Interpretation Of The Overall Operation Of China'S Department Stores

In June, we began a survey and interview of the department stores in China's two or three tier cities, and selected representative shopping malls and business circles in 8 cities such as Shijiazhuang, Weifang, Tianjin, Nanning, Chongqing, Hohhot, Nanjing and Shenyang. From this we can explore the overall operation, business mode and development trend of China's department stores.

Shijiazhuang Bei Ren group low cost expansion community type

In addition to owning north, new hundred, and three forty thousand or fifty thousand square meters of large department stores and shopping centers, the northerners group has opened community stores such as Yiyou department store, Yidong department store and Yiyuan department store, and it is precisely these positioning department stores that have made remarkable achievements in the achievement of billions of sales of the north people.

According to Shan Bai, chairman of the Norman Group, the community department store is an important means for their low cost expansion.

Compared with other department stores, the biggest feature of community department stores is to highlight their convenience and require comprehensive functions.

Under the guidance of this kind of thinking, about 55% of the volume of the community department store of the northerners group is used to carry the supermarket, the rest of which is used to sell what consumers need most, and to introduce drugstores, mobile phone stores and even telephone payment points.

The community department store not only fired but also brought good market reputation to the north people group.

Relative to pure commercial real estate,

In August 2000, the northerners group began to expand the supermarket format.

From scratch, the supermarket in North China has grown from scratch to 16 today.

Different from other chain supermarkets' homogenization replicating strategies, the stores in North supermarkets have different positioning according to their consumption levels, including popular community supermarkets such as Yi you and Tianhe, and the boutique supermarkets such as the underground mall of the north country mall. The newly opened boutique supermarket has introduced boutique "shop stores" according to its consumption structure attached to the North City Mall, attracting hundreds of years old brands such as Beijing Tongrentang and Hangzhou Hu Qingyu Tang, and constantly strengthening the status and image of its boutique.

Besides,

Relying on the deep-rooted influence of upstream resources and local brands accumulated over the years in the minds of consumers, the North appliance department has been fighting for more and more in the competition with domestic appliance chain giants.

At present, there are 7 stores in the North electrical appliance store, such as the North electrical appliance store, the new hundred appliance city, the first world boutique household appliances, the Yi You household appliances, the gold Berlin store, and the 21 other foreign shops in Baoding, Xingtang and Shexian County, occupying nearly 60% of the market share in Shijiazhuang.

Reporter's line of sight

Behind the rapid growth of the northerners group is a deep understanding of the local consumer groups, consumption ability and consumption trends, providing the matching business format and mode, and constantly innovating in the development of the market, seize the opportunity, and finally become a strong brand in the region.

The Norfolk group's sales target in 2012 was 20 billion, believing that this figure will make many retail giants feel excited.

Weifang century Taihua Group chooses "CBD{page_break}" in small and medium-sized cities.

Shandong century Taihua Group Co., Ltd. was founded in October 2000. The group is under the jurisdiction of century Taihua Plaza, Taihua Xintiandi, Fu Le multi supermarket, Yuanfei Hotel and so on.

After 10 years of hardship, century Taihua has become a comprehensive enterprise group integrating commercial retail, real estate, hotel, catering, property management, complementary formats and resource sharing.

In Weifang, it took three or four years to establish its absolute status.

On this basis, century Taihua decided to be a CBD operator in small and medium-sized cities, and the main product is MALL.

Feng Yihou, vice chairman of the century Hua Hua, identified Taihua city as MALL and became the center of Weifang's planned CBD.

"Taihua city" is our model. This MALL has done well, no matter in theory or in practice, it has a perfect system.

This is the largest MALL in Shandong so far, and it is also the center of Weifang CBD. We call this project "the heart of the city."

Taihua city MALL, as the ultimate embodiment of the integration of Taihua, determines the future development mode of Taihua.

According to Feng Yihou's calculations, according to the CBD operator mode, Taihua City, compared with the similar projects around the world, the shopping malls increased by 20%, the occupancy rate of the hotel increased by 15%, the office occupancy rate increased by 20%, the apartment sales price exceeded 10%, and the overall investment safety coefficient increased by 30% compared with the independent development.

