How Far Can A "007" Department Store Without Brand Name Go?

Pure department store appearance

In China, the original commercial "0 rent, 0 deduction rate, 7 days one checkout" mode of pure copy.

Although the preparation time is not long, with the "0 rent, 0 deduction rate, 7 days one checkout" mode of operation, the pure department store, holding the banner of "pure cost selling department stores", has made a successful start in 61 last week.

Yesterday, Zhang Rundong, vice president of pure department store, told reporters that the sales performance of the mall was more than 6 million yuan per day.

This sales performance is among the best in several shopping malls opened in Beijing.

But a good start is only half the battle.

"The mall has just opened, and there are a lot of things to solve."

Just last night, a chief executive of the department store was still consulting about the problems encountered after the shopping mall was unveiled.

In the industry's view, the price range of pure department stores is lower, the discount rate is bigger, and the low promise of shopping malls is fulfilled. But depending on the price to win the "eyeball effect", it is still unknown whether the pure department store can get the continuous favor of consumers.

Just second days after the opening of the shopping mall, the reporters interviewed found that although it was the peak shopping period of the general shopping mall, the passenger flow in the shopping mall was sparse.

Reporters stayed at the main entrance for 10 minutes, and only more than 10 customers entered the store.

At the same time, there are not many customers who settle accounts in the cash register.

Reporters noted that only a few counters, such as "Nike 50 percent off, second double 60 percent off", gathered more consumers.

How advanced is the "007" model?

"Pure department store's original intention is to break the traditional department store's price model." Hu Naipu, vice president of pure department store, who served as a senior executive at Seth, SOGO, Oriental Oriental outlets, has publicly stated that the current department stores generally have hidden rules such as high rate of deduction, long account period, and full promotion cost.

It has been revealed that the commodity has experienced many links from the factory to the shopping mall. The common process is: the clothing manufacturer - the general agent - the regional agent - the distributor - the shopping mall, which has raised the retail price of the commodity.

"At a price of $100, only 50 yuan is the value of the commodity itself, and the remaining half price is in the supply chain of" feeding "commodity circulation channels.

The pure department store's "0 rent, 0 deduction rate, 7 days checkout" mode of "007" cuts off the multiple agency links of traditional department stores, allowing manufacturers to directly face consumers, thereby achieving a final retail price decline.

Hu Naipu said that there are two kinds of clothing brands sold in pure department stores: one is well-known brands that are familiar to everyone, these brands carry out national unified prices and participate in promotional activities of shopping malls; another kind of brand is generally known, but the quality is equivalent to the mid-range brands of traditional department stores, and the "pure department store recommendation 007" mode is supported, but the retail price must be wholesale price, which is equivalent to about 65% off of the same commodity.

Hu Naipu said that pure department stores charge paction fees for different commodities, ranging from 5 yuan / piece to 35 yuan / piece, which constitutes a profit model of shopping malls.

How far can a brand-name department store go?

Liu Hui, a business consultant, thinks that pure department stores only get a fixed amount of money from each sale of goods from the point of profit sharing with the brand association and the cost of exemption from promotion.

With the increase of commodity prices, the amount of extraction is also increasing.

In Liu Hui's view, the shopping mall operated by this mode is more like a wholesale department store.

Because of the lower price range and the limited profit of single products, if we want to build a business base in Beijing, we need to gather a large number of well-known brands to attract larger passenger groups and get huge trading volume.

However, pure department stores do not seem to be "cold" for famous brands.

According to the pure department stores, Nike, Adidas, BELLE and other well-known brands only occupy about 20% of the business area of the mall, the remaining area of nearly 40 thousand square meters is Guangdong, Fujian and other areas of the brand.

Although many of these manufacturers have been international brand foundry companies, these brands are relatively unfamiliar to consumers in Beijing.

Some consumers said that the brand in the shopping mall is not common, and the price of goods is 30% of the market price, which is hard to verify.

Reporters visited also found that pure department stores are still in semi finished products.

Until the mall opened for second days, there were still wooden staircases for construction at the carver counter. There were many urinals in one bathroom which could not be used. In a glasses counter, Ray-Ban, Baozi and other big signboards had been hung out, but the commodities of these brands were still not in place.

In addition, Hu Naipu, a professional manager of a pure department store trader, had done excellent marketing offensive before he took office as an active manager of Oriental Orient, so that the shopping mall realized a business miracle of over 100 thousand yuan per day and a sale of over ten million yuan at the beginning of its opening.

However, when the opening of the business gradually subsided, the sales performance of Oriental Oriental outlets began to decline.

The pure department store has a long way to go to avoid "flash in the pan" and realize the promise of "48 stores in the whole country in 5 years".