With the advent of the new retail era, physical retail should "flourish"
Since 2003, with the rapid development of e-commerce and online retail, China has developed into a country with the largest online retail ecosystem and the most advanced online retail platform in just 10 years. According to the industry research report forecast: by 2020, the pure online retail will account for about 20% of the total amount, which indicates that more than 80% of transactions still take place offline, and the physical retail industry still has great space and potential for development. E-commerce and physical retail gradually tend to integrate, omni-channel is a common choice. Due to the online migration of consumers, brand owners and physical retailers are moving to the online transformation, and the integration of online and offline development is the general trend.
According to Nielsen's fast moving Consumer Goods Industry Report, the proportion of sales of small supermarkets in offline retail channels increased from 13.1% in 2013 to 15.3% in 2015. Convenience stores grew 23 percent from 2.6 percent to 3.2 percent. On the one hand, the amazing performance of convenience stores is related to the irreplaceable consumption scene and adapt to the pace of modern life. On the other hand, it benefits from the opportunities brought by the sinking channel of Internet enterprises. The new retail era, the era of pure e-commerce will soon end, the form of pure retail will be broken, the new retail will lead the future brand new business model.
Online retail war sounded, a group of competitors to magnify the move
In the retail sector, the "pie" operated by traditional trading companies is being eroded by Internet rivals. Apart from ambitious startups and traditional retail distributors trying to build "Internet ordering platforms", Internet giants such as BAT are also eyeing this pie. From 2015 to 2016, JD launched the "Shopkeeper Treasure" product, and Ali also incubated the "Retail Connect" project.
According to Sohu Finance and other media reports, JD's new channel division is mainly aimed at nearly 10 million small and medium-sized stores in third-tier to sixth-tier cities, aiming to become the suppliers and partners of these stores. Jingdong New Channel self-operated mode belongs to the "heavy" business expansion mode. Especially in the early stage of business, it has certain requirements on cash flow, and the relative cycle of rapid replication and rolling out the situation is long. Because of its own operation, Jingdong's new channel business has certain competitive relationship with the distribution system of traditional brand owners. At the present stage, the volume of the new channel is too small, and the conflict of interest between traditional brand dealers and the new channel has not yet broken out. Alibaba Retail Connect project is based on Alibaba's B2B city strategy, trying to build an online ordering platform for community convenience stores, cooperate with global quality goods sources, rely on exclusive purchase platform, help offline retail stores to achieve online one-stop purchase and offline all-round services. Retail link progress is slow at present, the push mechanism is unreasonable. There are three reasons: first, the project model has not been accepted by the community stores; Second, its local promotion organization "City Partner" is a part-time job. Within half a year after taking office, the part-time job is in the state of street sweeping promotion and introducing project products. It not only has no income, but also has to pay annual fee and deposit to Ali. Third, the selection of goods is relatively scarce, and the imported food currently featured by the Retail APP is obviously inconsistent with the entry point of ordinary communities and mom-and-pop shops in urban and rural areas.
The rise of Starlink, supply chain + Internet, and Yiyatong supply chain service advantages have boosted the transformation and upgrading of Chinese retail stores
Compared with the online-to-offline mode of Alibaba and Jingdong, Yiyatong relies on its strong supply chain advantages to vigorously promote the "supply chain + Internet" mode and help the terminal physical stores to move from offline to online, complete the integration of offline and online, and realize the transformation and upgrading of new retail. Yiyatong has been deeply engaged in the supply chain industry for 20 years, and its service platform covers more than 380 major cities in China (including Hong Kong) and dozens of countries and regions in Southeast Asia, Europe and the United States. From 2011 to 2016, Yiyatong has been successively listed in the top 500 Chinese enterprises, and has grown into a leading domestic supply chain enterprise.
Zhou Guohui, chairman and CEO of Yiyatong, said that Yiyatong binds traditional economy and Internet together with supply chain thinking and operation mode in business operation, and uses big data, O2O and other business means to create new Internet economy and help traditional economy to realize transformation and upgrading.
As the first listed supply chain enterprise in China, Yiyatong's service capability is not only in the traditional supply chain, but through the integration of "supply chain + Internet", to help brand operators, channel operators and physical stores in the supply chain realize new retail. In July 2015, Yiyatong officially launched the O2O supply chain business ecosphere strategy, aiming to create a shared win-win O2O business ecosphere and enhance the value of business individuals within the ecosphere. In 2016, Yiyatong launched three major products: Starlink Cloud Store, Starlink Cloud Store and Starlink Life, built an O2O/B2B2C business ecological closed loop, continued to provide services for brand owners/manufacturers, terminal store owners and consumers, created value, helped the transformation and upgrading of circulation industry, promoted physical stores to become bigger and stronger, and expanded market share.
1. Enter the cloud store. It's easy for small stores to become big supermarkets
Starlink Cloud store is an Internet O2O comprehensive service platform developed by Yiyatong for retail stores. Small stores (convenience stores/mom-and-pop stores) can achieve one-stop store commodity procurement through Starlink Cloud store to reduce procurement costs. Sharing Yiyatong platform mass authentic goods to extend the physical shelf, expand sales categories; At the same time, goods in physical stores can be O2O Internet. Starlink introduces the customer flow of surrounding communities into stores based on LBS(location service). In this way, stores can easily and quickly carry out retail upgrade with the help of Internet tools, increasing the customer source and income.
Starlink Cloud stores provide physical stores with a series of services from brand and product to supply chain, management and marketing. With strong supply chain advantages, Yiyatong helps physical stores to achieve one-stop comprehensive purchasing and management, helps tens of thousands of retail stores to provide supply chain services and massive commodity purchase services, and through APP promotion, attracts cloud store owners, helps small and medium-sized store owners marketing, expands sales share, and enables small stores to grow into big supermarkets.
2. Massive supply of goods, sharing one-stop B2B transaction procurement platform -- Starlink Cloud business
Integrating the massive supplier resources accumulated by Yiyatong for 20 years, Starlink Cloud business agents more than 2,000 brands at home and abroad, with a total of more than 200,000 SKUs. Offline, 380 quality joint ventures have launched distribution operations across the country; In Shanghai, Dalian, Guangzhou, Shenzhen, Wuxi and other places, Yiyatong has more than 2 million square meters of storage distribution centers, disposable vehicles more than 10,000 units. Based on this, Starlink can not only integrate multiple resources, provide a large number of diversified high-quality commodities and personalized financial services for bricks-and-mortar shop owners, reduce the cost of distribution channel for manufacturers, help manufacturers accurately land marketing activities, improve the conversion rate, but also help enterprises solve the traditional business problems of logistics, warehousing and distribution, and provide one-stop commodity transaction marketing services for merchants.
In the author's opinion, neither Ali nor JD has essentially helped small stores to realize the transformation of e-commerce, nor can they cultivate offline competitors to compete with their own platforms. The fully open Internet O2O platform of Yiyatong provides a large number of products, helps store owners purchase goods from offline, online marketing, and expand market share, so that physical stores really have the ability to realize Internet transformation.
Iacon's supply chain services know no boundaries. The essence is to help businesses and small stores grow bigger and stronger. Integration of online and offline development, complementary advantages, this will be the future development direction of retail industry. For the Star Link this "dark horse", whether in the fierce market competition to outshine the rest? We'll see.
Flow chart of Starlink Cloud store opening
You can search "Starlink Cloud Store" in major APP markets to download app experience, and follow the official account of "Starlink Cloud Store" to get the latest information
