In the stormy traditional retail market, revolution is everywhere, facing the consumer upgrading and also the impact from the internet shopping, no mater the off-line retail industry or the on-line retail industry, are all focusing on the new retail market, trying to figure out the new rules of the game in the new period.

Ever since year 2014, the sales of traditional commodity business is sharply dropping, and till now there is still no suitable adjustment, some of the internal experts propose their opinions as retail revolution.

How should the future of commodity business to be structured? Whether new retail mode will become the direction of life product industry? Trace to its sources, we try to figure out where the problem is.

To eventually solve this problem, we must search from the nature of life product business itself:  life product business, as a traditional retailer, its nature is the relationship between human-products-store, the store can be an actual store, or a virtual store, this constructed the situation that products need to search for people.

This is the reason why the retail stores are becoming less and less attractive to the consumers, there is no innovation during the changes of these external environment and internal operation mode, which resulted in the corresponding problems between human-products-stores.

From the external environment:

1st, as the on-line market is developing very soon,  Consumers are lean to buy competitive prices product from internet, this is one of the reason that lead to the shrinkage of these shopping malls which relies on dinner and entertainment business.

2nd, Under the environment of new retail, new economy and also upgrade of consumption, the younger mid-class consumers are raising up, which made the traditional commodity business difficult to catch up with the consumption ideas of these 90s and 00S.

3rd. Plenty of Chinese consumers are travelling in oversea market, and gradually they prefer to choose higher service and more interesting shopping experience.  This resulted in the situation that consumers are giving higher expectation for domestic market also, this is also one of the reasons which lead to the decline of the traditional commodity business.

From the development of commodity itself.

1st, The orientation of commodity is become more and more similar to each other, different brands are using the same products. There is nothing unique, which gradually deviated from customer needs.

2nd. Commodity business is chasing for sales per m2, but lack of improvement for the shopping environment, which resulted in bad shopping experience.

3rd. Most of the commodity business are joint company, it is really difficult for them to realize “SKU management”, can not grasp the 1st hand product information.

4th. The market promotion of Commodity is too much simplex,  they only use simple and crude traditional promotional methods, but it equals to the way of lowing the prices to attract the customers, but there is no other attraction.

Commodity Reinvigoration under the revolution of new retail

Due to the prompt development of on-line business, it is becoming more and more expensive to attract customers. On the same time, the customer number increase speed is slowing down these years, more and more online investors are returning back to off-line business, such as FRESHHEMA, or SUPER SPECIES, OR the digital products representative XIAOMI,  all these new brands, means that the traditional retail business is stepping into new retail business.