DIFFICULTIES & COUNTERMEAS-URES OF TRADITIONAL SUPERMAR-KET

Under the rapid development of internet and e-com-

merce environment

THESIS – BACHELOR'S DEGREE PROGRAMME

TECHNOLOGY, COMMUNICATION AND TRANSPORT

A U T H O R : Xiaoming Song

SAVONIA UNIVERSITY OF APPLIED SCIENCES THESIS

Abstract

Field of Study Technology, Communication and Transport

Degree Programme Degree Programme in Mechanical Engineering

Author(s)

Xiaoming Song

Title of Thesis

Difficulties & Countermeasures of Traditional Supermarket

Date 30 May 2021 Pages/Appendices 48/3

Client Organisation /Partners

WUZHOUHUALIAN Supermarket

Abstract

In recent years, under the background of the internet plus, various new retail formats, such as online supermarkets, had been rising, and traditional supermarkets had encoun-tered great difficulties. Taking my family supermarket as an example, I got data through a questionnaire survey, and used mathematical methods to analyze the dilemma and future development policies of supermarkets more intuitively. This topic mainly studied the current situation and the main problems encountered in the operation of traditional supermarket. The Study analyzed the specific reasons for these problems, and finally put forward useful countermeasures to deal with their difficulties. In the research part of the paper, the quantitative research method was used. The study was conducted in the form of an offline questionnaire distributed among supermarket con-sumers. The purpose of the questionnaire was to answer research questions and collect the latest data about consumer preference behavior of different age groups in food pur-chasing. The results show that consumers are more and more inclined to online consumption. Young consumers are generally willing to find the best choice, like better service, in a more convenient way. The limitation of the study lies in the large population and the small amount of data. Therefore, this study can not be summarized as representing the whole population.

Keywords

Internet；traditional supermarket；difficulties and countermeasures

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CONTENTS

1 INTRODUCTION ................................................................................................................ 5

2 INTERNET PLUS ................................................................................................................ 7

2.1 The meaning of the Internet plus ............................................................................................... 7

2.2 Connotation of Internet Plus ...................................................................................................... 8

2.3 Internet Plus Features ............................................................................................................... 8

3 THE MANAGEMENT STATUS AND PROBLEMS OF TRADITIONAL SUPERMARKETS ................. 11

3.1 Management status of traditional supermarkets ........................................................................ 11

3.2 Problems in traditional supermarkets ........................................................................................ 12

3.2.1 Business model and commodity homogenization are obvious ......................................... 12

3.2.2 The impact of the emerging formats of online supermarkets is serious ........................... 13

3.2.3 The change of consumption concept of young consumer groups .................................... 14

4 SUPERMARKET MANAGEMENT STRATEGY UNDER THE BACKGROUND OF INTERNET PLUS ... 15

4.1 Develop your own goods ......................................................................................................... 15

4.2 Develop your own market........................................................................................................ 15

4.3 Refined commodity management ............................................................................................. 16

4.4 Price war ................................................................................................................................ 16

4.5 Use the network platform to expand the market ....................................................................... 17

4.5.1 Open an online supermarket ........................................................................................ 17

4.5.2 Combination of physical stores and online supermarkets ............................................... 17

4.5.3 Redecorate the storefront ............................................................................................ 18

4.6 Logistics and Payment ............................................................................................................. 19

4.6.1 Establish a perfect logistics distribution system ............................................................. 19

4.6.2 Optimize the payment system ...................................................................................... 20

5 CASE ANALYSIS .............................................................................................................. 21

5.1 Overview of Family Supermarket .............................................................................................. 21

5.2 Change of business strategy .................................................................................................... 22

5.3 Change the mode of operation ................................................................................................ 22

5.4 Strengthen cooperation with network platform ......................................................................... 23

5.5 Online shopping risk ................................................................................................................ 24

5.6 Research process .................................................................................................................... 25

5.6.1 Data Collection ............................................................................................................ 26

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5.6.2 Data Analysis .............................................................................................................. 27

5.7 SWOT analysis method ........................................................................................................... 36

6 CONCLUSION .................................................................................................................. 39

REFERENCES ........................................................................................................................ 41

APPENDIX 1: QUESTIONNAIRE FLYER .................................................................................... 46

LIST OF FIGURES

FIGURE 1. Past supply chain(Song 2021) ................................................................................................ 23

FIGURE 2. The current supply chain(Song 2021) ..................................................................................... 24

FIGURE 3. Distribution point flow chart(Song 2021) ................................................................................ 24

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1 INTRODUCTION

Everything in the world is interrelated. Any change will affect other things. As a

new thing, Internet has made great achievements in the past decades. It has a

great impact on the whole human society and changed many human behavior pat-

terns.With the rapid development of the Internet, many manufacturers nowadays

are increasingly adopting a dual-channel to sell their products, i.e., the traditional

retail channel and online direct channel (Jiumei Chen, Wen Zhang and Zhiying Liu

2020,4).

According to Wu, J. & Savonia-ammattikorkeakoulu. (2016,5), in the next decade,

the global pattern of the retail industry will experience a considerable change.

There will be a continuous phenomenal growth for emerging markets both for new

customers and per capita spending. In fact, China is the most noteworthy market.

