"E-commerce and entity" have become the past, the new retail model will become a new trend

Currently, both e-commerce and entities have experienced the phenomenon of depleted traffic and high operating costs.

Therefore, in 2020, not only the physical store suffered a wave of closures, e-commerce sellers are also facing a big elimination.

So the future of e-commerce and brick-and-mortar stores, the bottom who is the final winner? Please see below.

1, the decline of e-commerce

2, the drawbacks of the entity

3, the future development

a

The original mission of the e-commerce: to make the world no difficult business.

But the development of e-commerce so far, the result to the market is to make everyone no business.

Doing e-commerce 10 years ago, sellers can take advantage of the traffic dividend and seize the opportunity.

But when the traffic dividend disappeared, less than 5% of sellers were able to make money from e-commerce.

A large number of small and medium-sized sellers, in fact, are working for the e-commerce platform.

Because the nature of e-commerce, in fact, similar to the traditional mall. Small sellers must be stationed on the platform to get traffic.

But when the supply is greater than the demand, it will result in homogeneous competition and market polarization.

Most of the traffic is captured by very few individuals, and small and medium-sized sellers can only survive by fighting a price war.

When all e-commerce companies are fighting a price war, product quality cannot be guaranteed.

When people's income ability is limited, they can rely on 9.9 products to win.

But as people's overall income ability increases, relying on material products will not meet market demand.

Therefore, traditional e-commerce, live with goods and other e-commerce models, will be eliminated.

Two

In the past 10 years is the world of e-commerce, but in the next 10 years, the entity will usher in a new life.

The rise of the entity is mainly due to 2 factors: the disappearance of the traffic dividend, and changes in demand.

The rise of e-commerce is directly related to the development of real estate. The reason why a large number of businessmen went online to do business is because the cost of rent was too high offline at the time.

On the contrary, in the traffic dividend period, stationed in the e-commerce platform, you can use the lowest cost to get the highest rate of return.

But now that the traffic dividend is gone, the operating costs are increasing, it will lead to a large number of sellers disappeared, and replaced by the entity business model.

Analyzed from an economic perspective, e-commerce can rise because most people have limited spending power. So more cost-effective goods can be purchased through e-commerce.

But as people's income capacity increases, consumer demand is not only material, but also the pursuit of spirit and quality.

Consumers are more willing to go offline and spend a higher premium for service, culture, quality, and technology.

Of course the rise of brick-and-mortar stores does not mean that all entity owners, will usher in a new upgrade.

Because the current brick-and-mortar stores, more to sell goods to earn the difference in price. In the era of overcapacity, this simply can not meet consumer demand.

Coupled with the depletion of traffic down the line, the entity wants to survive, it is necessary to change the business thinking.

Three

The future of the physical store how to transform it? Ma Yun in a speech, has long given the answer.

Ma Yun said: there is no more e-commerce in the future, only new retail. That is, online and offline and logistics need to be integrated together.

So how to integrate online and offline specifically, what to do at each step? Different entity merchants, you can choose the corresponding transformation method.

First of all, the production class of physical enterprises, you can borrow the M2C online platform + offline dealer **** enjoy the model.

That is, manufacturers, must be on the basis of the Internet, to achieve digital transformation.

At the same time to build a set of M2C online cloud platform, to empower dealers, to achieve online + offline transformation.

This M2C online platform, using the **** enjoy the business model. Every user, dealer, and manufacturer can share and spread the word, realizing the traffic *** enjoyment and benefit *** enjoyment.

For example, dealers can promote the M2C platform through private domain traffic, and consumers can also share the platform's connection to their own social space.

At the same time, manufacturers can promote goods through commercial advertising promotions, social media, founder IP, and live streaming.

So that the users involved in the sharing and dissemination, as long as to the traffic and sales can be divided into profits.

Dealers through the private domain traffic promotion and dissemination, you can realize the digital operation, generate performance can also get a share of profits.

The sales generated by the manufacturer's promotion can be directly assigned to the dealer closest to the user to ship and distribute services.

This can be done through digital transformation, relying on the **** enjoyment of the economic model, to meet consumer demand and improve overall performance.

Secondly, for the chain of physical merchants, you can use the chain + online cloud mall + social sharing model.

That is, each chain enterprise, not only to provide franchisees with offline physical stores and supply chain services. And also to provide online virtual store and digital business model.

For example, the chain can create a set of online cloud mall, each chain store through online sales, to achieve the digitalization of the operation.

This allows consumers, online, offline multiple scenes interconnected, to provide consumers with more shopping experience.

When the franchisee has an online cloud mall, it can import customers online and establish real-time connections.

At the same time, consumers can also be at home, through the online mall shopping, choose the designated offline store delivery.

Such an offline store is not only a sales channel, but also a front warehouse.

So where does this cloud mall traffic come from?

In addition to relying on the downline physical store as the entrance to customer acquisition, but also in the recruitment of a large number of virtual store owners.

Similar to the community group-buying model, virtual store owners can share and disseminate products in social spaces, communities, social media platforms, short videos, and live platforms.

After generating results, the order can be automatically assigned to the chain store front warehouse, and the chain store personnel to deliver to the door.

If it is a high-margin product, after generating transactions, it can be delivered directly to the door by the same city errand boy.

In this way, the virtual store owner can get 4% of the profit, and the physical store owner can get 6% of the profit.