-1-

In the picking area of more than 300 square meters, Peng Guandi holds the picking terminal and handles the online orders from “Wal Mart home” quickly. This mobile picking terminal has planned the best picking route for each order for her. The goods are displayed in the rows and shelves, and the number of goods to be picked, the quantity of orders completed and the accuracy rate are clear at a glance. After picking, express riders will quickly deliver the goods to customers.

Peng Guandi is an e-commerce picker at Wal Mart’s Renmin South Road store in Shenzhen. In addition to the picking area, her working radius will also include more than 10000 square meters of stores. Of course, most of the goods sold by Wal Mart online are concentrated in the picking area of more than 300 square meters. She has set a record of picking more than 13800 pieces in 96 hours.

In this shop, also busy with more than 40 picking staff like her. Since the launch of the fourth “88 Shopping Festival” on July 16, Peng Guandi and her colleagues have been very busy every day. At the highest point, nearly 200 items of goods were picked up by her hand in an hour, and after a few hours, she took 30000 steps.

This year’s 88 Shopping Festival is also the first tripartite cooperation between Wal Mart, Jingdong and Tencent. In addition to gathering more than 180 Wal Mart high-quality brand merchants at home and abroad, more than 400 stores in China, several Wal Mart flagship stores of Jingdong and Jingdong home, it also introduced “Wal Mart home” again, so as to reach consumers online and offline through all channels.

According to the data disclosed by Wal Mart, Wal Mart’s overall “home” business, including the sales of “Jingdong home” and “Wal Mart home”, achieved double-digit growth compared with last year. On 88 days, the number of “home” orders of Wal Mart stores in China exceeded 1000, and more than 20 stores reached more than 2000 orders in a single day. Among them, “Wal Mart home” performance is rapid, since the launch of 88 Shopping Festival on July 16, the sales volume has increased more than 1.5 times compared with last year.

6.18, double eleven, Double Twelve Consumers may be familiar with the online Carnival of e-commerce giants, but so far, apart from Internet giants, no offline enterprise has been able to counter attack the online Festival and succeed. From this point of view, Wal Mart China has been low-key and resolute in achieving what has been expected and impossible for physical retail.

In other words, in just over three years, Wal Mart has created a shopping festival in the Chinese market. The 88 Shopping Festival has successfully occupied the minds of many users, and has won a share of the online promotion market where only e-commerce giants have performed monologues before.

For physical retail, there is no doubt that this is a great breakthrough.

Wal Mart has always been a king – in the Fortune 500 rankings released on August 10, Wal Mart has become the world’s largest company for the seventh consecutive year. The year 2020 is the 24th anniversary of Wal Mart in China. After 24 years of patient cultivation, Wal Mart’s development in the Chinese market has entered a new stage.

How about the development of Wal Mart, which is the first to introduce RFID technology?

88 Shopping Festival in numbers

From 0:00 to 24:00 on August 8, 2017, the total sales of Wal Mart’s official flagship stores and Wal Mart global shopping’s official flagship stores reached a record high, 13 times higher than the previous highest daily sales. At the same time, the order volume of Wal Mart Jingdong home on that day was more than 200% higher than that of July.

In 2018, 88 Shopping Festival set a new high in sales performance. From the start date of July 19 to August 10, the total sales volume of Omni channel goods participating in the 88 Shopping Festival increased by more than 10 times compared with that in 2017. On August 8, Wal Mart’s official flagship stores and Wal Mart’s global flagship stores increased more than 800% in daily sales compared with the previous peak. The order volume of Wal Mart Jingdong home platform was only 1 hour and 14 minutes since the beginning of the day, which exceeded the order volume of the whole day on August 8, 2017, and the sales volume on that day increased by 500% compared with the same day in 2017.

The shopping festival will be launched on July 18, 2019. As of August 14, compared with the brand merchants participating in the “88 Shopping Festival”, the scale of Omni channel sales has increased by more than 50% compared with the brand merchants participating in the same period in 2018, and most of the growth comes from e-commerce. During the 88 Shopping Festival, the number of daily living users using “Wal Mart home” o2o service increased by 50%, and the number of o2o orders increased by more than 150% compared with the previous peak.

-2-

For Wal Mart’s 88 Shopping Festival, what the industry may see more is just the online promotion activities of an offline retail enterprise, and the performance is increasing by nearly 10 times year by year.

