What is the future of the retail industry? How should new retail be understood?

The development prospect of the retail industry is still good.

New retail business model:

One, the market relationship is the first logic

Mentioning the new retail, we have different concerns. In my opinion, market rules and market relations are the first logic of the e-commerce model, and other factors depend on the first logic. Therefore, the breaking point of new retail should firstly look inward and ask for a way out of the product model under the eyelid. There is no basis for the change of market rules, treating the symptoms is not the root cause.

Two, technology leads the business model vs. business model releases technology

The product model formation of mainstream e-commerce platforms follows the general path of Internet product development: pain points - user needs - perfect development - ecosystem. This is no problem when technology is emerging, because there is a technological dividend, user dividend.

The development trend:

Retail enterprises have been facing the difficulties of high cost, high competition, resource monopoly, low return, and difficult expansion since 2011. And it's hard to expand as retailers' returns are getting lower and lower while costs are getting higher and higher.

In addition to the above difficulties and pressures, in the next five to ten years, the retail industry will usher in the expiration of a large number of stores and property leases, the cost of renewing leases has risen, and rents will even reach a growth rate of 30%-50%. The retail industry will usher in the most competitive decade, and the future of the industry is full of variables. Of course, there are challenges as well as opportunities, and China's retail industry faces many development opportunities in 2012.

In addition to the opportunities brought by the macro retail environment, Chinese retailers will also explore many opportunities in the future development trend. The distinction between industries is becoming more and more blurred, there are numerous mergers between industry chains, and the industry chain is constantly moving upwards, thus forming a large industry chain pattern. Therefore, the cross-border diversified industrial chain development of retail enterprises has become a trend, and this development trend itself is an opportunity.