Line Stores Are Seriously Injured. When Will The Retail Industry Recover?

Since the outbreak of the epidemic, a large number of department stores have been closed down all over the country, and shopping malls and businesses have suffered huge economic losses. Under the influence of online shopping, the department store industry, which itself is in the throes of pain, is even worse.

With the intensification of the pneumonia epidemic, global luxury sales will decline by an average of 8% in the first quarter, of which China's market will drop 40%. It can be imagined that during this special period, the retail industry of luxury goods has been greatly impacted.

It can be said that the department store is seriously injured, and the retail industry is also seriously damaged. When will it recover? This is a big question mark.

In the face of the epidemic, the major commercial real estate groups and their stores are actively using online strategies to save themselves, so as to reduce the losses caused by the epidemic. Some beauty brand sales staff also improve their performance through various online channels.

Taobao, once seen as the "thorn sister" eyesore, has now launched the "nail smart shopping guide" function by combining nails to open up offline stores and online consumption channels. In addition, a series of "cloud sales" operations, including online live broadcast, have also seen the endless possibilities of retailing.

In the short term, the reduction of passenger traffic caused by the epidemic will indeed affect the business of physical department to a certain extent.

In the long run, the epidemic has also laid a good foundation for online marketing. More consumers are gradually getting used to the "cloud shopping" mode of shopping guide sales, group sales, and friends' circle, which are booming due to the closure of physical stores. Sales results even bring more opportunities for transformation of many real businesses.

As China's second largest personal luxury market in the world, the epidemic has had a huge impact on the sales of luxury brand domestic stores. The Italy luxury goods association Altagamma and the Boston Consulting Group Bernstein surveyed the original shipment to China. Up to 10 million to 15 million products may not be sold at present, forcing companies to transfer products to other regional markets.

Most of the luxury brands are concentrating their services and sales on line because the offline business can not be carried out normally. Due to the cancellation of offline activities, brands began to spend time researching and "testing" online sales mode, thus giving consumers a better online shopping experience. And in this link, some brands choose to use the power of the electricity supplier.

Although most of the consumers' online shopping products are mainly related to epidemic prevention and other daily necessities, with the increase of traffic volume, the exposure of luxury fashion brands has also increased. Recently, Farfetch has also completed a new round of financing. Tencent invested $125 million to support the company's growth in China and enhance its customer experience and products in the region.

Although the department stores are still not getting warmer as a whole, the Luxury Retailing industry can not return to normal in a short time, but consumers still have a desire to buy, and it is a matter of time before they recover.