Social "weirdness": a large number of shops have closed, and the streets are full of restaurants, convenience stores and pharmacies

Walking on the bustling streets, it is inevitable that you will be attracted by a large number of "wangpu rent" words, as far as the eye can see, whether it is restaurants or convenience stores and pharmacies. This phenomenon has attracted public attention, and economists have seen deep economic changes.

The rise of e-commerce, the impact of the pandemic, and fierce competition in the same industry have all brought unprecedented impact to brick-and-mortar stores. And why do catering, convenience stores, pharmacies and other industries seem to be unaffected, and are opening more and more? There are many factors involved.

First, the double dilemma of physical stores

The plight of brick-and-mortar stores can be seen on the streets. Walking on the street, you can often see the "Wangpu Rent" signboard, the story behind it is multifaceted, and the impact of e-commerce and the superimposed effect of the epidemic are undoubtedly the most significant reasons.

E-commerce platforms offer unprecedented convenience to consumers. At the touch of a finger, all kinds of goods can be delivered to your doorstep. The outbreak of the epidemic has made the advantages of e-commerce more prominent. In order to prevent and control the epidemic, many people choose to isolate at home and stay away from crowds.

During this time, mobile phones have become the main way to communicate with the outside world, and the demand for shopping has gradually been met by e-commerce platforms. And those consumers who still choose to go out of their homes have also greatly reduced the frequency of shopping because of the epidemic concerns.

This not only reduces their willingness to spend, but also brings a direct blow to physical stores.

The rise of e-commerce itself has changed people's shopping habits. Without going out, a wide variety of goods and often preferential prices, this shopping model gives consumers unprecedented choice and freedom.

For physical stores, inventory restrictions, store rents and labor costs make it difficult for them to compete with e-commerce in price. This change is not only due to the rise of e-commerce. The epidemic has had a profound impact on people's living habits.

The originally lively commercial streets and shopping malls have been deserted due to the epidemic. People's fear of going out, combined with concerns about the spread of the virus, has made many consumers more willing to shop online.

For those brick-and-mortar stores that remain open, the decrease in footfall means that revenue plummets, putting great pressure on operations. The impact of e-commerce and the superposition of the epidemic have made physical stores face a double dilemma.

It also makes us think, what will the business model of the future look like? Will brick-and-mortar stores be able to find their way out? In the era of digitalization and convenience, how to better meet the needs of consumers and maintain the survival and development of businesses is a problem that every operator needs to face and think about.

Second, fierce competition in the same industry has aggravated the plight of shops

Back in the '90s, the business environment was significantly different from today. There are relatively few people who start businesses, and the market is still in a stage of expansion and exploration. Each new store seems to have a unique market space and consumer base.

It was a "golden age" that merchants will remember in retrospect. With the development of the times, the boom of entrepreneurship has swept in. More and more people see business opportunities and pour into various traditional industries, hoping to find their own niche in them.

This has led to a sharp increase in the number of shops in the market, especially in certain popular industries and locations, where competition has gradually changed from moderate to intense. This competition between a large number of shops with no obvious characteristics has undoubtedly brought great pressure to every shop.

Each store has to compete with other merchants in price, service and quality, which has led many merchants to constantly lower prices in order to survive, resulting in a reduction in overall profit margins.

In order to attract consumers, merchants are constantly innovating and experimenting, but due to the oversaturation of the market, many novel attempts are ultimately unsustainable. And for consumers, it is easy to feel lost and tired in the face of so many choices.

Merchants may use various promotional methods in order to seize market share, but this may also lead to a decrease in consumer trust in the business. In the long run, excessive competition is not conducive to the establishment of long-term and stable cooperative relations between businesses and consumers.

Against this backdrop, many shops are beginning to face difficulties. They need to deal with fierce competition from other shops; Also work to build trust with consumers and provide truly valuable goods and services.

Compared with the impact of e-commerce and the epidemic, intra-industry competition may be a long-term challenge. For every business, how to find its own positioning in such an environment, maintain its competitiveness, and establish long-term cooperative relations with consumers will be an ongoing task.

Third, why catering, convenience stores, and pharmacies are bucking the trend

Restaurants, convenience stores, and pharmacies play an indispensable role in society. The rise of takeaway has also brought additional benefits to F&B because many people do not want to cook at home or eat out with friends.

Convenience stores, with their 24-hour convenience, meet people's immediate needs. And for pharmacies, it meets people's need for fast and convenient medical treatment, especially for patients with chronic diseases.

epilogue

In the face of such a bizarre social phenomenon, we cannot simply boil it down to a single cause. The rise of e-commerce, the impact of the epidemic and competition between peers are all reasons for the closure of physical stores.

Industries that are close to people's daily lives, such as restaurants, convenience stores and pharmacies, continue to thrive because of their special and irreplaceable nature.

This tells us that no matter how times change, there will always be a place for industries that can combine people's daily needs to provide unique value. For brick-and-mortar businesses, finding their own characteristics and meeting the actual needs of consumers is the key to survival and development.

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