce styles, fight prices, then there is unfair competition in itself. The low operating costs of e-commerce are unmatched by physical stores, so it is necessary to change the business ideas and clearly define which ones belong to e-commerce customers and which ones belong to physical store customers.




In fact, it is not e-commerce, but the physical store itself. The biggest advantage of a physical store is that it can communicate face to face with people. Such communication is essentially easier for people to feel sincere and stimulate people's desire for shopping. Returning to the essence of service, cultivating the professionalism of sales personnel, from traditional product management to emotional management, is the foundation.




Most businesses are now promoting integrated marketing offline and online. What is integrated marketing? It's definitely not as simple as hanging a physical store thing in e-commerce. First of all, we must clarify the essential difference between offline sales and online sales, so that there is no conflict between the two, and then consumers who meet different needs can enhance the brand value and achieve a win-win situation. Online and offline prices are uniform (including promotions). Perfectly solves the embarrassing situation that customers purchase products online and purchase them online. Thereby retaining the group of consumers belonging to the physical store. The online comprehensive force has developed a series of e-commerce-specific products for online shoppers. While avoiding conflicts with offline products, cost-effective products are more in line with the needs of online shoppers. The online and offline after-sales uniforms, while solving the difficult problems of online merchants, can also more accurately display the value of the brand.


E-commerce and physical stores are peaceful because they are mutually restrained and competitive, but their positioning is completely different. Therefore, in this game, only to find out their own positioning, improve their core competitiveness, in order to hold the cheese that belongs to you.




It is said that e-commerce has compressed the living space of physical stores, and in recent years, it has frequently heard feedback from some store owners. However, the winds have changed recently. The most obvious feature is that online dividend growth has slowed down noticeably, and the cost of obtaining traffic has become more expensive. Many platforms have shown that even if they acquire customers, the conversion rate is not as good as one year, and some giants will His eyes were placed on the store.


Alibaba laid out a box of horses a few years ago, and recently bought a large stake in RT-Mart and Auchan. Tencent also high-profile to start a large number of shares in Yonghui Supermarket, which fully shows that the physical store is not a life-threatening business. On the contrary, the physical store will be a good business under the reshaping of the Internet. Under the blessing of big data, cloud computing and artificial intelligence, the online and offline channels are further opened, and the full use of data will transform the efficiency of business processes. The biggest advantage of the physical store is the experience, which is currently not possible on the online platform. Even the AR and VR applications can not replace the physical store to give consumers a real experience, but in the next few years, I believe The pursuit of experience will become a goal optimized by major physical stores.


The new generation of consumer groups is about to grow up. After 85 and 90, the wealth in their hands will be greater. Their sensitivity to price is not high, but the pursuit of experience is more demanding. Such a group of consumer physical stores are more suitable for their needs than the network platform.




Consumption requires a scene, and in the next few years, the physical store will allow many consumers to return to the offline line to enjoy more dimensional services through the composition of the scene and the optimization of the experience. It is worth mentioning that in the traditional Internet era, no one can think of the mobile Internet era after the popularity of mobile phones, many cities can actually buy things without a wallet.