Two days ago, the group talked about this topic: Why is the US e-commerce market completely destroyed by the physical store, but China is completely down? Everyone has his own opinion, but in the end there is no conclusion. Many friends have mentioned the advantages of e-commerce: cheap, affordable , Fast; There are also friends who talk about the lack of domestic entities, such as: physical store taxes, rent, etc. ... However, this is really the reason why "the US electricity supplier was completely destroyed by the physical store, and China is completely reversed"? U.S. e-commerce providers do not have the advantage of being “cheap, affordable, and fast.†Do not U.S. entities require “taxes, rents, and taxes�
actually not!
E-commerce in the United States is currently only a supplement to the retail industry, and China's current stage is exactly the opposite of the United States: China’s retail entities are currently supplemented by e-commerce.
Perhaps it can be said: For the United States, online retail is complementary to offline retail; for China, online retail is a revolution in offline retail.
Why? We slowly take a look:
1. What is the development of e-commerce and physical retail in the United States and China?
Second, the difference between China and the United States in e-commerce/retail channels and logistics services Third, what are the differences between consumer attitudes and customer experience in the U.S. and China?
Let us look at the first point. What is the development of e-commerce in the United States and China and the development of physical retail industry?
During the booming period of e-commerce, look at how foreign retail stores are. What large-scale retail stores they have, such as Wal-Mart in the United States, Great Eastern China in Canada, and Jusco in Japan...
Then take a look at my Heavenly Kingdom. What is it? Everyone thinks together! Well, some people are happy with China Resources Vanguard? What else? I can't think of it, but trouble everyone.
Closer to home, we first look at the retail industry in the United States:
The development of e-commerce in the United States should begin in 1995, but when it starts, it needs to face Wal-Mart and other behemoths.
Wal-Mart Stores Co., Ltd. was established in Arkansas in 1962 by Mr. Sam Walton, a legendary American retailer. As of the year 1995 when e-commerce started, Wal-Mart has existed and has been expanding for more than 30 years. E-commerce is in front of him as a child with a learning language.
On the other hand, in fact, at the beginning of Wal-Mart’s creation in the 1960s, a principle was established. “Starting from a small town, a town with a population of more than 4,000 people will open a store,†which is similar to the strategy of TaiZu during the Anti-Japanese War era. General "Rural countryside surrounded by shops."
By 1995 Walmart had more than 1,300 stores in the United States, and it was mainly in the town. What does this mean? It is convenient and fast. Overall, this is the advantage of e-commerce in China mentioned earlier. However, as far back as 1995, retail sales of U.S. entities have already reached this level. The following is the path of expansion of Wal-Mart's "Cell Reproduction" style in the United States (1961-2010).
Wal-Mart's "Cell Breeding" Expansion Path in the United States (1961-2010)
So, what about e-commerce?
Data from Huachuang Securities Research Institute Zhang Xuechuan Chen Zhuo
From the picture we can see: In 2010, the market scale of US$166.5 billion for the entire US e-commerce industry was far less than Wal-Mart’s turnover in the United States, not to mention “compared with the entire retail industry,†and returned to the above conclusion: U.S. E-commerce is currently only a supplement to the retail industry.
U.S. E-commerce Market Share (2013): Data from Business Insider
From 2001 to 2013, although the market share of e-commerce in the United States continues to grow, we can see from the picture that, compared with the physical retail industry, it still only accounts for about 8% of the retail industry. This is a traditional entity retail industry. Dashan still exists.
E-commerce is nothing but a childish teenager from 1995 who has become a childish child. It is still young and weak; but it does not mean that the development of e-commerce in the United States is slow. From the picture we can see: the growth rate of e-commerce in the United States. It is more than retail. But - and eggs.
Continuing our discussion on this issue, some of the users discussed channel issues during the group discussion:
As mentioned above, the development of the physical retail industry in the United States is far from e-commerce, and a very sound retail system has been built when e-commerce companies have not yet started. This difference in decades has resulted in the perfect and rapid coordination of U.S. commodity channels, and because e-commerce has been one step behind, there has been no “manicured†capital in the face of manufacturers. What?
