China'S Department Stores Are Facing Difficulties In The Market Of Buyers.

The mainstream mode of operation in China's department stores is to rent counters to all brands, and the lack of independent business capability almost makes Chinese style department stores become "landlords" of property management. Jin Yuhua, vice president of the Chinese Department Store Association, thinks that

When such "landlords" are increasing and the gross margins of the industry are getting lower and lower, some stores begin to try to find a self run mode, buying goods to sell themselves, and eliminating the intermediate links can increase the gross profit margin of the stores by two times.

However, Chinese style department stores are facing the difficulty of "buyers" market blank.

We want to turn the gross profit two times.

Beijing department store test water self run

A few days ago, the British department store Martha, based on its own brand, announced that it was about to open its second store in Shanghai.

Martha group president Stuart Ross recently revealed that the third store has been set to open at sometime next year.

Martha's goal is clear: he will be profitable in 1 years and be profitable in 3 years.

At the same time, Beijing new world department store and Cui Wei building are trying to operate on individual products.

There are individual phenomena in the department store in Beijing district.

Some commodities are also passive, such as Lancome, Estee Lauder and other high-end cosmetics brands, which have bought the market as a condition for their entry. Many high-end shopping malls have to operate their own products.

At present, China's department stores generally adopt the mode of brand joint operation. The mode of operation of this mode is to introduce brand merchants into the store by way of investment, and store unified layout, unified management, unified image, unified sales promotion, unified cash collection, profit rebate and bottom guarantee. When the sales channel is not smooth, the brand store is responsible for itself.

The operation mode of the brand self operated mode is the separation of centralized purchase and sales. The profit comes from the difference between the selling price of the goods sold and the many intermediate links. The risk is that the store itself is responsible for the sale of the goods, and the goods that are not sold well can not be returned to the incoming manufacturers.

In the United States and Japan, where the retail industry is relatively developed, the main business mode of department stores is self employment, which makes the department store's profits before taxes reach 35%, and the lowest is around 25%.

On the other hand, the average discount rate of domestic department stores is only 12%-15%.

When department stores sell discounts for sale, profits will be lower. Once the discount is too large, the gross profit will fall to a certain proportion, and the survival of enterprises will be a problem.

On the contrary, if the merchant adopts the self operated mode or buys the brand, its profit space will increase, and the profit margin promotion space will be bigger.

Perhaps the success of the international department store brand self running mode has affected the nerves of domestic department stores.

Reporters learned that Beijing New World Department Store tried to run some wool and cashmere products, and Cui Wei building tried to buy digital photography equipment.

Beijing New World Department Store official revealed that wool, cashmere, gold and other products had a single property and would not be overly influenced by the style. Even if the sales were slow, they could go back to the factory for reprocessing. Therefore, the business risk of adopting self operated mode was not large.

However, when facing the complex clothing and other categories, the shopping mall is unwilling to try to operate independently because of its large business risk.

Business pformation is difficult

"Buyer" is a handicap.

In recent years, domestic commercial real estate has been developing continuously, and the department store industry has entered a period of rapid growth. In Beijing alone, dozens of new shopping malls, such as Lotte, inte department store and Tianhong Department store, have been opened.

There are more than 1000 new shopping malls nationwide.

Although the number of department stores is large, the "store side" has become a common phenomenon.

In addition, the excessive price war in the domestic department stores has greatly reduced the gross profit of the shopping malls, and the profitability has declined year by year.

On the other hand, the choice of consumers is more and more. They tend to hold money and wait for the price.

At the same time, the dependence of shopping malls on suppliers is too high, and they have lost sufficient bargaining power.

Jin Yuhua, vice president of the China general merchandise Association, expressed concern about this and lacked the ability to operate independently. Almost all the Chinese department stores became the "landlord" of the property management.

He said that although the department store industry can rely on expanding the market to maintain a better living condition under the rapid development of China's economy, however, with the rapid growth of the number of newly opened department stores and shopping centers and the increasingly fierce competition, some of the 100 cargo enterprises may be forced out of the market if they can not improve their self-supporting capacity.

Reporters learned that many business experts and department store executives have appealed: "only when we return to the essence of retailing, pick up the wholesale price difference and self management mode, can we gain a foothold in the economic recovery after the financial turmoil."

