Where Is The Way Out For Old Beijing Culture And Commercial Department Stores? Open The Door Again

It is reported that this pformation has changed the folklore line, positioning the fashion movement as the main route. However, whether the brand of Tianqiao general merchandise has been established for nearly 50 years can be successfully pformed in this opening business, we still need to wait and see.

But how to pform the old brand department store to succeed is a question worth pondering.

Difficult pformation is a universal problem.

At noon on August 31st,

In the two floor of shopping malls, they often appear in various department stores.

Tianqiao department store was opened in the 50s of last century, and was famous for its avant-garde shareholding system in 80s. In early 90s, it was the golden signboard of the old Beijing people.

But since 2000, business has gone from bad to worse, and has struggled on the edge of losses.

In 2008, in order to match the folk characteristics of Tianqiao District, the pformation of the shopping mall played a "folk card". It operated folk handicrafts, old Beijing snacks, tourist crafts and so on, and sold the stalls to merchants. The booth rent was 8 to 9 yuan per square meter per day.

However, after less than a year, the operation of folk custom cards has not improved.

Liang Jiliang, a business expert, thinks that the shopping mall is far away from the front gate, the big fence and the Tiantan, and is not suitable for selling folk goods.

In the second half of 2009, Tianqiao department store was pformed again, introducing special foods from around the country until the Spring Festival this year.

Had to re pform.

Dou Jingmei, general manager of Tianqiao department store, was reluctant to talk about the future in an interview with reporters.

Just a brief account of the original intention of the pformation of the Department Store: Tianqiao department stores are mainly wholesale markets such as the Hongqiao market, and there are few department stores.

Tianqiao department store's return to department stores is also a differentiated operation.

Tianqiao department store is mainly located in the community, with a large number of middle-aged and elderly people. Therefore, some mid end brands and brand discount are settled.

But for the opening period of business turnover, Dou Jingmei shut up.

Nor did she give a positive answer to the success of the pformation.

The pformation of old department stores is not a problem of Tianqiao department store. Similar situations are widespread throughout the country.

This is, of course, related to the impact of other formats, the obsolescence of management means and the identical positioning. But fundamentally speaking, the overheated development of large department stores in recent years is the root cause of oversupply.

According to statistics, the average number of retail outlets in China has reached 15 or so, which is higher than that of many developed countries. At present, there are nearly 20 million square meters of large department shopping centers under construction and waiting to be built, far exceeding the current economic growth and the growth of residents' demand in China.

These factors directly lead to a decline in the efficiency of department stores.

Like the famous Shenyang department store in Northeast China, the old Shenyang people used to call it "North City Department Store". They used to have a good turnover of nearly 200 million yuan in the past year, but with the increasingly fierce competition in the retail industry in Shenyang, they fell to the end of the last century until 2003.

Ji'nan's first department store, department store, Shandong Hualian, people's market and Grand View Garden, once known as the "five golden flowers" of the retail industry in Shandong, once owned 95% of the retail market in Ji'nan in the planned economy era.

However, at the end of the last century, due to the rise of new formats and the intensification of retail competition, the market share of "five golden flowers" in Ji'nan was less than 5%.

In the era of planned economy, the first to tenth department stores monopolized the retail industry in Shanghai. At present, only the first department stores and second general merchandise stores are left, and the other 8 are all closed down.

Management is more important than pformation.

Hong Tao, a professor at Beijing Technology and Business University, said in an interview with reporters that the traditional department store industry has experienced more than 100 years of history. It should be said that it should enter a recession period. However, looking at the department stores in the city, it shows a booming trend.

It also subdivided some formats such as professional shops, specialty shops and community stores.

But the key to the pformation of old department stores is not the format, but whether the pformation mode is in line with its regional characteristics, and whether its management mode is suitable for this format.

Taking Tianqiao department store as an example, it is actually not a fundamental change in the format, but a shopping mall as a whole. The folk market is a booth rental. The former is a department store operation. The latter is more like a commercial real estate business in some sense.

The management modes required by these two formats are quite different.

In fact, the pformation of old department stores should first conform to the trend of the times. Next, we should combine the personnel and management of the whole company with pformation.

