Physical store operation is blocked, what is the way out for the fastener industry
What we see now is that many brick-and-mortar stores are blocked or even closed in various industries. Whether it is because of the impact of e-commerce, or the poor management of physical businesses, or the continuous rise of operating costs.
This is the social and economic status quo. The operating costs of enterprises are getting higher and higher. It is better to open a physical store than to open an online store and engage in finance. The reason is not single, the above-mentioned various remarks are one of the factors. us
What is to be discussed now is where will the fastener industry go under the tide of closure of physical stores in my country?
This article will discuss the current status of physical store operations in various industries.
The Malaysian department store Parkson Commercial Group, which has the reputation of being the first foreign-funded store, has been caught in the turmoil of closing stores one after another. Following the announcement of the closure of the Beijing East Fourth Ring store, the only store in Tianjin was also closed on March 31, 2015. Walmart has also suffered from deflationary pressures on Chinese retailing. About 30% of existing Chinese stores will be closed.
The well-known Wanda Department Store also has a wave of closures, involving Ningbo, Qingdao, Shenyang, Wuhu and other cities, while Wanda Department Store, which involves shrinking department store floors, is located in Wuxi, Xiamen, Qingdao, Yantai, Changzhou and other regions. At present, some stores have begun to adjust.
Earlier this year, McDonald's global CEO was removed due to poor global performance. In the first quarter of this year, net profit fell by 32.6%. McDonald's announced that it will close 700 stores worldwide this year, including 220 underperforming stores in the United States and China, including about 80 in China. Similarly, another foreign fast food giant KFC is also in general operating conditions.
Belle International's latest retail operation data for the first quarter of this fiscal year (March to May) showed that China's largest footwear production and retail company had a net decrease of 167 retail outlets in the mainland, while its footwear business sales were year-on-year. Down 7.8%. Previously, the scale of stores has always been the advantage of Belle International. Data shows that in 2011, the most "crazy" days of opening stores, Belle International opened an average of 2 to 3 new stores every day.
Numerous cases seem to reflect the fact that the real economy is no longer in its sights. Looking at online channels, many stores and brands have reduced offline stores, but increased online sales channels: online stores, official websites, takeaways, computer clients, mobile APPs... These have greatly reduced the cost of physical stores, but Get more clients. This may be one of the reasons for the current "closing tide" of brick-and-mortar stores.
Looking at my country's fastener industry, has it been affected by this "closing tide" that has swept across all industries across the country? The answer is inevitable.
According to the reporter of this magazine, there is a polarization phenomenon in my country's fastener industry at present. Some enterprises are too late to make orders, but some enterprises are "waiting for rice to cook". The reasons are of course comprehensive, but it is undeniable that there are not a few fastener companies facing "closure". A person in charge of a fastener company said: "Nowadays, the replacement is getting faster and faster, and fastener companies like us, especially small and micro enterprises, mostly still follow the traditional business model and begin to not adapt to the development of this society. Now, some enterprises with financial resources and qualifications have already begun to transform and seek development in various aspects, such as involving e-commerce, online trading platforms, etc. These are all major trends in the future development of the industry.”
We can see that most of the business models of my country's fastener industry are still in the traditional mode. Although some companies have jumped out to try e-commerce in recent years, involving logistics, etc., most of them are real physical manufacturing, regardless of the industry. Due to the limitation of characteristics, or the influence of the whole environment, my country's fastener industry as a whole is still dominated by entity management. Therefore, in the face of the current "closing tide" of physical stores in various industries, we can't help but ask, should fastener companies "follow the trend" or "stick to the rules"?