In 2019, Internet e-commerce enterprises began to accelerate their offline penetration, the types and means of operation of stores have also been greatly adjusted, and offline retail representatives have also made many online attempts. Here, we take domestic well-known retail enterprises as samples. Use online and offline chapters for detailed analysis.

Since Jack Ma put forward the "new retail" theory, the retail industry began to carry out a more radical offline innovation in 2017, typical of which is Ali's Box Ma Xiansheng, which uses the mobile end to improve the penetration of physical stores (a distribution range of three kilometers). Since then, JD.com launched 7fresh, daily excellent fresh is also in full swing, fresh has become the main category of offline competition for Internet companies in the following two years.

In 2019, we found a slight change in the situation, exceptIn addition to the expansion of fresh products to a certain extent, the category of home appliances has joined the offline expansion team, and the form has changed greatly.。

Let's take a look at the overall market scale first. according to the latest data of the third quarter report of China Home Appliances Industry in 2019, although SUNING, JD.com and Tmall account for 92.5% of the online market, but the sales volume of the three enterprises only accounts for 44.3% of the whole circulation channel.The remaining nearly 48.4% of the market is still in small and medium-sized retail channels that are loose and do not have chain size.Today, the annual sales volume of the home appliance market is roughly more than 700 billion yuan, and whoever takes the lead in integrating offline retailers will get the priority of eating the market of more than 300 billion yuan.

In 2019, we successively examined the store layout of the three major e-commerce giants Tmall premium products, SUNING retail cloud and JD.com computer digital store in the sinking market and found many. During the inspection, weIt is found that the three major enterprises regard "integrating local household appliance retailers" as the main development strategy.In this "quasi-franchise" model, the relationship between enterprises and franchisees is no longer a simple relationship between suppliers and distributors, but a more flexible cooperation model, such as JD.com and Tmall excellent products to offline franchisees, have adopted about 3% of the "sales promotion", that is, dealers can not hoard goods, just help users place orders online to get sales boost. And SUNING retail cloud has adopted a more "warm" approach.

Look at the typical practices of specific enterprises.

SUNING Retail Cloud is the fastest expanding business in the sinking market of the three major enterprises. according to official information, by the end of 2019, there were more than 4600 stores in 4000 counties across the country. as the fastest expansion of the business in the sinking market among the three giants, SUNING Retail Cloud hopes to achieve the goal of infiltrating home appliance sales channels to the county-level market.

In the management of "franchisee", SUNING adopted the management mode of "franchise". On the one hand, SUNING makes use of the advantages of online and offline supply chain to provide differentiated products, shared warehousing and brand zone construction for stores, and to obtain decoration subsidies for brand manufacturers for stores. On the other hand, the use of online and offline integrated marketing model to help stores achieve all the channels from acquisition to sales, create fortress stores for home appliance sales all over the county and township, and form a supply and marketing logistics network rooted in the county and township through platform links. improve logistics efficiency and store management efficiency.

For SUNING, this light operation mode also has the characteristics of fast running, low cost and obvious value-added advantages. with the help of its supply chain resources for many years, the momentum of development is extremely rapid. at the beginning of 2019, the total number of stores of the business was 2071, by the middle of the year, it exceeded 3000, and more than 1500 new stores were opened in the second half of the year, and the development is still in a state of acceleration.

According to the China Home Appliances Research Institute, SUNING accounted for 22.4% of the home appliance market in 2019, slightly increasing to 22.6% of Q3, in which retail cloud obviously played an important role.

At the beginning of this year, when we went to Hebei to inspect the alliance model of JD.com household appliances, we found that due to the relatively extensive early development of the key KPI of the pursuit of speed, the supervision of offline stores lagged behind. The typical practice is that offline stores take goods from JD.com when they are greatly promoted, and under the premise of a certain profit margin, there is the problem that offline prices are lower than online (our inspection time is after the Spring Festival, businesses are eager to sell the goods hoarded during the New year's Festival).

This put some pressure on JD.com 's unified online and offline management. After a return visit, we obviously found that:The control of offline prices has increased, and the frequency of secret visits by salesmen has increased.

In our latest visit, JD.com 's computer digital store has made greater adjustments compared with the above situation.

The main manifestations are as follows: first, strengthen the supervision of offline prices, using electronic price tags to achieve unified prices online and offline; second, offline merchants can hoard goods, but they are more inclined to make profits through the light operation form of sales rebates (the commission is about 3%). Third, offline franchisees are essentially JD.com 's promoters, products do not earn the price difference, only take service charges.

This is obviously conducive to strengthening JD.com 's ability to manage terminal prices, especially the core advantages of non-dilution online. At this stage, JD.com has taken a more cautious attitude towards this business. At present, the market is mainly concentrated in provincial capitals and prefecture-level cities. It has not yet sunk to the county seat (obviously different from SUNING). As the fastest-growing region, Henan will open only 50 stores in 2019.

