Where is the way out for entities?

Many people say that the Internet has revolutionized the lives of entities, making them more and more difficult to do. Is this really the case?

don't worry, let's analyze it layer by layer.

the urbanization revolution in the historical process

At the beginning of the reform, the domestic infrastructure was weak, and the people's lives were miserable. The top management of the company unanimously decided to introduce foreign capital to attract investment.

but there were several problems.

1. China is too big to revitalize so many cities.

2. China's assets at that time were all low-priced assets. If so many cities were liberalized, all those low-priced assets would be taken away by international capital, and then they would be kidnapped by international capital.

3: international capital is not optimistic about the development of China, but is interested in cheap labor and policy support. Therefore, the top management decided to support several special economic zones, which will drive the development of the surrounding areas. This can solve the employment problem of the people and prevent capital from controlling most of the resources.

the overall domestic economic planning is focused on the point and then on the surface, and the foreign investment is attracted by large enterprises first and then small enterprises. The whole tactical system from generation processing to imitation to independent research and development.

With the arrival of large enterprises, the infrastructure of some cities is gradually improved, and then part of the money from land sales is invested in the corresponding peripheral construction, and part of it is loaned to people who want to start businesses in China.

At this point, the process of urbanization began to be gradual, and a large number of farmers began to work in the city, which slowly gave birth to some retail service industries around. Until the early 21st century, people have more money in their pockets.

At this time, the real estate and finance broke out. In order to retain migrant workers, major cities encourage the development of real estate and provide them with shelter in cities. However, some rich people can increase their income by buying and selling stocks of wealth management products and funds issued in the financial market, and China has entered a high-speed development cycle.

problems under urbanization

a large number of population migration will drive the development of cities, and diversified industrial chains will be born one after another, especially the retail industry.

1. The biggest cost in the retail industry is inventory and rent. Due to the long-term population inflow, the relationship between supply and demand of houses has changed, which constantly stimulates the price of real estate to rise, and the cost of retail industry is increasing.

2. A large number of people have moved in, and their consumption power has improved. Due to the low threshold, more and more people have started the retail industry, and the market cakes are being further divided. Everyone is looking for places with concentrated traffic, but the rent cost is also high.

3. Cities are frantically grabbing people, and the demographic dividend is gradually disappearing, which leads to the local economy shrinking.

The living standard is improving, and the time cost is also increasing. It turns out that the more people have no time to go shopping and bargain, the traditional entity exposes many problems in their constitution.

Information asymmetry between buyers and sellers, after-sales cost, time cost and many other factors have led to the accelerated death of traditional entities.

The birth of the system, as long as it keeps running, physical problems will begin to be exposed. There are only two ways for entities, either mode innovation goes out to find new markets or technological innovation drives mode innovation.

So in this case, the first entity model innovation appeared, and the industry was combined together, and Shangchao was born.

this method has been used for a while, but it still encounters the core problems, such as information gap cost, time cost, rent cost, and pooling.

Internet e-commerce

The first kind of entity innovation brings the innovation of Internet mode. It reconstructs the structure of people and goods yard in traditional retail, which makes the whole shopping change dramatically.

1. It reduces the cost of user silence caused by the information difference between buyers and sellers, and makes the whole market more transparent.

2. The time cost is reduced. In the current era when time is money, you don't need to take a taxi to go shopping specially, and you don't need to spend too much time, so you can meet different scenes and solve the surrounding costs caused by many shopping.

3. reduced operating costs, rent and expenses incurred by users.

Social contribution: It has increased the development of express delivery and logistics industries, solved some employment problems, and contributed to the development of the Internet and social stability.

Disadvantages: it has been doing internal transformation operation, facing the same problems as traditional entities, and now there are only two ways to throw it

1. Mode innovation goes into battle lightly

2. Technological innovation drives mode innovation

Every time the system is established to be weak, there will be a period, while the Internet will balance the time of system weakness, stabilize the development of the industry in disguise, and the rise of e-commerce will curb inflation to a certain extent. Why do you say this? First of all, e-commerce has strengthened the survival of small and medium-sized enterprises, making it easier for them to survive, producing more and more things, and the operating cost of online selling is lower than that of offline selling, so that excess money can be diluted with goods, and by the way, real estate can be suppressed. Because a large number of goods production is bound to be accompanied by population migration to industrial cities. Therefore, on the surface, e-commerce plunders the resources of the entity, but it also retains the last spark of the entity, just waiting for it to break into a butterfly one day.

New Retail

The arrival of new retail is the hope of entities. The core of new retail is the integration of online and offline, empowering entities with the Internet, allowing users to consult online and place orders online. Offline experience, offline delivery. Of course, at present, I haven't seen a company that has done a good job, because it is not difficult to place an order online. What is difficult is offline delivery and offline experience. How to make users come to the store to experience this requires a change in the way of shopping, and changing the user's consumption habits can only be simple, and that is only to sink the store to a neighborhood near him. You can experience and deliver it during commuting time. This will face several problems.

1: products can only be self-operated, and other products can be put into storage, which is a bit like JD.COM

2: products can't have too many SKUs, only a certain category, otherwise stores can't display so many products.

3: low frequency+high frequency mutual drainage.

At present, the new retail is doing well in community group buying, and among the major camps of community group buying, I am most optimistic about prosperity and optimization.

Using community group buying+convenience chain, low frequency+high frequency mutual drainage, the industrial combination is a joint business model, and it has sunk to the countryside at present, and its profit is sustainable. (The essence of community group buying can be found in my last article, in which it is written in detail)

So I think that with the arrival of new retail, traditional supermarkets will face great pressure, and it is difficult for retail stores over 5 square meters to survive. Most retail stores are jointly operated, which is a bit like mobile phone stores (charging phone bills, broadband, mobile phones, numbers, accessories and maintenance). Low frequency and high frequency are mutually drained to realize online and offline integration.

the road to the future

why should new retail sink the market, so that towns and villages will have opportunities.

China is experiencing an unprecedented opportunity, and this opportunity is the Internet. The advantages of the Internet are exactly the same as those of China Legalists, and it is the key point for China to become the center of the world in the future.

1. China's urban market is close to saturation. If you don't sink the towns and villages, you will only have a dead end if you keep transforming in the city.

2. China's population is concentrated in cities. If no adjustment is made, the problems caused by the polarization of the two levels of population will be derived into social problems and public problems. The core that can solve the problem is the Internet. Only when entities sink to villages and towns through the Internet to meet the needs of local users and improve local infrastructure, the population will not be lost, which will drive the local economy. Large enterprises and small stores improve employment opportunities, stabilize employment and ensure employment. Improve living standards, improve happiness index, increase local education and solve fertility problems.

3. The city makes room for foreign friends to come in to increase the vitality of the city, attract more capital and technology to drive the development of the city, and return to towns and villages.

the overall strategy is to build villages and towns first. Decentralize some manufacturing enterprises, service industry and retail industry. Open the immigration policy to the outside world, open the competition mechanism, let more foreign friends come to the city to develop, and the city will become a container connecting the preceding with the following, absorbing resources from the outside and delegating resources from the inside. When local cities are aging, they will be surrounded by rural areas and redefined.

to sum up: the art of attacking and cutting lies in the law, while the cultivation of health and rest lies in Confucianism, and knowing yin and keeping the balance between Yang and Xiao. Human history is a history of competition and cooperation. If you understand history, you can understand the present.

I'm Feng Yizhi, a counselor from the mountains.

There are clouds and moons in the mountains, and the wind is strong. The stream is stained with a dark cloud, accompanied by a few white grains. Looking at the moon setting, the plum blossoms are fragrant.