Source:Xinhua News Agency

Gu Jiayun, reporter and editor of”Looking East Weekly” Zhang Jing

618Promotion Festival,”True Happiness” opens the third stop of”True Low Price · Protracted War”

The June 18 Promotion Festival is approaching , The big drama of the traditional e-commerce platform has opened. The epidemic has brought new changes and new challenges to the retail industry. Content platforms such as Douyin and Kuaishou have come to an end one after another, and various low-price and entertainment marketing techniques have emerged one after another.

The e-commerce platform has entered the new Warring States era, with the blessing of 5G new technologies and other technological means, and the retail industry is facing a new pattern of structural adjustment. In this context, how can the retail industry enter a new round of explosive growth through innovation and empowerment?

On June 8th, the theme organized by Gome“True Happiness” is”The big promotion is worth redefining” The offline series of salons kicked off in Beijing. The salon focuses on the current major pain points of e-commerce, seeks to break the situation, and explores new directions for the development of China’s retail industry.

The epidemic reshapes the retail industry

Under the epidemic, the retail industry has encountered tremendous challenges. People’s consumption habits have also shifted from offline to online, and new opportunities, new demands, and new models in the retail industry have emerged.

From the external environment, global economic development is facing new development stages and challenges. After the epidemic, various industries are accelerating to embrace the tide of digital economic transformation, Technology innovation and Real economy depth Fusion.

In terms of internal environment, well-known economist and researcher of the Institute of International Trade and Economic Cooperation of the Ministry of Commerce Mei Xinyu said that with the change of China’s status in the global economic system, the status of consumer retail has also undergone major changes, making retail an important driving force for economic growth.

The country is also encouraging new formats to lead new consumption.

In September 2020, the State Council issued the”Opinions of the General Office of the State Council on Leading the Accelerated Development of New Types of Consumption with New Business Types and Models”, which proposed that the environment for the development of new types of consumption should be further improved by further optimizing the new business types and new models. The quality of the supply of new consumer products will further enhance the support of new consumption for the expansion of domestic demand to stabilize employment.

New consumer demand continues to emerge.

A few days ago, the”Seventh Census” data was released. Mei Xinyu observed that under the current unprecedented scale of national population mobility, residents’ consumption patterns and consumer demand will be very different, which means that consumer goods There will be a very high potential demand for saving manpower.

Gome, which has been deeply involved in the retail industry for many years, also found opportunities in this epidemic to promote self-change.

CEO of Gome Retail Investment CompanyHe Yangqing said that the epidemic has brought about the Chinese retail industry A very obvious change is that community is the unit, and the surrounding one kilometer grid of online and offline Marketing model.

In addition, another significant change in the retail industry in the past two years is the development of live retail. Prior to this, Gome and the CCTV news carried out the”Buy All over China” nationwide live broadcast event with goods.

This year, 618 is the first big promotion after anti-monopoly, presenting many new features, but the essence of retail remains unchanged. He Yangqing said that no matter how much retail changes, the nature of retail remains the same. Retail is still to meet the ultimate needs of users. The core of retail is actually to do a good job in product operations and customer operations.

He Yangqing, CEO of Gome Retail Investment Company

New Retail:Online and offline integration

What is new retail?

Professor Wang Jian of the School of International Business and Economics of the University of International Business and Economics analyzed that traditional retail has been”old”, and”new retail” centered on user experience is oncoming. In the context of the upgrading of consumption structure, through the application of new technologies, online and offline integration is showing a general trend.

“New retail is by no means equal to online plus offline. This is just the external performance of new retail. The so-called new retail refers to a data-driven all-weather, omni-channel retail platform and its upstream and downstream Supply chain reform.” Wang Jian said.

For this reason, Gome started new retail innovative thinking, based on Gome’s dual-platform shared development model of online-based online and offline collaboration, built online”really happy” apps, and finally realized online and offline integration Flat channels, allowing offline and online precise empowerment, realizing true complementary integration through new technologies . The innovative practice of”True Happiness” is also a reconstruction of the value of”people, goods, and markets” in the retail industry.

