What is Retail Merchandising?

Retail is a Chinese word and Pinyin is líng shòu, which means all activities that directly sell goods and services to consumers for personal and non-commercial use. Many organizations, such as manufacturers, wholesalers, and retailers, engage in retail business. And most of the retail business is done by retailers. ^[1]

[líng shòu]

The retail market has always been closely related to the development of the national economy. From 1978 to 1992, before the retail industry was opened to the outside world, the growth rate of total consumer goods exceeded GDP growth in most years, indicating that China s retail market was in short supply at this time, and it was attractive for new enterprises to enter. At this time, the retail market was almost completely competitive. The retail industry is also developing rapidly. However, after the retail industry was opened to the outside world in 1992, especially after joining the WTO in 2001, the growth rate of total retail sales of consumer goods in most years was lower than the growth rate of GDP. It shows that the retail market has obstacles to the entry of new enterprises and oversupply, which reflects to a certain extent that the Chinese retail market has become an imperfectly competitive market. The department store retail industry and the supermarket retail industry have become the main purchasers. The gap between their purchases and other types of retail industry has continued to expand. Buyers' monopoly power has continued to strengthen, and their ability to control manufacturers and suppliers has continued to increase.

(Analysis of the competitive share of China's retail industry in 2014) Statistics show that after China's accession to the WTO, the retail industry has become a hot area for multinational companies to invest in China, and large supermarkets have occupied a large market share in the retail industry, and have become China's The leader, in 2005, the sales volume of commodities in supermarket chains above designated size was 311.33 billion yuan, 17 times that of fringe retail companies such as convenience stores.

As a specialty store is a retail business that mainly deals in a large category of goods, sales staff with rich professional knowledge and appropriate after-sales services, and the products they operate are generally more expensive varieties, such as home appliances, toys, Automobiles, luxury goods, etc., as well as specialized retail markets for automobiles, motorcycles, fuels, and spare parts. This type of market is relatively special compared to other markets, so this article will not do a special study of specialty stores. Since then, the department store retail industry has developed into another buyer retail enterprise with monopoly power. It can be said that China's retail industry has formed a situation in which two oligarchs are competing, and marginal retail companies are constantly seeking market share.

Chinese Minister of Commerce Gao Hucheng said on Saturday (December 26) that the total retail sales of consumer goods this year is expected to increase by about 12%, and consumption will become the first driving force for economic growth.

It is estimated that China's total import and export of goods will increase by about 3.5% this year, and it will continue to maintain its position as the world's largest trader of goods. The international market share will increase significantly. Service trade will increase by more than 10%, and service outsourcing will increase by about 25%.

In addition, the actual utilization of foreign capital was around US $ 120 billion, and the scale of utilization of foreign capital maintained the first place among developing countries for 23 consecutive years. Non-financial foreign direct investment exceeded US $ 100 billion, and full-caliber foreign direct investment reached approximately US $ 120 billion, which is about to usher in the first balance of two-way investment.

Previous data showed that from January to November, China s total retail sales of consumer goods increased by 12% year-on-year; actual foreign investment (FDI) in the same period was US $ 106.24 billion, an increase of 0.7%;

From January to November, China's imports and exports increased by 3.4% year-on-year, far lower than the 7.5% annual foreign trade growth target set at the beginning of the year.

Market sales increased steadily in 2014. The total retail sales of social consumer goods for the year was 26,233.9 billion yuan, an increase of 12.0% over the previous year. After deducting price factors, the actual increase was 10.9%. According to the statistics of the place of business, the retail sales of consumer goods in cities and towns were 226.6368 trillion yuan, an increase of 11.8%; the retail sales of consumer goods in rural areas were 362.7 billion yuan, an increase of 12.9%. According to consumption type statistics, the retail sales of goods were 23,534.5 billion yuan, an increase of 12.2%; the catering revenue was 278.6 billion yuan, an increase of 9.7%.

