Guangzhou Department Stores Surged "Split Tide"

As far as Tai Koo Hui and Wanda Group have been preparing for many years of operation, and are preparing to enter Guangzhou business with a number of 100 thousand square meters of Big Mac projects, a wave of strong theme shop breakout is rising in Guangzhou.

Following BELLE's footwear products from

"

"This is the result of market segmentation to a certain extent."

Luo Zhijie, Secretary General of Guangzhou business association, said.

At the present stage of business development in Guangzhou, it is necessary to break through the function of single selling clothes, and consumers need fresh and diversified choices.

These stores have fewer categories and fewer goods, but their decoration is quite different from others, and their location is very accurate. They are not targeted at all consumers, but targeted groups.

According to a reporter's survey, a department store with an area of 1-2 square meters, including men's wear, women's wear, cosmetics, footwear and so on, usually has more than 10 categories of commodities, which involve about 100-200 brand tenants, and their consumption audiences basically cover one family size.

And BELLE's "sidewalk" has 7000 square meters, category only shoes. NOVO marketing director Sun Mo also said, NOVO Guangzhou is good shop has 25 brands, but the category only involves leisure cowboy, Korean and Japanese women's shoes, casual wear three lines, consumers are also locked in the young audience.

"When I visited the United States, I saw many similar shops. Strictly speaking, it should be called professional shop format."

Xie Shiping said that compared to department stores, this kind of store is a combination of a large group of commodities in department stores, such as "sidewalks" are all selling shoes, toys, anti city is toys, silver is cosmetics, NOVO is an individual type of clothing, shoes and accessories, some are household, office supplies, etc., with similar positioning, but different brands in the store.

"China

Since the explosion of retail outlets in Guangzhou in 1996, leading to the fragmentation of retail formats, department stores began to "spin off" from the end of the last century in 90s.

The first wave of breakup appeared in the late 90s, and supermarkets, appliances, furniture and so on became the first form of divestiture.

Subsequently, the professional home appliances represented by Gome and Suning began to mature gradually.

The second wave division of the department store is a sports brand. In 2005, Tianhe City Sports Department in Tianhe City in Guangzhou organized the Tianhe Sports Camp to separate the sports brand goods from the specialized stores.

Meanwhile, BELLE's thin sports city began to expand in Guangdong.

At present, the winning Road, which has entered many shopping centers such as the good Plaza, is invested by the Yuyuan Industrial Group, which is invested by Taiwan Baocheng International Group, the largest footwear group in the world.

"The quicker commodity category first stripped department stores, but by 2008, wearing goods began to usher in the third wave of spin offs."

Huang Wenjie said.

Apart from shoes, clothing for men and women, casual wear and other wearable products, toy toys represented by toys and toys, such as children's clothing represented by Disney, cosmetic products represented by Sasa, thousand color shops and silk lotus, and even high-end jewelry, have also become the object of spin off.

{page_break}

Cost cutting

"Ordinary brands enter the market mostly in exclusive stores or in the form of counters in large department stores, but these traditional models have their own shortcomings, such as the high cost of operation and the difficulty of management, and a special counter will bring a large amount of rent and advertising costs."

Lu Jianbao, a Ph.D. in management and a senior lecturer in retail business at Zhongshan University, believes that professional shops like sidewalks and NOVO will save a lot of rent, advertising and management costs.

There is no doubt that the rising cost of retail channels is becoming a driving force for brand enterprises and distributors to promote channel reform.

One industry insider who has long been concerned about this field said that after China's department stores switched to the "joint discount point" mode, the role of the so-called department store in China was more like the landlord, so that the rent and business share became the operation mode. The lowest proportion of the discount was up to 20-30%. In addition, according to the different brands and different regions, the market rate of the shopping malls was different.

"Brand enterprises and agents sell goods in department stores, and their profits are usually less 1/3 than that of exclusive stores."

As department stores take charge of unified cash collection, their settlement and payment will take a certain amount of time, and will cause a certain amount of receivables, which will occupy the capital of brand enterprises and agents, resulting in an increase in costs.

A lot of inconvenience and disadvantageous factors in department stores have prompted some brand enterprises and agents holding resources to start changing channels.

Sun Mo said that the boss behind NOVO was the boss of Hongkong. Before creating NOVO, the company also represented other brands such as REPLAY, which had strong brand resources in cowboy products.

Besides the 4 brands of BELLE, Teenmix, she and Staccato, the sidewalk also has 19 proprietary and agent brands.

This has become a bargaining chip for these brand enterprises and agents.

"This format is also the best selling channel for some newly launched new brands to enhance their brand benefits."

Lu Jianbao said.

In order to maximize their own interests, department stores usually take the last knock-out system to remove the brand from the bottom of sales, and the emerging brands have no chance to cross the maturity stage.

According to incomplete statistics, in recent years, the proportion of new brands sold by shopping centers has reached 70%.

The widening of market channels will enable brand enterprises and agents to control the terminal and cash flow directly, and create space for cultivating new brands.

Because many brands and large scale rental shops can win more bargaining chips with owners, and the symbiosis between different brands, whether in marketing or subsequent profits, can produce marginal benefits of pulling each other, thereby shortening the incubation time of new brands.

Soft rib?

However, the segmentation of China's retail market is still at a stage of development and can not be achieved overnight.

In the development of professional stores, we should also pay attention to the difference between the location and other single product stores, the size of the stores, and the difference between them.

This is a topic that needs to be studied. "

People in the industry say that small stores will become a replica of large stores, with repeated resources and lack of competitiveness.

Prior to the Guangzhou good Plaza, the monsoon and Lily department stores also failed lessons.

"The competitiveness of this professional shop format needs to be further explored."

Huang Wenjie said that in order not to copy the replicas, this theme store needs to have its own products, such as buying a product by buying a buyer, or customizing some free and exclusive products to form differential competition.

However, Huang Wenjie believes that the network resources of retail channels need to be further developed, and the design team of brand enterprises should be further mature. The upstream supply chain still needs to be compressed. On the basis of this, the professional shop formats currently divestiture from department stores can not be formed into a production system similar to ZARA and H&M, which is the dominant link in the following circulation links. "In the future, professional shops in Guangzhou will gradually develop into the intermediate state of general merchandise and fast fashion."