Why Can Physical Stores in Japan "Beat" E-Commerce? What's Next for Physical Stores in China?

Tech 2024-08-25 23:21:09 Source: Network

Why Can Physical Stores in Japan "Beat" E-Commerce? What's Next for Physical Stores in China?What exactly fuels the robust vitality of Japan's physical stores, enabling them to not only "survive" the e-commerce tide, but also thrive? Why have China and Japan taken drastically different paths in the "war" between e-commerce and physical stores?Japan's "physical first" approach is deeply rooted in its social culture and the consumption habits of its people. Japan is a nation that values tradition and quality

Why Can Physical Stores in Japan "Beat" E-Commerce? What's Next for Physical Stores in China?

Why Can Physical Stores in Japan "Beat" E-Commerce? What

Travel enthusiasts may have noticed that the streets of Japan are filled with "century-old stores." These "century-old stores" often display their founding year on their storefronts, showcasing their rich history and generations of craftsmanship. These old stores are not only vessels of cultural heritage, but also embody physical commerce and the real economy. However, in China, such physical "century-old stores" are scarce. Especially in the last decade, the concept of "e-commerce" has mushroomed, posing significant challenges to physical stores. Numerous brick-and-mortar stores have vanished under the onslaught of the e-commerce wave. Meanwhile, the number and volume of e-commerce platforms have skyrocketed.

Why Can Physical Stores in Japan "Beat" E-Commerce? What

What exactly fuels the robust vitality of Japan's physical stores, enabling them to not only "survive" the e-commerce tide, but also thrive? Why have China and Japan taken drastically different paths in the "war" between e-commerce and physical stores?

Why Can Physical Stores in Japan "Beat" E-Commerce? What

I. Why Japan Embraces "Physical First"

Why Can Physical Stores in Japan "Beat" E-Commerce? What

Japan's "physical first" approach is deeply rooted in its social culture and the consumption habits of its people. Japan is a nation that values tradition and quality. In Japan, the act of shopping goes beyond simply acquiring goods; it represents the purchase of quality and service. This interactive experience during the shopping process can only be fully realized within a physical store.

Why Can Physical Stores in Japan "Beat" E-Commerce? What

Shopping malls and commercial streets in Japan are not just places to buy things but also serve as hubs for social interaction and entertainment. Many large shopping malls boast unique architectural styles and thematic dcor, some even serving as cultural ambassadors. Commercial streets, in particular, play a vital role in city life, preserving local character and often becoming tourist attractions. Additionally, physical stores provide a tangible impression of product texture and aesthetic design, offering a sense of belonging and personalized customer service that e-commerce platforms cannot replicate.

Why Can Physical Stores in Japan "Beat" E-Commerce? What

Let's explore Japan's service-first philosophy. Japan's service industry is renowned for its high standards and exceptional quality. When consumers shop at physical stores, they receive unparalleled customer service. Store staff provide comprehensive assistance, including polite greetings, expert advice, product trials, and elegant packaging. This face-to-face service is particularly critical in the realm of high-end goods, luxury items, and specialty products. This is what Japanese people call "craftsmanship over convenience."

Why Can Physical Stores in Japan "Beat" E-Commerce? What

E-commerce has certainly achieved some success in Japan, but it has not inflicted a devastating blow to physical stores. This might be attributed to Japanese physical businesses quickly adapting to the e-commerce trend and integrating online and offline operations. For example, many food and craft stores have both physical and online stores. Customers can browse products online and reserve regular or seasonal items, placing online orders for in-store pickup to avoid waiting in line. They can also consult online and then visit the physical store for a trial and purchase. This model caters to customers' convenience while mitigating risks and pressures associated with e-commerce.

Why Can Physical Stores in Japan "Beat" E-Commerce? What

Furthermore, due to Japan's unique geographic characteristics, most cities are compactly planned with commercial and residential areas close together. This allows consumers to easily reach physical stores for shopping. The prevalence and convenience of convenience stores and department stores further ensure that shoppers can quickly acquire necessary goods, reducing their reliance on e-commerce. While Japan's logistics system is relatively developed, delivery costs are high, and delivery speeds are not exceptional, hindering the growth of e-commerce in Japan.

Why Can Physical Stores in Japan "Beat" E-Commerce? What

II. Why China's Physical Stores Are "Losing Ground"

Why Can Physical Stores in Japan "Beat" E-Commerce? What

In stark contrast to Japan, China's e-commerce platforms are growing at an astonishing pace. Chinese consumers generally prioritize value for money and are highly price sensitive, which gives e-commerce platforms a significant advantage. E-commerce platforms can reduce overall costs by eliminating intermediate links, such as store rent and labor, thus offering lower prices to consumers. For many ordinary goods, consumers prefer to buy from e-commerce platforms that offer lower prices rather than physical stores.