Will a positive development strategy be adopted for the business after stress and risk assessment in 2020?

Tmall excellent products

Tmall Yupin belongs to Ali B2B business, inheriting some of the resources from the previous village Amoy, franchisees can apply to open stores in towns with more than 10,000 people and county towns, and officials have carried out capacity control (only one family is supported in the town, depending on the specific size of the county seat).

From the point of view of the main model, it is quite similar to JD.com 's computer digital store, with sales promotion of about 3%, and most of the franchisees are local "capable people", through which they can obtain tenders from large enterprises and governments and obtain profits, but they can also obtain price differential sales in the form of hoarding goods.

The main advantage is that by using logistics network resources to set up the front warehouse in the county, once the store places an order, it can complete the logistics work within 24-48 hours.

During our inspection, we took photos outside the store and were repeatedly questioned by the store manager, mistakenly thinking that it was an undercover visit sent by Ali officials. after getting a negative answer, the store manager also told us the mystery: 1. Price regulation is relatively lax, especially after the promotion takes goods at a low price, the goods may not be shipped at the online price; 2. It is stipulated that non-Ali purchased products cannot be sold offline, but other products are also sold secretly.

During the revisit in the middle of the year, the above situation has changed a lot, and the frequency of official shop inspections has increased.

So far, Tmall Youpin has not disclosed too much about this business.However, offline management is particularly complex than online management, which is the main reason to adopt a cautious attitude.

In the expansion of the above enterprises in 2019, some are fast, some are relatively conservative, some have loose management, some are extremely strict, some have set the core market in provincial capitals and prefecture-level cities, and some have reached the county and town level. all enterprises are giving full play to their core advantages.Find the right way between trial and error, find problems and adjust the business, and find the right way to sink in this more than 300 billion market.

Pinduoduo's sudden rise in 2018 broke the pattern of cats, dogs and lions competing for hegemony in the industry, and triggered great changes in the industry in the following year.

Channel sinking has also become a proposition that online retailers must face, especially in Singles Day this year.

Ali and SUNING reacted most quickly to pinduoduo. In 2018, Taobao successively launched special versions of Taobao, Tiantian Special Sale and other major "low prices". In 2019, they resumed reunion and made a bargain, strengthening their determination to use "low prices" to gain a sinking market.Hope to be able to help the channel sink with the low-priced goods of the head merchants.

After launching the purchase in 2018, SUNING adopted the strategy of "inserting it all the way through" to the units at the village level. In 2019, SUNING Shopping is committed to creating a "shopping village": helping the village's primary industrial products (manufacturing and agricultural products) to achieve upward channel through shopping, while improving the penetration of product terminal channels. It is understood that the purchase in 2020 will still be the top priority of the overall sinking of Suning online, and the subsidy to the purchase village of "Wandian promotion + 500m flow + 1 billion subsidy" will be launched.

At the level of business operation, it has adopted a completely different strategy from pinduoduo:Although Taobao and Juhuasuan have introduced head C store sellers, Tmall's middle head merchants are still in the absolute core position, that is, Taobao hopes to sink through the low-cost goods of head merchants.

Although pinduoduo lags behind in the development of Zhongtou merchants, he has taken measures to help manufacturing enterprises and bypass brands.The C2M model, which is reformed at the manufacturing end by terminal sales, can realize the upgrading of merchants and products.作。

The two models will still exist in the sinking market in the short term, after all, the market potential is still large enough.

Next, let's take a look at the imitators of the purchase, SUNING and JD.com.

In 2018, SUNING launched the purchase, is a faster adoption of such means of enterprises, backwards from the end, conducive to: 1. Accelerate SUNING's full-category retail development, especially after the real estate is not as expected, the recession of home appliances, especially large home appliances, full-category operation can help SUNING find new growth points; 2. To improve the acquisition efficiency of online users, use high-frequency full range of products, especially fast consumer products to improve user activity.

JD.com, who launched Jingxi in 2019, although relatively late in industry reform, achieved considerable results in this year's Singles Day with the help of Wechat, a powerful channel.

The third-and fifth-tier cities have become the largest source of new users in Jingxi, and the number of daily active users of Mini Program is close to 70 million, which has become a key product for the sinking of JD.com 's channel.

As Jingxi has adopted the operation means independent of the main station, the brand of JD.com Mall, which focuses on first-and second-tier cities, will not be affected by low prices, and Jingxi can be promoted in an all-round way without existing baggage.

From January to October 2019, consumer retail in cities and towns grew by 7.9%, but in rural areas by 9%. The potential of the sinking market in terms of retail growth is obvious. In 2019, the above head enterprises have taken a variety of attempts, including improvement, innovation and challenges. in this year, there is no obvious model replication in the industry, nor extensive development under the so-called KPI guidance. 2019 is also an extraordinary year for all enterprises.

In 2020, we will focus on testing the achievements of the above enterprises. (the first titanium media in this article)