The mystery of the affordability of buying milk online
When you walk through the dairy section of a supermarket and a carton of milk costs 50 yuan, the same product costs only 30 yuan online, what is the reason behind that?
The difference in cost mix between brick-and-mortar and online stores is a key factor in the price disparity. Brick-and-mortar stores need to pay expensive rent, staff salaries, and day-to-day operating expenses, which are ultimately passed on to the price of the goods. On the other hand, online merchants can attract consumers at lower prices by relying on online platforms to reduce the need for physical stores and a large number of staff, and reduce logistics costs.
The efficiency of the logistics system is also an important aspect that affects prices. Online shopping reduces transportation links and improves distribution efficiency through centralized distribution. The logistics of physical stores are more dependent on traditional distribution channels, and there are more intermediate links, which naturally increases additional costs.
What cannot be ignored is the difference in promotion strategies. Online shopping platforms often attract customers through limited-time discounts, coupons, points rebates, and other means, and these marketing methods are often more flexible and less costly than physical stores. Although brick-and-mortar stores also have promotions, they are often less influential than online shopping due to the limitations of physical space and instant interaction.
Consumers' buying habits are also changing. More and more people are choosing to shop online and enjoy the convenience of staying at home, which allows online shopping platforms to further reduce the cost of a single item by increasing sales. At the same time, brick-and-mortar stores provide consumers with a physical experience while also taking on higher inventory risks and capital tie-ups.
Differences in information transparency are also a major factor. Online shopping platforms can easily compare prices from different sellers, and this price competition often prompts merchants to reduce costs and selling prices. Consumers spend more time and effort comparing prices in physical stores, and this inconvenience reduces price sensitivity to a certain extent.
The difference in brand strategic positioning cannot be ignored. Some merchants may sell high-end or exclusive products in brick-and-mortar stores to maintain brand image and higher profit margins, while these products may be sold online at more affordable prices to win by volume.
Differences in tax policies may also affect the final selling price. Due to the different tax policies for online shopping and physical stores in different regions, this may lead to differences in the price of the same item in different sales channels.
The influence of social media is growing. Online shopping platforms use social media to promote and reduce advertising costs through word-of-mouth and social communication. However, the advertising and promotion of physical stores mostly rely on traditional media, and the cost is relatively high.
The difference in customer service is also reflected in the price. Brick-and-mortar stores provide customers with instant service and an interactive experience, and this personalized service comes at a cost. Online shopping saves this part of the cost, but at the same time, it also faces the challenge of after-sales service.
Increasing environmental awareness is also a consideration. As society's focus on sustainable production increases, some consumers are willing to pay higher prices for items with eco-friendly packaging and a low carbon footprint, especially in brick-and-mortar stores.
Advances in technology have changed the sales model. Through big data analytics, online shopping platforms can more accurately predict consumer trends and inventory needs, reduce the risk of excess and stockouts, and thus reduce costs. The adoption of brick-and-mortar stores in this area is relatively lagging behind.
Brick-and-mortar stores provide a social experience where consumers can enjoy shopping and in some cases even be willing to pay a higher price for it. While online shopping is convenient and fast, it rarely provides this kind of in-person experience.
Differences in supply chain management also affect the cost structure. Online shopping platforms achieve economies of scale by integrating supply chain resources, while brick-and-mortar stores are difficult to achieve the same economies of scale due to geographical restrictions.
The difference in return and exchange policies cannot be ignored either. Brick-and-mortar stores offer instant returns and exchanges, while online purchases often have a more complex return and exchange process, which can influence consumer decision-making.
There are differences in the target customer groups between brick-and-mortar stores and online shopping platforms. Brick-and-mortar stores tend to serve customers who are looking for instant gratification and high-quality service, while online shopping platforms attract more consumers who are looking for value for money.
Brick-and-mortar stores and online shopping platforms play different roles in society. As a part of the community, brick-and-mortar stores carry more social responsibility and public value, which is one of the reasons for their higher cost.
Brick-and-mortar stores often face greater regulatory pressure than online shopping platforms. Compliance costs, security standards, etc., require more investment from physical stores, and these costs will also be reflected in the price of goods.
There are also differences in payment methods and financial costs between brick-and-mortar stores and online shopping platforms. Brick-and-mortar stores are responsible for financial costs such as cash transactions and credit card fees, which may be alleviated by online shopping platforms through third-party payments.
Brick-and-mortar stores and online shopping platforms invest differently in building customer loyalty. Physical stores maintain customer relationships through loyalty cards, point rewards and other means, while online shopping platforms rely on algorithmic recommendations and personalized services to improve user stickiness.
There is a difference between brick-and-mortar stores and online shopping platforms in their ability to respond to market changes. Brick-and-mortar stores are less flexible due to physical space and inventory adjustments, while online shopping platforms can quickly respond to market changes and adjust sales strategies.
There is a difference in the degree of access to the international market between brick-and-mortar stores and online shopping platforms. Online shopping platforms are more likely to reach the global market through cross-border e-commerce, while brick-and-mortar stores rely more on the local market.
There is a gap between brick-and-mortar stores and online shopping platforms in terms of the speed of innovation. Online shopping platforms allow for faster trial and error and promotion of new products, while innovation in brick-and-mortar stores is constrained by cost and space.
Brick-and-mortar stores and online shopping platforms play different roles in cultural heritage and brand storytelling. A brick-and-mortar store can better showcase a brand's history and culture, while an online shopping platform focuses on quick spending and instant gratification.
Brick-and-mortar stores and online shopping platforms perform differently in meeting consumers' emotional needs. Brick-and-mortar stores touch consumers' emotions through setting and on-site experiences, while online shopping builds emotional connections through user reviews and interactions.
