Entity stores frequently closed why the e-commerce scramble to layout offline?

Today, Changsha, many entity store owners together to discuss the main topic is "now the physical store business is more and more difficult to do", even the liberation of the West Road, so good stalls are

three or four stores empty store. Rent is increasing, labor costs are rising, and more importantly, the e-commerce industry intercepts the source of customers, making the physical store presents a very depressed scene, and even the industry said 2016 for the physical store "closure

year". On the contrary, the e-commerce business is a large layout of the line, frequently opened physical stores. Where exactly is the way out for brick-and-mortar stores?

Visit Surviving the summer heat entity store frequently closed

Changsha Jiefang West Road, a street, known as the city of the night, the flow of people, stalls of the good, the power of attraction, in Changsha, various business districts in the absolute premier store, the store is basically hard to find a thousand dollars. Recently, the reporter visited but found that such a high-quality stalls even three or four stores posted "rent" word, the store has long been empty.

"Partition

wall was a clothing store open for several years, posted for rent has been half a month, and did not turn out." A digital store owner told reporters that the store next door is estimated to be bad business and too much overhead, so had to turn out.

Here a little bigger store, a month's rent will be 40,000 to 50,000 yuan, and now everyone likes to go online to look for clothes, brick-and-mortar stores are under great pressure. "The June and July heat was supposed to be a slow season for retail store business, and some stores are facing

rental renewal and contract expiration, so they simply transferred out."

The reporter learned that the traditional brick-and-mortar business is getting worse and worse, like Wuyi Square, such as a high-quality commercial circle of a class of street stores, with high-quality transportation conditions, geographic conditions, foot traffic conditions, have appeared to close the phenomenon of a lot of stores are in subletting, rent back or even a long time of vacancy, not to mention the other business districts.

In Gaoqiao, which is known as the City of Landlords, there are also a lot of stores with empty slots this year. Doing tea business Ling told reporters that before you want to find a good stall in the tea city, you have to find a relationship through the intermediary, the transfer fee of up to 400,000 yuan. And now a lot of empty store waiting for you to pick, the transfer fee is also a drop.

In addition, the newly opened brick-and-mortar malls are faced with the difficult situation of investment, some malls by providing free activity space to businesses to bring popularity, some malls are playing a three-year rent-free investment slogan ......

The reporter found that, in Changsha, in addition to hotels, entertainment, catering industry in this environment by the The reporter found that in Changsha, in addition to hotels, entertainment, catering industry in this environment by less impact, shopping malls department stores, clothing stores, cosmetic stores, gift store practitioners reflect the sales situation is relatively poor, in the reporter visited more than twenty closed the transfer of the store, shopping malls department stores, clothing stores, cosmetic stores accounted for nearly 90%.

Analysis of e-commerce, rent pressure, physical stores into the closure of the year

In fact, not only Changsha, but also more than just the street store closure of the wave of the country's many chain of large brands of brick and mortar store also seems to have entered the "closure of the year".

Quickly shrinking stores. According to Daphne released the first half of 2016 profit warning report shows that in the first half of this year alone, Daphne closed a net 450 stores. Once popular Metersbonwe business situation is also not happy

Watch, in 2013 also has a directly managed stores and franchises nearly 5,000, to the end of 2015 has been only 3700, sales of stores reduced by about a quarter. Zenith closed 1,012 stores in four years, and by

2015 had only 2,249 retail stores.

In the first half of 2016, of the stores closed by large department stores and superstores, more than 80% were located in first- and second-tier cities. Statistics from the China Chain Store Association's report on China's top 100 chain stores also showed that the top 100 chain stores had sales of 2.1 trillion yuan in 2015, with a growth of only 4.3%, the lowest in years. The department store business even saw negative growth.

The relevant person in charge of the China Chain Store Management Association said that this year, physical stores have indeed reached a moment of survival.

As we all know, with the deep development of e-commerce, consumers' shopping habits have quietly changed, more and more "shopping clan" developed online shopping habits, purchasing power from the entity transferred to the "online". Online stores are not subject to trading time, geographical restrictions, price transparency, price comparison is convenient, after-sales protection system is increasingly perfect, etc. is also to attract more and more people to join the online shopping army.

