Retail must seize three key points: occupying the mind, controlling the channels, and mastering the supply chain. You see people in Costco. In the case of Amazon, the old stores in the city have maintained a 5-7% annual growth year-on-year. There are three reasons for this: (1) 60% of food, high-frequency just needed And Amazon has not been able to cover this category very well; (2) high cost performance, high proportion of its own brands, non-own brands such as P&G also use exclusive custom packaging to reduce prices; (3) membership system, year The fee of $99 has been paid, "If you don't buy it, you will lose money"; if you do so much, you are afraid that the frequency is not high enough, and you have also built the cheapest gas station in the city. You can go shopping by gas.
Another example is the defeat of Wal-Mart's discount store, Aldi, whose price is 20% cheaper than Wal-Mart. Its success lies in the selection (one commodity, one choice, that is the best choice) and its own brand (more than 90%). Each store is 500-800 square meters, less than 1,000 SKUs, but enough for users to eat three meals a meal, gross profit 15%-17%, net profit 2%-3%, inventory turnover only 2 weeks, efficiency than electricity Business is still high.
Amazon is very bullish, it is "the world's most user-centric enterprise", and all decisions are based on the principle of customer satisfaction. Through the search engine and recommendation engine, Amazon has done all the best in the category. At the same time, it has developed Prime members. The frequency of purchases is 3 times that of non-members. Now it has announced its own brand, covering almost all categories, and Prime's data support development. In addition, Amazon continues to innovate: AWS, Kindle, drones, Echo.