According to Wei, S., Xie, Z. & Zhang, X. (2017,49-70), China ranked first in 2015

Global Retail Development Index although with a weakening economy.The near

foreseeable future would witness some interesting and pitched battles, using mo-

bile technologies, between online retailers and those retail chains with large net-

works of physical stores. The somewhat farther future is not as easy to visualize,

but one thing is clear—the distinctions between retailing online and retailing in the

physical store will continue to get blurred.

This is because shoppers and consumers increasingly live in a world that is Mobile

and always connected, interactively social and networked, and progressively virtual

in terms of the blending of the real and the simulation of the real. Users in such

settings want their goods and services conveniently, on demand—and they are not

much interested in distinctions such as the physical store and the online

store. Mobile technologies that deliver seamless shopping experiences in a variety

of settings would continue to gain in popularity.

We foresee that in the not-too-distant future, the retailing distinctions of today—

brickand-mortar stores, click-only online stores, and brick-and-click blended

stores—will become quaint categories, terms that held some sway until the early

years of the twenty-first century, and then, faded into irrelevance ( Banerjee,

Syagnik 2015,67).

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Under the background of all-round development of online retailing, traditional su-

permarkets are facing great challenges. The Internet has penetrated into all as-

pects of traditional industries. The traditional supermarket is impacted by the net-

work supermarket and other emerging industries. The situation of traditional super-

market is very difficult.

The progress of information and communication “technology” and the wide applica-

tion of mobile devices in ordinary people and daily life have laid a solid foundation

for the rapid development of the Internet.

More and more information technology innovations and applications make online

retailing develop rapidly, and e-commerce gradually becomes the mainstream. How

to survive in traditional supermarkets is a problem that operators must think about.

This paper will analyze the difficulties brought by the development of Internet and

E-commerce to traditional supermarkets and their current operating status.

Finally, there is a case study of my family supermarket to discuss how to deal with

the problems of traditional supermarkets.

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2 INTERNET PLUS

The Internet is an international computer network. It connects computer networks

all over the world. People can get different kinds of information from it. In Internet

personalized information service, there are millions of websites on the Inter-

net.There is a lot of useful information on the websites.You can use search engines

to find the information you need.Search engines help us find information quickly

and easily.Type in a keyword or keywords and the search engine will give you a list

of suitable websites to look at (Shi Tianhua 2002,31-32).

According to Hu N. (2021,24),Internet plus refers to the new format developed by

the Internet under the impetus of innovation 2 (the information age and the inno-

vation form of knowledge society), and is also a new form of economic and social

development promoted by the Internet form under the impetus of innovation 2 of

knowledge society.

2.1 The meaning of the Internet plus

Internet Plus was first proposed in China. In order to make better use of the Inter-

net to serve traditional industries, in General Electric Co - Annual Report(2016,54),

the concept of the Internet plus is put forward. Internet plus is to combine the In-

ternet with traditional industries to promote industrial transformation and upgrad-

ing.

As we all know, the Internet has strong data analysis and processing capabilities,

which can better deal with and solve problems. Also, the Internet can give feed-

back in time to better understand the needs of consumers. Therefore, taking the

Internet as the foundation and combining with traditional industries to form the In-

ternet plus makes traditional industries glow with new vitality.

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2.2 Connotation of Internet Plus

Internet plus makes traditional industries online and digital. With the integration

and penetration of various industries under the influence of the Internet plus, the

innovation ability is released and industrial development is rapidly upgraded.

With the continuous popularization of the Internet, it touches every aspect of daily

life, and people are increasingly inseparable from the Internet. E-commerce is par-

ticularly developed. It is very convenient to buy things online, and most goods can

be delivered in a short time (Business Insider 2020,5-13).

2.3 Internet Plus Features

"Internet plus" can be understood as "traditional industry plus Internet". The pro-

gress of science and technology has brought new opportunities. Traditional indus-

tries will face unprecedented changes.

In Ten Trends in the Future Development of the Internet plus, through its own ad-

vantages, "internet plus" optimizes, upgrades and transforms the traditional indus-

tries, so that the traditional industries can adapt to the current new development,

and finally promote the continuous development of society (Netease Technology

Report 2015,5-12).

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1. Users are very important, above all priorities

In the past, due to the scarcity of channels, shelves and other reasons, the phe-

nomenon that channels were king appeared, and it occupied so long in economic

development. In today's internet plus, the phenomenon of channel scarcity and

shelf scarcity has disappeared, so users naturally have more choices. Many prod-

ucts are not only cheap, but also of better quality, which attracts more and more

users. That's because the core of user supremacy and user sovereignty is to serve

users from the heart, and customers are God.

Today's enterprises are different from the past, the key is users. Tencent is be-

cause of its enormous user advantages, no matter what industry it does. It is more

effective than other enterprises. Therefore, today's enterprises should make every

effort to attract users and serve them wholeheartedly.

2. Experience will determine success or failure

Under the background of the Internet plus, the high profits brought by information

asymmetry will disappear, and people's consumption concepts and behaviors will

change. The price of goods is relatively transparent, so merchants can no longer

use the asymmetry of information to deceive consumers, and users have a greater

initiative to choose.

