Survival Research On Private Entity Bookstore Under Discount Battle Background

Nowadays. In China book retail market, many private entity bookstores in succession to bankruptcy, collapse, which not only include the small bookstores, but also famous chain bookstores such as Forest Song, o2sun, Scholar Press, etc. According to statistic, from2007to2010, private bookstores decrease more than ten thousand. When mention the crisis of these physical bookstores, some think it owes to too much bookstores existed, some think the competition of the online bookstores is crucial. This paper gives two main reasons:firstly, some online bookstores provided ultra-low discount of which is private entity bookstores ever could. Secondly, economic development and the progress of science and technology brings new reading ways, besides, consumption preference of people is changing, for example, from paper to electronic books, and this change can easily be achieved after the mobile phones, computers and some other tools be equipped. After comparing the above two reasons, we will find the second reason is common, for all bookstores have to face, so we can’t put it as the main reason. Therefore, we should give the gravity to the first reason. Why can the book retailers offer low discount to buyers? This paper holds that it owes to China’s book pricing mode.We usually think there are two methods for book pricing:pricing set free and resale price maintenance (RPM). In our country the price of the book is printed in advance on copyright page by publishers, the retailers can sell books in a certain proportion according to the price. This book pricing mode is a kind of fixed price, but retailers can retail according to a certain proportion let our books pricing in fact more in favor of free pricing. When the physical bookstores their own respective disadvantages can not make their death situation. China’s book pricing mechanism plays a crucial role in the existence of the physical bookstores. The ultra-low discount that online bookstores offer on one hand occupy physical bookstore market, but on the other hand sign the rationality of the book price, which cause the suspicion of the consumer, thus bring book retail market order into confusion. From far-reaching significance, the influence..matters our country’s culture construction process. Because the book is bearing and dissemination of the main body of culture, which is an important part of cultural construction, so we must pay attention to this problem and find the countermeasures in improving social welfare and promoting cultural construction smoothly.At present, most relevant scholars research physical bookstore from strategic management point. As for the low discount competition among book retailers and the crisis causes of the physical bookstores lack of industry level of deep and systematic analysis. Based on the above reasons, this paper will study from three different aspects, reality, theory and policy. In reality, first we summarize the domestic and foreign research, in combination with the present situation of book retailing in China, we put forward the research problem of this paper, and present the research framework and ideas. And then we will analyze all the factors that affect the survival of the bookstores, after excluding the macroscopic factors that affect all bookstores, it is thought that the "price discount" is one of the most important factors affecting the existence of the private entity bookstores. In the theory argument, we will mainly study on the connotation, types, and effect of resale price maintenance (RPM). Combine with the characteristics of the industry, this paper analyzes the RPM in book industry. On this basis, we use qualitative research methods to analyze the advantages of RPM in book industry, and then it analyzes the competitive strategy among bookstores under the RPM through game matrix method. In order to enhance competitive power, the balanced result is that bookstores have to promote the "service", this is a kind of social consensus behavior choice. In the policy aspect, the paper puts forward some suggestions about private entity bookstore how to survive respectively from the macro and micro level. It is thought RPM pricing system can be a choice, whether adopt RPM limited to some specific conditions, it needs to consider the actual conditions of our country. And if private entity bookstore wants to get better survival and development, they must rely more on their own efforts, seeking a kind of breakthrough and innovation. Finally, we have a conclusion of the paper.This paper attempts to find a sympathetic pricing system to solve the entity bookstore crisis, but because the effect of resale price maintenance is multi-ply, and the existing difficulties of quantitative analysis, this paper can only given a problem solving ideas. As for pricing system choice, it still needs further research and argumentation.