Where is the way out for entity transformation? How do physical stores get out of their own way correctly?

I run a physical store myself. Let me answer this question.

In today's era, traditional physical stores are in a difficult situation. If traditional physical stores continue to be content with the status quo, they will only decline more and more, become more and more depressed, get worse and worse in business, and get lower and lower in profits.

So what are the pain points of traditional physical stores? How to solve it effectively? Today, we will take an inventory for you.

1, and the comprehensive cost is high. The daily consumption of a physical store is really high. Labor costs, utilities, rent, etc. Are inevitable expenses, and these expenses are not fixed, and will rise almost every year. Once the business of your shop is bleak, these costs are enough to crush every boss.

Solution:

Choose a small investment project, 1-2 people can start, the product is just needed and the repurchase is high, ensuring that the cash flow will not be broken.

I run a fresh milk bar myself. Products are pasteurized fresh milk, all kinds of handmade yogurt, fruit fishing, yogurt ice cream, 0 calorie yogurt and so on. I have cash flow every day, and the product repurchase rate is high.

Small shops, vegetable shops, barbershops and small restaurants are all doing well, and they are all busy to 1-2 people.

2, the competitive pressure is too great. Traditional physical stores must not only compete with each other in the same industry, but also divide user traffic with the e-commerce industry and the live broadcast industry. Due to the limitations of traditional physical stores in operation and management, how to compete with online and offline marketing planning teams for traffic? Customers have too many choices. With so many stores, they want to win in terms of consumer experience, product category, cost performance and service. Without tools, methods and guidance, the boss is really under too much pressure.

Solution:

Traditional physical store merchants need to change their thinking and have user thinking, which industries are irreplaceable by peers such as e-commerce.

In fact, consumers come to physical stores to spend, on the one hand, for convenience, on the other hand, for a better sense of experience. Now I want to buy a pack of salt for cooking, don't I have to place an order online?

Just like the pasteurized milk in my shop, it is fresh every day. Customers must come to the store to buy it every day. It's impossible to buy one with additives online.

So is the vegetable shop next door to me. Fresh vegetables every day are definitely more popular with consumers.

In addition to products that customers have to enter the store, your sales channels should also be diversified. Don't expect customers to enter the store voluntarily. You can develop a multi-channel sales model. I often make group meals for enterprises, which are all kinds of yogurt for meal replacement.

3. The reduction of customers and traffic The essence of business is traffic, and the core of traffic is users. So who are the consumers? Where are the consumers? What do consumers want? How can we be chosen by consumers? How can we retain consumers?

If traditional physical stores haven't thought deeply about these problems and lack the initiative to explore customers, lock customers and retain customers, then in such fierce competition and harsh environment, stores can't survive and make profits.

Solution:

At present, the vast majority of traditional physical businesses rely on customers to take the initiative to come to the door. No matter how good your product is, customers don't know.

You should learn to promote your own products on your own initiative, and you can also cooperate with other stores to drain each other and do activities together to achieve a win-win situation.