In addition to the impact of e-commerce, there is a lack of growth in the real economy, labor costs, rental costs, high tax costs eat into the already low profits and other reasons. In the late 1990s, the chain stores began to develop greatly, the rent is generally 10 to 15 years due, most of the recent expiration of the rent, rent cost growth of at least double, part of the low gross margin supermarkets department stores have been unable to renew the rent.

"The actual

body store is basically working for the landlord." A liberation of the West Road, operating cell phone accessories boss told reporters, he this five-square-meter store, before the rent is only 3,000 yuan, and then the landlord to see his business is good, it rose to

5,000 yuan, and now a monthly rent of up to 10,000 yuan, "a lot of young people are now going to the Internet to buy a protective case for cell phones, the business is barely, a month more or less The business is also barely, more or less a month to earn some money. If you can't do it, you can only give up the business."

Layout e-commerce reverse operation to open physical stores to grab customers

When the traditional brick-and-mortar stores were crushed by the e-commerce out of the tide of closures, e-commerce is operating in reverse, frequently opening physical stores offline.

"Xiaomi finally opened its first physical store in Changsha in Wangfujing." Yesterday, the public Xiaoyi in the circle of friends out of their own experience in the millet physical store photos, a face of fans happy kind.

In addition to

In addition to millet, in fact, there have long been e-commerce giants began the entity route. Changsha native has the Royal Mud Square, last year in the pedestrian street Walmart downstairs image experience store, this year and in the Century Jinyuan and other entities such as trade complexes to open a physical store.

Other big brands in the past two years is to accelerate the pace of opening physical stores, in addition to Alibaba, Jingdong, Jumei Youpin and other e-commerce giants have landed in the entity, as well as the film method family, Umbra, and a number of on-line clothing, masks and other e-commerce brands.

Why e-commerce to layout physical stores? According to the Royal Mud Square clerk confessed that about 30 square meters of business area, the rent is 600,000 to 700,000 yuan a year, profit space is not large, "as the Internet started the brand, the Royal Mud Square in the pedestrian street to open a store mainly for the expansion of the offline physical stores, compared to profitability may not be so important."

Open

Establishing offline stores to establish a good image is the original intention of many e-commerce, but also to make up for the innate shortcomings of the e-commerce: online shopping can not bring users a better product experience, in addition to has been committed to solving the problem of "the last

kilometer". More importantly, when the traditional retailers also began to "touch electricity", the e-commerce not only has no advantage, but because of the shortcomings of the offline experience, feel the pressure of competition. Therefore, the layout of the offline, become

e-commerce future development of an important part. Among them, the establishment of experience centers, solve the last kilometer problem, establish brand image has become an important demand of e-commerce.

So

The physical stores opened by e-commerce are not the traditional sense of physical stores. Dangdang, for example, opened its first offline physical bookstore is expected to debut in September in Meixi Lake, and in its planning, the future **** to open 1,000 physical bookstores.

Dangdang's offline bookstore is no longer a bookstore in the traditional sense of the word, but more like a cultural experience complex, the bookstore contains coffee, culture and creativity, parent-child, socializing, lectures, exhibitions and other derivatives services, in-store reading, online ordering, courier to

home, where consumers can get more experience in addition to reading and book purchases.

The physical economy will not die

When the traditional brick-and-mortar stores are forced by e-commerce to close frequently, many people sing the praises of the physical economy, that the physical stores will be under the impact of e-commerce in the collapse. But e-commerce is the reverse operation of the opening of physical stores offline, and the response is getting better and better. Visible, the entity economy will not die out, in the experience and e-commerce hit hard, will eventually touch the most suitable for their own development of the third way.

Can

In order to foresee, the traditional entity store in the e-commerce and e-commerce under the double impact of the physical store, the future will also be a batch of "death". The future of the retail industry, homogenization emphasizes the functionality of the product will be more and more uncompetitive, and the only ones

brands eye-catching, affordable and have a first-class user experience of the product, will stand out. And the e-commerce attraction and price advantage and physical store quality experience service combination of the new real economy, will have

in this round of sandstorm

have more winning chips.

There's a reason for that.