Analysis On Evolution Of Retail Formats Based On Consumption Cost

As an important part of intermediate links, retail industry connects commodity suppliers and consumers. It produces great influence on economy efficiency, social welfare, employment and environmental protection. With the development of society, retail formats are in continuous evolution. Therefore, it is of great advantage to do research on the dynamic mechanism, to forecast the future trend and give policy advices on retail evolution. It is of vital importance not only to the retail industry itself, but also to the whole society.With respect to retail evolution, foreign scholars focus on the discipline, rarely relating to the dynamic mechanism. While domestic scholars attribute the dynamic mechanism to foreign capital, reform of economic system, technology development and so on, little to consumer. In addition, most of the limited thesis involving consumer are all from consumer utility angle. To be contrary, this thesis does research on the retail evolution based on a new perspective-consumption cost.Firstly, the paper gives a definition and composition of consumption cost. Then, it gives the analytical framework of consumer behavior based on consumption cost: rational consumers seek minimum consumption cost under the premise of same consumer utility. Secondly, the paper constructs the analytical framework of relationship between consumption cost and evolution of retail formats. Then, it does empirical research on primary evolution of retail formats and gives a prediction of developing trend of retail formats from consumption cost. Thirdly, it comes to the conclusion that consumption cost is a main dynamic of retail evolution and gives policy suggestions on how to decrease consumption cost.