Digital Retail: The only way to transform retail

When the wave of the digital economy is surging, we see that more and more players are beginning to devote themselves to the embrace of digital business.

Ali is like this, JD.com is like this, and Tencent is like this.

So many players have shifted their focus from traditional e-commerce to digital retail, which tells us that digital retail will be a brand new outlet for some time to come.

Around the digitization of the retail industry, many new types of business will be derived.

This seems to be quite different from the new retail-led development model we have seen in the past.

In the era when new retail is encouraged by giants and capital, what we see is that almost all players focus on the reconstruction of the three elements of people, goods and markets.

Although the reconstruction of the three elements of people, goods and fields can indeed bring certain development potential, if the evolution of the retail industry is only regarded as the reconstruction of the surface elements without changing the elements themselves, then, Such development is still incomplete.

Therefore, in order to fundamentally change the retail industry itself, it is necessary to transform the internal elements of the retail industry. On the basis of realizing the transformation of the internal elements, we will find ways and methods to reconstruct new elements. Perhaps, It is the key to truly ensure the evolution of the retail industry and truly enter into its own development track.

Digital retail, as a species that truly changes the intrinsic elements of the retail industry, is receiving more and more attention.

Compared with the superficial and superficial nature of new retail, digital retail is actually a process of empowering and transforming the internal processes and links of the retail industry with the help of digital technology.

After such a stage, the elements, processes and links within the retail industry will undergo a profound and comprehensive change.

A deep and thorough change will take place in the three elements of people, goods and fields in the traditional sense that we are familiar with.

The original state of clear distinction between virtual and physical will be broken, and replaced by a new development model dominated by the deep integration of virtual and physical.

In other words, when digital retail realizes the digital transformation of the three elements of people, goods and fields in the retail industry, the original state of separation will be broken and replaced by a process of deep integration.

In a sense, if the retail industry wants to change, it must undergo a deep and comprehensive digitalization.

Only after such digitization can people achieve the goal of reconstructing the three elements of people, goods and fields.

If you only focus on the reconstruction of the three elements of people, goods and fields, but do not pay attention to the digital transformation of the three elements of people, goods and fields, then the so-called changes in the retail industry are just words that scratch the surface. only games.

Therefore, digital retail is the only way to transform the retail industry.

Digital retail realizes the “remix” of elements

According to the author’s understanding, the so-called reconstruction of the three elements of people, goods and fields is not only to break the established state of the three elements of people, goods and fields, but more importantly, through the reconstruction of people, goods and fields In-depth transformation of the three elements of the field and the field, to find the way and method for the deep integration of the three elements of people, goods and fields.

If only by changing the time and space between the three elements of people, goods, and places without finding a way and method for their integration, then the so-called retail industry still has no evolution.

Different from just reconstructing the relationship between the three elements of people, goods and fields from the surface, digital retail first completes the digital transformation of the three elements of people, goods and fields.

After going through such a stage of digital transformation, the people, goods, and fields with clear distinctions that seem to be irrelevant at first have the possibility of being connected.

In this case, our reconstruction of the three elements of people, goods and fields is no longer as simple as adjusting the relationship between the three elements of people, goods and fields, but more of the three Deep fusion of elements, and on the basis of deep fusion, new forms are generated.

Obviously, such a development model based on the digital transformation of the three elements of people, goods and fields is more profound and complete than simply reshaping the relationship between the three elements of people, goods and fields. .

It is precisely because of this that we can conclude that what digital retail really brings is a deeper and more radical change, and it is not as simple as the reconstruction of the three elements of people, goods and markets in the new retail style.

Therefore, in order to realize the reform of the retail industry, it is necessary to undergo digital transformation and upgrading. Only in this way can the retail industry be truly reborn.

Digital retail realizes the “integration” of virtual and real

When the concept of new retail is proposed, one of the important directions is to realize the deep integration of online and offline.

This was once considered the essence of new retail.

