What is the new retail business model?

First of all, new retail needs to be based on the Internet, through the use of big data, artificial intelligence and other advanced technical means, the production, circulation and sales of commodities process upgrading and transformation, and then reshape the structure of the industry and ecosystem. The core of new retail is this "ecosystem".

To create a good ecosystem, we must first focus on the interaction with consumers. Consumers are never the same, their standards change over time, and their desires, needs, and perceptions of brands vary. So retailers can't just chase the low price strategy with discounts to attract consumers. Many consumers have begun to focus on shopping "excellence" and "experience". "Excellence" often comes from brands, which can satisfy consumers' psychological needs for identity and image; "experience" emphasizes more on entertainment, for which shopping is not only a process of acquiring goods and services, but also a process of pursuing entertainment and individuality.

The original purpose of e-commerce is to bring convenience to consumers, and convenience is still an important part of the development of new retail. To satisfy consumer convenience, it is necessary to facilitate retailers first. New retailers combining online and offline need to establish a complete automation system - inventory tracking, supply chain logistics, automation of material handling systems and robotics, including warehouse management, store operations and purchasing, etc., to gradually optimize the process and resources, improve product sustainability and labor productivity, and minimize costs. labor productivity while minimizing costs.

This is what new retail is all about

Overall, new retail is actually a "win-win" situation for both retailers and consumers. Retailers benefit by maximizing consumer value. Consumer value is enhanced by better consumer demand, and the two are mutually reinforcing, which is the business model of new retail.