I think it should be, the physical store is difficult to do is not a day or two.

The economy itself has not been very good in recent years, and the money in all walks of life is not very good. In big cities there is an average of one company closing down every day, and the same is true for small companies and workshops in small cities. Many people are faced with the problem of unemployment and re-employment, and the rate of increase in income has also slowed down considerably compared with the past, and there are even some places that do not increase wages, but instead, deductions are also made. This has led to many people's income shrinking compared to the past, they are less likely to spend. And now that many families are putting their money on buying a house, their spending in other areas will be relatively tight. I have a lot of relatives around me in order to take root in the big city, usually are frugal, basically in addition to eating to buy food above will spend some money, the rest are saved to buy a house, buy a house most of the salary will be used to repay the loan.

While the real estate market has cooled down, prices are still rising, which means that storefront fees are also rising, and with it, the cost of physical stores. Just in our home that small city every year store annual rent is expensive as hell, our neighborhood in 2012, the store a year is only 20,000, last year at home for New Year's Eve, listen to my parents said that are now up to 120,000, are fast turning two over. And our neighborhood that has been relatively few people, the population flow is not very large, near the owner of the store a year have changed several, do what industry have, just do not see a do a year. And now the cost of labor is also more and more expensive, after the various artificial chain, the cost of accumulating down a lot more costs, the cost-effectiveness of the product is certainly not as good as before.

The momentum of e-commerce and micro-businesses and whatnot has weakened, but the Internet economy is increasingly penetrating into each of us. Now not only our young people will shop online, a lot of people in their fifties and sixties also learned to buy online. And society's main consumer group is ten to sixty years old, and this part of the people are either in school, or at work. And now people's pace of life are very fast, the amount of information on the Internet resources are also very large, many people are not willing to spend more time to go to the physical store shopping, online shopping is convenient and fast. Many office workers in addition to daytime work, the evening will arrange for their own to go to the gym, they rarely have time to go shopping. Even if they go out shopping on weekends, they simply go to try on clothes, try on their favorite clothes and then go online to buy them, because brick-and-mortar stores are really a lot more expensive than online. Take a brand of sneakers, the price of the physical store than the Tmall flagship store is nearly half times more expensive, and online stores often engage in activities, casually a little on the order, while the physical store to engage in activities are not necessarily free to have the mood to shop.

Looking at these stores in our neighborhood, we know that it will be more and more difficult to do the physical store next year.