Guangdong Department Store "Two Roads" Jedi Counterattack Into The Electricity Supplier

In the field of e-commerce, Guangdong has always been a hot city. Department store Enterprises are brewing a new change, and want to get rid of the qualitative thinking of "supplement or service extension" only as a physical store, and derive two modes of innovation and Innovation: establishing an independent operation company and adopting an interactive business mode, trying to find a breakthrough in the online shopping blue ocean.

The former is represented by Guang Bai shares. A few days ago, the reporter learned exclusively that Guang Bai plans to invest more than 30 million yuan this year to set up an online shopping mall which is independent of the physical store. Electronic Commerce The company is expected to start operation at the end of April.

The latter is represented by Guangzhou friendship and Wangfujing, which is trying to get suppliers to enter e-commerce with the mode of "linkage business". Ma Ruiguang, President of Yim international consultant, said that Taobao, Jingdong, and customers are among the market share. Dangdang When Internet giants are constantly nibbling, the traditional department store reform is inevitable.

Phenomenon

Guangdong Department Store's "two roads" Jedi counterattack

A few years ago, when the online shopping wave struck, the traditional department store "touches the net" was an active positive attempt. Today, a number of mainstream department stores in Guangdong once again focus on online shopping business, which is more like a passive Jedi counter attack.

"In this case, the traditional retailers should understand what the business providers want to do, whether they are a supplement to the physical store or the electricity supplier as an important source of the company's sales structure. If they think they are in line with their own development strategy, they should be a new format after department stores, supermarkets and shopping centers. Guang Bai Yan, deputy general manager and chief operating officer of Guang Bai shares, said that the independent e-commerce company established by the company will operate at the end of April. It will set up a set of independent entity store operation structure, including market research, sales, customer service, website promotion and operation, product development, warehousing, packaging, logistics, delivery, financial monitoring and other links. Kang Xiaoyan emphasized that traditional retailers should have the "Internet gene" instead of simply moving from the traditional entity store structure to the online store. It is reported that the investment of Guang Bai e-commerce company is about 30000000 yuan, and will continue to be invested with the deepening of operation.

It is understood that another form of counterattack in traditional department stores is the "joint mode" of joint supplier resources. This model is somewhat similar to the popular online shopping mode of "heterogeneous business", that is, retailers sign multiple alliance suppliers, and consumers will be able to get the same benefits from online shopping as they consume in the physical store counters of alliance merchants. For example, consumers spend 1000 yuan on the signing of the business entity shoppers shopping, can get 1000 points, points can be bought online or replace the same points of goods. Jiang Guoyuan, deputy general manager of Guangzhou friendship, pointed out that in addition to serving as a physical store, friendship online shopping mall will be the direction of the online shopping mall operation mode.

Li Xuerong, a senior researcher at CIC, said that the linkage mode of retailers can be seen as a B2B, B2C e-commerce system integrating the member marketing settlement system and intelligent media release system. This mode enables consumers to buy goods with double value and attract more consumers to become their members. On the other hand, it solves the problem of buying cheap stores on the cheap, and through linkage promotion, the entity stores also have the function of online stores. In addition, it will help businessmen to conduct market analysis and positioning of members' consumption behavior, help alliance businesses develop new customers and retain old customers. This mode will achieve win-win situation for both buyers and sellers.

Cause

Net business profits rich and encroach on department stores.

According to the latest data from China Electronic Commerce Research Center, the scale of online retail market spanactions in 2010 reached 513 billion 100 million yuan, an increase of 97.3% over the same period last year, nearly doubled from 2009, accounting for 3% of the total retail sales of social commodities in the whole year, and this proportion is expected to soar to 30% in the next 10 years. In the retail industry, online retail has maintained a much higher growth rate than physical retail, and the domain of traditional department stores has been eroded.

Reporters learned that at present, including Jingdong mall, Dangdang, and so on, many of the original operators of digital, book products, network operators, have expanded the scope of business, to carry out department stores business; originally clothing and other department store business of fan Ke pin, its new clothing e-commerce website V+ has also been on-line, and the boss has more than once raised the sales expectations.

Because domestic department stores generally adopt the business mode of joint point deduction, the phenomenon of brand homogenization is serious, and the price war is becoming more and more intense in the retail field, which has led to the further compression of the business profits of department stores. This is evident from the 2010 annual report released by the listed retailers recently. "Under this background, online shopping seems to be no longer a supplement to dispensable business entities, but a new profit growth point that can be excavated by traditional department stores." Pei Liang, Secretary General of the China Chain Store Association, said that traditional retail businesses are keen to collect passage fees and take the mode of brand joint operation as a point of deduction. This mode has led to the traditional retail enterprises losing their pricing power, and the traditional retail enterprises' gross profit has continued to decline, which has also lost their operational capacity in the past.

