The core of new retail is the acquisition of traffic.
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The increase in traffic costs is the root cause of new retail sales. The emergence of new retail is related to technological development, but the root cause is that traffic costs continue to increase, the old business model breaks down, B2C traffic costs increase rapidly, and e-commerce traffic dividends are gradually depleted.
In order to further tap the traffic dividend, new retail has emerged to break through the online and offline. So in new retail, traffic is at the core.
In fact, the essence of retail is two ports, one is to meet the changing needs of consumers, that is, the scene side; the other is to connect more efficient supply chain. From the scene side, whether it is to improve efficiency or deepen the experience, the purpose is to attract traffic. Once the retail platform has received sufficient traffic, it can adjust the supply chain, compress costs, and make a profit.
Starting from the flow of thinking, the real core of the breakthrough is the distinction between categories.
We want to distinguish between high-frequency and low-frequency consumer goods, with high-frequency as the core, and focus on optimizing this part. Because the core of retail is to compete for traffic, high-frequency consumer goods are the value of the new retail platform, low-frequency can not be made into new retail.
Specifically, on the platform of new retail construction, the high-frequency category traffic, coupled with the new retail self-contained business integration, has a superposition effect on traffic attraction; while the low-frequency consumer category traffic is too low, there is no way to bring traffic. Incremental.
So the end result is that low-frequency products use the new retail platform to market products, but it is unlikely to grow into a platform. Now everyone is desperately trying to make a living, because the fresh products that are eaten around are high-frequency consumption. Offline supermarkets are paying more and more attention to fresh produce, and because such products can attract people and ensure traffic.
Some people worry that attention to traffic ignores the consumer experience. But in reality, the experience itself is traffic, and the two are not contradictory. In fact, people’s pure purchase needs are met, and then they begin to consider the experience. The retail industry is vying for consumer attention and competing for consumer time.
Therefore, our first step is to compete for practical time, and the second step is to compete for entertainment and experience time. For example, when people are hungry in the morning, they want to eat. Whoever can send the meal to the first time will win. When everyone is fast, they will start to consider who provides the service for this kind of experience. This is all the traffic competition has been extreme, to be extra rush to do.
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