Chapter 67 March 7 Retail looks beautiful, but hard to do

The department store retail industry is by no means a profiteering industry. Wanjia's success is due to the fact that Wanjia has been paying tuition fees and accumulating experience since 1991.After 1994, it was no fluke to slowly embark on the road to success.The most important thing is that because the parent company is a relatively mature listed company, Vanke has the support of capital, talents and other invisible resources, which enables Vanke to be able to move fast, and this is an advantage that other competitors cannot "clone". In the 1990s, every year, on the one hand, some large shopping malls opened in full swing, vying for the share of the retail market;Due to the large one-time investment cost of operating a large-scale retail industry and the highly professional management, it is one of the industries with relatively high operating risks.Generally speaking, it is difficult for a new retailer to have a life cycle of more than 3 years.

When Wang Shi introduced Wanjia's successful experience on many occasions, he clearly mentioned that the retail industry has high requirements for investors. The retail industry is a very difficult industry to manage, and the success rate of industry operations is actually not high.According to foreign statistics, the bankruptcy rate of retail enterprises in the first year of operation is 35%, and the bankruptcy rate after 5 years of operation is 92%, which can be said to be like panning for gold.In China, because the bankruptcy situation has not been normalized, coupled with the practice of enterprises tearing down the east to pay for the west, it is difficult to feel the bankruptcy rate of a similar level in the retail industry, but I believe that the actual situation is not better than that in foreign countries.Due to the general lack of sufficient understanding of the difficulty of retail business management in the society, a phenomenon has emerged in the retail business: on the one hand, a large number of operators who entered hastily fell into the quagmire of business failure, and on the other hand, there are a large number of new operators We continue to open new stores with great ambition.

The retail industry has many operating links and complex management.Let me give you an example: in a medium-sized shopping mall, there are more than 10,000 types of products in operation. The ordering, purchase, storage, transportation, classification, shelf and sales of 10,000 types of products involve complicated management issues. There may be loopholes and losses.A series of complex management issues behind the cloudy customer flow in shopping malls are severe issues that enterprises engaged in retail business have to face. Therefore, the retail industry has become one of the testing grounds for the most advanced high-tech management methods in the world.In the countries with developed retail industry in the world, the computerized management of the retail industry is very common, supplemented by other high-tech means, to ensure the orderliness of the huge logistics and the smooth operation of the shopping malls.

Today, when all kinds of foreign shopping malls are aggressively entering large and medium-sized cities in the Mainland and dividing up their markets, the retail industry across the country is still in a state of competition.At this time, reviewing the ups and downs of Wanjia, a once brilliant domestic retail brand, is believed to be valuable to both the industry and consumers. Although the retail industry has abundant cash flow and can occupy a large amount of suppliers' funds, the threshold for this industry is very high. It requires both management ability and strong resource backing. Those who want to intervene must be very cautious and act accordingly!