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Why do e-commerce open offline stores from Amazon to NetEase?

2018-05-02

  After Xiaomi, Alibaba and JD.com opened physical stores, NetEase Koala, China's largest cross-border e-commerce company, is also ready to go. In late April, the first offline store finally opened in the center of Hangzhou to welcome customers. The ambition of this new e-commerce force is fully revealed on the billboard at the door of the store: "Home is in Hangzhou, and you can meet Europe at any time."

  The charm of Hangzhou does not require European support. In ancient China, Hangzhou had a unique "paragraph" status. The beautiful West Lake and the gathering of humanities all made Hangzhou a city living in poetry. In the digital age, as the base of Internet giants such as Alibaba and NetEase, Hangzhou has added another title of "e-commerce capital".

  He is also engaged in retail, thanks to his profound cultural heritage, compared with Yiwu hundreds of kilometers away, Hangzhou has more telling taste and the atmosphere of the Internet. The first offline store opened by NetEase Koala is a typical example.

  As a model room for new consumption, it is indispensable for a powerful big data engine.

  This door is located in a "hot overseas shopping store". In a space of 300 square meters, it displays thousands of products, covering almost all popular fields such as beauty, personal care, maternal and infant, light luxury, digital home appliances, sportswear, etc., but the product selection mainly relies on NetEase Koala's massive user consumption data, and selects the results from hundreds of thousands of imported products around the world.

  These thousands of products are not unchanged, but are dynamically adjusted based on NetEase Koala's massive import product sales data. At the same time, they provide users with purchasing decision-making guides in hot lists and physical "Guess You Like" form. This is indeed a great merit for patients with difficulty in choosing.

  In addition to the hard technology core of big data, there is also a gentle "taste" heart of Boss Ding.

  The NetEase Koala store located in Hangzhou Building Central Mall is the design team of the Apple flagship store. The store is white in color and a little black lines. The person in charge of NetEase Kaola Haigou offline store project called this decorative style "hidden", which aims to simplify the design of space and make the products the protagonist of the space.

  From Amazon opening its first offline bookstore in Seattle, to Alibaba’s concept of “box housing” created in Beijing, to NetEase Kaola’s “hot-sea shopping store”, e-commerce giants have gone offline, which is not a whim.

  First of all, this is due to the general environment of transition from the information Internet to the value Internet.

  Looking back at the history of the Internet, the first thing to achieve is the onlineization of information dissemination and sharing. At that time, all Internet companies were just a small group of information industries, and then gradually expanded to the real economy beyond information. This is why Jack Ma said in 1995 that he would be regarded as a liar when doing business on the Internet, and Ding Lei had to wait until he founded NetEase nearly 20 years before he started e-commerce.

  The times are stronger than people, and no one can be out of the historical trend. The current change from the east coast of the Pacific Ocean to the west coast is experiencing - from the excessive and major turning point of the information Internet to the value Internet, the rise of the Internet of Things marks the arrival of an era of online and offline integration.

  Today, it is difficult for people to tell whether Meituan is a technology company or a life service provider, whether Baidu is an advertising company or an AI company, and the chemical reaction between the Internet and traditional industries is accelerating. Traditional companies have begun to access the Internet, and Internet companies have begun to get involved in offline, and the method of using online and offline division of companies is outdated.

  Secondly, specifically when it comes to the e-commerce industry, going offline is inevitable for the development of business models.

  Currently, e-commerce has entered a relatively stable period of obtaining traffic and revenue from online. In recent quarters, Alibaba's mobile monthly active users on China's retail platform have basically stabilized at more than 500 million; JD.com's net revenue increased by 38.7% in the fourth quarter of 2017; according to iMedia's report, NetEase Kaola has ranked first in the domestic cross-border imported retail e-commerce market share for two consecutive years.

  According to a report by mobile big data service provider Aurora, the penetration rate of online shopping apps in China increased from 63.5% to 69.9% in 2017, with a user scale of 142 million, reaching 713 million, which also means that the future online market will enter an era of stock.

  In a nearly fixed e-commerce market, if you want to break the market structure, you must find another way.

  Pinduoduo focuses on low-tier markets and is highly sensitive to cost-effectiveness. By further dipping into online channels, it has acquired a large number of new users, thus creating a new online miracle; while Alibaba is trying to activate local consumption through Hema Fresh; JD.com's offline expansion has chosen the method of unmanned supermarkets; NetEase Koala further focuses on middle-class people, paying attention to the upgrade of consumption demand from "buy" to "buy well".

  But there is no doubt that the next big battlefield in the retail industry will inevitably happen offline. Alibaba, NetEase, JD.com, and Yonghui have already dug the trenches into the streets and alleys.

  Finally, "returning to offline" is also a psychological consensus among current netizens, especially those who use the Internet heavily.

  Shopping is one of the world recognized effective ways to relieve stress.

  Research by marketing and psychology researchers at the University of Kinmen, San Francisco, USA, many years ago found that before shopping, people will develop rich psychological activities, naturally imagine the situation when they use new items in the future, and also imagine a new life in the future, which will make people have beautiful longings and feel happy.

  But the convenience of online shopping often makes this happiness fleeting.

  As the heroine in the movie "Confession of a Shopping Madman" said: "Life is not beautiful in the first place. Shopping can make my life better. But after shopping, life will return to its original appearance, so only by continuing to shop can I live in the beauty, which is also a way for me to vent.

  But this kind of venting may affect the innocent. According to Greenpeace statistics, from 2000 to 2014, the global clothing volume doubled, with the average purchase of clothing per person increasing by 60%, but the speed of eliminating old clothing was also doubled. Most of the large amount of waste clothes are directly entered into the domestic waste treatment system and are treated in the form of incineration, landfill, etc., causing great waste of resources and environmental pressure.

  Compared with the painless consumption when shopping online, people will not only be more cautious when spending offline, but may also bring a stronger sense of gain.

  Recently, a healing trend of shopping in supermarkets has become popular online.

  Weibo user @ Taozi said that after eating this meal, he lost weight, and said, "I especially like to look at bowls, plates, wine glasses, tea cups and the kind of soup pots that make soup. Even the colors of chopsticks have to be picked for a long time. Then I imagine that I and the person I like have just moved into a new home, and then went to the supermarket to push a cart to buy daily necessities, although I am still a single dog.

  Singer Dakuan even wrote a song "I Like You Like You Like You Want to a Supermarket". Netizen @深如说语说口在线观看牌大发址" Leave a message under NetEase Cloud Music "If you don't know what to do, go to the supermarket. When picking drinks, I was very happy to waste time. The supermarket is such a good place, and it makes people feel at ease with fireworks.

  Insight into and meeting user needs is originally the instinct of a successful Internet company. NetEase, Alibaba, and JD.com have no reason not to respond to the powerful healing effect of offline stores. This may be the ultimate motivation for online companies to deploy offline.


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