Is The Real Economy Failing?

The sound of the real economy can be fermented almost every once in a while.

Key words such as "Guan Dian Chao" and "201X store list" are everywhere on the Chinese Internet. A list of supermarket deaths in 2018 showed that 15 supermarkets listed companies closed at least 228 stores in the first half of the year.

"The real economy is not doing well" is not only the sentiment of the Chinese, but also in the United States. According to a US data, as of July, 7062 retail outlets in the United States were closed this year, and the number of stores closed for the whole year is expected to reach a record 1.2.

It seems that the world is cool, but is it really the case?

　　 Closing shop tide swept over.

Facing the store shop is not limited to the traditional retail business. It is known as the "China clothing first street" Hangzhou Sijiqing clothing wholesale market.

In a busy wholesale market of clothing in Sijiqing, stores have to voice their voices to communicate with customers. Photography / bag

After 2010, with the rise of large wholesale markets in the surrounding cities, the homogenization of commodities became more and more serious. In the competitive environment of imitation, the life of clothing products is more and more short.

In the more than 10 years in Sijiqing, the wife of the boss, sister Hong, sighed with emotion. "How hard I work, my legs are broken, and I want to earn a little money too hard."

In the past, Sijiqing's stall rents increased by 5%-10% every year. Since 2013, some markets have no longer raised rents or even shops are vacant.

The model is a landscape in Sijiqing. A model wearing a mirror is dressing up in a mirror. Photography / bag

"My friends in 2009, including peers and vendors, lost 50%." Red sister said.

At the same time, some traditional industries are also facing a reshuffle.

Shandong Tengzhou, Luban's hometown, is the traditional pig iron pot industrial belt. After years of experience in pot making, the iron cooker masters the eye, the temperature of the molten iron and the weight of the iron pot.

The iron pot cast the hands of the workers.

No one wants these skills to pass on even more than these old craftsmen.

But the market has changed, and the modern family is getting smaller and smaller. The traditional big iron pot is gradually unattended, and it can only go offline and wholesale to canteens and hotels. But how can we afford a factory with decades of history?

In factories, the instant of iron pot casting.

Tengzhou's iron pot industry is on the decline, and there are only 10 left over. The old factory director Liang Jiahu's factory product backlog reaches several meters, the worker only has two, the loss and the debt have pressed him to be unable to breath, this cooker 27 years old artist sighs: "this industry has already finished."

Tengzhou, who has over thirty years of experience, is casting tools.

Like this, there are still many industries that are facing decline due to changes in the market environment.

In 2018, the US financial website 24/7 Wallst combed the 24 industries that the United States is declining on the basis of changes in employment data over the past ten years. There are many traditional industries such as clothing, printing, stationery and so on.

Over the past ten years, the number of labour force in these 24 industries has dropped by more than 37%, of which 8 industries have been reduced by more than half.

　 Revival of Internet stores under the Internet

When the market and business rules change, the traditional industry reshuffle is the same rule. But this does not mean that the traditional industries will inevitably be eliminated. On the contrary, many old stores realized Nirvana with the help of new tools in the Internet age.

Sijiqing clothing wholesale market is a typical example.

Under the pressure of declining water flow and increasing inventory, many stalls in Sijiqing began to try their business. They opened shops in Taobao and started to broadcast live. The traditional wearing model has become a Taobao anchor, showing products to buyers across the country in front of the camera.

A host who is transformed by a model version is selling in the live room.

A large bulk anchor can have millions of water a day. This has enabled many traditional clothing stores to find new vitality beyond the highly competitive wholesale market. After all, a big wholesale market is no match for the Internet.

Similar changes are also taking place in Tengzhou, Shandong.

Liang Xingchun, the son of Liang Jia, the old pot maker, returned to his hometown to take over the factory after he retired from the army. He decided to rebuild the old pot factory with the Internet transformation of the electronic business platform.

Relying on the huge user advantage of Taobao, he reversed the "big pot dependence" path of the industry, made the pot small and sold it online, so as to adapt to the consumers of the modern urban small family.

Liang Jiahu, Liang Xingchun and his son are in the factory.

Liang Xingchun launches small volume products and optimizes the quality. In the pot ears, add the hemp rope, optimize the radian, surface scrub, and Chinese fir lid. It can sell hundreds of pots per day, and the iron pot factory has become a very popular shop in Taobao. In September, it sold 7000 pots, and Taobao sold more than five million throughout the year.

Liang Xingchun's traditional Taobao iron pot.

With the help of Taobao's electronic business platform, the old factory, which carries the casting skills of Chinese traditional iron pot, has finally succeeded. The electricity supplier mode created by Liang Xingchun has also injected new vitality into other local cooking plants.

The use of business thinking, to revive the old shop, on Taobao, there are many, all walks of life. They are both offline stores and new businesses of Taobao.

Few people know that as early as 2003, when the vast majority of consumers in the country had not seen electric toothbrushes, a company called "saga electric" had already made electric toothbrushes for European and American foundries. At the most time, the Ningbo enterprise contracted half of the capacity of the electric toothbrush market in Japan. Back to 16 years ago, no one believed that half of the Japanese's teeth were made of electric toothbrushes made in China.

Backed by 700 million Taobao's active users and big data technology, Juhuasuan has opened a new gateway to these factories, enabling them to get out of the foreign brands and transform their mature productivity into their own brands.

Electric toothbrushes made in China sell in Juhuasuan.

Within a short period of time, the manufacturers of electric toothbrushes in Ningbo, Taizhou and Shenzhen have launched hundreds of million stalls, pulling the industry price from 1000 yuan to 100 yuan at a time and selling them on Juhuasuan. The strong demand of the sinking market and the perfect match made in China make these old factories that have been obscure under the line have made their own brand on Taobao.

In recent years, through Taobao live broadcast, Juhuasuan and other tools, more and more offline stores and old factories have been reborn on Taobao. According to statistics, in the past 3 years, the total volume of Taobao's new businesses has reached nearly 500 billion.

Take Taobao's pet industry as an example, half of the top businesses are new businesses that have grown up in the past three years.

Taobao is not only a choice of entrepreneurs, but also an important platform for self renovation and upgrading of offline stores.

Can the real economy fail?

Many people attribute the plight of the real economy to an electric shock. Some entities even posted slogans on "online shopping to fight business hard" when clearing and selling.

In fact, the decline is not the real economy, but the traditional industries that have not adapted to market changes. The impact of these industries is manifold.

In the new century, globalization, automation and the Internet have created a new business environment.

Globalization has brought a large number of overseas outsourcing, which has compressed the market and profit margins of traditional manufacturing industries. Automation technology has greatly improved work efficiency and reduced the demand for workers. The Internet has greatly improved the speed of global business and information dissemination, and the business model that relied on regional barriers and information asymmetry has been difficult to survive in the Internet age.

Technological progress and the elimination of old production and service patterns are more than just what happened in this era. Since the industrial revolution, this trend has never stopped. The market is basically unchangeable, but in the Internet era, this change is more rapid than any time in history.

Whoever can change the traditional mode quickly and adapt to the new business rules can win the dividends of the Internet age, survive in the brutal competition and live better.

Just like a car instead of a coach, it should not be simply interpreted as the decline of the carriage industry, but should be regarded as the great development of the transportation industry. At the beginning of the birth of the container, the wharf workers also attracted massive protests. However, they greatly reduced the cost of transportation and contributed to the prosperity of today's Global trade.