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More than 10,000 stores closed, layoffs, salary cuts, bloody support, to whom did the mobile phone store lose?

More than 10,000 stores closed, layoffs, salary cuts, bloody support, to whom did the mobile phone store lose?

Text | Hua Shang Tao Li Wu Su

Shenzhen real estate agents once aroused widespread concern among netizens, because in the first 9 months of this year alone, 642 intermediary stores in Shenzhen were shut down, and a large number of intermediaries had to resign to "send express delivery, or sell insurance".

Shenzhen real estate intermediary stores have shut down "noisy" out of a lot of "movement", some industry stores but in the silent retreat, one of the more obvious industries, of course, is the mobile phone store.

When it comes to mobile phone stores, many netizens have the impression of it: generally open on the street, the mobile phones sold inside are dazzling, the business is relatively hot, and sometimes there is a long queue.

The reality is indeed so, for a long time, mobile phone stores throughout the city and countryside, supporting the "world" of China's mobile phone sales.

However, in recent years, mobile phone stores have become more and more deserted, the media said that more than 10,000 mobile phone stores have closed their doors, sales staff forced to change careers, even if some stores are still sticking, most of them are in a state of loss.

More than 10,000 stores closed, layoffs, salary cuts, bloody support, to whom did the mobile phone store lose?

Behind the "darkest hour" of the mobile phone market is a sharp decline in profits.

Gu Cheng, who is engaged in the mobile phone store business, admitted to the media that he has been engaged in mobile phone sales for 15 years, witnessing the sales profit of a mobile phone falling from more than 400 yuan to more than 100 yuan today, and his net profit has also slipped from more than 500,000 yuan in the peak period to more than 100,000 yuan.

Gu Cheng shouted: "Now the mobile phone business is under pressure, the gross profit is low, and the sales decline is also severe." ”

According to the media, Gucheng's mobile phone store is located in a county town in a central province, and the scale of the store is not small, but it cannot withstand the decline in sales. He revealed, "Because of the price war, sales decline, manufacturers and operator subsidies and other factors, about 30% of the local small and medium-sized mobile phone stores have not carried the past." ”

The decline of mobile phone stores does not mean that the mobile phone business is declining, on the contrary, the mobile phone business is still booming.

According to the report data released by the China Academy of Information and Communications Technology, in the first 11 months of this year, the overall shipment of mobile phones in the domestic market totaled 317 million units, an increase of 12.8% year-on-year. Among them, 5G mobile phone shipments reached 239 million units, an increase of 65.3% year-on-year, accounting for 75.3% of mobile phone shipments in the same period.

Leaving aside foreign brands such as Apple and Samsung, domestic mobile phone shipments are also growing rapidly. In the first 11 months of this year, domestic brand mobile phone shipments totaled 275 million units, an increase of 10.5% year-on-year, accounting for 86.7% of mobile phone shipments in the same period.

More than 10,000 stores closed, layoffs, salary cuts, bloody support, to whom did the mobile phone store lose?

Domestic mobile phone shipments, especially domestic brand shipments, are all in the order of 100 million, and in the growth trend, it is reasonable to say that mobile phone stores can continue to win a wave of "dividends", why do sales and profits decline all the way?

A big reason is the rise of online channels, in other words, e-commerce has taken away most of the business.

You know, before that, buying mobile phones in mobile phone stores is the "mainstream", after the rise of e-commerce, whether it is mobile phone brands opening flagship stores and other self-operated channels on e-commerce platforms, or middlemen doing online sales, they have formed a strong impact on mobile phone stores.

Media data show that by the end of 2020, street mobile phone stores or independent communication stores will only contribute about 30% of the sales volume of the Chinese mainland market, and e-commerce has become the strongest channel for mobile phone sales.

The arrival of the "black swan" of the new crown epidemic has highlighted the fragility of mobile phone stores and deepened the existential crisis.

More than 10,000 stores closed, layoffs, salary cuts, bloody support, to whom did the mobile phone store lose?

An industry insider has been engaged in the mobile phone channel business for nearly 20 years, with a number of offline channel stores in Beijing, Henan, Shandong and other places, and after the new crown epidemic, his offline store sales are less than 10% of the usual sales. But at the same time, the sales operation staff plus rent, each month to spend more than 1 million yuan, "almost 'pure blood management'."

In order to alleviate the financial pressure, he had to lay off employees and reduce wages. "Surviving is the most important thing, otherwise everyone will be damaged if the company falls."

Even a national mobile phone chain giant like Di Xintong is also doomed.

In 2015, Di Xintong had more than 3,000 stores nationwide, with 100 million people entering stores throughout the year, and by 2019, only about 1,500 stores remained; the net profit also slipped from 357 million yuan in 2015 to 79.78 million yuan in 2020.

More than 10,000 stores closed, layoffs, salary cuts, bloody support, to whom did the mobile phone store lose?

In June this year, Di Xintong was even more sad to "sell itself", and Huafa Group became its largest shareholder.

It is not difficult to see that the reform of mainstream channels and the impact of the "black swan" of the epidemic are the main reasons for the difficult steps of mobile phone stores, plus some mobile phone stores quietly sell counterfeit and shoddy products or second-hand refurbished machines in order to sell, and the trust between customers is slowly diluted, and various unfavorable factors are superimposed and difficult to return.

More than 10,000 stores closed, layoffs, salary cuts, bloody support, to whom did the mobile phone store lose?

For mobile phone store practitioners, perhaps like real estate agents, they need to re-examine the social trend and business boom and find new business growth points.

After all, in the midst of challenges, opportunities are often conceived, and if they are seized, it is possible to usher in a "new life".

【References】

1. Behind shenzhen's "intermediary reform": 642 stores closed in 9 months, how to survive without eating the difference? , China News Weekly

2. "The business of mobile phone stores is dismal, stores have been opened all over the country, and now many practitioners are withdrawing at a loss", Ye Lan Finance

3. "The Forgotten Mobile Phone Chain Giant: Di Xintong changed owners zhuhai Huafa, 3,000 stores only have "one place of chicken feathers"", Times Finance

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