seems to WAL-MART, in addition to trying to convince customers to buy online, providing a wealth of online goods, the problem seems to be the key to make it with the traditional shopping experience hook.
source: Vision China
WAL-MART in determining the future of retail electricity supplier business behind.
although the retail giant was to promote online business, but in a competitor’s expansion is defeated again and again — the Taghit department store (Target) business to a rapid growth, WAL-MART’s growth has continued to slow down.
in the past two years, WAL-MART’s electricity supplier business growth in a straight line. The most recent quarter data show that WAL-MART’s business growth rate was 8%, while the fourth quarter of last year the figure was 22%, 30% two years ago. In contrast, Taghit in the past two years, business growth rate has remained above 20%, a quarter of the latest results of this data is 34%.
WAL-MART is not without effort. In October last year, it announced that it would spend $900 million for site development, this year it is planned to spend $1 billion 100 million to expand the category and size of online shopping products. But the investment is big in Taghit. The latter announced in a conference call with analysts, plans to invest $1 billion 800 million this year, next year invested $2 billion 500 million for supply chain and technology development. In addition to the old rival Taghit, WAL-MART is also experiencing electricity supplier retail giant Amazon brings pressure. Amazon has not only invested a lot of money to build the national storage network, but also the formation of a team of robots to help deliver, and even the development of technology to help companies predict what a customer is likely to buy. These are huge expenditures, although it will affect the profit in the short term, but Amazon can help build a strong competitive advantage, and the main rival WAL-MART and Taghit grab market.
WAL-MART has had many new attempts in the electricity supplier, but failed to attract consumers. For example, the distribution of membership services provided in some pilot areas (Shipping, Pass) a year to pay 50 dollars to be able to enjoy the logistics service unlimited 3 day delivery, but its popularity is far less than 48 hours of service Amazon gold member (Amazon Prime).
at present, online shopping site WAL-MART provided more than $50 order free shipping service, while Amazon orders over $35 to free shipping, Taghit just over $25. The high threshold of free shipping on WAL-MART’s net sales is very unfavorable, from holiday sales results, WAL-MART and Amazon in Taghit completely unable to, after the two companies in the holiday shopping season sales growth of more than 15%.
exactly how to win the competition in the electricity supplier business in WAL-MART seems, >