Concerning the basic profits of physical store merchants, Fdata brings you an introduction to the development trend of physical stores. New retail is now rapidly developing. So, what role does it play? The trend of physical stores in the next few years will of course be highly blended with online ecommerce. Moreover, many large supermarkets are likely to develop in the direction of experience stores. After all, large supermarkets have a large space and can play gathering effects. And less people like to drive a vehicle to go shopping more than one kilometer in a big supermarket, but they like to shop at any time in the convenience store nearby their houses.
It should be noted that 5G mobile network will be widely used in the next years. 5G communication is fast and data is cheap, which allows customers to further migrate from PC to mobile devices. This will definitely promote the further development of e-commerce, and customers use mobile phones more and more frequently.
Since more people may shift from physical stores to online e-commerce. More and more people choose to buy things online, which will undoubtedly make more pressure on physical stores. Especially those products with fierce competition and poor experience are not suitable for selling in physical stores. Some industries with a good shopping or service experience will be developed greatly. For example, the service industry must experience it on the spot, which cannot be provided by e-commerce. No experience can’t survive, and the physical stores will develop in the direction of more great experiences.
Traditional Stores with the old business model will either carry out self-innovation and take a new path, or die and be replaced by new stores. New business models do not necessarily have a high survival rate. Many business models are being explored, and this will inevitably lead to high mortality rates.
As income levels increase, consumption levels will increase as well day by day. Therefore, physical stores will inevitably upgrade the store level because low-end stores will find it difficult to survive. The quality of products will be further improved, and those inferior products will be eliminated. Physical stores must ensure high quality in order to win the market. The high-end consumer group will further expand, the sales of luxury goods will become more and more prosperous, and the business of luxury stores will get better and better. People have money and are no longer satisfied with food and clothing, and more and more money will be spent on fun and on their hobbies.
The physical stores will go deep into the community and connect to every family. The characteristic of physical stores is that they are closely connected with offline stores, and the fierce competition of physical stores force physical stores to use offline "connections" to extend their business to places where the Internet and e-commerce are difficult to reach. E-commerce platforms or e-commerce companies will no longer be satisfied with online sales, and will further extend their business to physical stores, opening offline stores or increasing direct offline connections with customers. In the future, people's living standards will get better and better, and they will look for higher spiritual needs. Therefore, the personalized needs of the customers will be directly feedback to the physical stores, which will have a greater impact on the direction of the physical store's business.
Physical stores must actively connect with each customer, and develop in the direction of satisfying customers' individual needs and personal services. Personalized services in physical stores will become more abundant.
Most businesses are now advocating integrated offline and online marketing. What is the integrated marketing? It's definitely not as simple as listing physical store stuff on e-commerce. First of all, it is necessary to clarify the essential difference between offline sales and online sales, so that there is no conflict between the two, and then satisfy consumers with different needs while enhancing brand value and achieving a win-win situation. Uniform online and offline prices (including promotions). It perfectly solves the embarrassing situation of customers choosing products offline and buying online. So as to keep the group of consumers belonging to the physical store. Full efforts are made online, and a series of e-commerce special products have been developed for online shoppers. While avoiding conflicts with offline products, cost-effective products are more in line with the needs of online shoppers. Online and offline after-sales are unified, which not only solves the difficult after-sales problem of online merchants, but also more accurately demonstrates the value of the brand.
E-commerce and physical stores originally existed peacefully. Although they restrain each other, their positioning is completely different. Therefore, in this game, only by identifying your own position and improving your core competitiveness can you keep your share of the market. It is said that e-commerce has compressed the living space of physical stores. In the past few years, I have frequently heard feedback from some physical store owners that they can’t continue. However, the trend has changed recently. The most obvious feature is that the growth of online dividends has slowed down significantly, and the cost of traffic acquisition has become more expensive. Moreover, many platforms say that even if they achieve customers, the sale conversion rate is not as good as before. So many retail players focus on the physical stores again.
The new generation of consumer groups is rapidly growing up. The people in 80s and 90s will have greater wealth in their hands. They are not sensitive to prices, but their pursuit of experience is more demanding. Such this kind of physical stores can better meet their needs than online platforms.