Why Can Physical Stores in Japan "Beat" E-Commerce? What

In recent years, consumer habits in China have undergone a dramatic shift, particularly for young people who are embracing technological advancements. Online shopping has eclipsed offline shopping, becoming mainstream. Online shopping is more efficient, convenient, offers a wider variety of choices, and provides more direct comparisons, all advantages inherent to e-commerce.

Why Can Physical Stores in Japan "Beat" E-Commerce? What

Compared to e-commerce, physical stores face higher operating costs, including but not limited to rent, labor, and utilities. This has made it difficult for many small and medium-sized physical stores to recoup costs, maintain a steady cash flow, and compete with e-commerce. Especially in tier-one cities, rising rent and shrinking profit margins have forced many physical stores to close their doors.

Why Can Physical Stores in Japan "Beat" E-Commerce? What

The rapid development of social media and live e-commerce in China has further fueled the online consumption trend, making it difficult for physical stores to compete. Competition in China's e-commerce market is fierce. E-commerce giants like Taobao, JD, and Pinduoduo use a year-round calendar filled with diverse activities to attract consumers and stimulate spending. Then there are countless live-streaming platforms with celebrities and influencers promoting products through direct sales from origin, offering good quality at affordable prices, further capitalizing on the power of the internet to bolster e-commerce. All of these factors have further squeezed the survival space of physical stores.

Why Can Physical Stores in Japan "Beat" E-Commerce? What

Not to mention, e-commerce platforms possess a secret weapon: big data. Through increasingly sophisticated big data analytics, e-commerce platforms can gather user preferences more accurately using marketing, public relations, and advertising strategies, enhancing user loyalty. This makes consumers increasingly reliant on online shopping, diminishing their interest in physical stores.

Why Can Physical Stores in Japan "Beat" E-Commerce? What

For Chinese consumers living in a fast-paced world, time is a precious resource. Online shopping offers anytime, anywhere convenience, with most e-commerce platforms providing "next-day delivery" and "second-day delivery" services, meeting consumers' time demands. Compared to physical stores, the shopping process at physical stores is time-consuming and laborious, and without a comparable price advantage, their appeal inevitably wanes.

Why Can Physical Stores in Japan "Beat" E-Commerce? What

III. Fast vs. Slow Lanes Shaped by the Environment

Why Can Physical Stores in Japan "Beat" E-Commerce? What

Different social environments and cultural differences inevitably lead to diverse choices of tracks. From a macro perspective, Japan has long-term planning and policy support for retail development at the national level, placing great emphasis on safeguarding the survival environment for small and medium-sized enterprises and traditional commercial streets. In contrast, China is on a fast track of development, with policy support encouraging the growth of emerging industries like e-commerce to drive the economy.

The differences in the social structure, particularly in population demographics, have also led to divergent paths in retail development. Japan's aging population is steadily increasing, and it is poised to become one of the most pressing social issues in the country. The extremely high proportion of elderly people in society makes traditional lifestyles, such as shopping at physical stores and dining out, prevalent. In China, a higher proportion of young people puts the internet in a pivotal role in daily life, making online shopping and delivery services, which offer convenience and speed, the mainstream choices.

Logistics, a crucial link in e-commerce shopping, also presents a significant difference. While Japan's logistics system is highly developed and mature, geographical constraints and high labor costs limit the convenience and affordability of logistics services compared to China. China's logistics network boasts extensive coverage and low prices, enabling e-commerce platforms to provide faster and more affordable delivery services.

Furthermore, China's advancements in mobile payments, social media, and e-commerce platform technology continue to drive the widespread adoption and growth of e-commerce.

IV. The Outcome Remains Uncertain, But the Curve Lies Ahead

In the face of fierce market competition, physical stores must discover new paths to survival and growth. The differences between China and Japan clearly demonstrate that physical stores cannot simply rely on traditional business models, stagnating in place. They must embrace new changes and developments. For example, unmanned and intelligent physical stores, big data-driven marketing strategies, and omnichannel sales services that integrate online and offline operations are all key development directions for the future. Furthermore, policy support at the national level and optimization of the business environment are crucial to the future of physical stores.

In conclusion, the success of Japan's physical stores in "beating" e-commerce is the result of a confluence of factors. These include deep-rooted cultural influences, consumer habits, market structures, and policy environments. While the rapid development of e-commerce in China has squeezed the survival space of physical stores to some extent, it has also propelled the transformation and upgrading of the retail industry. In the face of new market environments and consumer trends, retail industries in both countries will continue to explore respective paths to more balanced growth. For physical stores in China, finding ways to revitalize their competitiveness amidst the challenges posed by e-commerce is a timely and urgent task. However, through continuous learning and progress, it is believed that physical economies will experience a resurgence, injecting fresh momentum into national economic development.

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