The essence of retail business operation logic: changes in retail traffic rules
Traffic is the essence of retail business
First, offline retail store traffic rules
Offline retail stores are retailer models centered on the geographical location of the stores, covering 3-5 kilometers, and their consumption attributes are as follows:
Product attributes: According to the coverage of business area and user needs, provide a certain amount of product selection for specific categories. Therefore, this scale cost reduction is reflected in the scale cost advantage of a single category;
Service attributes: It lies in the convenience of services and product portfolio services to meet the diversified consumption needs of users.
Relative to the online and offline traditional media environment, users are unable to quickly obtain the consumer information they need, and choosing unfamiliar stores is a trial-and-error silent cost that takes time and opportunity, and final consumption is often easily limited to nearby stores. Based on this bias towards service attributes, offline stores give priority to satisfying users' peace of mind that they can buy and buy. The limited coverage of users makes it impossible for store operators to effectively share the operating costs pushed up by the service plus items, so product prices are often not the optimal solution, which is reflected in the limited individual single volume to carry more service costs. The limited display area makes the store priority to ensure the regular needs of users, seeking a balance between business efficiency and consumer satisfaction, and it is often difficult to effectively meet the segmented needs.
Second, speaking of which, what is the consumption attribute of online e-commerce?
Product attributes: Virtual shelves break through the limitation of display area to meet the needs of product length, width and depth;
Service attributes: Users need to select products from a large number of goods, the user experience is lacking, and the products are delivered by express delivery.
From the perspective of e-commerce, users can quickly obtain the required consumption information through online media or on-site search, without space market user restrictions, and additional express delivery services. Therefore, e-commerce is more biased towards product attributes, it is easier to form large-scale production and sales, and price competition has become the mainstream operation idea of e-commerce. User aggregation and virtual shelf display meet the segmentation needs, so that the capillary needs can be met.
Third, based on the two, I personally believe that the impact of e-commerce on retail stores comes more from the productization of consumer goods:
Product attributes: standardized products are conducive to e-commerce to play a large-scale effect of products, and the advantages of commodity selection and sales price on the shelves are obvious;
Service consumption: the proportion of consumption attributes is adjusted, the productization is regionalized in different places, and the sales portfolio of individual stores is enlarged.
For example, most of the catering stores are mainly dine-in, and the production, delivery and use cannot be separated, so the production of the back kitchen and the reception of the front hall directly limit the single-day turnover of the store. The Meituan and Hungry have increased the proportion of product attributes in catering stores by providing system delivery and distribution services, separating the production of the back kitchen from the product delivery and eating scenes, helping the stores break through the traffic restrictions of geographical locations, achieving a breakthrough in user coverage and sales volume, directly affecting the development of semi-finished products and commercial real estate in catering, behind all this is only the adjustment of the proportion of consumption attributes of catering stores.
4. Summary
The nature of traffic rules
Offline stores are based on the store-centered geographical traffic as the rule, to meet the user's buy and buy at ease, the product price is relatively fair, biased towards service attributes. The space traffic planning of e-commerce centered on the website domain name has more advantages in product attributes such as product richness and price, and is biased towards the attributes of the product itself, and the impact of e-commerce on stores comes more from low-price competition after the increase of product attributes.