New retail under the epidemic requires platforms to provide more accurate services to users. In the previous period, some community group buying was a smash hit, while others disappeared quickly.

Gome, which started offline, has given full play to its advantages, implemented grid management, and launched a model of online and offline integration and logistics integration. According to He Yangqing, this model has directly contributed to changes in the Gome organization and operations. Gome uses more than 3,500 offline stores as a unit, with a radius of three kilometers, forming a grid model.

This is the”One Store One Page” in the”True Happiness” App. Precisely serving the surrounding consumers, combined with the”on-time delivery” logistics system, this is Gome’s innovative model differentiated from pure e-commerce by leveraging its offline advantages, extending retail to local life with stores as a unit. Currently, the members of the”True Happiness” App have reached 205 million.

Famous financial reviewers water skin analysis, community group buying leader’s Part-time model is difficult to sustain, which affects the quality of service. However, Gome’s store manager is full-time, in addition to satisfying users’ shopping needs, he can also do derivative services.

Community group buying has caused the user market to sink and then sink again, and consumers have a tendency to become a circle. Consumer demand is becoming more and more personalized. In response to the general trend of consumption grading, Xiong Xiangyi, executive director of the Outlook Think Tank Research Institute, said that in addition to the material needs of goods, brands and platforms should also be conceptualized and valued, and take the”content + product” marketing path.

Wang Jian believes that retail platforms that started offline will gain a broader industry space in terms of user sinking, scene sinking and service sinking.

How can”really low prices” come true?

In today’s shopping link, promotional activities are already an indispensable link. But as far as consumers’ intuitive experience is concerned, merchant discount rules appear to be more and more “complicated”. Some merchants first increased the price and then discounted, and the incentives are far from reaching expectations; the coupons posted by some merchants have a lot of restrictions in actual use, and the so-called discounts are just”empty joys.”

Promotional routines are emerging one after another, and more and more consumers are experiencing”promotional fatigue”. How to listen to the real needs of consumers and truly achieve”low prices to benefit the people and concessions to the people” is an urgent problem that e-commerce platforms need to solve.

At the beginning of 2021, Gome’s new App”True Happiness” is a marketing model that comprehensively deepens entertainment. Through the”grab-fight-ZAO” entertaining combo boxing game that young people like, and the content presentation of”short video + live broadcast + competition”, a differentiated competition route of”entertainment selling, entertainment buying, and sharing fun” has emerged. The core strategy of”True Happiness” is to build entertainment sales for merchants and platforms, and social transactions for consumers and users to buy entertainment.

“True” refers to the true low price. The secret of Gome lies in the supply chain.

According to Cao Chengzhi, VP of the Gome Retail Holdings Business Strategy and Execution Center, Gome’s low prices rely on the “iron relationship” established with major manufacturers for 34 years in the retail industry. On the one hand, Gome has established deep friendships with major brand suppliers and built a strong supply chain system by virtue of its 34 years of deep cultivating in the industry. It has not only established in-depth mutual trust cooperation relationships with major manufacturers, but also greatly reduced intermediate links and realized In order to control the quality of products from the source, they can also order products from manufacturers directly according to user needs, and cut premiums through direct sales from manufacturers to benefit consumers. These unique advantages lie in the confidence that”really happy” dares to start a”really low price and protracted battle”.

Such a supply chain system is mutually empowering. Gome and supply chain merchants work together to produce content suitable for”entertainment sales”, and then display them on the platform, giving the products”fun” entertainment attributes.

As a user, not only can you buy goods more conveniently and faster, but you can also get commissions and make money by sharing your friends’ purchases.

The new retail era has come. To achieve a”return” and”new upgrade” for the annual big promotion, merchants must adapt to the modern market competition pattern and truly realize online and offline integration and synergy.

Wang Jian believes that in this transformation of traditional enterprises and retail platforms, only continuous innovation, integration, and accelerated connection with users can be accepted by consumers and start the Chinese e-commerce shopping festival healthy and sustainable A new era of development.