Back to July 25, 2017, when Wal Mart and Jingdong decided to launch the first large-scale online and offline promotion activity “88 Shopping Festival”, no one would have thought of it. More than three years later, in addition to the achievements, what is more worth paying attention to is a digital Wo that has opened up the “two channels of appointment and supervision” in resource integration, marketing methods, service quality and online and offline integration Erma has taken shape.

A group of data may better reflect Wal Mart’s online business performance: during the Spring Festival, Wal Mart’s overall o2o “home” performance soared, and its sales increased more than four times compared with last year. “Wal Mart home” channel growth is more rapid, during the Spring Festival, the year-on-year increase of orders as high as 15 times.

Of course, this has something to do with the increasing frequency of online shopping caused by the epidemic during the Spring Festival. However, this is still a very good achievement. To a larger extent, it is also an event worthy of encouragement for the industry. In the domestic market, the so-called new retail and e-commerce have always looked down on the lameness of online business, and even for a period of time, the voice of new retail enterprises to replace traditional physical retail was rampant.

Although these enterprises did not replace physical retail, they began to learn from physical stores instead of replacing physical retail. However, we have to admit that many retail enterprises have not started online business, especially home business. Even a few national retail enterprises can only say that they are constantly trying to find the direction in the loss.

Comparatively speaking, such an “online Wal Mart” and its performance are indeed somewhat different.

“The retail market has shifted from the seller’s market to the buyer’s market.” Chen Zhiyu, senior vice president of Wal Mart’s China e-commerce and marketing, said that the strength of the buyer’s market means that whoever is close to them can obtain higher profits.

In other words, with the change of consumption habits and the diversification and convenience of shopping channels, whether online or offline enterprises, whose enterprises are closest to consumers are more likely to survive for a longer time.

Wal Mart’s digital transformation in recent years is just around this center, and it is not traditional at all.

Take the “three links” with Jingdong as an example, so far, there are few enterprises that can really connect the online and offline users, stores and inventory of both sides, while Wal Mart has achieved a comprehensive connection with Jingdong, an e-commerce enterprise. Only in this regard, there are few people with such measurement and courage in the domestic industry, let alone need to have the possibility to carry out in various systems with e-commerce giants Comprehensive docking capability.

Of course, you can also say that Wal Mart invested in JD, which is fine, but they are still two independent enterprises – independent operation, independent accounting, independent KPI. Inventory and other information for any enterprise are business secrets.

Because of this, Wal Mart is making rapid progress on the omni channel road. For example, it is the first one in Jingdong to realize one hour “instant distribution”. It has more than 4000 kinds of goods from 370 Wal Mart stores in more than 140 cities. It is expected to provide users with instant delivery before the end of the year.

In Wal Mart, a store will connect multiple lbs online platforms such as “Jingdong home” and “Wal Mart home”. Every day, in addition to opening the door to meet customers, the store has to “receive” thousands of invisible online customers. The business hours of online and offline are almost the same, all year round.

This still benefits from Wal Mart’s strong digital capabilities. Together with Jingdong and Jingdong Jiajia, the company provides various home delivery solutions for customers, such as immediate delivery on the same day, one hour delivery to home and next day delivery in the whole city. On the basis of previous years, it has further optimized the supply chain, that is, customers place orders in Wal Mart Jingdong flagship store, and if there are goods in stock in Wal Mart stores, the stores will supply them directly for online orders Goods. Jingdong’s delivery staff go to the nearest Wal Mart store to pick up the goods, instead of passing through the warehouse of the logistics distribution center as before, which greatly shortens the transit time of orders and greatly improves the efficiency.

At the same time, another vivid scene flashed behind this is that thousands of goods pickers like Peng Guandi are busy in the stores every day in hundreds of Wal Mart stores across the country, rationing and performing online orders. Wal Mart’s requirement is that the order picker must complete the order picking, packing and delivery within 15 minutes, and the whole process needs to ensure that the goods are free from damage and error.

What effect does the promotion of digital capability bring to stores? Wal Mart Shenzhen Longhua Renmin South Road store online business for 4 consecutive years showed a three-digit growth, “our overall performance for 4 consecutive years ranked the top two stores in China.” Yin Qiang, general manager of the store, said that now we will pay attention to the proportion of online traffic every day, which is just as important as paying attention to the daily passenger flow to the store. “Replenishment of the picking area set up for online orders is just as important as the daily replenishment management of the store.” During the 88 Shopping Festival, customers with the most o2o channels purchased 44 items at a time, and a picker of Wal Mart picked up more than 2400 items on 88.

