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The Crisis Analysis and Development Suggestion of Chinese Traditional Retail Entity Operation in the Era of E-commerce

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DOI: 10.23977/fmess2020.029

Author(s)

Mengying Zhu

Corresponding Author

Mengying Zhu

ABSTRACT

The consumer's preference for e-commerce has really caused the crisis of sustainable operation of China's retail department stores. At its root, the online operation mode of e-commerce has a considerable cost advantage over the real business in the channels of rent, publicity and marketing. Convenient shopping methods and low prices divert the traffic of physical stores, which leads to the deterioration of business income. From the perspective of macro microeconomics and industrial economics, this paper analyzes the ways in which Chinese retail stores are impacted by e-commerce and how Chinese traditional retail model should keep pace with the times under the new retail format.

KEYWORDS

Marginal Cost, Cost Advantage, Price Advantage Regression Analysis

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