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New Retail 'Ebbing'
Since the second half of 2018, the industry has occasionally heard claims that the 'New Retail trend is about to stop.' By early 2019, with Alibaba and Tencent releasing their new strategies, it is now clear that the New Retail wave, born in 2016 and booming for three years, is finally coming to an end. On January 11, Alibaba Group CEO Daniel Zhang stated at the 'ONE Business Conference' that New Retail cannot be viewed solely at the retail level; instead, it requires building comprehensive digital business capabilities. Alibaba will become a new business operating system that penetrates all aspects of enterprise operations.
赵向阳Wumart's 'Next Stop': Expanding into B2B, Focusing on Small Formats, and Aiming to Increase Online Sales to 15%
Despite reduced industry attention since its delisting from the Hong Kong stock market in 2015, Wumart remains a significant force in physical retail, especially after the return of its founder Zhang Wenzhong. With 2017 sales of 47.5 billion yuan, ranking 11th among China's top 100 chain stores, Wumart is a profitable company with conservative annual net profits exceeding 1 billion yuan. The company is now strategically expanding into B2B, small-format stores, and deepening digitalization to boost online sales.
赵向阳2017 Retail Industry Predictions: Will 'Discount Stores' Take Root in China?
Over the past two years, Chinese retail companies have tried almost every mainstream retail format in the world, from Eataly-style 'retail + dining' premium supermarkets to convenience stores that have stymied Japanese e-commerce, and even the membership warehouse club Costco. However, one format has yet to emerge in China: the discount store, exemplified by ALDI. As the epitome of discount retailing, ALDI gained fame for defeating Walmart in Germany. With the retail industry in a downturn, could 2017 see the rise of discount stores in China?
赵向阳How Far Are Chinese Convenience Stores from 'Japan's Level'?
On November 14, the author was invited by UNIQLO to attend its 2017 Spring/Summer New Collection Launch in Tokyo and visit its denim fabric factory in Hiroshima. During this brief visit, the author gained a deeper understanding of Japan's convenience store industry. The first stop was Onomichi City in Hiroshima Prefecture. Compared to China's cities with populations often exceeding one million, this city of just over 100,000 people seemed quite quiet, with few people on the streets at night, and only occasional speeding cars reminding visitors that this is a city in a developed country...
赵向阳Cold Thoughts on the Trend: Several Truths You Need to Know About Convenience Stores
The retail industry has been abuzz with convenience store news recently. According to the latest 'China Urban Convenience Store Index' released by the China Chain Store & Franchise Association, convenience stores maintained a high growth rate in 2015, with over 20% growth in 47.5% of surveyed cities. However, despite the hype, there are underlying truths: growth is slowing, costs are rising faster than sales, less than half of convenience stores are truly profitable, and the business is capital-intensive and operationally challenging.
赵向阳