However, the capital operation that only stays on the surface lacks internal financing. Such “integration of online and offline” is actually incomplete or incomplete.

Different from new retail, which only uses capital operation or strategic cooperation to find ways and methods of online and offline integration, digital retail is more about realizing the unified expression of virtual economy and real economy, and then seeking to realize virtual reality. ways and means of integration.

If we regard the approach advocated by new retail as a way and method to find the integration of virtual and real from the outside in, then the way of integration of virtual and real based on digital retail will show more What comes out is a deeper, more sustainable and more precise way of integration.

After going through the stage of digitization, the virtual economy has achieved digital upgrading and transformation, and they are no longer platforms and centers, but become the source of data and numbers;

After the real economy has been upgraded and transformed digitally, it is no longer a solid and closed existence, but a flexible existence that can flow freely.

This is not the most critical.

The most critical point is that after the digital upgrade and transformation, the virtual economy and the real economy have truly achieved mutual transformation and mutual flow.

When this phenomenon began to appear, it indicated the possibility of further improvement in the efficiency of the retail industry.

So, how exactly is the retail industry going to change?

It must be through digital upgrading and transformation, and through digital upgrading and transformation, we can find a way of development that can integrate and circulate with each other.

It is precisely because of this that we have reason to believe that digital retail is the only way for the evolution of the retail industry.

Digital retail breaks the traditional relationship between supply and demand

One of the important reasons why digital retail can bring such a huge development to the retail industry is that it breaks the relationship between supply and demand in the traditional sense, even in the Internet sense.

Under the background of imbalance between supply and demand, only by breaking the original supply and demand relationship and reshaping the new supply and demand relationship can the retail industry undergo fundamental changes.

Whether in the traditional era or in the Internet era, the supply side and the demand side are basically one-way flows, that is, the supply side provides products and services to the demand side, and realizes profits by meeting the needs of the demand side.

A direct result of such a one-way, solidified supply and demand relationship is that the information between the two ends of supply and demand cannot be perfectly connected, which eventually leads to the emergence of chaos such as overproduction.

We have seen many variants of e-commerce, which have actually become a way and a method of dumping surplus goods.

It’s a way that doesn’t change anything about supply and demand in the traditional sense.

It can only achieve a temporary balance of supply and demand with the help of conceptual and marketing gimmicks.

Once the relationship between supply and demand is broken again, players will inevitably need to find new marketing methods and methods.

The advent of the digital retail era is actually a new evolution that reshapes the relationship between supply and demand.

In the era of digital retail, the relationship between supply and demand will no longer be one-way, let alone fixed, but two-way, which can be changed at any time.

For the supply side, they provide products and services to the demand side, and at the same time, the demand side also transmits numbers and data to the supply side, so as to better enable the supply side to produce better.

To put it simply, when the supplier provides products and services to the demander, the demander also provides the demanded figures and data to the supplier.

When the supply and demand sides establish such a two-way, free-flowing new supply and demand relationship, the role of matching and intermediary that we need in the traditional era and the Internet era will not become so important.

Instead, there is a point-to-point information connection between the supply and demand side and the demand side, and point-to-point product and service supply. When the relationship between supply and demand begins to undergo profound changes, it will be followed by the birth of new business models.

From this perspective, digital retail has not only brought about changes in supply and demand, but has also spawned a series of new business models.

These business models are completely different from the business models that we have seen in the past, which are dominated by matching and intermediaries. When digital retail has changed the underlying business model, we can say that it has really brought fundamental changes to the retail industry. Change.

From this perspective, digital retail is also the only way to transform the retail industry.

Epilogue

The endogenous changes in the retail industry caused by digital retail have led us to see a completely different development model from the past.

In a sense, digital retail is an inevitable path for retail reform and upgrading.

With the baptism and catalysis of digital retail, the transformation of the retail industry can be considered to have jumped out of the box of new retail and truly entered a new stage of development.

Starting from this, the retail industry can truly be reborn.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/digital-retail-the-only-way-to-transform-retail/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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