From February 27th to March 1st, the 18th Annual Meeting of the 2018 Yabuli China Entrepreneurs Forum was held in Yabuli Town, Heilongjiang. The theme of this forum is "New Era Entrepreneurship-40th Anniversary of Reform and Opening Up". At the sub-forum venue of "New Retail-Rediscovering Offline" on March 1, Song Xiangqian, chairman of Jiahua Weiye Capital, said that although the offline retail industry is large in scale, its efficiency is relatively low. If the efficiency is increased by 10% with the help of new retail, a huge incremental market of 3 trillion yuan can emerge.

He believes that simple price competition has led traditional offline commerce to a dead end. The future of business is the integration of online and offline. New retail is not just about trading goods, but can meet the spiritual needs of consumers, create a perfect business experience, and return to the people-oriented center of caring, caring and respecting consumers.

In 2017, the total retail sales of consumer goods nationwide reached 36.6 trillion billion yuan, an increase of 10% year-on-year. The scale is already equivalent to the retail sales of consumer goods in the United States, of which 15% occur online, and as high as 85% are still offline transactions.

Although consumption has achieved tremendous growth, in Song Xiangqians view, many traditional physical stores and online merchants have not realized that the nature of business has undergone fundamental changes.

"Nowadays, young people born in the 80 s and 90 s are growing up in an era of no lack of material. They have more choices and are more rational and personalized consumers. Simple sales cannot impress them. What they need is respect and attention. What they need is emotional connection." Song said forward.

He believes that the future retail will be the integration and development of online and offline in competition. On the one hand, the traditional offline mode of quantity rather than quality, sales rather than service is causing dissatisfaction among mature consumers; on the other hand, the cost of online commercial customer acquisition is getting higher and higher, gradually leveling off with offline.

Song Xiangqian pointed out that offline physical stores actually provide important scenes, which online e-commerce cannot provide. Mobile phones and computers cannot communicate face-to-face with consumers, but people still need to have spiritual needs. It is impossible to trade only through cold purposes.

"The consumer data performed by Double 11 looks beautiful, but concentrated to one day, in fact, the growth rate of e-commerce is declining year by year, and the online e-commerce dividend is basically gradually released. The new retail era is a good historical opportunity for the rise of offline commerce." Song forward think.

The combination of online and offline lies in new technologies. Wang Linpeng, chairman of Incredible Home Group, said at the same forum that traditional retail production is separated from retail terminals. Under the new retail, the business model will be reversed. Big data can be used to know who has what needs first and then design and produce in a personalized way. New retail is not only the integration of online and offline, but also the combination of retail and payment, finance and logistics.

However, Lin Muqin, chairman of Dongpeng Beverage, believes that the competition of Internet giants such as Alibaba, Tencent and Jingdong to join the offline industry will also bring some troubles to the industry.

"In the past, the traditional sales channels for products were distribution, wholesale and then retail. However, if dealers find that the retail price on the Internet is cheaper than that of their own goods, they may go to Alibaba or Jingdong warehouses to pick up the goods, and the sales channels may gradually be monopolized by Internet giants." Lin Muqin said at the Yabuli Forum.

In Song Xiangqians view, the Internet giant company has created the concept of "new retail", which is actually running into the offline market with a larger share and a low value. But in the next decade, they will lead Chinas business into a new era, "the future of offline retail or the restructuring of social relations, the restructuring of production methods, the restructuring of lifestyles. With the adoption of the Internet, cloud computing, big data business will become intelligent. Businesses, manufacturers, goods and services and consumers are less distant and understand each other better." Song said forward.

With regard to the high-value segments of consumption and services in the future, Song Xiangqian believes that there are still many leaders in subdivided industries in China, as long as the economy is growing and as entrepreneurs complete the succession of generations, good products, good models and good companies will still emerge in endlessly.

He pointed out that there are still many opportunities in high-frequency areas and optional consumption areas such as beverages, drinking water, clothing, and catering. "In these traditional high-frequency fields of rigid demand, there are no worldwide enterprises in China, and there are no enterprises with a market share of more than 5% in China. The industrial concentration is still very, very low. From the perspective of industrial accumulation, there must be a super strong enterprise in each subdivision field."