The "Report on China's Retail Industry Market Prospect and Investment Strategic Planning Analysis Report" statistics show that among the retail sales of goods of enterprises above designated size, the retail sales of grains, oils, food, beverages, tobacco and alcohol increased by 11.1% over the previous year, and clothing, footwear, and needle textiles Category increased by 10.9%, cosmetics category increased by 10.0%, gold and silver jewelry category remained the same as last year, daily necessities category increased by 11.6%, household appliances and audiovisual equipment category increased by 9.1%, Chinese and western medicine category increased by 15.0%, and cultural office supplies category increased by 11.6% , Furniture increased by 13.9%, communications equipment increased by 32.7%, petroleum and products increased by 6.6%, construction and decoration materials increased by 13.9%, and automotive increased by 7.7%.

The online retail sales of the year were 2,789.8 billion yuan, an increase of 49.7% over the previous year, of which the online retail sales of units above designated size was 440 billion yuan, an increase of 56.2%. ^[2]

The rapid development of the Internet has caused the tide of e-commerce, and the consumer changes triggered by it have also come. The data for Double Eleven showed us that the increasing popularity of the e-commerce market is gradually eating away at the traditional retail's share. How does the physical store PK network respond to the tide of e-commerce?

The huge impact and stimulus of online shopping has caused China's traditional retail industry to stage a "touch the net" blockbuster.

In the past, the leading retail department stores compared who has more stores and which siege speed is faster. Nowadays, traditional department stores have also entered the e-commerce industry in a high profile. Whoever has an advanced presence in a horse race enclosure has greater hope. All the data show that this is not a grassroots gathering, but a feast of endurance.

The traditional method of opening an online shop by a company is generally a combination of online and offline. The industry category is generally called "mouse + cement". The "mouse + cement" model can not only take advantage of the traditional display and sales characteristics of traditional stores, but also provide convenience for users who are accustomed to online shopping, and have a lasting and powerful vitality.

With the development of "cement + mouse", a large number of traditional enterprises have begun to pay attention to online channels. The perfect combination of the two will bring a good shopping experience to consumers and improve overall efficiency. The first is that the online mall has extended the store's business hours and is open 24 hours a day, 365 days; the second is that the online mall saves money, saves rent, utilities, labor costs, etc .; In addition, the network avoids geographical restrictions and expands the scope of customers. Makes the user reach wider.

Perfect integration online and offline

Although nearly half of the top 100 retail companies have online shopping malls, many companies do not have a clear positioning of online and offline users. Many of them are just moving physical stores to the Internet, not real e-commerce platforms. The application and promotion of this model is not a small challenge to the offline capabilities of enterprises, because many enterprises have weak offline informatization foundations and do not implement digital management of invoicing, storage and sales businesses, so it is almost impossible to achieve online sales.

The online mall is a "gold mine", but not everyone can find gold. Traditional enterprises establish online shopping malls on the one hand to find ways to increase the second purchase rate and interaction stickiness of users, and on the other hand, how to develop more user groups. Therefore, in addition to sufficient funds, professional e-commerce talent and accurate online marketing strategies, a professional and stable online is also needed.

I. Classification of Retail Organizations

Retail Services and Management

I. Retail is change

The retail industry is changing all the time. The change is absolute and constant is relative. The retail industry develops with the development of the economy, and the corresponding adjustments must "advance with the times", including format, commodity structure, organizational structure, etc. The retail industry can only develop in a change, otherwise it can only be The huge wave of market competition overturned.

Second, retail is convenient

The retail industry is maximizing convenience for consumers. This convenience must be reflected in every corner of the mall, in every detail, from valet gift packaging, free storage, to the provision of baby strollers, merchants quietly progress with the times. When you go shopping, you not only experience the ubiquitous service items of businessmen, but also modern, humane care such as convenience, speed, and comfort, as small as automatic shoe polishers, mobile phone charging stations, smoking rooms, and as large as members. Clubs, customer service centers, it can be said that consumers can increasingly find God's feeling in the mall.

