03.2019 Office Talk
Where to go for entity channel because of consumption displacement and life deconstruction?
/ Group Integrated Efficiency & Retail Planning Headquarters
A few days ago, EOL Eastern Online Consumer Research Group held an annual seminar on "Consumer Displacement and Deconstruction of Life", which was organized by Chairman Zhan Hongzhi of Eastern Online, CEO Cai Hongxian, Shanghai Eastern Online Strategy Director Xu Baiwei, Zhimeng Consulting Executive Xiao Mingchao, Professor Bilenty of Political University and Business Innovation Leader of ITOCHU Business Association Headquarters. Hailao Mingyu and Cui Yinsu, president of Macromill Embrain, the largest market research company in South Korea, analyzed the East Asian market. The industry was invited to share the industry reality by Xu Chongren, Godfather of Circulation, Li Jingfang, CEO of Far Eastern Group Comprehensive Effect and Retail Planning Headquarters, PresidentSoon of Hancao Film and Television, and Liu Yicheng, Executive Director of Commercial Bank Preparatory Office in the future. Nearly 500 representatives from all walks of life were attracted to the industry. Listen.
Entity Pathway "Needle in the Heart"
_E-commerce to bid farewell to the cold winter
Bellanti, a special professor at the University of Political Science, pointed out that the visiting rate of consumers to physical access has declined year by year, and the proportion of online purchases in the past year has increased from 38% last year to 45%, breaking through the plateau period of 2011-2017, and the number of online purchases has also increased significantly. Among them, the proportion of online purchases more than 10 times a year has increased. As of November 2018, PChome Internet households'revenue grew by 18% over the previous 12 months, while Momo Fubon Media grew by 27%, while entrepreneurs' brothers increased by 36%. It is obvious that the "e-commerce winter" is no longer in existence, and it is bound to impact the physical access.
_The boundary of competition is blurred and the competition is intensified.
In the first ten months of 2018, Cai Hongxian, Executive Director of Oriental Line, reorganize Department of Economic Statistics, showed an annual growth rate of 4.39%. Among them, supermarkets contributed 16% of the total retail industry and an annual growth rate of - 5.5%, while supermarkets contributed 27% and 6.19% of the total retail industry, with the strongest growth. 2018 is the "Compound Year" of super-merchants. The two leading super-merchants have opened a variety of gimmicky composite stores, which make the stores smaller and bigger, and have the intention of attacking the supermarket customers.
Li Jingfang, executive director of Far Eastern Group's comprehensive effect and retail planning headquarters, also said that the field was becoming blurred. For consumers, they could drink coffee at a supermarket that was super-commercial and buy supermarket prices at a supermarket. Although the convenience of the supermarket was greatly improved, for the operators, besides their original competitors, they also had to face the challenge of killing money from all sides. Play competition.
Too centralized consumption opportunities
When news headlines such as "XX Department Store Anniversary Creates New Highlights", "Anniversary Rescue" and "Black Five Brings XXX Sales" began to become people's impression of physical retailing, although seemingly positive, they also reflected the worries that consumers were only willing to consume at a specific time. Chief Executive Li Jingfang reminded retailers that although they still hear the news of record performance every year, the actual growth rate has slowed down gradually, especially in the anniversary of department stores, which is close to 25% of the year's performance. Therefore, how to make consumers come to the store outside of the discount period is the real challenge besides competing for the news layout of the entity channel.
Entity Orientation for Starting "Rebuilding of Furnace"
_Agile path micro-shaping
Professor Bellanti analyzed the value of physical access to consumers through consumer surveys. Among them, 67% said that "people like to go shopping because they can see new things". Only 33% thought that "everything they see is uniform and boring". The main value of consumers is to show the novelty and experience brought by unique physical access. The first few consumption elements of the physical access in Italy are: convenient parking, complete range of goods, catering attraction, convenient transportation and cinemas.
