Traditional Retailers: E-Commerce Is Really A Big Business.

With the pformation of Southern China granary into IT e-commerce company, Guangzhou's famous local department stores such as Guang Bai, friendship, Wangfujing and so on have been in touch with each other, and Guangzhou has made use of it.

As a matter of fact, the case of traditional channel vendors has already come from the IGO5 of Xidan shopping mall in 2001, to Wangfujing department store, Shanghai Bailian, Wumart and so on.

For e-commerce, there are always ambitious entrepreneurs in the channel business, of course, always accompanied by.

Is the Internet the terminator of traditional channels?

Will e-commerce take advantage of the technology black horse to swallow the performance of traditional retailing?

With the increase of the number of water users, the discussion of channel users' touches is also rampant.

As a successful forerunner, the Yintai network, which is famous for its 82 day sales and 10000 sales per day, has the right to speak.

To this end, the reporter interviewed Liao Bin CEO Agel Ecommerce Ltd.

"There is no mystery of technology and no risk of commercial failure. It is a real business."

Liao Bin replied.

Reporter: Recently, there is a news that many department stores in Guangdong are involved in e-commerce. Is it inevitable for retailers to touch the Internet?

Liao Bin: there is no doubt that whether it is branding or channel operators, touches are inevitable.

Because brand dealers and channel businesses are all around consumers' needs.

When new technologies continue to promote the development of the information industry, and promote the improvement of personal PC, mobile Internet and other network terminals, personal network time is getting longer and longer, and gradually become part of life, thus spawning a new way of life.

For example, our fax is getting smaller and fewer, and many people do not send facsimile, because the network can provide a more convenient way of file pfer.

When people's work, entertainment and social networking are changed by the Internet, Internet consumption becomes a necessity.

This is determined by the social development promoted by information technology.

Today's advantages will be replaced by future trends. If e-commerce is still a new channel, then it will become a normalization in the future.

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Reporter: but the two models are different in nature and structure.

Liao Bin: This is not important, its own mode, its own management structure, these are not important, it is important that the consumer is there.

Reporter: is there any advantage in traditional channel expansion?

Liao Bin: traditional channels have the most rich experience in front-line retail, they know more about what products consumers need and how they can better meet the needs of consumers.

At the same time, the traditional retailers' ability to integrate the supply chain is far higher than that of e-commerce. The brand advantage of large retailers is also a huge intangible asset.

For example, Yintai, you can find some top international brands such as MiuMiu, RalphLauren and JimmyChoo on Yintai online.

Unlike other fashionable e-commerce websites, Yintai network is one of the few companies that have been authorized to sell these brands online, and this is benefiting from the brand background of Yintai, thanks to the cooperative relationship between intime department stores and many brands at home and abroad in the past decade.

Reporter: at a new media marketing forum at the beginning of this year, the president of an e-commerce platform has issued a piece of advice to the brands: don't fight with our professional Internet users to control the net sales, but be good at using the third party platform.

Does this advice apply to traditional department stores?

Liao Bin: I do not fully agree with this view.

Of course, from a strategic point of view, whether to use professional people to do e-commerce.

It is the key for many enterprises to develop e-commerce successfully.

But I think this is a crucial first step.

If e-commerce is to be sustained, the leader should not only understand e-commerce, but also understand retail.

That is to say, the experience of traditional channels in retailing is a very important element for the sustainable development of e-commerce.

There are not too high barriers to enter e-commerce. I believe there will be more traditional channels and brands coming into this area in the future.

Online is no longer a life under the leather line.

Reporter: what is the relationship between Yintai network and Yintai department store?

Liao Bin: it is an independent two parallel development company under the group.

Reporter: I see that on our website, there are two prices before and after discount. Will this affect the sale under the line?

Liao Bin: different brands, different products, in different time and different regions, promotion means will also be different, in price will also have different presentation.

This is true not only in different outlets of traditional channels, but also in online sales.

From the technical level, many people now say that e-commerce is a new way of consumption, but from the macro strategic perspective, with the development of information technology, in five or ten years, the Internet, traditional channels and mobile Internet will become normal consumption patterns. Their essence is the same, that is, two words: retail.

Now many people are easy to ask online and offline conflicts. In fact, from a higher perspective, there is no need to ask such questions.

What needs to be analyzed is what the traditional retailing industry should do instead of entangling in doing or not doing so after the change of the channel form.

This is the same reason for a department store to open two stores in the same city.

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Reporter: so what does e-commerce mean for traditional channels?

Terminator, chicken rib or supplement?

Liao Bin: now in the business circle, some people say the electronic commerce is very mysterious. They put the electronic commerce on a mysterious coat of technology. In fact, e-commerce is a kind of paction method naturally produced along with the development of social economy.

It goes hand in hand with traditional channels, and does not mean ending tradition.

Reporter: it can be understood that e-commerce and traditional channels have the same retail essence, but they are different in form.

Liao Bin: the difference in form will bring about some changes and upgrading to the whole industry.

For example, a traditional business circle, its radiation crowd is a radius of 5 to 10 kilometers of the region's 200 thousand consumers, all products in which the product is planned should be oriented to the needs of consumers in this area.

If it has 10000 stocks of goods, its sales are to meet the needs of the 200 thousand consumers.

Now, if we put the mall on the Internet, in theory, it will face 1 billion 400 million people on 9 million 600 thousand square kilometers. The 10000 products will face 1 billion 400 million of the consumers. The effectiveness of their inventory will reach the maximum level.

For example, a woman's underwear is divided into 3 colors, each color has 5 sizes. Each size is divided into 5 cups. It produces 75 SKU, and each SKU has a certain stock under it. When faced with 200 thousand people and 1 billion 400 million people, the sales probability is quite different.

E-commerce can maximize the long tail effect of sales.

Reporter: that is to improve the efficiency of sales.

Liao Bin: Yes.

In fact, the Internet can bring many changes to traditional retail.

For example, there is a touch rate in shops, but the ratio is hard to quantify.

But on the Internet, we can clearly see the click rate and purchase rate of consumers, and we can easily analyze the preferences of consumers in different regions through these, so as to better satisfy consumers in product design, production and regional distribution.

Whether online or offline, it all comes down to how to better satisfy consumers.

Promoting the continuous upgrading of consumer services is the most important thinking value of e-commerce to commercial channels.