2021-07-02
Physical stores still have many advantages across borders
What is the nature of online stores' competition with brick-and-mortar stores? A lot of people would say it's a product versus price. In fact, it is more about convenience competition. Or rather, who is closer to the consumer. Apparently, the Internet provides a cheaper and faster way to find goods, so that the physical stores have not yet seen the consumers, who have been taken away by the online stores.
But many of the advantages of brick-and-mortar stores are unique, such as experience, instant consumption (immediate possession), and visibility on the ground (local market branding). Physical stores are relatively heavy. But that is why it is so much easier to implement in terms of technology and cost than it is to do so. It is much more difficult for an online store to open 100 physical stores offline to form O2O than it is for 100 physical stores to add one website to form O2O. This is why Suning has been more successful than Shunfeng.
No matter "Internet +" or "Internet +", there are three difficulties in building O2O business model with physical stores as the offline terminal: 1. Cost of building stores; 2. Offline customers; 3. Cost performance. The key is point two. If we can solve the second point, then we can have a higher tolerance for the cost of building stores, and the cost performance of products is more supportive.
Obviously, not everyone is rich enough to spend as much as Sf. Then, is there a set of methods that can simultaneously achieve the low cost and rapid store construction, namely, the establishment of the store has a high quality customer guarantee, and the operation cost also has an obvious advantage?
And we explored that and said, yes. That is: cross - boundary integration, scene update, chain operation, compound profit. For example, the retail chain industry of imported goods is growing rapidly at present, but the cost of each franchised store is very high, the customer source needs to accumulate from zero, and the operation risk is also very high. And car beauty (car wash shop) industry due to oversupply, has become a red sea, more than 80% of the car wash shop business difficulties, strong desire to transform. The two industries have the same target audience. If the two are integrated, the existing customer base better car wash shop will be transformed into a compatible car wash business import goods store, so that consumers can buy things while washing the car, when buying things can wash the car, it can be said that the creativity is infinite.
Online stores have the ability to appear in front of customers at the first time, and cross-industry stores that directly convert different industries to customers have the ability to appear in front of customers before the occurrence of the behavior of finding goods.
My personal experience proves that a makeover will not be an obstacle to the transformation of a traditional business struggling for survival. Cross-border operation has significantly increased the total sales and profits of stores and reduced the operating costs of a single sector. The two plates drive passenger flow with each other, and also significantly increase the total passenger flow, so that both plates have established a more obvious competitive advantage than the exclusive mode.
So can cross boundary integration go from 2 to N? It's also a topic worth studying.
Select an industry with the same customer base as its own business, integrate it, and become a crossover store. The integration objects should have the following conditions: 1. The products and services are just needed, and the customers can only be gathered when the products and services are just needed; 2. 2. Fierce competition, difficult survival, strong desire for change; 3. The target customers are the same, and the business scenarios (if street shop, office building or factory) are the same or compatible; 4. The simultaneous operation of the two services will not generate conflicts, but also improve customer experience; 5. The update of the scene will not affect the original business passenger flow. This integration, if well designed, may form an unlimited extension of the imagination space.
Of course, being a good integrator does not mean being a good integrator. This involves the topic of core competency building in the link. For the sales industry, this is another big topic.
But many of the advantages of brick-and-mortar stores are unique, such as experience, instant consumption (immediate possession), and visibility on the ground (local market branding). Physical stores are relatively heavy. But that is why it is so much easier to implement in terms of technology and cost than it is to do so. It is much more difficult for an online store to open 100 physical stores offline to form O2O than it is for 100 physical stores to add one website to form O2O. This is why Suning has been more successful than Shunfeng.
No matter "Internet +" or "Internet +", there are three difficulties in building O2O business model with physical stores as the offline terminal: 1. Cost of building stores; 2. Offline customers; 3. Cost performance. The key is point two. If we can solve the second point, then we can have a higher tolerance for the cost of building stores, and the cost performance of products is more supportive.
Obviously, not everyone is rich enough to spend as much as Sf. Then, is there a set of methods that can simultaneously achieve the low cost and rapid store construction, namely, the establishment of the store has a high quality customer guarantee, and the operation cost also has an obvious advantage?
And we explored that and said, yes. That is: cross - boundary integration, scene update, chain operation, compound profit. For example, the retail chain industry of imported goods is growing rapidly at present, but the cost of each franchised store is very high, the customer source needs to accumulate from zero, and the operation risk is also very high. And car beauty (car wash shop) industry due to oversupply, has become a red sea, more than 80% of the car wash shop business difficulties, strong desire to transform. The two industries have the same target audience. If the two are integrated, the existing customer base better car wash shop will be transformed into a compatible car wash business import goods store, so that consumers can buy things while washing the car, when buying things can wash the car, it can be said that the creativity is infinite.
Online stores have the ability to appear in front of customers at the first time, and cross-industry stores that directly convert different industries to customers have the ability to appear in front of customers before the occurrence of the behavior of finding goods.
My personal experience proves that a makeover will not be an obstacle to the transformation of a traditional business struggling for survival. Cross-border operation has significantly increased the total sales and profits of stores and reduced the operating costs of a single sector. The two plates drive passenger flow with each other, and also significantly increase the total passenger flow, so that both plates have established a more obvious competitive advantage than the exclusive mode.
So can cross boundary integration go from 2 to N? It's also a topic worth studying.
Select an industry with the same customer base as its own business, integrate it, and become a crossover store. The integration objects should have the following conditions: 1. The products and services are just needed, and the customers can only be gathered when the products and services are just needed; 2. 2. Fierce competition, difficult survival, strong desire for change; 3. The target customers are the same, and the business scenarios (if street shop, office building or factory) are the same or compatible; 4. The simultaneous operation of the two services will not generate conflicts, but also improve customer experience; 5. The update of the scene will not affect the original business passenger flow. This integration, if well designed, may form an unlimited extension of the imagination space.
Of course, being a good integrator does not mean being a good integrator. This involves the topic of core competency building in the link. For the sales industry, this is another big topic.