And in the development process, it is easier to highlight the scale effect: low PR costs, brand sharing, mutual complementation, and self marketing ability.

As the implementation of CBD operator mode will have a significant impact on the structure of a city's commercial center, and the project is huge, there are many non-commercial facilities and multi property units.

Weifang can become an experimental base for the "CBD operators" mode of the middle and small cities in Taihua, which is closely related to the support of the local government.

In August 2009, century Tai Hua was authorized by the government, and agreed to undertake some public functions of the government as an enterprise in the riverside project on the west side of Taihua city and invest and manage the river embankment.

The government has high hopes for this mode of operation of century Taihua. On the one hand, such a large project can enhance the level of local service industry; on the other hand, it contributes to urban employment promotion and local tax revenue. This is precisely the attraction of "urban CBD operators" to the government.

As far as retail business is concerned, Taihua city will have 1200 jobs in the future, which will provide 7000 people with jobs.

After the full operation of the Weifang project, century Taihua will go out and copy the model to other two or three tier cities.

"We do not plan to enter the first tier cities. The competition is too fierce.

We will only choose small and medium-sized cities to be CBD operators, and no big companies in the first tier cities can position themselves as "CBD operators".

Feng Yihou said

"In Taihua's current business philosophy and trading capacity, there will be no threatening competition in small and medium-sized cities in China.

Our goal is to have a 500 thousand square operating property within a few years.

Reporter's line of sight

In the 21st century, Taihua is not only doing real estate, it is not just doing business, it is a double engine development strategy based on the commercial real estate interaction mode.

Most shopping centers were developed by real estate developers, and Taihua city is the first Mall developed and operated by commercial teams in China. Its bottom line comes from the century's familiar business and hospitality fields.

This shows that when business meets real estate, it is like a duck to water.

Nanning Dream Island Shopping Center takes the high-end line to become an international brand.

For a long time, as the capital of Guangxi, the department store industry in Nanning has been troubled by the absence of international brands.

In the eyes of many international brand businessmen, Nanning is a city hovering around the two or three line cities. The overall consumption level is low, and urban residents do not pay attention to brand.

Therefore, compared with other provincial cities, the total number of brands in Nanning is relatively small, and the number of foreign department stores is not enough, and competition is not enough. The market of the whole department store has not been fully developed.

In recent years, with the rapid development of Nanning's economy and the improvement of the urban environment and influence, especially the holding of the China ASEAN Expo in Nanning, the brand class and brand pattern of Nanning have changed greatly.

The fair was successfully held in Nanning, while making a lot of popularity for Nanning, it also led many luxury brands to aim at this market.

Reporters learned that, in order to promote Louis Vuitton settled in Nanning, Louis Vuitton has been repeatedly contacted with Nanning, and President Ande of Louis Vuitton China has visited Nanning five times.

Louis Vuitton Nanning image store will be officially opened on 2010 National Day at Nanning dream island ancient town store.

The area is close to 500 square meters. The main products are leather handbags, handbags, leather shoes and watches. All the products are new products listed on the global market.

In order to cooperate with the arrival of Louis Vuitton, Guangxi dream island group has invested 450 million yuan to expand the ancient city store. According to the latest design, the ancient shop of dream island will be renovated and decorated in a comprehensive way.

In addition, the Guangxi dream island group plans to introduce 20 of the world's top luxury brands, and will eventually build this area into a luxury brand gathering place, making it the center of fashion consumption in Guangxi.

Reporter's line of sight

Louis Weedon's settlement in Nanning is, to some extent, an affirmation of Nanning's economic strength. It will definitely further promote the development of Nanning's commerce and trade, and will also play a good role in promoting Nanning's urban taste and creating a regional international city goal.

The high-end brand of Hohhot Hai Liang plaza should also be subdivided.

Hai Liang Plaza has a total investment of more than 6 billion 200 million yuan, with a total construction area of about 1 million 370 thousand square meters.

