Retail Business Innovation Is Imminent

The latest "China chain retail enterprise management status analysis report 2013~2014" ("report") compiled by China Chain Association and DDT (hereinafter referred to as "report") shows that although the top 100 retail sales in 2013 broke through 2 trillion yuan, the growth rate was first single digit, only 9.9%. The proportion of retail sales in retail sales of social consumer goods fell from 10.8% to 8.7% from 10.8% in 2009.

DDT believes that the main reason is that the growth rate of traditional retail industry, which is caused by macroeconomic growth deceleration, weak consumption, e-commerce channel diversion, consumption upgrading and high cost continues to decline.

In 2013, the total retail sales of social consumer goods exceeded 23 trillion yuan, a decline of 4 consecutive years, a nominal increase of 13.1% over the previous year, and the growth rate in 2014 is expected to decline by 0.7 percentage points.

To cope with adversity, retail enterprises must explore new ways of innovation, and seek breakthroughs in expansion mode, operation mode, sales channel and logistics operation.

Rapid growth in demand for services

DDT said: "although the growth of consumption and retail industry is slowing down, China's overall consumption structure still has great potential from the perspective of China's overall economic structure.

In July 2014, the consumer confidence index was 104.4, far exceeding that of most developed countries. On the other hand, according to the data released by the National Bureau of statistics, the proportion of consumption in China's gross domestic product in 2012 was 36%, while the OECD countries accounted for an average consumption of over 60%, and China was lower than the international level.

In the medium to long term, the demand for services such as information, education, health care, pension and tourism has increased rapidly. The combination of new technologies and traditional industries has given birth to new business models, effectively promoting the release of consumption potential.

The continuous improvement of the social security system, the acceleration of urbanization process and the increase of the construction of affordable housing have laid a solid foundation for the growth of consumption.

In addition, with the high cost of new stores and the scarce resources of business circles, the expansion of the "horse race enclosure" in China's retail industry has slowed down considerably, instead of acquiring mature retail resources through mergers and acquisitions.

In 2013, the M & a market in China's retail industry was more active than before. Data show that the volume of M & A pactions in traditional retail business has increased by more than 44% over the same period, and the total amount of M & A pactions is about 4 times that of 2012.

This reflects that retail enterprises are taking the opportunity to adjust their business strategy through mergers and acquisitions to achieve scale expansion and business expansion.

It is foreseeable that the merger and acquisition of the domestic retail industry will continue. The leading companies with relatively good performance will take advantage of this favorable opportunity to use low cost mergers and acquisitions to underestimate the value of retail businesses, break through the industry and regional bottlenecks, and enhance synergy to enhance their strength and increase market share.

The report also pointed out that in recent years, China's network and mobile retailing have made amazing achievements. The retail industry has begun to accelerate the integration of online and offline businesses after the pition from single sales channel to multiple channels, so as to achieve full channel operation and create a new seamless consumption experience.

Data show that online retail sales increased from 801 billion 900 million yuan in 2011 to 18851 billion yuan in 2013, and it is expected to rise to 27861 billion yuan in 2014.

The core of full channel operation is value platform, not just a multifaceted marketing channel.

Therefore, enterprises need to have a clear strategic positioning for the all channel operation, and achieve all-round cooperation in information, logistics, distribution, customer service and organizational structure.

As for the development trend of various formats, convenience stores and shopping centers show a good development trend.

Convenience stores, which rely on their convenience in space, time and service, as well as their proximity to consumers, may occupy the commanding heights of the retail industry.

In particular, with the gradual integration of the electricity supplier and convenience store format, all kinds of electricity providers, service providers, goods suppliers and convenience stores are expected to achieve deep cooperation, integrating the experience, social life, life service and shopping into a new business mode with the core of the community customer service.

At the same time, the shopping center complied with the diversified demand of consumers, and the increasing demand for entertainment, fitness and dining consumption is expected to maintain a relatively fast growth rate.

Compared with these two formats, supermarkets, department stores and professional shops have been growing slowly in the past two years, and have begun to enter the adjustment and pformation period.