Why department store retailing has low operating leverage

High rent, Internet, rubbing the air conditioning are just appearances, rather than the root cause.

First, rubbing the air conditioning: from the perspective of free infusion, rubbing the air conditioning is not a disadvantage at all, from a certain level is an advantage! Because rubbing the air conditioning is basically 0 cost, the cool big mom occupies the operating space, did they not give the store to enhance the popularity of it? Even without them, will these stores be able to attract the target customers to spend money?

Second, high rent: can be considered one of the important disadvantage reason, but not the fundamental reason. Especially in first-tier cities, after the rise of rent perversion, coupled with manpower, raw materials, utilities and other costs are rising, store ping performance assessment standards are bound to rise sharply, however, the commodity price can not be so arbitrary, so the operation as a whole ironically become difficult.

Third, e-commerce: the main reason for retail difficulties in the entity department stores, but not the root cause. Total social retail consumption annual growth rate of 10%; while e-commerce retail consumption growth rate of about 33%. The former is only 1/3 of the latter.

Fourth, the above are just phenomena or results, to analyze the root cause - is the Internet information technology, e-commerce in the Internet "big data" under the auspices of the e-commerce than the entity more understanding of consumers, not only more understanding of a niche group, but also more understanding of a particular group. More understanding of a subgroup, but directly more understanding of each individual person.

And the physical store, you enter the store, the sales clerk is basically "blind", and most of the clerk's education, quality and salary are not too high. Therefore, there is a big gap between the knowledge of the reception of people.

Pictures from the network, for reference only

Summary

A look at the surface of the dress of the physical store clerk, with a you no matter what you wear into what can be seen through you, but also to engage in a variety of fancy promotions to please your heart of the electric business data competition, said how can the physical store is not declining?

Pictures from the network, for reference only

How to do it, in order to have a way out?

One is, the mode of operation of innovation and investment, not innovation and investment, only to be eliminated;

Two is, abandon the "small stores" consciousness, increase the integration of the surrounding cooperation efforts, the formation of a closed-loop ecosystem;

Three is, increase the investment in market analysis, go to scale road;

Three is, increase the market analysis, go to scale road;

Four is, must do a good job of the physical stores, the physical stores are not the same. p>Fourth, must do a good job of service, especially after-sales service.

Pictures from the network, for reference only

Summary

Now doing business is not better than before, not now business is not good, but the previous business is too good to do, a store for life of the era has long passed.

If you are still using the business thinking of ten years ago to do business now, do not change the business ideas, positive innovation, do not embrace new ideas, do not accept to take over the operation of the tool, you are still the money exist in the horse father's online business bank, that also has a little interest.