Therefore, in this era, businesses try to reduce profit margins and even use some

charging items to create gimmicks. Users are increasingly pursuing individuality,

and the innovation of user experience requires merchants to enrich their imagina-

tion constantly. For example, Didi taxi not only brings people a convenient and fast

way to travel, but also alleviates the problem of urban traffic jam.

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3. The Internet connects everything

Internet connect everything. The most important thing of the Internet is to connect

and connect everything.

Connection creates value. In the near future, people, services and equipment will

be connected with each other through mobile Internet. On the basis of connecting

everything with the Internet, great information value can be obtained through big

data analysis.

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3 THE MANAGEMENT STATUS AND PROBLEMS OF TRADITIONAL SUPERMARKETS

The current operating state of traditional supermarkets is worrying. Outdated busi-

ness strategies cannot attract young consumers. We must follow the trend of the

times and look for opportunities for breakthroughs (Choi, D. & Song, B 2018,28).

Supermarket itself has many problems. Some are internal problems. Some are

caused by changing in external conditions. If you want to overcome these difficul-

ties, you must have a new idea. This idea must keep up with the current fashion

trend. We cannot reform blindly.

3.1 Management status of traditional supermarkets

Under the background of the Internet plus today, traditional supermarkets have en-

countered unprecedented challenges. At present, the rise of online supermarkets

has caused fierce competition between traditional supermarkets and other retail

formats, and the current situation of traditional supermarkets is worrying. In Gro-

cery Stores & Supermarkets (2020 4-02), changes in the way of consumers’ eating

and shopping for food are roiling the crowded global grocery market.

Performance of traditional supermarkets has deteriorated as follows:

1. The sales growth rate dropped significantly

2. The increase in the number of stores continued to decline

3. Operating costs are under great pressure and profits are falling

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The arrival of internet plus era has a great influence on the development of tradi-

tional supermarkets. In major cities, due to the continuous high fever of the real

estate industry, the rents of supermarket stores are constantly rising, and the tradi-

tional supermarkets have to close some stores with little profits or operating at a

loss under great pressure.

Under the strong impact of online supermarkets and other online retail organiza-

tions, traditional supermarkets can only constantly explore the transformation un-

der the double obstacles of rising rent and human resources costs, in order to cope

with the strong tide of the Internet plus. If there is no property in traditional super-

markets, the rent pressure of stores is really great.

In addition, the increase of staff wages also accounts for a certain proportion of op-

erating costs. With the rising cost of human resources, logistics and distribution,

traditional supermarkets are facing huge cost pressure, and their profits are declin-

ing.

3.2 Problems in traditional supermarkets

Supermarket is a main business. All the problems we face will be related to people.

Waugh, D. T., Godfrey, M., Limeback, H. & Potter, W. (2017,27) emphasizes

change in the whole environment causes the change of ligament behavior habits to

become a supermarket problem.

The failure to eliminate and satisfy the impact of these changes is the fundamental

reason that restricts the development of supermarkets.

3.2.1 Business model and commodity homogenization are obvious

Homogenization of business model means that at the beginning, new supermarkets

adopt low-cost and low-price business strategies, and when this model achieves re-

sults, other supermarkets will imitate it. At present, the goods and service modes of

supermarkets are becoming the same day by day, which makes the homogeniza-

tion of business model and goods increasingly obvious.

A large number of traditional supermarkets are basically concentrated in the second

and third tier markets, and there are three or four supermarkets everywhere in the

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street, and these supermarkets are similar. Supermarkets usually occupy the mar-

ket by opening more stores in different regions, but there is a lack of innovation in

business model and products are similar.

As a result, the homogenization of business model and commodities is obvious,

and the means of competition in supermarkets is single, which basically only seeks

to win consumers through price wars.

Under the background of internet plus, the development of traditional supermar-

kets must move towards the road of branding and differentiated management, and

constantly explore transformation, innovate and develop business models, and up-

hold the principle of customer first.

3.2.2 The impact of the emerging formats of online supermarkets is serious

Under the background of internet plus, online supermarkets and other emerging

industries are constantly emerging. Because online supermarkets have great ad-

vantages over traditional supermarket chains in terms of price, service and after-

sales, online shopping has gradually become a popular way for consumers to shop,

and traditional supermarkets are in a serious situation under the impact of online

supermarkets.

Therefore, the traditional supermarket chain should not only have the essence of

retail organization, but also keep up with the pace of e-commerce.

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3.2.3 The change of consumption concept of young consumer groups

In today's society, young consumers' consumption concepts have changed due to

the influence of the Internet, and their consumption concepts have a great impact

on the plight of traditional supermarkets.

1. Pursuing fashion and individuality

2. Advanced consumption

3. Dependent network

4. Consumers are increasingly demanding experience

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4 SUPERMARKET MANAGEMENT STRATEGY UNDER THE BACKGROUND OF INTERNET PLUS

With the change of social environment, people will also change, the most promi-

nent of which are preferences, habits and behaviors. First of all, we should ask for

help. We can find information in this field on the Internet, whether it is text or

video. And make records and analysis. Thirdly, we should seek help from custom-

ers, and we can find out the details by questionnaire.