Take the Caishikou department store, which is not far from Tianqiao general store, for example, in 1985, Cai Bai won the gold business license, but at that time, Cai Bai remained a department store business.

It was not until 1990 that the department stores in Beijing became increasingly competitive. Meanwhile, the first round of Chinese consumption escalation began, and vegetable hundred began to turn into gold jewelry.

In addition, the management of Cai Cai is also in line with this pformation, and the outstanding talents in the field gather in the field of gold jewelry.

In the decoration layout of shopping malls, it is more coordinated with such a pformation.

By the 1997 financial crisis, people realized the value of gold, and the title of "Beijing gold first", which had been built several years ago, has taken root in the hearts of consumers.

Liang Jiliang also agreed that after the pformation of a shopping mall, it would take a certain amount of time to make the customers remember and become loyal customers.

If a shopping mall is always in pition, it will be very difficult to establish its brand image in the mind of customers.

This is also a factor in the total failure of Tianqiao department store pformation.

Another successful case of pformation is Wantong mall, which is located in Fuchengmen, Beijing, and is also located in high-end department stores.

Later, the pformation of the small commodity market was known as the first mall in China with five star property as a small commodity market. At that time, many experts thought that it would die, because at that time, the way of pformation seemed too much like a "backward" policy.

But in fact, Wantong mall has rebuilt the "low-level" format of small commodity wholesale with advanced management, and has achieved success.

The success of Wantong mall indicates that management is more important than pformation.

Success requires lower gross margins and faster turnover.

In the mid 90s of last century, modern retail formats such as hypermarkets and supermarkets began to rise, and the impact on department stores was very large.

From the perspective of appearance, supermarkets and supermarkets only changed the way of displaying shelves, changed the cabinet type into open shelves, and greatly reduced the number of shopping guides.

But from the overall strategy of modern retail formats, their attacks on department stores actually focus on two points: lower gross retail interest rate and faster inventory turnover.

In the business mode of providing general services in department stores, inventory generally can turn around 3 times in a year. Under such a cost structure, they need a relatively high gross profit margin.

If their gross profit margin reaches 40%, the annual return on capital can reach 120%.

In the 60s of last century, WAL-MART began attacking the low-end market of American department stores, such as hardware, kitchenware, toys and sporting goods. The first measure they took was to lower the gross profit margin first.

As the above products are very familiar to everyone, WAL-MART has removed the shop salesmen to buy them freely.

Moreover, WAL-MART's inventory policy and order operation process can make inventory turnover more than 5 times in one year, so that they get more than 120% of the annual capital return rate.

So the stores we see are not simply priced as cheap as department stores. They have struck a department store with a new business model, and have also received acceptable profits.

Looking at the current retail business in China, it is hard to make a living in department stores that are in conflict with supermarkets and supermarkets.

Do the right thing first and do the right thing well {page_break}.

Chen Fang, Tan Huoxin

As one of the first ten department stores in Beijing, Tianqiao department store has been in a difficult position since the 90s of last century, and the market operation has gone from bad to worse.

In fact, as a time-honored commercial department store, the pformation of Tianqiao department store has attracted much attention.

With the excessive expansion and development of large department stores, the same business circle and the same industry have been over concentrated, resulting in the same situation of "the same scale, the same environment, the same price, the same service, the same goods, the same customers". The market competition of "thousand stores and one side" has made the department store industry enter the white hot competition situation of the bayonet, resulting in a general decline in the overall economic performance of the department stores and a sharp decline in overall profits.

In addition, the traditional department stores, which are short of flexibility, flexibility and flexibility, have lost market spirits in the face of competition in many stores such as hypermarkets, supermarkets, convenience stores, specialty stores, warehouses, shopping centers, chain stores and so on. They have lost the market spirit and plunged into a passive situation. The market share has been shrinking, the business space has been shrinking, and the business category has been gradually reduced. The traditional large department stores have been closed for two consecutive days.

In two years, three degrees "changed face", from the folk shopping malls to the national characteristic shopping malls, and then to the fashion sports mall business pformation, the Tianqiao department store did not stop the pace of exploration, but this exploration should get the experience and thinking of every time, and can not make a low-level mistake that tripped two times by the same stone.