Retail is a service

The retail industry provides a full range of services to consumers. In a sense, retail is service, service creates value, and service work management is in place, but it is the value-building of corporate image and intangible assets. "Customers are our parents," "Customer satisfaction is our permanent pursuit," and "Customers are always right." The service concepts of these companies are the essence extracted through practice. Only when the customer is regarded as God, the customer will in turn regard the shopping mall as his or her own home. With the feeling of home, the two parties will each benefit in the win-win situation.

Fourth, retail is management

Management is the eternal theme of an enterprise. If you want to do a good job and live a business so that the company can develop rapidly, you must do everything possible to improve the efficiency of the enterprise. The management of the retail industry must create a unique model and improve the level of scientific management in order to further enhance the core competitiveness of the enterprise.

V. Retail is an event

The activities of the retail industry are the source of continuous vitality. Whether it is cultural public relations or business promotion activities, it is the only magic weapon for companies to display their image to the outside and promote the improvement of corporate efficiency. "Do not engage in activities is to wait for death, engage in activities is to die early" This is the words of the boss of a shopping mall. The competition in shopping malls has changed from the traditional competition of goods and services to modern competition. Learning to "fight" is the carrier of competition and the key to the challenges faced by enterprises in an open market.

Six, retail is discipline

Strong discipline guarantees an invincible retail team. In a sense, discipline is rules, systems, and the legal system. The retail team is like a combat team. The market is the battlefield. Only with strict discipline can we win the battle. There are many aspects involved in team building and system implementation.

Retail is incentive

Only with continuous motivation can the team maintain a strong desire to win. Incentives include incentives for indicators and incentives for the realization of personal value. Only with incentives can there be passion, and the company will maintain an inexhaustible drive for sustainable development.

Eight, retail is the embodiment

The retail industry embodies the format and technology capabilities. The embodiment of retail is all-round. The degree of economic development of a region is most obvious in retail. The true shopping mall is still concentrated in megacities such as Beijing and Shanghai. The rich format and the prosperity of goods reflect the region's economic prosperity Level, logistics and transportation.

Nine, retail is efficiency

The retail industry is to maintain high efficiency and high turnover. The turnover of goods is one of the important indicators of the retail industry. It reflects the efficiency of the retail industry. If this problem cannot be solved well, companies will be trapped in inventory backlogs and poor capital flow. The market is phasing out inefficient retail companies, and retail companies are also phasing out inefficient suppliers. "Last elimination" is not only applied to human resource management, but is increasingly valued by businesses, and thus applied to the management of brands and dealers. On the issue of efficiency, we cannot simply pursue speed and quantity, but also pay attention to quality and quality.

Ten, retail is a system

The retail industry is a collection of multiple interconnected, independent and unified systems. How the coordination between the systems and the organization directly affects its overall progress, each unit in the system must play the most important role, and how to maintain the best configuration and optimal combination of each part of the system is the retail industry's focus. .

Eleven, retail is the details

Retail is the nuance of seeing the truth. Details determine success or failure, which is especially important for the retail industry. The gap between the domestic retail industry and the world's retail giants is even more obvious here. Every link from receipt to customer service, operations, and procurement is intertwined, and numbers are used everywhere.

Twelve, retail is temptation

Retail is to seduce consumers to make a profit, while constantly resisting temptations. The temptation of the retail industry is reflected in two aspects. On the one hand, it attracts customers to purchase desire through store display, overall layout, and product quality, and then generates purchasing behavior; on the other hand, how the retail industry staff resists external benefits, so as not to The company's own body is corroded.

Retail markets and customers

Thirteen, retail is single product driven

The retail industry relies on single products to earn profits. As market competition intensifies and product categories become more numerous, single product management has become one of the most important means for enterprises in daily management.