Traditional supermarkets should adapt to changes with changes. The world is al-

ways changing. Brian Meshkati(2020,4) notes that beyond paying close attention to

the types of work coming through the doors, it also helps that die shop has a

young management team willing to pivot quickly as market shifts.We should all

adapt to this change. Those who can't adapt will be eliminated like big waves.

4.1 Develop your own goods

Generally, the business model of traditional supermarkets is to enter goods and

then sell them to customers.Examine the strategic utilization of electronic com-

merce by traditional supermarkets through strategic alliance with Internet based

companies (Quader, M. S. & Quader, M. R. 2008,177).

Now we can't limit ourselves to this. It is the future development trend to let tradi-

tional supermarkets participate in commodity development. Operators have a better

understanding of consumers' needs, and can develop better products to adapt to

the market.

4.2 Develop your own market

In the future, traditional supermarkets should be made into a development plat-

form, which should not only have their own products but also pay attention to mar-

ket development.

From factories and suppliers, to markets and consumers, we must lock in and pen-

etrate. This is the foundation of stable development. It is also possible to develop

new supermarkets and implement differentiated scale operations. By understanding

the spatial properties of profitability producers will obtain better decision-making

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insight for production and management decisions (Mighty, M. & Granco, G.

2021,121).

4.3 Refined commodity management

Traditional supermarkets should make certain adjustments to the goods sold in su-

permarkets according to their own conditions. large retailers is further deepening

the commodification process in food relationships. (Atasoy, Y. 2013,547-574)

First of all, commodities should decide the placement of different commodities ac-

cording to their liquidity. Secondly, the same type or complementary goods are

placed in adjacent locations, because consumers of such goods often buy them at

the same time. Finally, the goods with short shelf life, such as food, tobacco, chew-

ing gum, etc., should be placed in an easy-to-see place.

4.4 Price war

The price strategy of supermarket goods also needs to be changed. Most traditional

supermarkets will make use of people's first impression when they open their busi-

ness, and create an atmosphere of good quality and low price by psychological

warfare to attract consumers to buy goods. A retailer can use quality cues along

with a discount, especially for a new brand, to appeal to the broadest group, as it

will attract both future- and present-oriented consumers (Mukherjee, A., Jha, S. &

Smith, R. J. 2017,201-211).

For example, when "Shiji Hualian Shopping Plaza" opens, it will publicize the slogan

"Low price every day, everything is good", creating a very appealing atmosphere.

Traditional supermarkets should use psychological knowledge flexibly and hit the

psychological price of consumers.

Price war may not be a good strategy, but it is very useful. If the funds are suffi-

cient, supermarkets will definitely occupy a certain share in the market.

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4.5 Use the network platform to expand the market

With the innovation and reform of science and technology, online shopping will be-

come more and more popular. Network platform is the most convenient way to sell

online all the time. Propose a theoretical model to explain consumer repurchase in-

tentions in O2O commerce context by integrating network externalities theory and

trust transfer theory (Xiao, L., Fu, B. & Liu, W. 2018,372-391).

It is necessary and important to make rational use of network to develop sales

channels. It is important to choose the right sales method. We should try to attract

more consumers.

4.5.1 Open an online supermarket

Internet provides great communication convenience for commodity circulation.

Online supermarkets are gradually emerging, and there has been an outbreak

trend.

Opening an online supermarket can not only increase sales channels, but also re-

duce business risks and provide a direction for future development.

4.5.2 Combination of physical stores and online supermarkets

According to Jia, Fangfang and Li, Li (2012,74), the rapid development of e-com-

merce makes it more and more difficult for traditional supermarkets to operate.

The innovation of new technology has made the mobile Internet develop rapidly,

which has changed the shopping habits of consumers.

Nowadays, more and more people are used to the online supermarkets that deliver

goods to their homes. The integration of physical stores and online supermarkets is

imperative. We can start with the following points:

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1. Open a distribution point

We can use the physical store as a distribution point, which can not only increase

the sales of goods, but also increase the income of the online platform.

2. Make full use of logistics platform

Using logistics platform is not only convenient and cheap, but also can increase the

shopping experience for consumers.

3. Become a goods display shop

Online shopping can't really know the goods in detail, so customers can enter the

store to know the goods better, and then place an order online to buy the goods

that are cheap and in line with their wishes.

4.5.3 Redecorate the storefront

When consumers come to the supermarket to buy goods, the shopping environ-

ment is very critical. Comfortable shopping environment and pleasant consumption

atmosphere will affect consumers' purchase intention.

Comfortable shopping environment caters to the needs of consumers' experience

and makes the image of goods or services more perfect.

Nowadays, traditional supermarkets should provide professional advice for consum-

ers to buy goods and help them choose suitable goods or services.

On the one hand, it is necessary to carefully consider all aspects of consumption

and provide a comfortable service experience; On the other hand, it is necessary to

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communicate and interact directly with consumers, and timely handle the feedback

and opinions of consumers.

4.6 Logistics and Payment

People will be more and more inclined to things that are convenient for their lives.

Traditional supermarkets must pay attention to logistics system and payment sys-

tem. Analyzes the paths of influence that led to different patterns of m-payments

evolution (Liu, J., Kauffman, R. J. & Ma, D. 2015,372-391).

A good logistics and payment system may have a fatal impact on supermarket op-

eration. Good logistics and convenient payment methods are the best experience

for customers. It is very attractive to young consumers.