-3-

In Wal Mart’s Omni channel business, “Wal Mart home” is a very important link. During the 88 Shopping Festival in 2019, the number of daily living users of “Wal Mart home” o2o service increased significantly. This year, Wal Mart home also played an important role in this year’s 88 Shopping Festival.

Of course, at present, its more important role is to further enrich Wal Mart’s Omni channel, that is, seamless online and offline channels, integrating social and consumption, and upgrading the past single shopping scene to diversified scenarios including social interaction and experience. “Wal Mart home” has tentatively cooperated with Wal Mart’s merchant day, joint voucher making, friend circle promotion and joint promotion in Shenzhen. Both the innovation and transformation have exceeded expectations and will be “copied” to multiple cities in the future.

Only by digitizing consumers, can we establish a longer-term relationship with consumers. This is another harvest brought by Wal Mart’s Digitalization: users can still keep certain contact when they are not shopping, and they can actively contact him / her, that is, they can wake up, activate and even interact at any time. At the same time, when users need to consume, Wal Mart smart shopping and Wal Mart home are excellent digital tools.

Wal Mart home is also slightly different from Wal Mart’s flagship store in Jingdong. It has a richer variety of goods, which basically covers tens of thousands of goods in Wal Mart’s offline stores, focusing on fresh food, mother and baby, grain and oil, snacks and drinks, daily chemical, household cleaning and service. At present, it has opened more than 4000 kinds of products in more than 170 cities and more than 400 Wal Mart stores in China, and the whole city distribution business has also covered 83 cities and provided next day delivery service of more than 10000 kinds of goods.

Compared with the pure e-commerce platform, home business makes Wal Mart closer to customers and more effective interaction. According to the location of consumers, through lbs positioning, Wal Mart can provide users in different regions with the most matching goods and services.

The important role of these capabilities was further highlighted during the outbreak. Taking Wuhan at that time as an example, due to the closed management of residents in the community, Wal Mart quickly upgraded its home service. The online platform was no longer limited to the range of 3 km around the store. Instead, it locked in multiple communities around the store through lbs technology. As long as residents are located in the community covered by the platform, they can place orders online, and customer orders are concentrated in the community; Offline, after picking up goods, they send orders in batches, arrange trucks for centralized delivery by community as a unit, deliver goods directly to the community two times a day, and then distribute them to households by property management personnel, so as to meet the needs of customers’ life in time, and greatly improve the efficiency of “home” service. Only Wal Mart Wuhan Heping Avenue store sent more than 300 community orders on the first day of the trial.

Wal Mart is also facing some new challenges. Different local epidemic prevention policies in different regions have led to different impacts and challenges on Wal Mart’s supply chain. The food and vegetables sold in different cities, the means of distribution, and the frequency of customers’ going out shopping are all different. All of these highly test the ability of Wal Mart to localize and refine its operation.

“The epidemic has promoted all aspects of digital change in enterprises.” Chen Zhiyu said that users’ utilization rate of e-commerce platform and o2o channel has increased rapidly, which puts forward higher requirements for Wal Mart and all retail enterprises, “Wal Mart has withstood this round of stress test.”

During the epidemic period, Wal Mart used a lot of manpower and material resources to configure the differentiation of commodity demand in different regions. “After the epidemic, we have plans to collect these experiences, turn them into products, and finally develop algorithms to adapt to the needs.” Chen Zhiyu said.

High quality and good price goods and increasing orders have helped Wal Mart to accumulate more than 15 million fans in its flagship stores on Jingdong platform. The transaction amount of Wal Mart Jingdong flagship store on the first day of 88 Shopping Festival increased by 180% year on year. The turnover of food and beverage products in Wal Mart’s overseas shopping flagship stores increased by more than 260% year-on-year.

-4-

At least in the Chinese market, Wal Mart is not the first retailer to implement “online”. However, if put into the global market, Wal Mart has always maintained a high degree of sensitivity and interest in the pursuit and application of technology.

Thirty seven years ago (1983), Wal Mart had the courage to pay US $20 million to send private commercial satellites into the sky. Data of thousands of stores around the world were collected and collated by satellite, and then shared with purchasing and suppliers to improve the efficiency of the supply chain.

