What Is The Goal Of Traditional Retailer Layout O2O?

< p > statistics show that in the 1~5 months of this year, the total sales volume of the top 100 department stores in the ten largest cities of the whole country decreased by 10.6% compared with the same period last year, of which 82 of the department stores were negative year-on-year sales.

In the first half of this year, sales of professional stores, supermarkets and department stores increased by 6.9%, 5.3%, and 4.1% respectively in the 5000 key retail enterprises monitored by the Ministry of Commerce, while online shopping grew by 29.9% over the first half of this year.

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< p > facing the impact of the electricity supplier, the traditional retail industry started to layout O2O.

ValuePartners, a consulting firm, recently released the white paper on why traditional retailers want to lay out O2O, pointing out that traffic, insight, efficiency and coverage are the guiding ideology of traditional retailer layout O2O.

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< p > "we believe that there are a series of important goals behind the implementation of the strategy of" a href= "http://" www.sjfzxm.com/news/index_c.asp "> O2O < /a >, which can be summarized as TIER: T (Traffic) - flow, I (I) - consumer insight, efficiency (") "," efficiency "," coverage ".

Hu Zicong, partner of WIP consulting, said, "although it is difficult to judge whether the retailer's O2O practice is successful, the practice of well-known brand O2O still has reference significance."

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< p > in fact, with the development and accumulation of traditional retailers on the digital platform, many enterprises have formulated their own O2O strategy to make better use of the existing offline resources.

At the same time, online retailers have begun to reverse integration into the offline a href= "http:// www.sjfzxm.com/news/index_c.asp" > retail market < /a >.

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P has always been used to attract consumers and bring them online.

In China, because of the increased awareness and usage rate of mobile online payment, retailers are also starting to introduce consumers into their physical stores by introducing mobile payment tools.

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< p > in addition, the use of online resources can better understand consumers' needs, and enhance consumers' shopping experience in physical stores by collecting relevant shopping data.

In the past, retailers have always relied on market research techniques such as store tracking for consumers to better understand consumers' purchasing behavior, and the additional data collected through online resources now help to promote sales and make product mix decisions, and can even be used for location selection of real stores.

Hu Zicong said.

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< p > < strong > create O2O < a href= "http:// www.sjfzxm.com/news/index_c.asp" > ecological circle < /a > /strong > /p >

< p > it is understood that retailers can assist customers in online shopping behavior by selecting customers' online shopping behavior, so as to effectively avoid excessive concentration of stores in a certain area, and ensure that the layout of stores is effective coverage for consumers.

In addition, the sales efficiency can also be improved through online tools to improve or replace the original service functions of the physical store.

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< p > for example, IKEA has developed a directory application, consumers can browse the goods through the application and purchase, then go to any IKEA entity store to pick up the goods.

"After the launch of the app, IKEA Canada's website traffic increased by 250%, and sales of mobile apps and sales of physical stores also increased."

Hu Zicong said.

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< p > in fact, online tools are also used by physical sales outlets to expand product categories and optimize product supply, and help retailers achieve greater geographic coverage without expanding the physical retail network.

For example, UNIQLO has used online channels to expand its geographic coverage in China. Its online sales of around 2/3 come from two or three line cities with very limited physical stores.

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< p > "we see that traditional retailers are already using their online resources to build a O2O ecosystem that can effectively enhance the performance of physical stores and online channels."

Hu Zicong said.

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< p > he believes that market promotion factors on different markets also increase the chances of success of O2O mode.

"With the penetration of smart phones and the popularity of social networks, the use of two-dimensional code, bar code technology and mobile applications and payment methods has been developing to varying degrees in different markets."

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