4.6.1 Establish a perfect logistics distribution system

With the continuous penetration and development of internet plus, online super-

markets have gained a large market share, and the logistics distribution system of

traditional supermarkets seems to be in short supply. With the development of e-

commerce, online shopping and home delivery can be said to be the most basic

service. However, the traditional supermarkets neglect to upgrade the logistics dis-

tribution system due to its excellent geographical location, so the traditional super-

market chain has seriously affected the consumer experience.

Traditional supermarkets should reduce the expansion of stores and pay attention

to the upgrading of logistics distribution system instead. Through the construction

of distribution centers and transfer stations, the logistics and distribution costs will

be reduced as much as possible, and the service commitment of delivering goods

to customers within ten kilometers on the same day will be realized.

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4.6.2 Optimize the payment system

Traditional supermarkets should keep up with the trend in today's mobile payment

era, which is the future of traditional supermarkets. Supermarket chains will opti-

mize the payment system and provide consumers with various payment methods,

which will save consumers shopping time. In the past, consumers spent a lot of

time and energy on shopping, but what we need to do now is to use the optimized

payment system to save consumers' time and energy on shopping.

The widespread popularity of mobile devices such as mobile phones has promoted

the development of payment methods. Nowadays, Alipay and WeChat payment are

quite common in traditional supermarkets. With the help of mobile devices, avoid-

ing the use of cash as much as possible can reduce the risk of using cash. Payment

by mobile devices can meet our payment needs anytime and anywhere, and avoid

the trouble of using cash when we check out.

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5 CASE ANALYSIS

Design methodology approach - The study examines a longitudinal case study of

the develop process of Family Supermarket, a town retailer that has recently be-

come an important player in the retail industry. Retailers from emerging countries

can also be important players in regional markets (Bianchi, C. 2009,221-243).

My family business is a comprehensive business, including supermarkets, hotels,

water supply stations and so on. The supermarket covers an area of about 500

square meters and is located in a bustling area. It is crowded with people, com-

plete in infrastructure and diverse in commodity varieties. It has a history of more

than 50 years since its establishment, and has developed to the present stage after

several twists and turns. In our town, it is one of the best supermarkets.Taking the

family supermarket as an example, I will get the data through questionnaire sur-

vey. Using mathematical methods to analyze the dilemma and future development

policies of supermarkets more intuitively.

5.1 Overview of Family Supermarket

My family's supermarket has been operating as a famous local supermarket for

more than ten years. The supermarket is in a very prosperous local area, with a lot

of passengers every day. Adhering to the concept of "good quality and low price",

supermarkets have always been liked by the residents of small towns, so that my

family supermarket have many stable customers. Wicker, K. D. (2016) shows that

loyal customers are more profitable than non-loyal customers.

In order to give customers different shopping experiences, supermarkets provide

many high-quality services. Moreover, supermarkets take honesty as the basis,

strengthen quality supervision, and do a lot of work on food safety management.

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5.2 Change of business strategy

Change is necessary because the world has changed. The unchanging ones will

eventually be eliminated. The application and widespread popularity of mobile In-

ternet has brought about tremendous changes in our lives. The effectiveness of a

good strategy well implemented determines a business' future success or failure

(Kourdi, J. 2015,32).

Especially, the emergence of e-commerce has brought about great changes in con-

sumption patterns. Consumers only need to click a few times on their mobile

phones to buy their favorite products. Moreover, there are many choices on the In-

ternet, so consumers will not be limited.

5.3 Change the mode of operation

Through statistical calculation, the profits of supermarkets are getting smaller and

smaller. First, the rise of online supermarkets makes supermarket business worse.

Secondly, the operating costs are increasing year by year. For example, employees'

wages are increasing by 5%-8% every year, commercial rents are increasing by

4%-6% every year, and there are some other growth costs. In a word, the physical

store business is getting harder and harder, and it needs more profit margins. The

nature of problems faced by supermarkets changed over time (Wing-Chun Lo, T.,

Lau, H. & Lin, G. 2001 66-76).

So we have to make some changes. First, train employees and add new services to

attract customers. Second, using big data analysis to re-change the structure of

goods leads to streamlining goods, which can not only reduce goods but also re-

duce risks and costs.

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5.4 Strengthen cooperation with network platform

The future will be the era of e-commerce. E-commerce has developed rapidly in re-

cent years. Some large e-commerce platforms in China, such as JD.COM Mall and

Alibaba, have invested a lot of money to seize the market. Traditional supermarkets

should be put into it so as not to be eliminated. The emergence of social media

platforms as the main representatives of Web 3.0 applications significantly impacts

the co-creation activities among enterprises, customers, and other stakeholders,

and has enabled firms to benefit from creativity and ideas of their users and cus-

tomers for developing and rendering innovative services (Moghadamzadeh, A.,

Ebrahimi, P., Radfard, S., Salamzadeh, A. & Khajeheian, D. 2020,69).

After analysis, specific countermeasures are as follows:

First of all, you should own an online supermarket. Use the network platform to in-

crease your sales channels. But also can increase the popularity of the momentum

supermarket.