Manufacturers in the maintenance of physical stores and e-commerce prices in the same circumstances, remove channel and transportation costs, e-commerce because of the proliferation of point-to-face, resulting in the price of the entity and e-commerce is almost the same, even cheaper than e-commerce.
Then we take a look at the essential part of the e-commerce industry: Express.
U.S. e-commerce development courier fees and taxes are also a major obstacle. Here we have to take care of the US express delivery problem. In the United States, ordinary people will use the express delivery no more than three USPS (United States Postal Service), UPS, and FedEx.
Due to the state system, the U.S. postal industry has a certain peculiarity, so the U.S. Congress created the USPS and Benjamin Franklin is the first postal minister. So you can understand that the USPS is a so-called state-owned enterprise. Corresponding to China, it should be the “postal serviceâ€. It is slightly different from the other two.
In addition to being a member of the UPU, most USPS outlets also accept passport applications. At the same time, he will also hold your home email key. (If you like to watch American children's boots, you should notice that in U.S. families, every family will have their own. a mail box).
While UPS and FedEx are privately owned, UPS is slightly larger than FedEx, but it also belongs to the feeling of no matter whether it is Zhong Bo. It is probably the rhythm of China's “Shunfeng†and “Tongtongâ€.
Many U.S. companies, including Amazon, who have chanted countless cuts, have cooperation agreements with both companies. As for the differences between state-owned enterprises and privately-owned services in the same project category, according to netizens, Tucao said that I only lost something in the USPS anyway.
Different from domestic ones, the class score of express delivery in the capitalist society is very detailed, and relatively different prices can vary greatly.
Another point to note is that the U.S. population does not focus on urban housing as we do. Therefore, you should be able to see from the above figure that relative courier fees are not cheap, and that online shopping in the United States is subject to taxation. Taxes are even higher than in physical stores.
After we talked about courier fees, we went on to say about the US courier delivery service. During the group chat, many netizens said that “US e-commerce was completely destroyed by physical stores, but China was completely reversed†in addition to the industry’s tax and rental issues. In addition, e-commerce can develop rapidly in China because “simple and quick†online purchases are optional, waiting for delivery. Indeed, the development of China's Internet vertical service industry has basically grasped the property of "laziness", and how people can be more pleasantly lazy, this has become the core.
Let's take a look at the U.S. courier service. Let's take a look at what the netizens are saying about the question: “Does U.S. courier deliver it to you?â€
Picture content comes from knowing
Although this is only a Tucao, but it can also cover the general situation.
In a U.S. courier company, the receipt is a Value-Added Services. It is an additional service, meaning that it is paid and will be enforced.
UPS provides three different levels of signing services. The most common is the Delivery Confirmation. The courier only needs to send the shipment. If the address is not available or the signature cannot be provided, the courier has the right to hide the shipment near your home and mark it as signed. What is the situation in this category? Let's experience it:
The picture comes from knowing the answer
The second grade is Signature Required, which requires signing. This grade is much better than the above, this grade of delivery must need to have a living to see the courier brother, whether it is your neighbor or apartment administrator, it is necessary because there is a person can provide to the courier uncle Signature, someone signed the courier to complete the delivery (this is a bit like my "celebrity reception / receptionist signing.") The purchase of the service compared to the first grade just throw the door is much better, which means that if You do not live on the first floor, which means that the courier's brother must knock on the door to complete the delivery.
The top level service is Adult Signature Required (requires adult signature). This service indicates that the delivery courier must find an adult who is at least 21 years of age on the address of the courier to sign with his own ID. If the courier uncle can not find the recipient in the next two grades of service, he will be at you. Leave a Door Tag on the door of your home to remind you that there are unsigned shipments.
