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New World Department Store: "One City, Many Stores" Strategy

2010/7/30 17:38:00 53

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Homogeneity department stores enter the elimination phase

June 26th, new world

Department store

Ltd. announced that its Fifth stores in Beijing will be located in Shunyi District, Beijing.

Zheng Zhigang, executive director of new world department store, said, "one city, many stores" strategy makes department stores.

Operator

It has advantages in marketing and business circle occupancy.

A number of stores in the same area can form synergy on promotions. During each promotion season, three stores can save 1/3 human resources costs at most.

The new world department store currently has 35 stores in mainland China, and has entered 17 cities. Among them, Shenyang, Wuhan, Beijing and Shanghai have achieved the target of one city and many stores, and the number of stores in these areas is around 5.

In addition, new world department store opened a women's department store in Chongwenmen in May, in order to break the same store competition.

Since 2009, the new world department store has started the innovation of stores. The renovation plan will cost 100 million yuan and take 3 years to complete. After that, the stores will be divided into living rooms and fashion houses, and the merchandise will strive to achieve only 30% overlap.

As of 2009, the revenue of new world department store was 15 billion yuan, an increase of 1.4% over the same period, and 34 stores, an increase of 3% over the same period last year.

Domestic department stores

commodity

In terms of configuration, the phenomenon of homogenization exceeds 80%.

Zheng Zhigang said, "the domestic department store industry can not always be plagiarized and imitated, the phenomenon of homogenization will be replaced by innovation. In the next 3 to 5 years, the department store industry will usher in the elimination phase."

Hong Di, manager of new world department store east China, said, "the traditional department store operation mode, which depends on the acquisition of proceeds from the counters, must be pformed into an operation mode of increasing self sales, and the gross profit and added value of the products sold by itself will be even higher."

The statistics show that in the first half of 2009 - 2010 income statistics, counter rental income accounts for 58.2% of total revenue, management fee income accounts for 8.4% of total revenue, self sales revenue accounts for 27.5%, rental income accounts for 5.9%.

New world department store opens differentiation strategy

Meanwhile, at the end of last week, Lin Ying Cai, director of operations and director of the new world department store, said that the company decided to adopt differentiated management in view of the current situation of the same pattern of department stores.

Lin Caitian said that the current business environment is a joint venture mode, which must be changed, such as adding many elements or unique brands in the shopping mall.

In the new world department store in Wangjing, there are a large number of special counters or products marked with "N-ONLY" logo.

In line with the image reform plan, the new world department store spokesperson will host exclusive activities in more than 30 stores nationwide.