Click to read the original text for details Overnight, small stores have become the frontier of FMCG industry internetization The mom-and-pop stores that have long been overlooked and looked down upon have suddenly become hot commodities in recent years. All kinds of experts and major internet companies want to transform China's 6 million small stores. What exactly is happening? China's 6 million small stores share common characteristics: wide distribution, numerous locations, covering markets from tier 1 to tier 6, with natural "location-based traffic," making them the new "traffic entrances" of the future. Against the backdrop of online traffic exhaustion and the "traffic dilemma," the existence of small stores as new "internet touchpoints" holds significant strategic importance. With the decline in the Engel coefficient and the acceleration of urbanization in China, under the major trends of consumption upgrading and consumption stratification, the pace of small store evolution has accelerated, with growth rates far exceeding those of hypermarkets and standard supermarkets, and they are quietly becoming a new engine for the retail sector. Based on personal practice and industry observation, the author attempts to provide a comprehensive interpretation of several approaches to small store internetization, explaining the evolutionary path and logic from "sit-down merchants" to "cloud merchants," hoping to bring some value to practitioners. Before discussing small store internetization, let us first define small stores: They are a community retail format, typically covering an area of 20-120 square meters, consisting of mom-and-pop stores, with 6 million nationwide. Commonly known as convenience stores or mom-and-pop stores. Of course, there are also category-killer stores, such as snack specialty stores. Here, small stores mainly refer to those in the fast-moving consumer goods (FMCG) industry. Empowering small stores to touch the nerve endings of the FMCG distribution network Overall, the author believes this is a PK between Japanese logic and Chinese logic. As is well known, the best small store operations in the world are in Japan and Taiwan, with mainland China typically looking to Taiwan, and Taiwan looking to Japan. Of course, currently the best mobile internet in the world is in China, where one year is equivalent to five years elsewhere. Therefore, the author has observed the current transformation paths of small stores and summarized them into two directions. The first is the "7-11" direction, becoming a "convenience service center based on urban grids," collaborating with over 700 upstream and downstream factories, innovating the supply chain, using IT systems as the neural network, integrating over 1,500 convenience services, and jointly serving community consumers. This can be tentatively called the "heavy-loaded convenience store" direction. The industry's iteration logic is "mom-and-pop store" → "loose franchise" → "tight franchise" → "managed franchise" → "direct-operated store." The second is the "internetization" direction, becoming the "traffic center and entrance for urban commerce," using various "internet tools" to empower stores, with the small store as the central perspective. Examples include store membership management systems, community group buying systems, internet payment systems, and big data site selection systems. Both of these empowerment directions can effectively touch the nerve endings of the FMCG distribution network and will influence the development of the entire FMCG industry internet in the future. For example, in the "7-11" direction, data shows that for every standard convenience franchise store opened, about three surrounding mom-and-pop stores will gradually be eliminated. In the future, China will only need 500,000 heavy-loaded convenience stores and 4.5 million mom-and-pop stores. In the "internetization" direction, taking community group buying as an example, when a store owner becomes a group leader, operating the community's social traffic with "person-store integration," they can add 50,000 to 150,000 yuan in monthly sales, mainly in categories like vegetables, fruits, and general merchandise. Based on a city with 10,000 communities, with 10 leading platform companies, there would be a sales fluctuation of 15 billion to 20 billion yuan in a single city, greatly impacting supply chain companies in the household daily consumption scenario. So the question arises: which logic is better? Let's put it differently: in a mixed martial arts fight, is Shaolin boxing better or Brazilian Jiu-Jitsu? Those who have watched matches know that the best method is, of course, mixed martial arts. Below, the author introduces 11 scattered fighting techniques for empowering small stores. How many have you used? 11 Methods to Empower Small Stores: How Many Have You Used? Shaolin Boxing Practice: Optimize existing stock, strengthen the skeleton, in short, internetize the existing stock. What is the existing stock of a small store? The store's product supply, product display, store layout, store shelves, store checkout, personnel management, customer management, brand image, customer traffic, purchase frequency, geographic location, etc., are all existing stock. Focusing on existing stock, whether it's "leveraging" transformation or "self-transformation," is fine. Let's analyze one by one: Solution 1: Cooperate with companies that provide "B2B supply chain (ambient) + retail store franchise system" to