It covers all the functions of the contemporary city center international Moore City, including: international brand Department Plaza, international intelligent office building, international five star movie city, apartment type apartment, The Residence Hotel, gourmet sports Plaza, famous exhibition center, large star leisure bathing place, super entertainment center, plate type residence, large underground parking lot, etc. it is provided by 12 different formats to provide high-end services for business and entertainment. The commercial volume of 220 thousand square meters is the largest in five provinces in Northwest China, and is wholly invested by China's 500 strong enterprise, Hai Liang Group Co., Ltd., with the advantage of commercial real estate resources, to cultivate its own business format.

Most of the Hohhot department stores are mostly high-end brands, 20% of high-end brands, 50% of high-end brands, and 30% of popular brands.

For the sake of dislocation competition, Hui Chun, general manager of Hai Liang Plaza, adjusted the proportion to 30%, 50% and 20%. Among them, 30% were 10%, international luxury goods, 10% international first-line products and 10% international second line brands.

From the proportion of high-end brand positioning in Hohhot Zhongshan West Road business district slightly higher.

In this regard, Hui Chun said: "the introduction of high-end brands is being operated by well-known commercial real estate consultants.

Many people do not understand why we should take the high-end route. In fact, the real brand predators will come soon.

This is not groundless, internationally renowned brand Louis.

Vuitton has the intention to enter Qingcheng, which is a very good sign that the introduction of international cards is a matter of time. Why do we not walk in front of others?

At present, Hai Liang has completely independent commercial real estate, and has cooperation and leasing with other brands. It operates autonomously and can be adjusted flexibly at any time.

However, under the current trend of increasingly scarce space, the mainstream mode of operation is still to be sold without rent.

Reporter's line of sight

The most important thing for circulation enterprises is brand, and its core and soul are not many international brands. What really worth digging is the characteristics and brand value of the enterprises. It is necessary to integrate the international brands of "grafting" into their own brand names for their own services, instead of forming two skins from the imported brands and enterprises themselves.

Hai Liang's foreign brand has become the local brand of Hohhot rapidly, relying on the business philosophy of the enterprise and the development trend of the whole retail business and the extreme integration with the local market demand.

Chongqing Monument for Liberation business district multi-level, three-dimensional strong business circle

Chongqing Monument for Liberation pedestrian street is the "boss" in Chongqing business district. The daily average population flow is over 300 thousand, and the peak daily traffic volume exceeds 1 million during holidays.

In the face of competition from other business circles, in order to stabilize the status of "big boss" in Chongqing business circle, in July, the four major shopping malls of the central core area were renovated and renovated.

"Due to historical reasons, the facade and positioning of some of Monument for Liberation's buildings are no longer consistent with the current development."

Song Dan, deputy director of the CMC of the central business district of Monument for Liberation, said.

It is estimated that by 2012, 100 international brands will enter Yuzhong, of which 90% will be concentrated in the Monument for Liberation business district.

Next year, the business format of Monument for Liberation business circle will be divided into three levels.

The first is the luxury "Golden Triangle" made up of Mei Mei, commercial building and Golden Eagle Women's street. The two is the Taiwan Customs Street with the moonlight as the carrier. It will gather foreign trade brands. The three is the fashionable international brand that is pformed by the hundreds of metropolis and the metropolis. All these provide strong support for the Monument for Liberation business circle to firmly defend the status of the leader of the Chongqing department store.

Since the second half of last year, Jinying square has begun to adjust its internal low-end format to move to the world's top brands such as GUCCI to build a good business environment.

The rebuilt Golden Eagle Square will meet with the public at the end of this year. Song Dan said, "the first floor of the Golden Eagle Plaza will be a GUCCI store with an area of about 800 square meters."

In addition to Jinying square and commercial building, led by the Monument for Liberation business circle as a whole, "upgrading" by the government led pformation, from July onwards, the United States Department store and the building will be fully upgraded to adapt to the development needs.