Second, the network connects everything. We can use the network platform to find

the source of goods. There are many manufacturers selling goods online now. We

can contact the manufacturer directly and get the goods cheaper than the supplier.

FIGURE 1. Past supply chain(Song 2021)

Manufacturer Supplier Dealer Supermarket

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FIGURE 2. The current supply chain(Song 2021)

Thirdly, join the logistics system and become a distribution point and a delivery

point, so that supermarkets and network platforms are closely connected.

FIGURE 3. Distribution point flow chart(Song 2021)

5.5 Online shopping risk

The Internet is a completely virtual world, so you don't know who you are chatting

with. We enjoy the convenience of the network, but also bear the risks brought by

the network. When we spend money online, we must pay attention to risk control

and do not suffer unnecessary losses. Investigate how retailers could enhance their

shopping processes and hence help sustain their e-business development (Ijaz, M.

& Rhee, J. 2018,37-56).

ManufacturerNetwork platform

Supermarket

Manufacturer Network platform

supermarket 1

customer 1

customer 2

customer 3

supermarket 2

customer4

customer 5

customer 6

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Take precautions from the following points:

First of all, we should have a certain understanding of network knowledge, and

master a certain ability of discrimination, so as to avoid most network frauds.

Secondly, when you consume online, choose a guaranteed store, and don't click on

links or icons from unknown sources.

Thirdly, don't buy goods from unknown sources or problematic goods for profit,

which will bring great risks.

5.6 Research process

There are two main research methods used in social sciences: quantitative and

qualitative. The quantitative research method is to collect data and analyze them

by mathematical methods. Qianqian Yang (2017,146-147) emphasizes qualitative

research refers to gaining keen insight by exploring problems, understanding

events, analyzing human behaviors and opinions, and answering questions. Quali-

tative analysis and quantitative analysis are one of the effective methods to study

literature from the philosophical point of view. Only by combining them closely can

the research contents be clearer and the conclusions be more accurate.

In this case, we use quantitative research methods to study. Taking supermarket

consumers as objects, this paper collects, analyzes and studies their preferences

and habits by questionnaire.

Takes supermarket customers as the research object, All research will focus on cus-

tomers:

First, Put forward the objectives and problems of this study, and have a clear un-

derstanding of the theme.

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Secondly, Choose the appropriate research method and explain it.

Thirdly, Collect data and analyze and summarize them with selected research meth-

ods.

Finally, Get the research results and make a summary and discussion.

Research questions:

1. What are the difficulties faced by traditional supermarkets?

2. Why do these difficulties arise?

3. How should we combine the Internet wave to turn difficulties into opportunities?

4. What aspects should we start with?

5.6.1 Data Collection

According to Abildgaard, J. S., Saksvik, P. Ø. & Nielsen, K. (2016,13-80), to analyze

intervention processes two methodological approaches have widely been used:

quantitative (often questionnaire data), or qualitative (often interviews) . In the re-

search, the quantitative research method is used. The study was conducted in the

form of an offline questionnaire distributed among supermarket consumers in su-

permarket. The purpose of the questionnaire is to answer research questions and

collect the latest data about consumer preference behavior of different age groups

in purchasing.

The purpose of this study is to explore the sustainable management of supermar-

kets. The purpose of this study is to establish a clear questionnaire, analyze and

test the data accurately, and collect effective data from a large number of target

groups. This study attempts to explore whether consumers pay attention to envi-

ronment, convenience, popularity and other factors when choosing consumption

situations, and try to find out consumers' preferences.

27 (48)

The questionnaire design is short and effective, easy to understand, and the ques-

tion does not need any additional knowledge about the subject. It is necessary only

to understand one's own behavior and consciousness. In order to understand the

types of responses, the questionnaire included the following demographic ques-

tions: age, education and occupation. Next, we add a question about the most im-

portant factors that affect purchase frequency and preference. The remaining ques-

tions were statements, and respondents were asked to choose how much they

agreed with each statement.

Questions are mainly in the form of questions and answers. There are 12 ques-

tions.

All topics are as follows:

Q1-3 age, gender and education level

Q4-5 occupation and income level

Q6-8 Ask about changes in habits

Q9-10 Ask about preferences

Q11-12 Ask How to Enhance Happy Experience in Supermarket

It takes about a week to collect data. The questionnaire was sent in the form of

leaflets at the entrance of the supermarket. Those who complete the questionnaire

and seize it will receive small gifts.

5.6.2 Data Analysis

The target group of the study was supermarket consumers. The sample group was

400 respondents, and there were 234 respondents who received replies, Accounted

for more than half. The data of this study were collected from the main sources

through offline questionnaires. The speed of questionnaire survey is relatively slow,

and anonymous data collection is chosen. The questionnaire was distributed in su-

28 (48)

permarkets during the study. The purpose is to let as many people as possible par-

ticipate in the survey, so as to get as many responses as possible. A total of 234

responses were received.

Threats to reliability and validity can never be truly eliminated, but their impact can

be reduced through close attention. If similar results can be found, the research is

reliable. Although the research can not be completely effective, the questionnaire is

designed with clear questions, rich information and careful analysis of the results.

Through professional statistical software and analysis, we have a more intuitive un-

derstanding of the existing problems in supermarkets and a clearer direction for the

future development of supermarkets.

