Hangzhou Yintai Department PK Yintai Network: Low Price Exploration Is Not Afraid Of Hedging

Yintai:

400 yuan perfume in the mall, 250 yuan online, 399 yuan sweater in the mall, 199 yuan online.

Reporters found that compared with the physical store, the promotion of Yintai network was faster and more ruthless: from a few days ago,

Low price exploration

After visiting Yintai network several times, the reporters found that the price advantage of Yintai network is indeed more obvious than that of Yintai department store. There are few discount items in the mall, such as cosmetics and footwear products. There are not a small discount on Yintai network, and the sales promotion content is very fast.

BACK, a netizen keen on brand name shopping, told reporters that online shopping, especially luxury shopping, is nothing but low price and reliability.

Yintai network just can satisfy these two points. Before the new year, she bought a set of nearly 10000 yuan outfit for the activities of Yintai network. After a few days, she received the electronic coupons issued by Yintai net, which could be used in the whole field.

It is understood that the traditional retail industry is limited to sites, the number of single store brands is not more than 600, and there is no such restriction on the Internet.

Despite the current situation, Yintai network can not compare with the richness of its brand or the variety of its products, but according to Yintai's plan, by the end of 2011, the number of online brands will exceed that of Yintai department store, reaching more than 1000.

This is also the advantage of Yintai network than Yintai department store.

For consumers, more brand choices, richer varieties, and superior prices will also become an important reason for their order.

Fear of hedging

Compared to the price system that stimulates the nerves, plus consumers' interest in the brand of "Yintai department store", it allows the Yintai network, which was formally launched on October last year, to win a city: a person in charge of Yintai network told reporters that at the end of December last year, it had only managed to operate the Yintai network less than 3 months ago, and the daily order volume has passed 10000, with an average customer price of nearly 500 yuan.

In recent hot luxury (middle and high-end) e-commerce websites, this achievement has thrown away many similar competitors.

It is understood that many luxury goods sales websites have been running for more than 2 years, and the daily sales volume is only 1000.

Whether the Yintai network will attack the city quickly will make it become a double-edged sword: it will kill a blood route in today's fiercely competitive department store, while on the other side, it may cut its own sibling, intime department store.

A market leader at Yintai network said that many people were worried that they were worried before they did market research.

However, "the attitude of Yintai group is the price conflict that everyone is worried about. If the website has the ability, it will shock."

It is understood that in order to talk about the next few brands that have never been sold in domestic websites, Shen Guojun, chairman of the board, flew to Europe several times to negotiate with the brand dealers about online sales. Therefore, we saw PRADA, saw Ferragamo, saw GUCCI, MIUMIU...

And see that they are much lower than the sales price of the mall.

From this point, we can see that Yintai group's support for Yintai network is quite large.

In Yintai group, Yintai department store and Yintai network are two completely independent systems. Apart from attracting investment through the popularity of "Yintai" brand, the two companies do not coincide in promotion mode, promotion time or promotion content.

According to the data provided by Yintai network, the number of customers in Jiangsu and Zhejiang provinces is quite prominent. Inevitably, consumers will be diverted from the stores.

However, Yintai group obviously does not care about this. "It is inevitable that the business under the shunting line is inevitable. But on the other hand, even if we do not have the business of Yintai department, there will be other department stores to grab the market share.

In addition, Yintai itself will open a new department store, and it will also divert the existing department store business.

Instead of letting other department stores grab this cake, we should grab it ourselves.

Yintai network responsible person told reporters.

"Double track" to expand the city

In November 11th last year, Taobao mall launched the 50 percent off promotion of the whole market. On the same day, Taobao mall created a sales miracle of ten thousand yuan per second, while the highest single store sale in the department store was 120 million yuan in 2009.

"E-commerce breaks through the restrictions of counters and regions, whether the number of consumers or the efficiency of order settlement is incomparable to that of physical stores, which determines that their consumption potential is far greater than that of physical stores. This is also why traditional retailers are eager to try e-commerce."

An insider analysis.

Reporters have learned that Yintai online has been operating for 5 months. Currently, most of the consumers who come to shopping websites are mainly developed coastal areas, and most of them are in the Pearl River Delta, the Yangtze River Delta and Beijing.

In the future planning of Yintai department store, there are three strategic layout: Yintai department store, city complex, Yintai network, that is to say, intime will be "three legged" walking, online and offline "double track development". From this point of view, Yintai group focuses on building e-commerce, in addition to grabbing the increasingly vigorous online market, it also has the meaning of "asking for directions": let Yintai network collect infirmary data for Yintai entity store in strange cities.

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Many retailers say they are optimistic about the future of traditional department stores in e-commerce.

Hangzhou Tower responsible person said, online shopping groups are expanding, the common point of these groups is to have free time, willing to accept new attempts, including a small proportion of the crowd and considerable consumption power.

This part of the population is precisely the "new customer group" that the traditional department stores want to win. The average passenger price of Hangzhou Tower last year was 2000 yuan. If we can turn the advantage of the physical store to the network, its revenue is immeasurable.

"There is no way to expand the physical stores in traditional department stores, especially in the field of e-commerce.

There will not be much investment in building an online shopping mall, but the profit is not small. The huge customer resources of online shopping mall will also become a new wealth.

A shopping mall official said.

It is understood that in the short 5 months of the on-line operation of Yintai network, there are more than 30 registered customers. Such a large number of customer groups will take at least a few years to complete the accumulation of traditional department stores.

According to the latest data from Yintai department store, the average passenger price of Yinlin store in Yintai department was 900 yuan in the past February, which has increased since the beginning of the year, and the price of this customer is far behind the start of Yintai network. "The entity store and online store will interact with each other besides competition, and do not exclude the possibility that online shops bring guests to the physical store, especially the foreign guests."

A floor manager who has worked in Yintai department for many years said that at the moment, it did not feel the impact of Yintai network on the inbound stores of Yintai department store. First, the cake in the retail market is constantly expanding, and everyone is eating "increments".

On the other hand, traditional retail businesses also have "short legs" for e-commerce, such as ensuring the quality of goods, avoiding pportation risks, and having assured after-sale services.

In addition, how to achieve differentiated development between online stores and offline shopping malls is also a problem facing the traditional retail businesses of Yintai network and all those who want to get a share in the wider world.