Retail Sales Are Shrinking Rapidly In Physical Retail Outlets.

At present, in the retail industry, physical retail and online retail occupy 90% and 10% of the market share respectively, and the competitive relationship between them is regarded as a dialogue between whale and shark.

According to figures quoted by Deng Tianzhuo, vice president of Jingdong group and general manager of O2O business department, the scale of Chinese online shopping market in 2014 amounted to 2 trillion and 800 billion yuan, occupying 10.7% of total social consumption and retail sales, and the annual penetration rate for the first time exceeded 10%.

In 2014, the overall online shopping B2C market grew by 68.7%.

From the data quoted by Deng Tianzhuo and the data cited by Pei Liang, the overall online shopping

The 68.7% growth rate of the market is much higher than the 8.8% year-on-year growth level of the entity retail trade of China Unicom.

In the context of network and physical retail growth differentiation, physical retailers seem not to be ready for online shopping or online retailing.

Pei Liang said that the scale of online retailing of top 100 chain enterprises is mostly tens of millions of yuan, except for individual enterprises. Compared with the scale of 2 trillion and 800 billion yuan online shopping market in 2014, the total share of physical retail enterprises in the online shopping market is less than that.

Except online.

Beyond the absolute advantage, large scale

The tentacles are reaching the market below the line.

Pei Liang said that the big online retailers are actively infiltrating the three or four line market, preparing for a large number of physical terminals in the three or four line market, which will make the competition or shunt of the two systems more and more intense in the future.

The strong impact of online retailing on physical retailing began three years ago.

Sun Jian, CEO, said that 3 years ago, the physical retailers were worried by the outbreak of the Internet business. In 2014, the physical retailers went out of the blue and became a little calm. They began to think that the essence of business would not be changed because of online shopping. Instead, physical retailing could be combined with online retailing through O2O (Online To Offline).

In fact, many leading industries such as home and sunning have been conducting many experiments in the field of O2O.

Take home as an example, in addition to draining customers through social tools such as APP and WeChat, we also conduct micro business services through the two-dimensional code of rooms, with a view to increasing and solidifying consumer stickiness.

In Pei Liang's view, compared to the complex environment faced by the physical retail industry and the state of being eager to find solutions, the O2O or full retail retail attempt of the physical retail industry is still at an initial stage.