The first question is the gender distribution of respondents. Men and women stand

half-way. Figure 4 shows the gender distribution.

FIGURE 4. Gender distribution of respondents (n = 234)

29 (48)

The second question is the age distribution of respondents. After analysis, we can

get : 39.17% were under 18 years old, and 59.25% were between 18 and 30 years

old. 39.17% were aged 31-40. 59.25% were aged 41-50, and 38.16% were aged

over 50. Age tends to be aging. Figure 5 shows the age distribution.

FIGURE 5. Age distribution of respondents (n = 234)

The third question is the education level of respondents. According to the data,

56% of people have a high school degree. 26% have an undergraduate degree.

9% have master's degree. Other degrees accounted for 9%. Figure 6 shows the

degree distribution of respondents.

30 (48)

FIGURE 6. Degree distribution of respondents. （n＝234）

The fourth question is the occupational distribution of respondents. According to

the data, only 9% of the respondents were students. Self-employed accounted for

23%. Private business employee accounts for 31%, and employee in public sector

accounts for 23%. Other occupations accounted for 14%. Figure 7 is the occupa-

tional distribution of respondents.

31 (48)

FIGURE 7. occupation distribution of respondents. （n＝234）

The fifth question is the monthly income distribution of respondents. According to

the chart, monthly income below 2000 accounts for 13%, 2000-4000 accounts for

32%, 4001-6000 accounts for 29%, 6001-8000 accounts for 17% and higher than

8000 accounts for 9%. Figure 8 is the income distribution of respondents.

FIGURE 8. Income distribution of respondents. (n＝234)

The sixth question is whether the interviewees often shop online. Among them, 3/4

often shop online. Only a quarter of them don't often or never shop online. It

shows that online shopping is very popular now. Figure 9 shows the distribution of

respondents' online shopping.

32 (48)

FIGURE 9. distribution of respondents' online shopping. (n＝234)

The seventh question is how many times do respondents shop online in a month.

No more than once, only 15%; twice, 29%; no less than three times, 56%. It

shows that most people shop frequently online. Figure 10 shows the number of

online shopping.

33 (48)

FIGURE 10. online shopping times. (n＝234)

The eighth question is whether you will recommend online products to people

around you. 78% of people are willing to recommend their favorite products online

to people around them. Only 22% didn't want to. It shows that network marketing

has been very successful. Figure 11 shows the distribution of products that re-

spondents are willing to recommend.

FIGURE11. Distribution of products willing to recommend among respondents. (n＝

234)

The ninth question is whether you like shopping online or offline. Data show that

71% of people like to shop online. Only 29% of people like to shop offline. It shows

that the online shopping experience is getting better and better. While offline expe-

rience is getting worse. Figure 12 shows the distribution of respondents' love for

online and offline shopping.

34 (48)

FIGURE. 12 distribution of respondents' love for online and offline shopping. (n＝

234)

The tenth question is how often respondents go to the supermarket. No more than

once a day, accounting for 25%, no more than three times a week, 58%, no more

than 10 times a month, 17%. Data show that respondents do not go to supermar-

kets very often. Figure 13 shows the frequency distribution of respondents going to

supermarkets.

FIGURE13. Distribution of respondents' visits to supermarkets. （n＝234）

35 (48)

The eleventh question is whether respondents like supermarkets that combine

online and offline. Data show that 70% of people like supermarkets combining

online and offline. Only 30% felt it was troublesome, so they didn't like it very

much. Figure 14 shows the data distribution of online and offline supermarkets that

respondents like or dislike.

FIGURE14. Data distribution of online and offline supermarkets that respondents

like or dislike. (n＝234)

The twelfth question is to ask the respondents if they have any good suggestions

on the plight of offline supermarkets. It is an open question. There are few answers

to this question, but some replies have been received. Replies can be roughly di-

vided into the following four types:

1. Lower price

2. Increase the shopping experience

3. Have more goods

4. Good logistics and good payment system

36 (48)

5.7 SWOT analysis method

According to Phadermrod, B., Crowder, R. M. & Wills, G. B. (2019,194-203), SWOT

analysis is a technology developed in Stanford University in 1970s, which is often

used in strategic planning. SWOT is the abbreviation of strengths, weaknesses, op-

portunities and threats. It is a structured planning method for evaluating these four

elements of an organization, a project or an enterprise. SWOT analysis is a simple

but powerful framework, which is used to take advantage of organizational

strengths, improve weaknesses, minimize threats and maximize opportunities.

SWOT analysis is a process in which the management team identifies the internal

and external factors that affect the company's future performance. It helps us iden-

tify what is happening internally and externally, so that you can plan and manage

your business in the most effective way.

SWOT analysis should start from the following aspects:

Find out the factors that affect the environment: What are the factors that have a

significant impact on the company's operations?

