General

The advent of the e-commerce era is a nightmare for physical stores. Consumers enjoy the convenience of the Internet and favor the benefits of e-commerce, while physical stores are in decline. Now that the new shopping model is beginning to emerge, does it mean that this situation can be reversed?

What is new retail

The first thing to know is that the so-called new shopping model is new retail. The similarity between new retail and e-commerce is the online development based on the Internet, making full use of big data and other technological means to vigorously develop. The similarity between new retail and traditional physical stores is offline physical stores, providing users with on-site experience and combining physical The two major advantages of stores and e-commerce, from the production link of the product, the circulation link to the sales link, the comprehensive upgrade and transformation, the reconstruction of the business structure, the full integration of the three major sectors of e-commerce, physical stores, and logistics, thus forming a brand new new retail mode. New retail has changed the business model of traditional e-commerce and traditional physical stores, combining the advantages of the two, presenting four major characteristics, namely ecological, intelligent, experiential, and unbounded. 1. Ecological. From the moment consumers purchase the product, follow-up services will be followed up, and the horizontal and vertical expansion will be expanded to meet consumers' requirements for shopping comfort and convenience. 2. Digitalization, the future market will be the age of technology. Shopping is no longer limited to the traditional framework. Technology intelligence such as VR shopping and airborne sensing will be applied to the shopping experience, which is truly enabling technology to penetrate life. 3. Experiential. In order to enable consumers to have a deeper understanding of product-related services, new retail will make full use of offline physical stores to integrate products into various real life scenarios, so that consumers can sense, understand products, and consume The sense of participation is enhanced, and the value of offline platforms is stimulated. 4. Unbounded, the ultimate goal of unbounded is the interconnection and sharing of commercial chains. Consumers have a variety of shopping methods, no longer limited by time, place, and space, and are really doing whatever they want. Sephora's first new concept store in Asia, the main reasons for the rise of new retail can be divided into two sectors. The first is that traditional e-commerce has experienced rapid development this year. Whether it is user growth or traffic dividends, it has reached saturation and even began to shrink. , The bottleneck period of traditional e-commerce has arrived. Second, since the rise of traditional e-commerce, there have been shortcomings that cannot be made up. As the dividends gradually fade, the shortcoming effect has become more obvious, that is, the experience of offline physical stores is unattainable by traditional e-commerce. The new retail model came into being. Combining the advantages of traditional e-commerce and traditional physical stores, the two major models joined forces to promote the transformation of price consumption to value consumption.

The impact of new retail on ordinary people

So, what conveniences can the new retail model bring to consumers? There are three main points. 1. Eliminate the trouble of queuing for shopping and payment. In traditional physical stores, especially large supermarkets, long queues during payment are a big worry for consumers. It is both troublesome and laborious, but the new model can save time and effort. The existence of smart self-service terminals It is a weapon to solve this problem, saving consumers time in queuing and improving efficiency. Second, online shopping, cash on delivery, consumers purchase goods through the new retail online platform, start the product logistics chain, and deliver them to the consumer's designated location by the fastest delivery method, and the consumer will pay the fee after seeing the physical product. 3. Physical supermarkets no longer need a large number of staff. The emergence of new sales transfers part of the physical store traffic to online, online and offline two-pronged approaches, smart terminals replace manpower, greatly improving efficiency, saving manpower, and changing the outlook of the supermarket. The staff is no longer overcrowded. Both consumers and store service personnel enjoy the convenience brought about by the new sales.

E-commerce will be impacted in the future?

It is foreseeable that traditional e-commerce replaced by new retail has become an irreversible fact. According to market feedback data, the current total market size of new retail is 38.94 billion yuan, and there is still a lot of room for development. In addition, according to relevant statistics, the total value of the new retail market in 2022 can reach 180 billion yuan. New retail is a new sales market with huge room for development and improvement and potential. The emergence of new retail is firstly determined by the market development trend, and secondly, it is caused by the deficiencies of the existing market. Post-80s and 90s have gradually become the mainstream of consumption. For them, consumption is not only about buying what they need, but also the value behind the goods and the quality services sold by consumers. This is the consumption of the younger generation. View. The products of traditional e-commerce only appear in videos and are difficult to touch. Products obtained through different channels often do not achieve the unity of value, which cannot meet the needs of consumers. The transformation of consumer demand promotes the transformation of the product supply chain, and the new retail model produced. Therefore, it is not an exaggeration to say that traditional e-commerce has already been hit, the dividend period has passed, and the new retail model will dominate the market in the future.

The physical store ushered in the second spring?

With the rise of traditional e-commerce, the recession of physical stores has started, and many physical stores have closed down. Now the emergence of new retail models will be the second spring of physical stores? The answer is yes. The new retail model is the regulator and linker of the traditional physical store time in the traditional e-commerce. E-commerce intends to rely on the development of the Internet to dominate online consumption; physical stores intend to dominate the on-site experience in stores. The emergence of new retail has adjusted the contradiction between the two and the two strengths. Online and offline are combined, and the two models of e-commerce as physical stores are no longer a confrontational relationship, but a win-win relationship for cooperation. It can be said with certainty that this new shopping model fully meets the needs of consumers, upgrades consumer experience, narrows the distance between consumers and products, and improves product awareness. It is a brand-new model that is an integration of e-commerce and physical stores and is also the second opportunity of physical stores.