Henan Business Daily reporter Yang Guifang Guo Dingran Chen Wei Chen Shiang
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How can brick-and-mortar retail weather the big picture?
On the morning of October 17, 2020, Huafeng Home Building Materials City , one of the largest professional market industry events in the country , has been held for three consecutive sessions - Huafeng Home Building Materials City • The Fourth Central Plains Wholesaler Conference was officially opened in Xuanyuan Hall of Zhengzhou International Convention and Exhibition Center, and many top domestic economists and more than 2,000 wholesale industry leaders gathered in Zhengzhou to talk about how the Central Plains commercial and trade industry has crossed the change, broken through development and rebirth in Nirvana under the great changes in a hundred years.
In the "Ask the Chairman" session of the conference, Wang Lei, general manager of Dennis Group, mentioned in the dialogue that the retail industry is in a difficult recovery this year due to the impact of the epidemic. But Wang Lei believes that in the next decade, 2020 will be the easiest year for physical retail. The future will be more brutal than the next decade.
"In the future, when physical retail and online competition are competing, the physical retail industry needs to think about how to let people who can't enter the mall return to the mall, which is a problem that our commercial retail needs to think about at present." Wang Lei said.
Wang Lei believes that if the passenger flow of physical commerce is still in a continuous decline, it is a chronic death. From the perspective of physical retail as a whole, transactions and footfall in the physical retail industry are still declining. Without a decline in the overall total value of consumption, the pattern of end-use consumption is shifting.
"Why consumers don't come to physical stores, the epidemic is just a special reason, accelerating this change." Even without the pandemic, online transaction growth will continue to rise. Wang Lei said that physical retail should think about how to change itself in order to return transactions to physical stores.
Wang Lei believes that offline entities have the advantages of scenario-based and experiential sense, and people's social and emotional needs still need to be realized offline. As the supplier of consumer demand, shopping malls need to lead and adapt in structure and model. The Dennis Department has initiated reforms and is already advancing in layout and strategy.
"Let people who don't want to go to the mall and more young people return to physical stores." Wang Lei said.
Editor: Li Yingxuan Liu Mengge