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    Advantages And Disadvantages? Scrutinize Traditional Department Stores Vigorously

    2011/5/23 10:01:00 161

    Department Store E-Commerce


     

     


    With online shopping online

    Marketing

    The continuous extension of the front line, the whole industry boom has been ignored tradition.

    department stores

    At the same time, they began to worry about being online spectators, and the rapid development of e-commerce made the traditional industry giants begin to re-examine the value of this channel.

    Kwan Xiaoyan, chief operating officer of Limited by Share Ltd, a department store giant, said recently that since 2009, after studying and trying on the Internet platform, Guang Bai has set up an independent branch to test water e-commerce this year.


      

    Department store

    What are the difficulties and challenges that the retail industry will face in the e-commerce system? Will the promotion of e-business reverse the current consumption pattern of physical stores? How can the subdivision area of the department store easily control the Internet? Recently, the reporter interviewed Kang Xiaoyan, chief operating officer of Limited by Share Ltd, and invited Wang Qingxian, director of the Institute of circulation economics of Guangdong University of Business (RICE), taking the example of Guang Bai e-commerce as an example to analyze the current situation and Prospect of the traditional department store e-commerce operation mode in detail.


    Market direct attack


    Huge potential market with uncertain trend


    According to statistics, two hundred million people in China have experienced online shopping.

    Compared with the total retail sales of consumer goods, the share of online sales is still limited, but its rapid growth has made it impossible for traditional department stores.

    By the end of December 2010, the scale of online retail trading reached 513 billion 100 million yuan, an increase of 97.3% over the same period last year.

    In the entire retail industry, online retail has maintained a much higher growth rate than physical retail.


    China's e-commerce research center also predicts that in the next two years, the volume of China's online retail market is expected to exceed trillion yuan per year, accounting for more than 5% of the total retail sales of social commodities.

    Although currently the top 10 retailers in China are pure network retailers, the traditional department store network is the general trend.

    Following the launch of intime department store in November last year, Guang Bai officially joined the operation of e-commerce at the end of April this year. Its chief operating officer, Kang Xiaoyan, said that the move was aimed at seizing the opportunity of the online shopping market.


    Advantage brands and logistics warehousing have strength.


    Compared with the pure online retailers, the traditional retail enterprises have two advantages: brand and logistics warehousing and distribution.

    The products provided by the huge supply chain in physical department stores can not only ensure that online shopping consumers have more adequate choice of goods and opportunities, but also guarantee the quality of goods.

    In addition, in the construction of logistics system, department stores have stronger warehousing strength than pure online sales outlets.


    According to Kang Xiaoyan, on the one hand, the advantage of online and offline interaction is to reduce the cost of brand promotion. On the other hand, unlimited network space will fill the limitations of the limited physical space brand management, and put more fashionable and younger products into the network stores, filling the blank of the 100 entities stores, forming complementary goods with the physical stores, and reshaping the comprehensive and comprehensive image positioning.


    The lack of talents and the restriction of the old and old operations are the constraints.


    Professional work requires professional talents, and the development of e-commerce system needs in-depth understanding of enterprise information and product information, such as how to draw up a complete membership management system, how to manage and attract members and retain members.

    Because the members of the website are the wealth and resources of the e-commerce website, and also the potential consumers of the target customers.

    The team understands the target customers, has the specialized personnel to the website technology and the function unceasing improvement, enhances the user experience degree, can guarantee and expand the consumer group.


    Kang Xiaoyan said that if you want to do well in e-commerce, there is no doubt that you need to attract and attract people. But at present, the development speed of the e-commerce industry is much higher than that of its talents, resulting in the tension of talent demand, which is a big thorny problem they are facing at present.

    In addition, how to change the complicated and complex traditional department store operation process under the requirement of fast and effective Internet is also an important problem for its team to solve.


    Operation is expected to exceed 1 hundred million in 2012.


      


     

     


    The 100 million independent e-commerce company operated at the end of April this year, and set up an independent entity store operation structure, which is operated by professional executive team personnel. It is equipped with independent departmental research, finance, production, customer service, material distribution and other departments.


    Kang Xiaoyan emphasized that the professional management team of Guang Bai has been studying how the traditional retailers can grasp the "Internet gene" instead of simply moving from the traditional entity store structure to the online store.