With regard to the United States, from the point of view of “comparison of e-commerce and physical retail salesâ€, “comparison of channels and tax rates,†and “delivery fees and service descriptionsâ€, I think it is not difficult to understand why “U.S. e-commerce companies are Complete explosion.
Next, let's look at China. Why did you come to China completely?
Still from the development of retail and e-commerce
Look at China's environment: When China develops e-commerce, the traditional retail industry is actually underdeveloped. One of the most obvious manifestations is that the popularity of China's hypermarkets is not high, and the coverage rate of chain retailers is not high.
Take the case of Gome and Suning, the two largest home appliance retail chains in mainland China:
Gome (founded in 1987), there were 1698 stores in 2014;
Suning (founded in 1990) had 1,696 stores in 2014;
Then, aside from China’s own retail entities, what is the development of multinational chains in China?
According to the China Chain Store & Franchise Association, we can see that the coverage of multinational retailers in China is even lower. Wal-Mart, the world’s leading retailer, had only 411 stores in 2013.
Second, the concentration of retail sales in China is not high.
From the data, we can see that China's top 20 retailers account for only about 13% of total retail sales in the city. As of 2010, China's largest retailer Gaoxin Retail has only 12% market share.
Therefore, compared to the United States, the physical retail industry is far more developed than e-commerce. We happen to be the opposite. When the e-commerce in our country began to develop, the traditional entity retail industry is actually underdeveloped.
Since the 1990s in China, industrialization and informatization have taken place, and different retail formats have appeared closely. Although it took only 20 years to complete the transformation of retail formats in the United States for more than one and a half centuries, it is relative to the entire industry. The language is also in the early stages of development.
1. Non-uniform physical wholesale and retail infrastructure: Per capita income in the west is half of that in the east, and the per-capita wholesale and retail business area is only 1/3 to 1/4 in the east
A is a small town called Terre Haute in the Midwestern United States. There are almost 50,000 people up and down the city, but there are various large department stores such as Walmart, Bestbuy, and Macy's, all of which stimulate local consumption. Restaurant Domestic, small and medium-sized cities do not have sufficient physical and commercial infrastructure, and they have not used enough space to choose goods. The offline consumption has been suppressed.
From the data, we can see that China's top 20 retailers account for only about 13% of total retail sales in the city. As of 2010, China's largest retailer Gaoxin Retail has only 12% market share.
Therefore, compared to the United States, the physical retail industry is far more developed than e-commerce. We happen to be the opposite. When the e-commerce in our country began to develop, the traditional entity retail industry is actually underdeveloped.
Since the 1990s in China, industrialization and informatization have taken place, and different retail formats have appeared closely. Although it took only 20 years to complete the transformation of retail formats in the United States for more than one and a half centuries, it is relative to the entire industry. The language is also in the early stages of development.
1. Non-uniform physical wholesale and retail infrastructure: Per capita income in the west is half of that in the east, and the per-capita wholesale and retail business area is only 1/3 to 1/4 in the east
A is a small town called Terre Haute in the Midwestern United States. There are almost 50,000 people up and down the city, but there are various large department stores such as Walmart, Bestbuy, and Macy's, all of which stimulate local consumption. Restaurant Domestic, small and medium-sized cities do not have sufficient physical and commercial infrastructure, and they have not used enough space to choose goods. The offline consumption has been suppressed.
Source: National Bureau of Statistics, Bureau of Economic Analysis
As can be seen from the above figure, in 2012, the final resident's consumption completed by the city of value-added of the US$1 wholesale and retail industry was 6.04 yuan, and the United States was 1.56 times that of China.
Compared with the US retail industry mentioned above, we can find that the attitude of the retail industry to the Internet is still very different between the Celestial and the United States.
If this is not clear enough, then we look at historical developments to compare the timeline of the development of the traditional physical retail and e-commerce between the Celestial and the United States:
From "Internet+: From IT to TD"
From the above figure, we can clearly see:
The development of traditional retail entities in the United States depends on a strong industrial economic foundation and a mature and efficient large-scale circulation pattern. The Internet is only a supplement to offline retail.
