China'S Department Stores: Opening Up To Two Or Three Tier Cities

At the eighth summit of China's department store, which ended on the 27 th, the commerce ministry officials and the Chinese general merchandise business association pointed out that China's department stores are facing a variety of problems such as one-sided pursuit of scale. The future trend of China's department stores should be the opening up and competition of the two or three tier cities.

The "China Department Store Industry Development Report 2009" released on the same day shows that in 2009, under the guidance of policies, the social and economic growth was steady, and the total retail sales of social consumer goods increased by 16. 9%, higher than the average growth rate of 3.3 percentage points in the recent 8 years.

Wang Xuanqing, deputy director of the business service management department of the Ministry of Commerce, pointed out that the current problems in Chinese department stores are: the one-sided pursuit of scale, low development quality, unbalance of development structure, low level duplication of investment, the instability of zero supply relations and non standard competition in the same industry have become the bottleneck of the further development of the retail industry.

In the face of the crisis, enterprises with some development models are not scientific enough, the management system is not precise enough, and the business models are rigid.

Chu Xiuqi, President of the Chinese Department Store Association, also pointed out in the report that there was a partial surplus in the development of China's department stores, but it was insufficient. According to statistics, the number of stores and the eastern part of the market accounted for 65%, while that in the central region accounted for 21%, while that in the western region was only 14%.

At the same time, the overall profitability of the industry has been improving, but the profit margin is relatively narrow.

In addition, the same brand structure, monotonous marketing connotation, price war and other issues all restrict the development of China's department stores.

For the development trend of the industry in 2010, Chu Xiuqi said that in the coming year, China's department store industry giants and regional leaders will carry out the development of the two or three line city market, and actively promote the process of supermarket and shopping center of department stores, and promote the development of large department stores to diversify shopping, catering and entertainment.