Department Stores Want To Restart The "Buying System"

"At present, the net profit of department stores is less than 5%."

Huang Yongzhi, general manager of Guang Bai shares, said in an interview with reporters that on the one hand, property rents and labor costs are getting higher and higher.

In addition, many suppliers now have many brands on hand, the ability to bid prices for department stores is increasing, and the profit margins for department stores are getting smaller and smaller.

Industry experts also pointed out that the mode of joint pooling also led to serious homogenization of domestic brands and commodities in department stores.

According to the analysis, it is hoped that through the department store to expand its brand name and market share, it will choose as many shopping malls as possible to improve its exposure to consumers.

On the other hand,

"Under the homogenization, department stores frequently fight for discount, which also squeezes the profit margins of department stores."

Terms of settlement:

Increase the proportion of self purchase and sale

Therefore, in order to solve the current situation of profit being diluted, we must gradually increase the proportion of self purchase and sale, and hire "buyers" to purchase commodities.

"Although it is very hard to pfer to self purchase and sale, it is necessary to take this step, otherwise it will always be led by the real estate developers and brands, and will not be competitive."

However, Huang Yongzhi also stressed that the chain development of department stores is particularly important if we want to talk with the production enterprises.

Huang Yongzhi said that taking the way of brand agency, direct purchase or buyout of products, bundling strategic brand with the development of department stores will help improve the profitability of department stores.

It was revealed that

According to the introduction, foreign department stores still use self purchase and marketing mode. Shopping malls have professional buyers to purchase goods from all over the world directly, especially with their own brands to order fashionable and personalized products.

But the rewards are high and the risks are high.

For department stores, the use of joint point deduction mode will only affect their income but not lose money.

Moreover, most department stores will use the performance elimination system, that is, the lowest performance will be eliminated, so as to stimulate brand companies to try their best to improve sales.

However, if department stores spend money on goods purchased, they will lose money if they sell poorly or do not sell. Therefore, merchandising is a test of the ability of department stores to buy buyers.