Mei Mei department's decoration investment will reach 100 million yuan. It is expected to be reopened before the Spring Festival next year. After reopening, Chongqing will add three top international brands, that is, Giorgio Armani, Louis Vuitton and Prada, all of which are the flagship stores in Chongqing.

The relocation of the "100 million buildings" of urban white-collar workers will also be carried out in the second half of the year.

After rebuilt, the building will add 10 floors and 11 floors to stores, and the business area will increase from the current 15 thousand square meters to 18 thousand square meters. The main selling commodities will be adjusted from the current "domestic mass brand" to "international second-line brand and top domestic brand".

Reporter's line of sight

With the rapid development of the liberated business circle, business diversion is unavoidable in the face of the entry of foreign department stores such as far east department store, Maoming department store and new world department store in Jiangbei Business District of Chongqing, as well as the business circles in Shapingba, south bank and Yangjiaping.

The old business circle is facing severe challenges in the new era, finding its own bright spot and forming dislocation management is the only rule to survive.

Nanjing central shopping malls chain expansion to create business circle accumulation effect

In 2006, Nanjing central shopping center began to accelerate the expansion of the "chain Empire" territory, and invested huge sums of money in building a super department store with a total area of 240 thousand square meters in Huaian, Suqian and other prefecture level cities.

Some of them are department stores or supermarkets run by themselves, while most of them are operated as commercial real estate, and two aspects enhance local popularity.

The commercial property of the central shopping mall is often the same. First, the location must be a gold lot with the possibility of "business circle reengineering". The two international squares in Huaian and Suqian are located in the central business district. The second step, after a commercial real estate development is completed, the central shopping mall and Jin Runfa supermarket will appear in the commercial group in the face of the main store, and other sporadic investment is very easy.

The two different formats of department stores and hypermarkets are complementary in the same commercial real estate, which can quickly form accumulation effect and stir up real estate in the local area.

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This way of operation, the central shopping mall has been successfully interpreted in Huaian's new Asian mall, Xuzhou department store, Lianyungang department store and Shandong Jining department store.

It is the intention to build a chain store of hundreds of years old Nanjing merchants. Nanjing central shopping malls (Group) Limited by Share Ltd focuses on chain stores, focusing on warehousing supermarkets and urban complexes.

At present, Nanjing Zhongshang group has developed 7 chain stores, including Nanjing central store, Nanjing Pacific store, Huaian store, Lianyungang store, Shandong Jining store, Xuzhou store, Henan Luoyang store, etc., as well as 3 warehouse supermarkets and more than 500 thousand square meters of real estate development projects.

The total operating area of the company is 350 thousand square meters, of which the business department of Xinjiekou commercial circle center in Nanjing has an area of 63 thousand square meters.

Reporter's line of sight

The advantage of department stores is that they can generate "middle profits" through the overall scale, and obtain relatively low purchase price through large scale purchase under the same price of goods, or get the initiative to negotiate, so that the upstream suppliers can make profits.

The chain store mode of Nanjing central shopping mall, whether it is department store chain or supermarket chain, is the core of commercial real estate. It is popular with department stores and property to support the market. It is not only to build a prosperous storefront, or to fry a real estate, but to create a business circle to gain sales profits and keep revaluation profits.

Shenyang Zhongxing Shenyang commercial building is familiar with the industry.

As a large retail enterprise jointly invested by CITIC Group and Shenyang City, Zhongxing Shenyang commercial building has taken the advantage of "big" since its establishment in 1987.

Its construction area is 54 thousand square meters, and the business area of shopping malls exceeds 20 thousand square meters.

After the listing of the company, there was still a lot of controversy over the expansion of the first and two phases. However, the leader of Zhongxing Shenyang commercial building believes that the original more than 20 thousand square meters department stores and 7 billion retail sales can not meet the needs of the development of enterprises. At the same time, considering that all the nearby areas belong to the commercial strategic location, there is a higher development space, so they have resolutely carried out the expansion.

ZTE set up a 6000 square meter supermarket in the store, which is in line with the needs of department stores in the capital city of Northeast China.