    Through many years of exploration and understanding, finally, the model of electronic commerce is positioned as a comprehensive platform.

    It is reported that the investment of Guangzhou electronic commerce company has reached about 30000000 yuan, and investment will continue to exceed 1 hundred million in 2012.

    {page_break}


    Traditional department store E-commerce


    Internet wide web site: http://www.Igrandbuy.com


    In the end of April 2011, a hundred e-commerce businesses were formally put into operation. In order to avoid being trapped in the traditional mode of copying to the Internet, an independent branch was set up to take over e-commerce online.

    Professional teams and talents make the Internet not only simply pfer from the traditional entity store structure to the online store, but also take the initiative of buying, selling and sharing with suppliers to break the limitations of market brand and regional operation.


    On the Internet, consumers can not only find the brand and resources of the store, but also find the fashion and avant-garde brands which can not be seen in the 100 stores.

    In addition to enjoying the service of the entity store members, there are more intelligent services on the Internet, such as free online ordering of high-speed rail tickets.


    Wangfujing department store website: http://www.Goonow.Com


    As a large sales group with 19 stores, 12 billion annual sales and 14 main cities in the country, Wangfujing department store is a typical example of the industry in terms of technological innovation.

    Wangfujing department store has been involved in the online shopping mall since 2007, and has entered the "e-commerce" mode to enter e-commerce, basically maintaining an annual turnover of 50%.


    Online friendship website: http://www.Sdrzyy.cn


    Online friendship is another traditional department store that moves into e-commerce with "linkage mode".

    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.


    Intime department store online shopping website: http://www.Yintaigouwu.com


      


     

     


    Inline online shopping mall, which was launched in November 2010, is a large-scale B2C e-commerce platform focused on boutique fashion department stores.

    The products and brands of Yintai online are in line with the store. Every day, tens of thousands of single brands including clothing, cosmetics, shoes and hats, bags and luxury goods are sold in the more than 200 brands.


    Viewpoints


    Wang Xianqing (director of R ICE) of Guangdong University of Business, director of Guangdong business research center of Guangdong University of Business, director of key research base of modern circulation of Humanities and Social Sciences in Guangzhou, and Guangzhou Municipal People's government decision consultation expert.


    It is difficult for traditional department stores to enter e-commerce.


    The biggest advantage of traditional department stores in developing e-commerce is that they have already formed existing purchasing channels, stable customer groups, mature after-sales service systems, and physical stores with certain brand influence.

    The disadvantage is that it has two different operation modes and formats, electronic commerce is the rule of department stores, and e-commerce is another rule.

    The development of e-commerce in department stores not only has the confusion of format adjustment, but also has many factors such as professional technology, capital and operation mode.

    This is why the development of e-commerce in department stores is seldom successful.


    An important project of pformation and upgrading of enterprises


    Guang Bai is the largest commercial leading enterprise in Guangzhou. Its traditional businesses are department stores, specialized markets and logistics pportation, all of which are entity store businesses.

    Under the condition of modern information technology, an important aspect of upgrading and pformation of traditional commercial enterprises is the introduction of e-commerce, which enables traditional businesses to graft e-commerce and become an integral part of modern service industry.

    Therefore, Guang Bai's entry into the electronic commerce field is an important project for the pformation and upgrading of enterprises. It will play a good role in promoting and promoting the pformation and upgrading of Guangzhou's commercial enterprises, and it will also play an exemplary role in Guangzhou's modernization of Commerce and trade.


    There will be no big impact on the store.


    The promotion of e-commerce will promote the original consumer groups. Some of them will shift from physical store shopping to online shopping, thus changing the consumption patterns of some customers.

    But in general, it will not cause a big impact on the physical store. Instead, it may promote the development of the entity store business, because it can expand the influence and service ability of the enterprise through the organic integration of the Internet and Internet, so as to attract more guests.


    The traditional department store has a tendency to touch the net, but we should pay attention to the three points. First, we should give full play to the advantages and characteristics of the original formats. Two, we should gradually develop step by step through trial trials, and not be too hasty. Three, we should choose the development direction and fields of e-commerce rationally, and should not push forward comprehensively. We should highlight the key points and choose the appropriate development mode.

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