The concept of “new retail” was first proposed by Alibaba founder Jack Ma in 2016. He asserted: “In the next 10 or 20 years, there will no longer be e-commerce, only new retail. ” Seven years have passed since the birth of this concept, and the changes in the market, big data, and the use of AI technology seem to be really This confirms Jack Ma’s prediction that the new retail era will gradually phase out traditional offline retail and existing online e-commerce models.
The essence of retail is the three elements of ” goods, place, and people .” This means that retail brands have always focused on sms services what to sell , where to sell , and to whom . New retail brings ” goods, place, and people .” Reorganization of the three major retail elements: ” people” and “people “. This article will explain how the three concepts of OMO, DTC and C2B form the core of new retail, and will also introduce practical brand operation cases of new retail.
Table of contents
- From traditional retail to new retail model
- Understand new retail with one picture
- New retail concept one: consumer-centric (C2B)
- New retail concept two: direct contact with consumers (DTC/D2C)
- New retail concept three: online and offline integration (OMO)
- New retail case: See how ROBINMAY used LINE to do new retail and increased revenue by 140% in one quarter
- More new retail cases and API connection resources
Traditional retail moves towards new retail model
As the retail industry moves from the old to the new, the order of importance of the three retail elements has gradually changed from “goods > goods > people” or “store > goods > people” to ” people > goods > places “. With the development of production technology, the importance of “goods” has gradually declined , because it is no longer easy to produce special goods to make differentiation; on the other hand, due to the advancement of digital technology and online shopping, the importance of “market” The importance has also declined , as consumers can complete their purchases almost anywhere and at any time.
The new retail era implies that brands must develop business models around “people”. New retail should be consumer-centered , use data to deeply understand consumer preferences, and use new technologies to allow both “goods” and “stores” to revolve around consumers to create the best consumer experience.
Understand new retail with one picture
This article summarizes the above-mentioned literal concepts of new retail into the following diagram. The new retail model is consumer-centered and develops three business activities: C2B, DTC, and OMO. It is based on the latest technologies such as big data and AI to fully integrate online, offline and logistics.
New retail concept one: consumer-centered ( C2B )
The concept of C2B (Customer to Business), like new retail, was also mentioned by Jack Ma in the speech o2o marketing makes webrooming (anti-showroom phenomenon) a brand advantage video above. Jack Ma reversed the concept of B2C (Business to Customer) into C2B and implemented it in Alibaba’s business model, because he believes that business activities should not be initiated by the enterprise, but should be driven by consumers as the core. Enterprises should study consumer preferences and adapt their products and services to suit consumers.
New retail concept 2: direct contact with consumers ( DTC/D2C )
DTC (Direct to Customer) means that retail brands do not sell through traditional mid-market, retail channels, etc., but sell through direct contact with individual consumers. For example, a brand sells products directly to consumers through its own e-commerce official website, LINE OA or physical stores, which is D2C.
The benefit of DTC is that brands can ensure consumers have a better experience and can directly collect consumer information and yeezy 350 boost v2s preferences to build brand data assets and achieve a more accurate understanding of consumers. The process of retail brand transformation to DTC requires many new technologies and data integration , which is also an indispensable part of new retail. It is recommended to click on the following extended reading to have a deeper understanding of DTC business methods. (Extended reading: Analysis of D2C/DTC business model challenges and cases! 4 key points and tools that brands should master )