However, reporters learned from the China chain top 100 list published by China Chain Store Association in 2010 that 34 enterprises have launched their own online stores, but the sales scale is only about 3 billion yuan. This is only the sales volume of every guest company last year, and it is not the 1/3 of Jingdong mall. Although the top 100 businesses such as Wangfujing department store, Yintai department store, Guang Bai, Guangzhou friendship, Xidan shopping center and Zhongyou department store have opened online shopping centers, there is still a significant gap between the online businesses of traditional businesses and the entity store businesses.

In the reform of the electricity supplier, intime department store took the lead and set up the independent entity store's e-commerce company. It is reported that less than 3 months after its establishment, its daily orders exceeded 10 thousand orders, and its daily sales exceeded 4 million yuan. The success of the restructuring also saw the dawn of reform in Guangdong's department stores. Insiders also lamented that 10 years ago, the expansion of retail chains brought about changes and baptism in the retail industry. Today, the battle between customers of traditional department stores and shopping websites has become the two revolution of the retail industry. {page_break}

Industry

Traditional models cannot be copied.

In the past, it has been held that the traditional department store industry has extended its brand and resource integration capability to e-commerce over the years. It has a huge "spillover effect" in terms of brand awareness, reputation, customers, supply chain resource integration, procurement and so on, which is more advantageous than the pure B2C website that starts from scratch. But attempts over the past few years show that it seems difficult to combine the power of traditional department stores with the Internet and form new competitiveness.

"It is important that traditional retailers have the 'Internet gene', which is rapidly responding to Internet sales." Ma Ruiguang pointed out that traditional retail businesses tend to place the electricity supplier department under the marketing department or marketing department, or as a channel, to digest inventory and over season goods, thus inevitably falling into the traditional mode of copying to the network. The two platforms under the online and offline platforms and the same set of traders are inevitable. "This will result in two major conflicts: first, price conflicts, and online prices are generally low, which will have an impact on the sales of their stores; two, regional conflicts and unbounded electricity providers. The online business of A City stores will grab consumers in the B provincial market. The more serious injury is that there is no inventory in the joint shopping mall, and it is difficult to respond quickly to the dynamic orders from the Internet, which can not guarantee delivery and greatly affect the shopping experience.

Kang Xiaoyan also pointed out that e-commerce is not just a network spanaction, but also a comprehensive business activity carried out by the Internet. For e-commerce in department stores, e-commerce strategy planning, e-business process reengineering, e-commerce mode selection, and business process strategy with e-commerce must be carried out first. It is not only a professional executive team who is familiar with the operation of the electricity supplier, but also set up independent departmental structure of research, finance, production, customer service, material distribution and so on.

In addition, unlike the traditional department stores, the source of the Guangzhou 100 network has been purchased independently, sold off and co operated with suppliers. "Department stores have self employment in household appliances, but the electricity supplier has added clothing, cosmetics and other categories to ensure the quality of products." Kang Xiaoyan said that this is the most basic standard configuration for a website dedicated to B2C proprietary mode.

Prediction

It is inevitable for e-commerce to occupy one seat.

For the future electricity supplier field, whether the traditional retail department can occupy a seat, Ma Ruiguang said this is an inevitable trend. In Europe and America, most large online retailers are not Internet start-ups, but traditional stores or mail order groups. For example, in the United States, the traditional department stores operate 60% of e-commerce platforms, and believe that this situation will also appear in China.

Kang Xiao Yan also believes that the traditional retail industry is expected to occupy half of the electricity supplier in the future. First, in terms of financial strength, department stores have advantages, and pure B2C websites are mostly driven by venture capital financing expansion, which is easy to be tied down. Secondly, the B2C website relies on the Internet to spend large sums of money to attract customers, and its advertising cost even accounts for 6~7 of the operating cost. Once the advertising is stopped, the order quantity will immediately decline; instead, the department stores will take advantage of its accumulated brand influence for many years, and the user conversion rate will be higher and the cost of acquisition will be lower.

In addition, the department store has the function of attack, defense, extension and sticky. In terms of "attack", some competitive commodities can be used to deter competitors. In terms of "prevention", the general merchandise industry's current business form, customers and market share remain stable. In terms of "extension" and "sticky", reliable business circle radiations and membership card points increase customer stickiness.