What are the advantages of e-commerce to physical stores? Why?

At the beginning of last year 1 1, Amazon opened a physical bookstore in Seattle. Less than a month later, China Dangdang announced that it would open 1000 bookstores in the future, and the first one would open in Changsha at 65438+2. 1 month, JD.COM Group announced the official opening of JD.COM county-level service centers in Suqian City, Jiangsu Province, Changsha County, Hunan Province, Yilong County, Sichuan Province and pingdu city City, Shandong Province.

These news make people ask: e-commerce companies smashed those physical stores, won the market, and finally became bigger and stronger. Why do they open physical stores again? So what is the routine for e-commerce to move to physical stores?

First, brand promotion, showing strength.

Fraud, virtuality, hackers and other factors have carved a question mark of online consumption in consumers' minds. Although the technology is more and more advanced, the endless network problems will still make consumers doubt to some extent. Especially when it comes to large consumption, it is even more cautious. Therefore, the establishment of offline stores can give consumers a physical impression to a certain extent, endorse the brand and subvert the traditional impression. At the same time, opening an offline store is like a physical advertisement. Opening a shop in the most prosperous place with a large flow of people is the best advertisement, even if it is not profitable. Compared with those companies that advertise a lot every year, it can kill two birds with one stone by advertising at a price close to or even lower.

20 13 12, Jumeiyoupin's first physical store opened at the front door. This street, which has accumulated the charm of old Beijing, attracts countless tourists to visit and pass by every day, and the flow of people can be imagined. Jumei's establishment of a physical store here will of course bear a lot of offline physical costs, but presumably Jumei did not want to make a profit, but made a physical advertisement in the most prosperous area of Beijing.

Second, improve the user experience and increase the conversion rate.

As far as online is concerned, there are advantages and disadvantages. Although online shopping is cheap and convenient, the most fatal problem of online shopping is undoubtedly the poor shopping experience. Full of confidence, I placed an order online, expecting the baby to come to me across the ocean. When I opened it, it turned out to be a fake, flawed or inconsistent. After deciding to return the goods, it is a lot of trouble to return the goods, negotiate and refund ... At the same time, online shopping is visible but not necessarily detailed and intangible. In order to make up for this shortcoming, Ali is also vigorously developing Buy+, using VR technology to simulate shopping scenes and enhance the real shopping experience.

Poor online shopping experience also leads to low conversion rate. The low conversion rate forced e-commerce to turn. After the rapid development in recent years, the market of e-commerce has become more and more mature. Nowadays, the growth of online customers has encountered bottlenecks, and the homogenization of online products has become more and more serious. Opening a physical store online can enhance the shopping experience of customers and is a good way to drain online and improve the conversion rate.

JD.COM county service center of JD project. COM's home appliances go to the countryside and promise to undertake business functions such as distribution, customer experience, rural extension training, product promotion and physical display. JD.COM's channel sinking strategy can enhance the shopping experience, promote the development of rural e-commerce and realize online drainage.

Third, the rise of the middle class

Alibaba Big Data shows that as of last year 10, the number of Tmall T4 members listed as the highest level has exceeded 8 million, twice that of the same period last year. They spend more than 4,000 yuan a month on Taobao and Tmall. Among the 20 brands with the largest turnover of Tmall T4 members last year, Apple ranked first, and a series of well-known brands such as Canon, Dell, Panasonic, Philips, Nike and Adidas advocated high-quality lifestyles.

Love apples, love travel, love sports, love public welfare, love akg, love literature and art ... This is a rough portrait of Ali Big Data's consumption and life of Tmall T4 members. Tmall T4 member, with high consumption capacity and emphasis on quality life, is a typical sample of the new generation of middle class in China under the background of "internet plus". From them, we can see the development and consumption trend of the middle class in China in the DT era.

The middle class is the representative of the overall level of a country. China's middle class is on the rise. The steady growth of the middle class in China has brought about economic changes and consumption transformation, and the consumption market in China is undergoing tremendous changes.

It is precisely because of this change that the huge market has attracted the favor of many top international businesses. Six years ago, Uniqlo entered Tmall, which opened a new chapter in Tmall's globalization. However, entering Tmall is only the first step of Uniqlo's marketing strategy. What Uniqlo should do is to seize the mainstream consumer groups in China and realize the integration of online and offline. With the strategy of "middle class" of Pan Ning, CEO of Greater China, Uniqlo has successfully captured this fast-growing crowd and made China the second largest market for Uniqlo. As of 2015,798 overseas Uniqlo stores, 374 have opened in Greater China. Complementing each other, Uniqlo also tilted a lot of resources to China-in view of the opening of Shanghai Disneyland, Uniqlo and Disney jointly built the first Magic For All concept store in Shanghai.

Four. O2O is the inevitable direction of new economic development.

O2O is the inevitable direction of new economic development, but for many online enterprises, offline stores can truly realize the closed-loop logistics in O2O. Consumers can even provide value-added services in the process of self-help, which not only satisfies consumers, but also provides feasible space for cultivating "old customers". Online and offline integration of enterprises is also an inevitable trend, and omni-channel will become the standard and normal state of future enterprises.

At the end of April, IDC, a market research organization, released a 20 16 Q 1 global mobile phone market data report. Samsung, Apple and Huawei are still in the top three, while Xiaomi and Lenovo are not in the top five list. The biggest winners are OPPO and vivo, two "terrapin" companies that have been ridiculed as advertisements and their names are flying all over the sky. They both entered the front row, ranking fourth and fifth.

In addition to the product's own reasons, OPPO defeated Xiaomi mainly by the strong support of offline channels, and the sales volume won. According to public data, the number of OPPO retail terminals (stores) has increased from about 50,000 in the first half of 20 13 to about 200,000 now, an increase of more than four times.

The data proves that relying on online sales model is not as advantageous as omni-channel, and online and offline integration is an inevitable trend.

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Whether it is the trend of e-commerce opening physical stores or online and offline integration, it is still uncertain whether it is innovation or retreat, but improving user experience is the long-term way for enterprise development.