The annual sales volume of the Zhongxing supermarket is 200 million yuan RMB. In Shenyang, it is ranked only in Carrefour (more than 10 thousand square meters, 4 hundred million sales) and Huanggu Tesco shop (10 thousand square meters, 270 million sales).

With the development needs, "ZTE" was built on the first floor to become an international first-line brand shopping plaza. The overall layout of the building was adjusted, and the supermarket was adjusted to the ground floor.

In this way, the adjustment of floor operation structure can be regarded as a timely reflection of the market, and to a certain extent, it reflects the improvement of the competitiveness of enterprises.

Reporters on the Zhongxing commercial building in Shenyang and the same business circle of field visits also found that ZTE in the monopoly of the best selling varieties of goods sources showed higher strength.

For example, the quality and monopoly of high-end cosmetics are obvious; many brand names are exclusive; 194 of the clothing products are exclusive brands; besides the first floor, the international famous stores are becoming more and more popular, and the second tier brands run on the six floor are also very influential.

At the same time, the adjustment of business varieties also contributes greatly to the performance.

For example, the withdrawal of home appliance market effectively prevents the decline in gross margin.

At present, the adjustment is also going on: the watch is moved to the two floor, the first floor is completely an international hall of fame, a new large parking lot is built beside it, the original supermarket on the two floor is moved to the minus two floor, and the two floor is the two or three line brand in the domestic market.

These measures have a positive impact on the business structure of the shopping malls, the steady growth of sales scale and the steady rise of gross profit margins. According to conservative estimates, at least 8% or even higher growth space has been maintained.

At present, ZTE has set up a headquarters of ZTE chain supermarket, opened several supermarket stores in Shenyang and Liaoyang, ready to open 12 self run stores within 3 years, and develop several franchised stores.

It has made certain preparations for the development of supermarket chains in IT, logistics and so on, and several supermarket stores have entered into negotiations or even substantive operations.

Reporter's line of sight

Some listed companies began to invest quickly and diversify after they raised money, resulting in investment failure.

ZTE Shenyang commercial building is a "honest man". After raising funds in 1997, it has not invested funds into the so-called gold absorbing industry, but has been strengthening its familiar department store industry. After years of dedicated development, it has become a major store leader in Shenyang department store.

Focus on the familiar industry, and make it bigger and stronger, and can also "win".

Tianjin's brand culture is the core competitive power

Today, in the increasingly fierce competition in the department store industry, how to find the core competitiveness is a problem in front of every department store.

"I think the core competitiveness of the industry is brand culture."

Zhang Lijin, chairman of the Limited by Share Ltd of Tianjin Industrial Park (Group), said: "as an old shop with a history of 80 years, it is not only selling goods, selling services, selling ideas, but also selling brand culture and historical accumulation for decades."

"The core competitiveness of the industry is brand culture, and the brand culture comes from the cultural accumulation of historical accumulation.

By constantly excavating its deep historical and cultural details, the traditional business features are integrated with modern department stores, history, culture and fashion.

We should attract customers with fashionable leisure ways, enhance the brand value with high quality culture, recreate the fashion and leisure life of the market, create a high quality culture and entertainment space, and form a unique brand culture and core competitiveness of the industry.

Zhang Lijin said.

In the face of the development of new department stores, the operation of the industry is positioned as a "regional strong brand, an integrated department store brand with urban characteristics". It takes the international classic brand as the mainstream, takes the domestic and regional brand as the main force, takes the fashionable and best selling brand as the highlight, and takes the high-end positioning as the guide.

Through the advantages of the central radiation and the advantages of the partners, the listed companies have the advantage of financing platform and expand at low cost.

Reporter's line of sight

It costs 2 billion yuan to build a building, but it costs 2 billion yuan to build a market.

Because it is not only a building but also a cultural and commercial change in modern Tianjin.

Brand master Konap once said: an excellent brand should rely on the brand story to increase its sense of human nature and to narrow the distance from customers.

The growth course of an excellent brand is often accompanied by many touching classic stories, and the brand is integrated into the consumer's mind through emotional interaction with stories.