Several readers have privately chatted with me on WeChat to discuss this point of view and suggested that I elaborate on it. I have organized my main points below to share with you.
The author believes that for physical retail companies in the next two to three years, the growth of online sales is not a question of whether they are willing to do it or whether they can do it well, but a question of what they must do well. With the advancement of technology and changes in consumer behavior, online shopping has become an irreversible trend. Those companies that hesitate in the wave of digitalization and have a low online share are destined to be eliminated by the tide of the times. Since the online trend is irreversible, the reality is that there will no longer be so many offline supermarkets in the future. The logic of elimination is to prioritize the elimination of retail companies with poor product power in the first batch, and then eliminate retail companies with a low online share in the second batch. Why?
1. Changes in consumer demand
First, changes in consumer shopping habits have made online retail increasingly important.
Let's look at this issue from the perspective of consumers. Today, people's pace of life is as fast as a rocket, and the saying "time is money" has become more and more true. Who is willing to queue for hours to buy something? Who doesn't want to buy their favorite products by just moving their fingers while lying in bed? Online shopping is not only convenient and fast, but also allows you to compare prices and check reviews anytime and anywhere, which is simply a blessing for lazy people. This has led to consumers becoming more and more dependent on online shopping decisions. For these modern people who are accustomed to "shopping at their fingertips", they can get more product information and user reviews online, which allows them to have a comprehensive understanding of the product before purchasing.
In addition, various online promotions are also emerging one after another, allowing consumers to enjoy the fun of shopping while also getting real price discounts. Of course, more importantly, online platforms usually provide 24-hour uninterrupted services, and consumers can shop anytime and anywhere, while offline stores are restricted by time and location. Whether it is a hot summer or a cold winter, we can choose our favorite products comfortably at home and easily complete the payment through mobile phones or computers. This shopping experience without going out and waiting in line undoubtedly makes our lives more efficient.