solve the redesign of retail people, goods, and premises. For example, on a national scale, there are services like "Tmall Store" and "JD Convenience Store" provided by Alibaba Retail Link and JD New Channel. On a regional scale, there are services like "Meiyijia Convenience Store," "Xingsheng Convenience Store," and "Kuailehui Convenience Store" provided by Dongguan Meiyijia, Hunan Fuxing Xingsheng, Hunan Xinqiao, and Xi'an Every Day. These companies not only provide B2B supply chains but also professional convenience store retail scenario solutions, not just changing the storefront. Solution 2: Staffed store + unattended retail vending machines to solve the 24-hour consumption scenario. Specifically, based on the physical retail store, break through a wall facing the street and place unattended retail vending machines to cover consumption scenarios after midnight, typically with 50-100 SKUs. This is also a direction the author agrees with. Solution 3: Cooperate with SCRM system SaaS companies to solve customer relationship management. For example, the "Kaola" platform in the industry provides a membership management platform that turns "new customers into regulars, regulars into frequent customers, and frequent customers into referral customers," integrating other online supply chains to offer a vast selection of SKUs to customers. This solves the store's customer management issues. Solution 3 (duplicate): Cooperate with B2B supply chain (low-temperature/fresh) companies. This solution mainly addresses the shortage of fresh and cold-chain products in stores. When a convenience store's daily turnover from ambient products is around 3,500-5,000 yuan, adding fresh and cold-chain products can increase sales by more than 30%. Solution 4: Implement a POS cash register system. The industry has already extensively elaborated on the benefits of POS systems, so this article will not expand on it. Solution 5: Use external traffic platforms like Meituan and Ele.me. Obviously, through food delivery platforms like Meituan and Ele.me, you can increase opportunities for customers to purchase and increase turnover. Solution 6: Use WeChat groups for customer service. Store owners increase interaction frequency with customers and sales opportunities by posting customer service group QR codes in building corridors and reserving store WeChat accounts. This is also a common way for many community retail stores to increase sales. Solution 7: Become a value-added service center for the community, such as for express delivery and telecommunications. Many stores have already become pickup points for express delivery companies like S.F. Express, ZTO, YTO, etc., and also serve as points for community network, telecommunications, laundry, and other value-added services. Solution 8: Become a community financial processing center. Cooperate with banks and companies like Lakala to provide POS card swiping, bill payment, and other services, making it convenient for residents to pay various community fees. Solution 9: Monetize traffic by becoming a group leader resource for cross-border supply chain companies or brand companies. The author has seen a company called Tomorrow International that develops community convenience stores as traffic entrances, providing a supply chain of global good products, using a set of shelves as sample displays, attracting followers in stores, and drop-shipping. This approach is also good. Some alcoholic beverage brands develop convenience store owners as group leaders for their products, offering rebates of over 30%, and they are doing well. 2. Incremental transformation: Essentially, incremental transformation is about realizing the secondary value of small stores without increasing equipment and inventory investment. Solution 10: Cooperate with "community group buying" companies. Specifically, cooperate with community group buying platform companies, such as Xingsheng Youxuan, Kaola Youxuan, Ninwo Nin, Linlinyi, Shihuituan, and Squirrel Pinpin. Store owners become group leaders, store locations become traffic entrances, leveraging the strong relationship between store owners and community consumers, conducting strong interactions through group leader-managed WeChat groups, operating on the idea of group buying mini-programs + pre-sale of hot products. Platform companies provide incentives of 10-15% commission, achieving a win-win-win for group leaders, platforms, and upstream supply chains. Solution 11: Self-empowerment: Cooperate with "community group buying SaaS tool" companies to become "cloud merchants" in community commerce. Specifically, cooperate with companies like Qunpin, Dingdantu, Keke Jingxuan, Shudongpo, Chuizhi Baodan, and Qunjielong, find your own specialty product supply chain resources, and earn more gross profit. Become a "cloud merchant" in community commerce. Once you become the center of the community commerce ecosystem, you have traffic in hand, and you can monetize it multiple times. Summary: There are several key points for small stores to evolve from sit-down merchants to cloud merchants. First, the transformation of small stores should consider cost issues, and don't make a big fuss or be "fooled" by the transforming companies! Second, the transformation of small stores should not blindly copy 7-11; it should be iteratively upgraded, and it is recommended to follow the iteration and upgrade ideas mentioned above. Third, leverage existing advantages, combine multiple methods, and don't be rigid.