Fourteen, retail is full display

The retail industry is to win the "eyeball" of customers by full display. Terminal promotion is becoming more and more important in modern marketing. In addition to on-site promotional activities, such as discounts, price reductions, gifts, on-site demonstrations, etc., product display and display and POP advertising have become increasingly important. Strengthen brand exposure in the terminal to increase sales.

15. Retail is Customer Satisfaction

The retail industry relies on customer satisfaction to win goodwill. How customer satisfaction affects the company's intangible assets and goodwill, so the management of the quality of goods and services should be mentioned on the important agenda, and the customer satisfaction rate should be controlled to more than 99%. The word-of-mouth effect of customers is huge, and it will affect the consumer customer base of enterprises.

16. Retail is the answer

The retail industry relies on constant problem solving to reduce complexity to zero. The problem is not afraid of it. The fear is that if the problem is not solved, it will only complicate the problem. The problems of the retail industry are more reflected in the four aspects of goods, services, price points and channels. To solve the problems smoothly, not only must professional and highly educated management personnel be provided, but the channels to solve the problems must be unblocked. As a business leader, you don't need to do it yourself, but you also need to understand different voices from time to time so as to make the government order unblocked.

17. Retail is Cost Reduction

The retail industry is making more gross profit by continuously reducing costs. As the retail industry's profits are getting lower, it is not only necessary to increase sales but also reduce costs.

18. Retail is controlling losses

The retail industry makes greater profits by controlling losses. Attrition is an inevitable problem in the retail industry. Generally, attrition has a bottom line according to the different situations of the enterprise. If it exceeds this bottom line, it is necessary to find the problem from itself and solve it in time.

Nineteen, retail is rich in variety

The retail industry relies on rich varieties to attract consumers and achieve profitability. The demands of modern consumption are becoming more and more diversified and personalized. Only rich varieties can attract more consumer groups to patronize, and can meet customers' one-stop shopping needs. However, the rich variety does not mean "big and complete", but the strength and breadth of the category width and depth, based on the "fine" to do "full" and "big".

Twenty, retail is flourishing

The retail industry relies on the popularity and prosperity of goods to consolidate financial resources. Only when the popularity is booming and the goods are unblocked can wealth be gathered. The unpopular shopping malls are not far from closing, and it is not easy to achieve these two points. In addition to the popularity of the shopping mall itself, the use of marketing methods will keep the mall in the focus of the society, and its popularity will come naturally; the smooth flow of goods requires a strong supplier and a clean, efficient The camp and mining team come together to fight, the goods are rich and the variety is wide, and naturally it will attract more audiences to patronize.

Twenty-one, retail is market-oriented

Retail is a market-oriented management policy and strategy. Everything turns around the market and is market-oriented, so that we will not lose our way and know ourselves clearly. Don't underestimate any opponent, and don't imagine your opponent too powerful. Modern marketing attaches more and more importance to the role of numbers and tables, and reflects the market's voice quickly and scientifically to the ears of marketing executives, so as to maximize the effectiveness of marketing.

22. Retail is selling goods

Retail is selling goods. Literally, retail is the sale of goods, and the retail industry is the study of how to sell goods produced by manufacturers through various means, thereby generating economic and social benefits.

23. Retail is sales amount

Retail is sales. The sales amount is an important indicator for measuring the success of retail. Only when the sales go up will it win the trust of more suppliers, make more profits for the company, and talk about development, but the pressure of the index also makes many retail people Overwhelmed, so the retail industry is also one of the industries with the most frequent personnel changes.

24. Retail is different

Retail is different and unique. Only with personality can we have vitality, and we can thrive in the competition. In the Qiandian side, how to show its unique charm is one of the homework of the retail industry. The distinctiveness of retail is reflected in the refreshing style of the storefront, the accurate and clear positioning of the goods, the value-for-money and efficient service, and the promotion of new ideas.

25. Retail is to increase membership

Retailing is about making yourself invincible by increasing membership. For a store, how to target a fixed consumer group is an important measure for it to win share in the market competition. Membership is an important marketing method that the retail industry attaches more and more importance to.