How do traditional retail businesses respond to the impact of e-commerce, and what is their equilibrium point?

1 First of all, we need to reduce costs to a greater extent, including rental costs, procurement costs, staff costs, tax costs and so on.

Rent cost is the main factor, so traditional retail should pay special attention to the current cost and the subsequent rent cost when choosing the site for decoration.

Procurement cost, the traditional retail industry needs the close cooperation of upstream suppliers to obtain lower procurement cost through commercial negotiation.

Staff cost, retail store owners analyze in many aspects when setting up staff positions, and create and integrate the positions that can be considered, so as to hire fewer better people and reduce staff costs without affecting the operation of the store.

As for the tax cost, retail shopkeepers are generally small-scale taxpayers, and the state has certain preferential policies for small-scale taxpayers. Retail store owners can consult professional accounting firms when paying taxes, so as to achieve the purpose of reducing tax costs.

2. Give full play to the advantages of retail stores. Retail stores have unique advantages, so they will never be replaced by e-commerce. What retail store owners need to do is to give full play to these advantages as much as possible.

Strengthening employee training and real face-to-face communication between employees and customers can win the trust of customers. Strengthening employee training can not only make employees grow and increase their loyalty, but also form good communication with customers and improve turnover rate and profit.

Paying attention to customer experience, the biggest advantage of retail stores compared with e-commerce is the continuous customer experience. Shopkeepers of retail stores improve the customer experience by means of commodity display, decoration, vision and music, and at the same time strengthen the communication between employees and customers to improve the human touch.

3, can be combined with e-commerce, with the help of WeChat, QQ, Post Bar, forums, various channels for publicity, and even some online sales.

Balance point:

Retail stores are trapped in various costs, so they have been at a disadvantage in the competition with e-commerce. However, capital is the fairest. A large amount of capital flows into e-commerce, which makes the competition of e-commerce more intense. The rising cost of clicks and traffic is a major problem faced by e-commerce.

The balance point is: when the click and traffic costs are basically the same as those of retail stores, the balance between retail stores and e-commerce will come, e-commerce will gradually lose its advantage in the future competition, and physical stores will gradually pick up.