Faced with the fierce competition in the market, Beijing's time-honored shopping malls are facing more challenges than "Tianqiao department store", Beijing Xidan shopping mall, Wangfujing department store, Yansha friendship mart, Chongwenmen food market and Beijing amusement park.

Facing the increasingly opening up of the retail industry, the traditional department store industry is facing an unprecedented change.

Main problems facing Tianqiao department store

We can not make a final decision about where the Tianqiao department store will be heading after the "change of face".

Culture of business circle.

"Wine Drum Opera Tianqiao City, how many visitors do not remember home" is the portrayal of the culture of Tianqiao commercial circle.

Therefore, from the traditional Beijing culture to the leap of fashionable sports route full of modern flavor, the market demand of Tianqiao department store needs a process. The change of people's consumption demand concept needs a process. If the process last too long, will the Tianqiao department store have sufficient capital to sustain it?

Function of business circle.

Are the supporting facilities of the business circle complete?

Shopping is only the most basic function of department stores. Eating, doing, entertaining, and living constitute a complete function of shopping malls. The lack of a supporting facility will lose the competitive advantage of department stores.

For now, the function of the overpass business is not complete, especially in terms of leisure and entertainment, far less than other mature business circles in Beijing. In addition, limited space will greatly constrain the construction and development of supporting functions.

Business District purchasing power.

The North strong south weakness has been the biggest city characteristic of Beijing. The consumption power of Nancheng district has been improving at a later stage after the Beijing Olympic Games in 2008, but it has always been in a low speed development stage, far behind the north of the city.

How to improve the purchasing power of business circle is the fundamental solution to the market source of Tianqiao department store.

Cultural characteristics.

This is the key to highlight the competitive advantage of department stores.

How to integrate into the fashion and sports elements of Tianqiao department store and become a unique cultural trait requires the managers of shopping malls to think deeply about it.

Where is the way out for old Beijing culture and commercial department stores?

"Although the department store industry is facing many challenges, it is not yet at the end of the road that different formats have room for survival, bearing different consumption functions."

Professor MacNeill, director of retail business at Harvard University, holds a negative attitude toward the "sunset theory" in department stores.

Generally speaking, the department store industry still has great room for development. If we want to emerge in the competition, we must make full contributions to the "personalization, specialization, characterization, community-based and peaceful people", and create the perfect individual brand symbol.

The three degree "overthrow reconstruction" of Tianqiao department store reflects the helplessness of this old shopping mall. It also reflects the frustration of Beijing's traditional commercial market in the face of increasingly compressed market competition.

The breakout of traditional business in old Beijing should be further developed and developed in terms of characteristics, culture and quality, and eventually form a unique competitive power.

The market development of Tianqiao department store to folk products is a bold attempt and an attempt to develop traditional culture. It should be said that it is innovative in terms of management strategy, but it is regrettable that the investment in culture and quality is not enough, or it has not attracted enough attention.

As a collection of folk art, the Tianqiao still attracts a lot of people interested in folk culture, bringing considerable traffic to the commerce of the Tianqiao area.

In the "eleven" golden week in 2009, Qianmen Street received only 990 thousand visitors in the first four days, and the number of tourists in the seven day of the Tiantan reached 502 thousand and 300.

But the about 500000 passenger traffic has not been converted into purchasing power and consumption power. It shows that we have not done enough in terms of culture and quality, so that our market has not been fully developed, and the market revenue is very small, which will naturally affect subsequent operations.

There is a famous motto for reference to Tianqiao department store: first do the right thing, then do the right thing well.

If the present position is right, we must try our best to persist in doing it well. If it is not right, we should correct it and try to reduce the time of trial and error. We must not stick to our own opinions and get deeper and deeper.

The strategic adjustment of traditional commerce in Beijing is not a matter of overnight. The development of traditional culture industry is a process of continuous development. It needs the support of the government. It also requires the continuous investment of enterprises and the construction and improvement of talent team, and more importantly, the breakthrough of management thinking and sharp market insight.