What is the nature of competition in the retail industry?

You want to know what is the essence of competition in the retail industry, the first thing you need to know is the nature of the retail industry industry. I take the current supermarket as an example probably say:

1, the supermarket industry differentiation

Careful observation we can find that the supermarket industry has a large number of competitors, which has resulted in both the high homogeneity of goods, differentiation of small, but also greatly compressed profit margins. This tells us that in the supermarket industry, relying solely on low operating costs, simply can not break out.

2, the method of differentiation

Consumers mainly from the quality and price of goods, service attitude, shopping environment to evaluate a supermarket in three aspects:

①Quality and price:

Price is always one of the most important issues of concern to consumers, but by the previous analysis of the differentiation of the analysis can be seen, focusing on the price will never be able to stand out.

②Service attitude:

This is one of the important factors affecting the success or failure of the business. But just have a good service attitude is not enough.

③Shopping environment:

Like the previous two factors, it can not decide to win alone. And from the current situation on the various supermarkets just do clean, hygienic, in other areas and no characteristics.

From this we can see that the above three factors can not determine the success or failure of the business alone. However, in these three factors **** the same role, a hidden factor emerged. This factor can not be independent of the previous three factors exist, and it is not a simple synthesis of the previous three factors add up, it is the three factors "chemical reaction" of the product. It is a kind of sensibility of consumers to the supermarket, a comprehensive feeling, or, in other words, is a kind of body idea. A successful supermarket should let its consumers in the consumption of body idea to happiness, a consumer to enjoy the pleasure of consumption can bring the supermarket maximum profit.

From this we can get such a conclusion: the essence of the supermarket industry is to elevate the demand for shopping to the level of hedonism, simply put is to enjoy shopping fun.

When it comes to retail competition is actually the same, to find the essence of the industry, so as to make differentiated business ideas for the opponents, through effective publicity so that the target customers to understand and agree with the shopping concept, a one-off victory over the opponents. This is some of my views