Can traditional enterprises turn over?

Recently, the hot topic in the retail industry: Huang Guangyu publicly stated that 18 months will restore Gome's original market position! I mean, anything is possible. Looking at the current market situation, I think Gome still has great hope to turn the tide and return to the dominant position. I believe many people have heard of Huang Guangyu's creation. As early as 1999, Gome led by Huang Guangyu aimed at the Beijing market as a base, and its tough style made people in the industry fearful. By 2004, he became the largest electric appliance chain enterprise in China, and Huang Guangyu became the richest man in China.

Until 2008, Gome's territory grew bigger and bigger, and Huang Guangyu was the richest man for several years. At that time, Gome also successfully advanced into the world's top 500, but it was this year that Huang Guangyu, suspected of economic cases, was taken away by the police, and Gome's dominance began to slowly lose.

Gome, which was not at the helm, gradually lost its market share. In the first half of 2020, JD.COM, Suning and Tmall occupied the top three in China's home appliance retail industry with 28.9% market share respectively, but a mysterious force that subverts the market structure has quietly grown and changed in this decade. Although Gome ranks fourth, its market share is only 5.4%.

Now, Huang Guangyu is in charge of Gome from prison, and Suning "sells at thirty". I want to say that even if Huang Guangyu was present at that time, Gome may not be able to avoid being thrown from the first place to the last of the queue. After all, e-commerce retail is against physical retail. Since the founding of New China and the reform and opening-up, during the period when China's economy and Internet are developing rapidly and its market is booming, this battle without smoke is inevitable. The price is the decline of traditional enterprises and the prosperity of emerging enterprises, and the final result is.

The development of all this seems unexpected, but a careful review of the development of China market makes everything seem reasonable, which is why in the heyday of e-commerce retail development, e-commerce tycoons also point to offline retail, knowing that they only grow wildly with many things and low prices when local resources are scarce and physical businesses and brands are willing to drive up prices. However, this business model actually has many defects, and the more it develops, the more exposed it becomes.

Therefore, "new retail", "unbounded retail" and "smart retail" ... all kinds of retail models under the banner of "new things" emerge one after another, which are actually just a means used by e-commerce giants to cover up the disadvantages of e-commerce retail. Retail always takes the user's needs as the center and aims at solving the user's needs. However, with the development of the market, there are too many homogeneous enterprises and products, and what can finally occupy a place in the market is definitely to provide user value. User value is a real barrier for enterprises, which is also lacking in China enterprises. Providing user value, with the continuous development of retail industry, the importance of user value has gradually become prominent.

User value is difficult to achieve only by online, but only by physical advantages, which also determines that no matter how the retail industry changes, it is inseparable from physical retail. So far, the development of retail is neither new nor old. Everything is developing in the most essential direction of retail and stabilizing in the most mature state of the market.

Looking around, Gome is the most powerful offline retailer in China. In recent years, it has established in-depth cooperation with Pinduoduo and JD.COM to make up for its insufficient online traffic, expand the market structure and adjust the supply chain. No matter from a strategic point of view, or recent data show that Gome is struggling to catch up and return to the peak, I believe it is just around the corner.