China used to be a giant in the traditional retail industry of household appliances. Why is the e-commerce era lonely?

With the rise of the new retail concept, many people are not optimistic about the future of physical stores. After all, the rise of e-commerce has had a great impact on the physical industry. After the impact, the number of closed physical stores far exceeds the number of newly opened physical stores every year. Except for those who insist on their own views and are still struggling, the real economy is really depressed. Undeniably, the value of physical investment has also dropped significantly.

In the current economic industry, the physical store belongs to the heavy asset industry, and its payment cost and income are completely incomparable. The most obvious thing is the increase in housing rental costs, but the number of tourists has begun to decrease significantly, and the profits are far lower than before. Wages are rising, but sales are falling. Affected by the e-commerce industry, many physical stores make a living from this and are bound to close down. But many physical stores are still developing. Even if the influence of the e-commerce industry is so great, they can still survive, which is actually the law of the market.

Now, there is a new trend of e-commerce, the real economy is slowly recovering, and the future economy is like a cycle. Physical stores have always been based on convenient and fast consumption. For example, in daily consumption, the Internet can't reach the fastest purchase speed, and most people will choose to buy goods directly from physical stores, which indirectly highlights the charm of physical stores. Although many industries are not suitable for the development of physical stores, it is undeniable that physical stores still have an important position and necessity in society.