What are the retail formats with different characteristics at different stages?

First, the circulation theory of retail format development

Supporters of the circular theory believe that the retail format develops in a circular form. Cycle theory includes the following three theories:

1. Wheel Theory The wheel theory of retail format development was first put forward by Professor mcnair, the authoritative retail science of Harvard Business School. The theory holds that innovative retailers always take low price, low gross profit and low positioning as their own characteristics and advantages when entering the market, so as to gain advantages in the competition with the original retailers in the industry. With the further development of this format, they will continue to buy new expensive equipment and add new services, thus increasing operating costs, gradually transforming into traditional retailers with high cost, high price and high gross profit, and finally developing into declining retailers, leaving room for the survival and development of new retail formats, and new formats are also developing in the same mode.

The most common example of this model is the development of the department store industry. When the department store first appeared, it was welcomed by consumers because of its low price and high convenience, thus taking the lead in the competition with small retailers and becoming the dominant format for decades. Nowadays, department stores are at a disadvantage in the competition with supermarket discount stores.

2. According to the life cycle theory, the retail format has a human-like life phenomenon, that is, there is a process from appearance to extinction, and at each different stage, the retail format shows different characteristics. Life cycle theory divides the development of retail format into four stages: ① innovation stage. At this stage, a new retail format has emerged. Because many characteristics of the new retail format are different from the traditional retail format, the new retail format has different advantages. The return on investment, sales growth rate and market share of enterprises have all increased rapidly. ② Accelerate the development stage. As new retailers gain an advantage in the competition, a large number of imitators begin to follow suit, and the first new retailers to enter the market also begin to expand their areas. The market competition is extremely fierce, with the highest market share and yield. ③ maturity. At this stage, a new retail format entered the market, the original format lost its vitality and vitality, and the market share and yield decreased. Maturity may last for a long time, and the format of this stage can be innovated to maintain a medium profit level and avoid being eliminated by the market. (4) recession stage. The market scope shrank obviously, the response was slow, and finally it withdrew from the market.