In China, due to congenitally deficient, one-step slow pace, so the Internet is regarded as a means of reform, thereby making wholesale, retail, logistics, production, and finance the entire commercial form of a large-scale leap-forward revolution. This has led to a variety of "pigs on the wind", and everyone picks up firewood in hopes of achieving "curve crossing."
Let's take a look at China's "Express and Logistics":
In the logistics industry, the geographical structure determines the terminal delivery cost (last mile): the higher the population density, the lower the distribution cost. Relatively sparsely populated and sparsely populated by the United States. In 2010, there were only 9 cities in the United States with a population of more than 1 million. There are many people in the country and the population is relatively concentrated. In 2010, there were 88 cities with over 5 million people.
China and the United States population density
From the above figure, we can see that the distribution density of the US population is very scattered, and there are many people in China and the population is relatively concentrated. The average population density per square kilometre in China is 130, which is about 3.3 times the world's population density. The population of China is unevenly distributed: the eastern coastal area is densely populated with more than 400 people per square kilometer; the central area is more than 200 people per square kilometer. However, in the Western Highlands, the population is scarce, less than 10 people per square kilometer.
China's urban population density and the average cost per end of the package delivery As far as the urban population is concerned, China’s urban population is the largest in the world (data comes from NetEase exploration). At the same time, the population is more dense, and the larger the package delivery volume in a city, the greater the logistics cost. The lower, the more developed the logistics industry.
Labor costs are much lower than in the United States, labor costs are relatively low, and logistics costs are also low; land prices in urban central business districts are high, while land prices in tens of kilometers away are drastically reduced, and warehousing costs can be effectively reduced. This is feasible for e-commerce and not for retail entities. Logistics costs are also low.
This has led to the fact that in the regions with high density of urban agglomerations, the operation cost of online shopping mode is lower than that of traditional retail; in areas with low urban agglomeration density, online shopping modes can provide more abundant shopping options; in summary, so In different regions in China, e-commerce has different advantages over the physical retail industry.
Last but not least, it is customer experience and consumer attitudes.
Maybe it's caused by different ways of thinking. Many people in the United States may be different from ours. Many of them indulge in the fun and freshness of shopping in the store. It has always been shown that 40% of Americans prefer to see it for themselves when shopping. Come and feel the color, style, and texture of the product.
China, on the other hand, is more concerned with convenience and benefits, especially at the mid-tier and mass commodity levels.
In addition, U.S. offline store returns are very humane, usually within 30 days of free return, and even within a year of free return service. And how is China's traditional physical retailing a kind of customer experience and service?
Well, I believe that here, we must understand why “the American e-commerce is completely destroyed by the physical store, but China is completely down?â€
However, do you think there are only so many?
Although the industry development, practical issues, consumer experience and other aspects of the two countries have answered the problem to some extent, but this is only an objective reality, then in the industry response to the final answer to the question: why the United States e-commerce was the physical store explosion And China is completely reversed?
From the perspective of industry development, US retailers generally suppress e-commerce, such as Big Mac, while China is the cornerstone of e-commerce overtaking and surpassing the traditional physical retail industry. From the perspective of good logistics services for distribution logistics, China Express Army is cheaper and more affordable. Humanization; From the perspective of shopping consumption and customer experience, China's existing problems have an advantage over e-commerce development. As a result: U.S. e-commerce is completely destroyed by physical stores, while China is completely reversed!
From the major aspects:
In the United States, this is because traditional retailing in foreign countries is too strong, resulting in limited impact on e-commerce;
In China, this is because the high cost of logistics abroad has somewhat inhibited the development of the local logistics industry.
So I also said at the beginning of this article:
For China, China’s retail entities are currently supplemented by e-commerce; more exciting content, for the United States, online retailing is complementary to offline retail; while for China, online retailing is offline retail Revolution.
(Source: Interface)
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