Brick-and-mortar stores and online shopping platforms have shown different flexibility in adapting to changes in consumer behavior. Brick-and-mortar stores need to adapt to rapid changes in consumer behavior, and online shopping platforms can adjust their strategies in a timely manner through data analytics.
Brick-and-mortar stores and online shopping platforms have different practices in environmental protection measures. Brick-and-mortar stores are directly affected by environmental regulations, while online shopping platforms can reduce their environmental impact by optimizing packaging and logistics.
Physical stores and online shopping platforms have different requirements for social responsibility reporting and transparency. Brick-and-mortar stores, as part of their public image, need to show greater transparency in terms of social responsibility, and online shopping platforms are under relatively less pressure in this regard.
Brick-and-mortar stores and online shopping platforms have different challenges in crisis management. Brick-and-mortar stores face the immediate impact of emergencies such as natural disasters, while online shopping platforms need to pay more attention to the impact of cybersecurity and technology failures.
The focus of brick-and-mortar stores and online shopping platforms in the future is different. Brick-and-mortar stores are exploring ways to integrate online and offline experiences, while online shopping platforms are looking to further enhance the consumer experience through technological innovation.
Brick-and-mortar stores and online shopping platforms take different approaches to building consumer trust. Brick-and-mortar stores build trust through in-person experiences, while online shopping platforms rely on user review systems and security measures to earn trust.
Physical stores and online shopping platforms have different advantages in meeting the needs of special consumer groups. Brick-and-mortar stores can provide immediate services to consumers with special needs, while online shopping platforms can meet the needs of this group by customizing their services.
Brick-and-mortar stores and online shopping platforms have their own advantages in terms of holiday marketing strategies. Brick-and-mortar stores create the mood with festive decorations and events, while online shopping platforms attract consumers with holiday promotions and flash sales.
Brick-and-mortar stores and online shopping platforms have adopted different strategies for cultivating consumer loyalty. Brick-and-mortar stores maintain customer loyalty through personalized services and membership privileges, while online shopping platforms achieve this through algorithmic recommendations and promotions.
Brick-and-mortar stores and online shopping platforms have different ways of influencing consumers' purchasing decisions. Brick-and-mortar stores influence decision-making through on-site product displays and salespeople's suggestions, while online shopping platforms assist decision-making through user reviews and ranking systems.
Physical stores and online shopping platforms have different considerations for maintaining brand image. Brick-and-mortar stores build brand image through store design and service quality, while online shopping platforms convey brand value through website interface and user experience.
There are differences between brick-and-mortar stores and online shopping platforms in their ability to cope with economic fluctuations. Brick-and-mortar stores may be more susceptible to macroeconomic conditions, while online shopping platforms can be resilient to economic fluctuations by adapting their strategies.
Brick-and-mortar stores and online shopping platforms have different performances in meeting the diverse needs of consumers. Brick-and-mortar stores can meet the needs of different consumers through a variety of goods and services, while online shopping platforms achieve this through a wide variety of products and convenient shopping methods.
Brick-and-mortar stores and online shopping platforms have different roles in promoting employment. Brick-and-mortar stores provide employment opportunities for the local community, while online shopping platforms promote employment by creating remote work opportunities.
Brick-and-mortar stores and online shopping platforms contribute differently to supporting the local economy. Brick-and-mortar stores support the local economy by sourcing local goods and services, while online shopping platforms boost the economy by expanding the reach of the market.
Brick-and-mortar stores and online shopping platforms have different responsibilities for protecting intellectual property rights. Brick-and-mortar stores need to ensure that the products they sell do not infringe intellectual property rights, while online shopping platforms need to have a regulatory mechanism to prevent infringement.
Brick-and-mortar stores and online shopping platforms have different potentials to facilitate international trade. Physical stores may rely more on the domestic market, while online shopping platforms expand into the international market through cross-border e-commerce.
Brick-and-mortar stores and online shopping platforms have different roles to play in driving technological innovation. Brick-and-mortar stores enhance the consumer experience by introducing new technologies, while online shopping platforms optimize the shopping process and logistics through technological innovation.
Brick-and-mortar stores and online shopping platforms have different paths to achieving the SDGs. Brick-and-mortar stores achieve sustainability through green buildings and energy conservation and emission reduction measures, while online shopping platforms contribute to environmental protection by optimizing packaging and reducing waste.
Brick-and-mortar stores and online shopping platforms play different roles in influencing urban planning and development. As a part of urban commerce, brick-and-mortar stores affect urban planning and commercial development, while online shopping platforms indirectly affect urban layout by changing consumption patterns.
Brick-and-mortar stores and online shopping platforms have different contributions to promoting cultural exchange. Brick-and-mortar stores promote cultural exchange by showcasing products from different cultural backgrounds, while online shopping platforms promote cultural diversity through global market exposure.
Brick-and-mortar stores and online shopping platforms have different strategies for responding to changes in consumer behavior. Brick-and-mortar stores attract consumers by offering a unique shopping experience, while online shopping platforms cater to consumers' new needs through personalized recommendations and convenient services.
To sum up, behind the price difference of the same carton of milk in different sales channels, there is a comprehensive effect of many factors such as cost composition, promotion strategy, logistics efficiency, consumer habits, information transparency, brand strategy, tax policy, social media influence, customer service, environmental awareness, scientific and technological progress, social responsibility and so on. In this diverse and highly competitive market, both brick-and-mortar stores and online shopping platforms are constantly adapting and innovating to meet the needs of consumers, while also exploring new paths for their own sustainable development.