In response to this, Chief Executive Li Jingfang responded from the industry's point of view, precisely in response to the Taiwanese's taste-loving mentality, the physical access is constantly doing "micro-shaping". In figure, slim convenience stores become big stores, Baoshan Baohai's mass stores (such as Carrefour) also try to slim down to 100-level Carrefour convenience stores; in dressing, they are constantly optimizing the stores, such as the fair supermarket began to try to use the basic equipment such as window display, shelf display and other fine clothes to move towards refinement, and the major supermarkets also according to regional characteristics, expand and melt. Shops with local characteristics. In addition to measuring the water temperature in the market first, the various shaping directions also hope to guide people to their own stores.
_Creating a New Retail Style of Difference
Li Jingfang, CEO, talked with great feeling that consumers are moving toward convenience-driven online shopping and uniqueness-driven foreign consumption poles. The U-shaped field redefines the value of consumption, and forces physical access to strengthen experience and seek differentiation.
Xu Chongren, the Godfather of circulation, also reminded the operators of physical access that they should pay attention to three key factors: the new transformation of physical access, the new relationship between consumers and physical access in the mobile era, and how physical access creates experience, which will become a new form of retail in the future. Therefore, in the future, the appearance of shopping malls can not only passively respond to customers'needs, but also actively create a cultural format, learning experience, and provide new life style proposals. It can also try to plan 30% of the shopping malls as experience space, so that customers can constantly have new experiences and new discoveries.
"The Last Trump Card" to Break the Deadlock
New Value of "Experience Economy"
Since experience economy is an irreplaceable advantage of physical access, what should be included in "good experience"? In the meeting, Li Jingfang reminded the tray operator that trial and try are the basic elements of physical access. The real value of experience should focus on emotional temperature and data footprint. Take Far Eastern Big City Shopping Malls shopping mall as an example. Last year, more than 400 events were held. There were not only almost every day activities, such as hosting the Asian Cup Akabella Competition, inviting foreign children's choirs to cooperate with Taiwan's original children's voice choir, but also a more lively market for the public good. And this activity has become a constant online posting in the minds of consumers. Those temperatures and memories are irreplaceable feelings of online shopping at the fingertips of one click.
A good experience should not only have a good foreground for users to participate as much as possible, but also have a good background to help access to collect data footprints left by consumers in the process of experience. The finer and smaller the size of customers, the more conducive to follow-up analysis. Taking Far Eastern Group as an example, Happy Go is the leading brand of Taiwan's membership point system and the powerful backstage of Far Eastern Group. By accumulating customers'shopping behavior in different channels such as department stores, volume stores and convenience stores for a long time, and collecting customers' consumption habits, it will be able to deliberate customers'usual preferences and lifestyle, and further maximize the "experience economy". It not only realizes the experience, but also helps the future development.
Based on data, the trend of AI trend in physical retail
Chief Executive Li Jingfang pointed out that at present, the recognition of AI in Taiwan retail market mostly stays in the stage of data collection and interpretation, but this is only the presentation of IA. If we want to move from IA to AI, Chief Executive Li proposed "DCBA Quartet" in the order of data collection, Cleansing data, Business intelligence and Artificial intelligence. In addition to the initial data collection, follow-up data combing Rationalizing and returning business wisdom is also a very important but easily overlooked link. Only by collecting detailed and clean customer data and opening the positive cycle of DCBA, can AI be developed in a sequential manner.
Itochu Business Innovation Unit Leader Hai, the world's top 300 companies, also said in the meeting that although the turnover of the e-commerce industry continues to grow, it actually accounts for only 10% of life consumption, and 90% of people's consumption still occurs in the physical channel, its advantages are self-evident. Therefore, the consumer data from the physical channel must be the trump card to compete with e-commerce. Effective integration of these valuable assets should be done as soon as possible. The decisive battle point of future market battle will depend on artificial intelligence (AI), Internet of things (IoT) and Big Data.
Participants agreed that physical access still has a high value of existence, but when consumers no longer take the initiative to "buy" for the purpose, but choose because of the "roaming" provided by the access, physical retailers should maintain the transformer-like elasticity and the customer appearance obtained through new technologies such as artificial intelligence (AI) in order to jump out of the market red. Sea, to the New Blue Sea!