Collect information: collect data related to influencing factors

Forecast the changes of influencing factors: by sorting out the collected infor-

mation, predict the future changes and trends of these factors

Discuss the positive and negative factors: analyze the positive and negative influ-

ences that affect the company now and in the future

Put forward coping strategies: refine the strategies that need to deal with problems

in the future

37 (48)

FIGURE 15. SWOT analysis flow chart(Song 2021)

We can make SWOT matrix through SWOT analysis method, combined with the

data obtained from questionnaire survey and observation survey, and express the

advantages and disadvantages of supermarkets concisely:

Find out the factors that affect the environment

Collect information

Forecast the changes of influencing

factors

Discuss the positive and

negative factors

Put forward coping

strategies

38 (48)

Internal factors

external factor

Strength ⚫ Many loyal

customers

⚫ Shopping

convenience

⚫ Good geo-

graphical lo-

cation

Weakness ⚫ few purchase

channels

⚫ Less choice of

goods

⚫ Expensive price

⚫ High cost

Opportunity

⚫ Many people don't like

or get used to shop-

ping online

⚫ The town environment

is relatively closed

⚫ More bene-

fits to loyal

customers

⚫ Improve

service

quality

⚫ Enhance

user experi-

ence

⚫ Looking for

online purchase

channels

⚫ Cost reduction

Threat

⚫ Competition of the

same kind

⚫ Network developed

⚫ Developed logistics

⚫ The cost of online su-

permarket is low

⚫ Mobile payment is de-

veloped

⚫ Strengthen

logistics and

payment

systems

⚫ Actively use

the network

platform

⚫ Realize data

manage-

ment

⚫ Focus on net-

work risks

⚫ Using developed

logistics to re-

duce costs

⚫ Make use of de-

veloped pay-

ment system to

increase con-

venience

FIGURE 16. SWOT matrix (Song 2021)

39 (48)

6 CONCLUSION

This paper only conducts a questionnaire survey in a supermarket, which has

strong limitations. And the quantitative research itself has deviation value. The

questions in the questionnaire are also not comprehensive, and the respondents

may be annoyed that they did not choose the option they like. The target popula-

tion is obviously specific. The research results can not reflect the reality.

The future development of this mode of supermarket must be combined with the

Internet, but now I can not accurately grasp the right direction, there are still many

problems to learn and study. For the author, the paper let me learn a lot, and also

pointed out the direction for my future study and research. From the author’s point

of view, this paper attempts to answer the research questions. We also get a lot of

useful data to understand the change of consumers’ purchase preference. In addi-

tion, the open questions provide the author with a lot of inspiration and direction

for future research.

The progress of science and technology has brought about the vigorous develop-

ment of the Internet, and new Internet formats are constantly emerging. There are

both backlogs and challenges for traditional supermarkets.This paper mainly studies

the present situation and problems faced by traditional supermarkets, the root of

the problems and how to get out of the predicament.

With the development of society and economy, the operating costs of traditional

supermarkets are gradually increasing, but the profits are gradually decreasing. The

traditional supermarket business model is also very old, and the attraction of the

younger generation is gradually lost due to the serious homogenization of goods.

Coupled with the impact of online supermarkets, the market share has declined

year by year. To solve these problems, we must change our business strategy,

make full use of the Internet, and establish a convenient and fast logistics and pay-

ment system.

40 (48)

So far, e-commerce is still a new industry. With the innovation of technology and

the development of society, the Internet has shown great potential more fully, and

I believe it will have great development prospects.

In the research part of the paper, the quantitative research method is used. The

study was conducted in the form of an offline questionnaire distributed among su-

permarket consumers. The purpose of the questionnaire is to answer research

questions and collect the latest data about consumer preference behavior of differ-

ent age groups in food purchasing.

The results show that consumers are more and more inclined to online consump-

tion. Young consumers are generally willing to find the best choice, like better ser-

vice, more convenient way. Although there is still room for improvement in online

product comparison and understanding of food.

The limitation of the study lies in the large population and small amount of data.

There-fore, this study can not be summarized as representing the whole popula-

tion.

41 (48)

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APPENDIX 1: QUESTIONNAIRE FLYER

1. Gender 性别 *

⚫ Male 男性

⚫ Female 女性

2. Age 年龄 *

⚫ Below 18 低于 18 岁

⚫ 18-30

⚫ 31-40

⚫ 41-50

⚫ Above 50 高于 50 岁

3. 教育水平 *

⚫ High school 高中

⚫ Bachelor degree 本科

⚫ Master degree 硕士

⚫ Other 其他

4. Occupation 职业 *

⚫ Student 学生

⚫ Self-employed 个体工商户

⚫ Private business employee 私企职员

⚫ Employee in public sector 国企职员

⚫ Other 其他

5. Monthly income 月收入(CNY)(元) *

⚫ Below 2000 低于 2000 元

⚫ 2000-4000

⚫ 4001-6000

⚫ 6001-8000

⚫ Above 8000 高于 8000 元

47 (48)

6. Do you often buy online?

⚫ Yes

⚫ NO

7. How many times do you buy online in a month?

⚫ Not more than once

⚫ Twice

⚫ Not less than three times

8. Will you recommend your favorite online things to people around you?

⚫ Yes

⚫ NO

9. Do you prefer to shop offline or online?

⚫ OFFLINE

⚫ ONLINE

10. How often do you go to the supermarket now?

⚫ Not more than once a day

⚫ Not more than three times a week

⚫ Not more than ten times a month

11. Do you like the combination of online and offline supermarkets?

⚫ Dislike

⚫ Like

12. Do you have any good suggestions for the plight of supermarkets?

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48 (48)