How to develop retail enterprises and grasp new opportunities

June 28, 2021

How to develop retail enterprises and grasp new opportunities

Through the "difficult history" in 2014, the survival of the physical retail business is fortunate, but it is not yet time to celebrate.

In the coming period, China’s economy will not return to double-digit growth, and the breadth and depth of e-commerce will only increase, and large-scale tax reductions and reductions will not show signs of implementation. The storm may never come again. The difficulties in real-life retailing will not be fundamentally improved. They will survive in the cracks and innovate in adversity. In the “cold environment”, “heat growth” will be a problem for the entity retail enterprise. The fate of the open.

However, difficult environment will have new opportunities. As long as the company focuses on commodity and business operations, continuously optimizes the environment, improves services, builds a strong supply chain, accelerates adjustment and transformation, highlights differentiation and experience, and boldly communicates with peers and e-commerce. Competition will surely kill a bloody road and achieve effective and steady growth.

To win a beautiful report card for 2015, we must start working hard from now on and go all out.

Analyze the market rationally and seize new opportunities under the new normal

“Winter” also has “winter” scenery, and there are also new opportunities and opportunities in the dilemma. Carefully analyzing the retail market, there are also some positive factors in the convergence stack:

First, local governments are still actively seeking for growth of gdp, and the process of urbanization has entered a new phase. Whether the growth rate of gdp is 8% or 7%, it is growing. From a worldwide perspective, 7% is not a low growth rate. Compared with retail counterparts in Europe and Japan, China's physical retail industry is still fortunate. Economic growth will always bring about an increase in consumer demand. This is where opportunities lie. In the vast 3456 market, the "city building" movement is still in its ascendant, commercial facilities are relatively lacking, and the market's weakness has a lagged effect, which also provides an opportunity for excellent retail entities to sink channels and achieve scale expansion. .

Second, after waves of competition, physical retail has ushered in a new wave of mergers and acquisitions, and the concentration of the entire industry has risen rapidly. For powerful retail companies, this is a good opportunity to do large-scale and strong power. In 2015, there will be even more "regional powers" to "beat the king" in a wider range, and retail giants across the country may also be born.

Third, the adverse effects of policy factors have gradually subsided, and the market has returned to rational development. After a stormy anti-corruption campaign that swept across the country in one year, the “bubbles” and “government consumption” in the retail industry have almost been squeezed out and the anti-corruption or institutionalized and normalization will be implemented in the future. At the end of last year, the All-China Federation of Trade Unions made it clear that all benefits were canceled by reading the "Anti-Corruption Classics," and that all localities must ensure the welfare of employees. Affected by this, almost "discontinued" holiday supplies, purchases of labor insurance products will return to normal, "premature break" prepaid card consumption is also expected to go on track, and high-end consumption will resume rational growth.

Fourth, the "golden factor" that restricts growth is no longer. In 2013, the “grabbing of the golden tide” that swept the country was a major cause of sales growth in many shopping malls and department stores, and it also became the biggest factor in the slowdown in growth or sales decline in 2014. However, gold consumption has returned to normal in 2014 and it is expected that it will also develop rationally in 2015. In fact, high sales of gold can also be counted as a kind of "bubble". Under the effect of VAT and gold consumption tax, it is almost unprofitable.

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