As a matter of fact, there are also many successful cases in domestic department stores.

Beijing Yansha friendship mall registered the "Yansha" brand, and developed "Yansha" brand shirts, bags and other private brand goods; Shanghai opened the department store "Kai Kai" brand shirts into the ranks of "China's ten largest brand shirts".

Since the self run mode has many benefits, why is it that the department stores are reluctant to pform themselves into self?

A responsible person in Beijing Cui Wei building said that the key to self-management of shopping malls is to train a group of prospective buyers who can understand the market and understand consumers well.

In fact, the fundamental reason why department stores fail to achieve large scale self employment is the lack of excellent "buyers".

At present, the relevant departments have seen this reality, launched the relevant strategic plan for training buyers, and plan to formulate a professional standard for "buyers".

But the industry generally believes that excellent "buyers" rely on the smell of products, not only through the provisions of the industry can be trained.

This is like getting a doctor's qualification certificate to qualify as a doctor, but to become an excellent medical worker, we need to accumulate rich experience through accumulated experience.

　　聯營模式致商品信息缺失

Shopping mall buyers are hard to cultivate

A senior manager of Beijing's largest stationery market, "evergreen city", once said that the lack of "buyers" in domestic department stores is only a superficial phenomenon. The deep problem is: the department stores have been using the business mode of joint point deduction for a long time, and brand dealers and agents have taken the place of shopping centres to take the risk of selling goods. Although the pressure of department stores has been reduced, the statistics of goods sold in stores do not have a comprehensive understanding of the layout of goods and the preferences of consumers.

A business expert said that the "buyers" of shopping malls are different from those of "brand buyers".

The former needs to purchase goods from the needs of the customers in the store, rather than relying solely on their own vision and fashion trends.

When purchasing goods, the "buyers" of shopping malls can even know who they are buying for which specific customers. If we want to achieve this, we need the perfect commodity information database of the shopping mall as the basis.

But the reality is that most shopping malls ignore this link.

The information of each brand's style, type and quantity in the department store is entirely in the information base of the brand dealers and agents.

Without these data to support, even if it is heavy money to hire internationally known "buyers", it will not be able to start.

So how can we fill in the blanks of information in department stores?

The above experts suggest that on the one hand, we can upgrade the ERP (EnterpriseResourcePlaning abbreviation, enterprise resource planning) system to connect the shopping mall with the brand business system, and get information from the brand's system. On the other hand, the department store can record the information of each product by manual entry, but it will cost more manpower and money.

A department store once devoted 60 employees to the entry of goods, which increased the human cost of the mall by nearly 30%.

Not only that, not all goods in the department store have bar codes, but also added difficulty to the entry of commodity information.

The industry generally believes that whether from the perspective of the future development of the retail industry, or from the level of improving corporate profits, the development of self run mode should be the goal pursued by the department stores.

Chinese newspaper reporter Li Duo / Wen Tian Yi / Comics

At present, because of the operation mode of joint operation between department stores and brand dealers, the risks of commodity sales and inventory are all at the expense of manufacturers.

In order to achieve target sales, commodity manufacturers often produce two times the target sales.

Take a clothing brand as an example, in order to complete the sales target of 100 million yuan, the production enterprise will produce up to 250 million yuan of goods. When the business has completed the expected sales target, there will be 150 million yuan left for sale. Finally, it is likely to leave nearly 20% of the "dead goods" not to go out.

Of course, the production enterprises will not and will not be able to carry the cost down.

The way it often adopts is to set the selling price of goods as 1.25 times the cost of production.

As a result, when the commodity enters the retail channel, the price increases will be much higher than its cost.

Therefore, consumers often feel that domestic clothing prices are "unattainable".

In other words, the department stores, which are self-employed in the world, generally cooperate with producers through order form. After the Department Stores pay deposits in advance, they can start producing goods.

Most of these commodities will be bought by target consumers, even if part of them are unsalable, they can also be digested by discount or purchased by buyers in lower market.

The virtuous circle of this industry chain not only benefits producers and retailers, but also enables consumers to buy goods that are more "real".

In addition, many domestic manufacturers are taking orders to cooperate with foreign businesses.