Challenges And Strategic Choices Under The Background Of Network Of Chinese Traditional Retail Formats

As the main promoter of economic growth, social employment and tax revenue, retail industry occupies an important position in the economic development of our country. From the planned economy to economic globalization, people’s living standard and consumption habits change constantly with the development of the times. Age of electronic commerce’s coming influence of consumer’s choice. Easy, fast, and convenient online shopping can obtain the favor of consumers, which in recent years China online shopping market overall growth momentum unabated.The sales of traditional department stores continue to decline in social commodity retail sales.Competition between E-commerce and traditional retail as time goes on growing, China’s retail industry showing a significant recession.Some traditional department stores gradually become "dressing room" or "experience store" which consumers choose just do not buy.In the network of sales unpopular at the same time, the traditional industry is experiencing a difficult choice and facing a severe test. In the face of the challenge from the network, the traditional retail formats will decide on what path to follow.Based on the facts above,this paper further answer some questions. Such as the development status and problem of China’s traditional retail industry,factors and mechanism of retail format transition and what should the traditional general merchandise industry choice in such background. Based on the previous theoretical exploration foundation, this paper use the method of the combination of theoretical and empirical, comparative analysis to describe the problem of the traditional retailing network impact under the background. Based on the date of recent years, this paper analysis the development of traditional retail department store industry, including the trend and current situation of the intention.In order to find out the reasons why the traditional retail development slowly in recent years.Using the empirical research method, with typical electronic commerce retailers as an example,a comparative analysis of the advantages and disadvantages of traditional department stores and dealers.Consumer choice and enterprise technology choice angle based on the discussion of retail format, directly promote the change of the role of consumer and enterprise. The use of inductive analysis and logical reasoning method to construct the retail format transition model, trying to explain retail format transition mechanism.Discussion on the indirect factors driving the retail formats change from the system environment, the level of economic development, technological progress, city of process.Through retail related theoretical research,industry related data analysis and model between corporate and retail format transition interaction,draw the conclusion:China’s traditional retail formats in network impact transformation imminent and faced with a complex problem; For how to transition, enterprises need from the technical, marketing,service, talent four formats to innovation. At the same time, the institutional environment, economic development,technology progress, the process of urbanization in the certain extent influence the change of retail formats. The overall strategy: a clear self positioning, locking the target groups; to consumers as the center, strengthen management, improve service; to break the traditional business model; to strengthen its own product development, increase the proportion of own brand products. This paper aims to provide some thinking for the future transformation of traditional retail formats, to provides a theory reference for the retail enterprise even the whole industry in transition, in order to promote the healthy, stable development of circulation industry.The innovation of this paper is: change theory about retail formats, the academic circles is more directly from the point of view of consumer behavior, ecology,technology, city and so on. While the paper based on the background of network, comprehensive analysis from the perspective of multi-dimensional factors leading to the change of retail formats. Due to limited data collection, the paper lack of depth and breadth of the objective.Analysis of retail industry and retail trade evolution from a technical point of view, the calculation method of elasticity coefficient has no uniform. This paper chose to use regularization method to calculate the coefficient of elasticity is not accurate enough.