Exclusive Brand Monopoly: New World Department Store Group "Cosmetic Surgery"

A few days ago, the new world department store went on the road to store innovation after 17 years of operation. The whole store renovation project was led by Zheng Zhigang, executive director of new world department store and the director of new world department store, the third generation.

According to Zheng Zhigang's plan, 33 new world department store chains covering the whole country will complete renovation in three years or so, and the total cost will be around 60 million ~1 billion yuan.

The renovation of the new world department store will be a comprehensive renovation of the department store industry.

Zheng Zhigang said that the innovation of the new world department store is a comprehensive adjustment from the concept of format to design, decoration, commodity structure, layout and personality.

Key words: Women

The first female department store in New World department store opened in Beijing only a month after its opening, and the daily traffic volume has exceeded 30 thousand.

The difference between women's department stores and the new world Chongwen store's life hall and fashion hall is different. The latter's traffic volume also increased by 20% after the pformation of the store, and the business cost was saved by 30%.

What makes women's theme stores so hot?

Zheng Zhigang pointed out that the innovation of women's department stores came from the comprehensive research and deep reference of the new world to Japan and South Korea's department stores in recent two years.

The combination of commodities is entirely based on female consumers: on the first floor of the general department store, no exception is played by the leading brands of cosmetics and shoes of the major brands, but Zheng Zhigang's new world women's Department has arranged up to 350 brands of themed shop in a prominent position, selling 9 yuan, 21 yuan earrings, earrings, ornaments, headwear, hats,

The brand of the same company and group is displayed on a sale, rather than the general shopping mall scattered according to the type of merchandise display.

For example, Esprit can only buy clothes or buy Bedding in other department stores, but in the new world department store, underwear can be bought from sheets and clothes. It is all Esprit.

In this regard, Zheng Zhigang pointed out: This is the new world department store composite commodity strategy, the message is: if female consumers like a brand, the women's department store must be the most complete.

At the same time, the supermarkets of the new world department store accounted for half of the 8000 commodity self supermarket imports, and the care and food products were the main ones. This is also a life concept that is suitable for the female customers in terms of health and beauty.

On the other hand, Zheng Zhigang set up the first female book store in China, the first pet store in the country, and the women's brand shop, such as HOLA, grand Ma Lan and other female consumers.

It is worth mentioning that from the decoration style, bathroom decoration, indoor color, background music, VIP services and other details, Zheng Zhigang is also the "female style" favored by female consumers. Various personalized services such as "the little prince of the Zodiac" live lecture, "GAGA painted activities" and "restaurant star chef Professor cooking" are all suitable for women's love of gossip topics, including the controversial "all male shopping guide", which is also a favorite way of female consumers.

In the two years of the new world survey, female consumers generally indicated that the service of male shopping guide can better reflect their charm.

Under the trend of homogeneity, the competition of department stores often turns into price war.

The excessive price war has caused the gross profit of the department stores to shrink significantly, and the profitability has declined year by year.

According to industry sources, the net profit of department stores is only 5%.

As a result, enterprises like the new world department store began to seek gross profit growth and profitability enhancement from the theme of market segmentation.

Zheng Zhigang confessed that the initial innovation of the store would have a certain impact on the passenger flow and performance, but the overall effect was better than his prediction.

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.

Zheng Zhigang revealed that the launch of the second women's stores must depend on whether there are suitable areas and the specific conditions of the stores.

At present, the new world department store has a membership of 200 thousand and a female membership of 150 thousand.

The industry believes that the closer customer service relationship and club marketing mode of the new world ensure the concentration and operation success of women's department stores.

Key words: unique brand

Apart from innovative theme stores, increasing the proportion of proprietary brands is becoming a consensus among many department stores. The process of improving the proportion of proprietary brands is gradually evolving.

The practice of new world department store is N-only's unique brand strategy, that is, the introduction of brand new products or designer brand with only new world department stores in a certain business district.

At present, the proportion of N-only exclusive brands can account for 30% of the new world department stores.

"The traditional department store operation mode, which is based on the acquisition of rents, must be pformed into an operation mode of increasing self sales," said Hong Di, manager of new world department store east China.

According to New World Department Store statistics, in the first half of 2009~2010's income statistics, counter rental income accounted for 58.2% of total revenue, management fee income accounted for 8.4% of total revenue, self sales revenue accounted for 27.5%, rental income accounted for 5.9%.

It is understood that Lian Ke Fu Department stores in the country is also a "buying system", according to the demand of shopping malls positioning consumer groups, shopping malls procurement personnel directly to the manufacturers to purchase goods.

At present, most large department stores in China have begun to consider self purchase and sale, such as Beijing contemporary shopping mall, Lotte Department store, Hua Tang shopping mall and thousands of department stores, all of which have begun to increase the proportion of self operated department stores.

Market dynamics

Singapore Feng Shu group will build shopping center in Xi'an

Recently, the chief executive of Feng Shu group, Lu Shi, said that Xi'an Yi Fengcheng will bring consumers a brand new shopping experience. Many international brands and local brands including Singapore brands will visit the shopping mall.

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Xi'an Yi Fengcheng is the first Fengcheng project of Feng Shu group outside Singapore. Choosing to invest in Xi'an is its status in the West and its potential for development in the future.

Xi'an Yi Fengcheng is a part of the "future city", which covers 200 thousand square meters of luxury comprehensive residential and retail development project. It is close to the two major business areas of Xi'an, namely, the small village business district and the high-tech business district, with 500 thousand people in the surrounding 3 kilometers, including more than half of the educators, students and IT white-collar workers.

The mall has a total investment of 550 million yuan, with a total construction area of 62 thousand and 500 square meters. It is a one-stop family life shopping center integrating shopping, dining and entertainment. At the same time, consumers can enjoy five star cinema.

Feng Shu group is a wholly owned holding company in Singapore Temasek group. Its Singapore Yi Fengcheng is the largest comprehensive shopping mall in the region. It has been selected by Forbes as the top ten large Asian shopping malls.

Messi department's second quarter profit increased to $147 million.

Messi's department store's second quarter profit rose to $147 million from $7 million a year ago.

Quarterly revenue grew 7.2% to 5 billion 540 million US dollars, and same store sales increased 4.9% year-on-year.

The net cash value of Messi's department store business is US $288 million, compared with the level of US $420 million in the same period last year.

Messi, chairman, President and chief executive officer of department store of Terry Lundgren, said: "because of the active adjustment of industrial structure and operation mode in the past two years, we believe that the company's business has been on the right track.

Although the global economic situation is still uncertain, we are confident that we will continue to seize market share and maintain profitability. "

Messi stores expect its growth in same store sales in the second half of 2010 to be 3% to 3.5%, and the same store sales growth interval will reach 4% to 4.2% in the same year.