Ningbo VS Qingdao - Price Rise, Department Store Strategy?

The story of Shuangcheng is originally the story of two cities in Paris and London during the French Revolution, described by British writer Charles Dickens.

Ningbo

Ningbo is called "Ningbo". It is located in the East China Sea, the southern wing of the economically developed Yangtze River Delta, adjacent to Shanghai and Hangzhou. It is a planned city in China's open city and enjoys provincial level economic management authority. It is a national historical and cultural city and a national excellent tourist city.

There are six districts in the city: Haishu, Jiangdong, Jiangbei, Yinzhou, Zhenhai and Beilun.

Ningbo's famous retail outlets include Tianyi Plaza, Wanda Plaza, golden light department store and new world.

Ningbo Oriental Shopping Center

In September 2006, the eastern commercial building came to Ningbo.

For the east commercial building, Ningbo people are no stranger to it. Their predecessor is the long hair commercial building, located on the East Zhongshan road of Ningbo, known as "the first street in East Zhejiang".

The location of shopping malls is characterized by fashion and taste, as well as the quality service of etiquette in the East. The target customers are successful people over 30 years old, including private business owners, and so on.

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Joint suppliers, shopping malls to make maximum profits

(Huang Yuguang, general manager of Dongfang commercial building, Ningbo)

Huang Yuguang does not deny that prices are rising and the cost of living is increasing. In fact, customers' expectations for shopping malls are higher. For example, last year's expectation is 40 percent off, and this year we may expect to hit 50 percent off, or wait for the shopping mall to produce the most vigorous activities.

As a matter of fact, at the end of the year, the mall will do some bigger profit making activities on the basis of the annual sales task.

In mid December, the eastern commercial building will usher in the biggest shopping festival of the year. Huang Yuguang said that to meet the market demand, this year's sales promotion must be increased, and the retail price will be lowered a little bit, so that consumers can enjoy the benefits.

But if shopping in stores, just waiting for the discount will only miss the fashionable new season, because the department store itself is a fashion industry.

Usually, the sales discount of shopping malls is the result of the joint profits of shopping malls and suppliers. Suppliers will generally consider a series of factors such as future promotions and so on, formulate a retail price, and then reduce the price through the discount activities with the shopping malls.

However, with the objective factors such as price rising this year, consumers are fighting for Taobao. Some customers even copy the number of a clothing brand of a shopping mall brand and search for Taobao. Some people admit that this will cause a great impact on department stores.

In this regard, Huang Yuguang does not seem to agree that the biggest difference between shopping malls and Taobao lies in the service and comfortable shopping environment, not just as simple as selling goods.

"Shopping is a kind of leisure enjoyment. Shopping in a comfortable environment can be tried on, and can get the advice of salesmen's collocation."

Huang Yuguang always believed that a good shopping environment can bring happy shopping.

After adjustment in recent years, many Oriental brands such as Rolex have been introduced into Oriental fashion shops.

But at the moment, with the arrival of the discount season in Europe and America, many people are flying abroad to do some shopping. Will it also affect the sale of high-end brand in some extent? Huang Yuguang first revealed that Rolex sales in this year's shopping malls were double the growth of last year.

"We have more confidence in the sale of international brands in shopping malls."

Huang Yuguang said that such confidence comes from the medium and high-end shopping environment that the market has cultivated over the years, so that customers can acquire the habit of regular buying.

On the other hand, Huang Yuguang said that because of the 54 order issued by the General Administration of customs, more than 5000 yuan will be imposed on customs duties, and overseas purchases of tens of thousands of dollars in international cards. The cost of conversion will be comparable to that in domestic counters. The policy impact of the great environment may have eliminated some of the citizens' plans to go abroad.

Qingdao

Qingdao is an important economic center city and open coastal city in China. It is a famous historical and cultural city and a famous tourist attraction in China and abroad.

Investment, export and consumption are the three carriages to promote economic growth.

At present, Qingdao has formed 5 municipal commercial centers, namely, Zhongshan Road, Hongkong Middle Road, Taitung, Licang and Xiangjiang Road. Its commercial layout is becoming more reasonable and its format has been gradually improved.

WAL-MART, France, Carrefour, Britain, B&Q, Japan, B&Q, Germany, Metro and so on, 18 world top 500 and famous domestic and foreign enterprises have settled down. Foreign commercial capital accounts for 8.8% of the total retail sales in the city.

Qingdao Liqun commercial building

In the competitive retail format of Qingdao, Liqun commercial building is regarded as an old shopping mall.

It has been 16 years since its establishment in 1994.

At the beginning of this month, the shopping center just finished 16th anniversary celebrates, and talked about the four day's performance. Urina, deputy general manager of the shopping mall, was satisfied.

Before the interview, she gave reporters a number of shopping malls: the mall opened in 1994 and has been there for 16 years.

The shopping center area is 28 thousand square meters. According to the statistics of last year, the whole shopping mall, including supermarkets, has achieved an annual sales of 1 billion 500 million yuan.

If we put this achievement in Ningbo, it is also very competitive.

Adjust the overall sales promotion to meet the market demand.

(Urina, deputy general manager of Liqun commercial building, Qingdao)

Urina said that the positioning of shopping malls directly determines the ability to resist the rising prices.

Liqun commercial building is a mid-level department store. After years of continuous adjustment, today's mid market brands account for 60%, and high-end brands account for 20%-30%.

"This proportion is more in line with the tastes of consumers.

Therefore, the impact of price increases on shopping malls is not too obvious.

And Urina said the impact is not very obvious because the mall in addition to department stores, there is the existence of self run supermarkets, supermarkets in the entire shopping malls accounted for 40% of the total.

In the whole city of Qingdao, there are 34 stores in the supermarket run by Liqun commercial building, and each store has an area of two thousand or three thousand square meters.

Because it is a self run supermarket, and has its own purchasing base and group purchasing center, therefore, despite the competition of supermarkets such as WAL-MART nearby, it still can keep low price marketing and digest the cost of price rise.

At the purchasing base of Liqun supermarket, we always pport the most fresh vegetables directly from the purchasing base to the supermarket without any additional purchase cost.

On the other hand, the group procurement center is equal to getting goods from its headquarters and ensuring low prices.

In addition, it also has its own logistics distribution center, which will reduce the circulation cost and ensure the normal operation of the market price mechanism.

Due to the rising price of raw materials such as cotton, and the difficulty of recruiting workers by brands, the cost of labor increased, and the price of clothing rose.

As for the price increase, customers certainly have their own feelings. Judging from the sales situation of autumn and winter sales of new cabinet this year, many salesmen reflect that selling has become hard.

"Before customers pay more money, now the mentality of wait-and-see seems to be heavier. Some customers even need to wait a while, because they know that there will be a big discount when they are celebrating, and they will become a bit slow."

Therefore, Urina said that although some salesmen worked hard to promote sales, they did not pay customers to pay the bill.

In fact, from the second half of last year, this rational shopping situation has been highlighted.

Therefore, it is difficult to control the goods in department stores from price.

In this regard, our sales promotion this year is more frequent, especially in the 2-3 months before the arrival of some major festivals, we communicate with suppliers to ensure exclusive support in this holiday promotion.

For Liqun commercial building, it has trained 150 thousand loyal customers over the past decade, and also made shopping malls full of competitiveness in the market.