What challenges and opportunities do retailers face?

Challenge: 1, the store rent is expensive and the profit is squeezed dry. 2. The consumption scenarios are diversified, and it is not easy to obtain traffic. 3. If it is not a brand with its own traffic, it can only rely on the traffic in the business circle. 4. Categories are popular, consumers have no desire to consume and lack new product operation. 5. The cost of online technical support is too high. 6. The quality of employees in the retail industry is not high (in fact, the retail industry should understand people who serve others, people at what level, and people who serve them). 7. The service system has not been upgraded. Still follow the traditional business model.

Opportunity: 1, community and new wechat business, using information collection to realize direct sales based on user needs. 2, global consumption (cross-border e-commerce) 3, personalized shopping, sharing, online and offline integration.

Data expansion:

With the rise of online and offline emerging formats and the changes of population structure and consumption habits, it is undeniable that the traditional retail industry in China will still face pressure despite the overall growth of 202 1. Many factors have led to the continuous decline in the performance of traditional retail industry. In the proportion of traditional retail industry in China, supermarkets should be the largest part, which is related to the national economy and people's livelihood; Secondly, the rise of department stores and shopping centers in the past decade. Because supermarkets mostly adopt the mode of purchasing goods by themselves and operating independently, this format has been greatly impacted by the new format.

Especially in the past two or three years, it has received a lot of capital blessings, and several major Internet and e-commerce platforms such as Ali, Tencent, Meituan, JD.COM and Didi are investing heavily in the "community group buying" format. During my one-on-one communication with many super retail executives and WeChat groups, they not only explored their own reasons for the overall decline in retail performance, but also constantly blamed "community group buying" and the Internet and e-commerce platforms behind it.

In the course of many debates and exchanges, I have expressed several reasons for the continuous decline in the performance of China's retail industry in the macro-environment of the market and the micro-management and competition of enterprises in the past 20 years: First, the urbanization process in China has been obviously accelerated in the past 20 years. According to the data of seven censuses in China, the urbanization level of previous censuses was 12.84%, 17.58% and 20.48% respectively.