As a global retail giant, Wal Mart is one of the earliest and favorite technology companies. It is the first enterprise to realize automatic inventory control by using barcode and electronic scanner. In the 1980s, it began to use category management software, the earliest application of automatic ordering system, the earliest use of eas (electronic anti-theft system) and the earliest attempt of RFID technology. It began to adopt in 1988 Wireless scanning gun, wal was launched in 1996- Mart.com E-commerce website

Obviously, it’s a retailer, but it’s never traditional.

In the barbaric growth stage of China’s e-commerce market, Wal Mart didn’t get too many opportunities, but it missed the golden age of China’s e-commerce development, which does not mean that it can’t make any achievements in this field. After seeing clearly the market development trend and determining the strategy, Wal Mart China first acquired No.1 store, took a stake in Jingdong, invested in dada Jingdong home, and cooperated with Jingdong in an all-round way Penetration line. In 2018, it started to cooperate with Tencent to promote online and offline 3D digitization.

In this regard, it seems that Wal Mart has always had a good tradition of “catching up” in the Chinese market – it may not be the first to eat crabs, but it is often one of the best to eat crabs.

As time goes by, a large number of foreign-funded retail enterprises have basically withdrawn from the Chinese market. Wal Mart not only continues to add weight to the Chinese market, but also becomes one of the best online businesses in the retail formats of supermarkets. What’s more valuable is that when the concepts and gimmicks of online, e-commerce, unmanned retail and offline e-commerce are all around the world, Wal Mart has not been tempted to follow suit or blindly follow suit. It has always maintained its strategic determination and adhered to Omni channel, making the channels richer and services more efficient.

In the process of online, home business and digitization, Wal Mart has developed in China for more than 20 years, and has shown its consistent advantages in the strategy of omnichannel – patience.

Correspondingly, in the Chinese market, most retail enterprises have not or just started. But another reality is that under the catalysis of the epidemic situation, home business has become a necessary option from the original option, and has become the necessary standard skills for retail enterprises.

According to Zhao Ping, director of the International Trade Research Department of the Institute for the promotion of international trade of the China Council for the promotion of international trade, the epidemic situation has further strengthened people’s online consumption habits. Under the background of the normalization of epidemic prevention and control, online consumption will still maintain a high growth rate. Obviously, Wal Mart, which has a variety of mature solutions, has gained the first opportunity through careful layout in recent years.

“Spirit beast” has pointed out in the previous article that in the future of China’s retail market, if there is any drama to watch among foreign giants, Wal Mart will be left alone. Earlier, spirit beast also pointed out that Wal Mart is a patient enterprise: it has enough strength and time to cultivate a market, as long as it thinks that the market has a future. This can be seen from the long loss period it has suffered since it entered the Chinese market. Looking at the world, it is difficult for other enterprises to have the financial resources, energy and determination to do so.

To some extent, Wal Mart and many powerful e-commerce enterprises have many similar genes – for example, for some new things, you can do them first, but I will slowly try to do better.

As early as two years ago, Wal Mart released an annual report on the development of super Omni channel integration of Chinese retailers, pointing out that with the gradual blurring of online and offline consumption boundaries, consumers will enjoy more convenient, quality-oriented life and personalized customized services.

In a few years, as emphasized in the report, Wal Mart has gradually broken the online and offline boundaries, customer group boundaries, supply chain boundaries, timeliness boundaries, platform boundaries and regional boundaries through the omni channel integration mode, so that customers can truly buy at anytime, anywhere and at will. “

Indeed, “the development of technology has changed the business environment and changed consumer habits, thus pushing back the change of business model.” In Chen Zhiyu’s view, “the change of business model has provided a brand-new scene for technology, and they are a cycle driven process. In this process, enterprises need to maintain high flexibility. “

This is the direction of Wal Mart’s digital future.

A few years ago, Wal Mart was still trying to do home business. But now, Wal Mart’s store digital orders (including customers’ online orders and customers’ self checkout orders) have exceeded 50%. And home business has achieved full coverage of all Wal Mart stores nationwide.

Who doesn’t know Wal Mart? yes! But now, it’s time to introduce a brand new Wal Mart China.

Ajx

Leave a Reply

Your email address will not be published. Required fields are marked *