Department Stores Focus On Online Stores: The Internet Takes Away Those Guests.

On the day of November 11th, the floor staff of most shopping malls in Hangzhou were all dispatched, searching for a special store in the mall, and having a brand of online shops in Taobao mall. It took quite a long time to compare and analyze all the goods in the network shop and the goods in the physical store.

This is probably the first time that department stores began to treat Internet consumption seriously since Taobao became popular.

"Taobao made 900 million yuan in one breath, we dare not look down on it, so we made a whole series comparison of all the brands and products in the physical store, and asked the senior manager to identify the goods in person."

A store manager, who asked not to be named, said.

He compared about 15 leisure sports brands, and found that most of the products were in 2008 or two years ago. A small number of stores even had goods in 2006 and 2007, while in 2009, the goods were relatively small, while the new products in 2010 were very few even in the first half of 2010.

The official said, because most of the goods are off season, they will never appear in the department store counters.

Another woman shoe store manager also compared the online shops and physical store shops, and later found that part of the online shop was 2007-2008 quarter of the season, while the other part was "special".

What is the "special fund"? "Many brands will have another production line for the network, which is different from the design and the material of the cortex, and of course, the price is much cheaper than that of the physical store.

The store manager said.

"Brand can not easily put the new season's goods on the Internet, so that new products will be directly discounted without money, and secondly, they will be pushed out by 100 stores and lack the share of physical stores. Unless it is the same store as UNIQLO, the department stores will not exert pressure."

Insiders say.

Who are the guests in Taobao mall?

Then, will the Taobao store open up online stores on the brand in department stores and take away customers from department stores?

It is false to say "no", but to different guests, the degree of influence is different.

The head of a department store said that the department stores are more sensitive to discounts and do not care if new customers will be snatched away by Taobao. They will choose between shopping promotion and Taobao shopping.

However, very fashionable guests are hard to shake, "because they will compare the difference between new and seasonal goods," the staff said. When the shopping mall was greatly promoted, the new product could also be given a 50 percent off discount.

Moreover, going to the department store to buy things will be able to get the goods on the spot. It will take 1-2 days to purchase from the Taobao mall, from the order to the delivery, plus the latest express delivery from time to time, the buyer must wait a while to get the goods, and there are also many inconveniences.

The more frequent promotions, the easier it is to be affected.

Although the fashionable guests are not easy to be affected, will the performance of the department store be affected by the aggressive Taobao mall?

From the brand's point of view, if the design ability is strong, a large number of new products will be produced every season, and the sales of physical stores will not be affected by online shops.

Conversely, if the new models of each season are almost the same, once the online shops sell over the quarter, the impact on the physical stores will be relatively large.

There is a leisure brand that opened shop in Taobao mall last year. The highest daily sales on the Internet can reach 3 million yuan, and sales are good this year. However, the performance of department stores is declining at a rate of 10% per year. The most recent sales increase was only about half of that of last year.

"Although Internet sales are very tempting, it is not cost-effective to sell online stores and lose the image of a physical store."

The person in charge of shopping mall said this is an individual phenomenon, but it can explain the problem.

Department stores responsible person analysis, Taobao mall also forced department stores to "move forward", which means that in the future, the more frequent promotions, the more vulnerable, because price sensitive customers will be more vulnerable to Taobao's low price temptation, who has more fashionable customers, who can avoid confrontation with online stores.