Traditional Department Stores Enter E-Commerce &Nbsp, And Want To Share A Trillion Yuan Market Share.

Recently, the store network has been extended to the new world of the whole country. Department store At last online shopping The field is "coming late" and has launched its e-commerce platform. Just a few days ago, regional department store giant Wan also announced that it had formally established a branch in April this year to operate online business independently. Within one week, the two major regional chains have entered e-commerce in different ways. Wangfujing department store Xidan Market And Beijing's three major local listed department stores in Beijing are also planning to upgrade the "touches" plan, hoping to occupy more market share of trillion yuan "big cake" for online shopping in the future. However, at present, the top ten e-commerce operators in China are pure network retailers. In the traditional retail sector, there are many difficulties in the department store brand.

Large regional department stores have "touch the net" one after another.

With the continuous development of marketing links, the new world department store, which has dozens of stores across the country, has finally launched its e-commerce platform. It is understood that the new world department store e-commerce platform has been formally put into trial operation. According to the introduction, the main products sold by the new world department store online shopping platform are self-contained goods, including bags, accessories and so on. According to a person in charge of new world department store, there are not many kinds of merchandise sold by the new world department store online shopping platform. The task at this stage is to break the operation of the entire e-commerce platform.

It is reported that the new world department store is very cautious about the operation of online business. It not only controls the self controlled commodities which are easy to control prices, but also sets up specialized operation companies for online businesses.

As a matter of fact, this is already the second large regional department store chain in China within a week and operates independently in the form of branch offices. Almost in line with the new world department store, Southern China's large department store chain is 100, and its independent e-commerce company has been officially launched by the end of April this year. This means that Guang Bai has established a set of independent entity store operation framework, which is operated by a professional online shopping team. It has independent entity store finance, production, customer service, logistics and distribution system.

Department store giant promotes network platform upgrade

In the new world department store and other traditional retailers explore the "unknown" field at the same time, already online business "first step" traditional shopping mall is also idle.

As the first batch of Xidan shopping malls to enter the online business in the field of domestic department stores, the head of the "IGO5" network of e-commerce platform said that despite the earlier contact with online shopping business, the "IGO5" network has accumulated a large number of tourists, and its annual sales volume has exceeded 10 million yuan. However, Xidan commercial field is still groping for the best development mode of "IGO5" network.

According to the introduction, Xidan shopping mall is integrating the "IGO5" network, trying to build a strong brand of the store as the foundation, and strengthen the products in the online store. At the same time, it can lower the price of commodities by developing its own brand and buying commodities.

Not only is Xidan shopping mall upgrading its online shopping platform, but also Beijing's urban and rural online shopping platform has begun to plan for upgrading its online shopping platform since it got a good sale at the beginning of the year.

An urban and rural executive in Beijing said that the biggest opportunity for department store shopping is differentiation and customization. At present, there are many brands waiting for sale in the department stores with good performance. If the department store's online platform can integrate this part of the brand resources to sell goods, it will not only make the waiting brand find business opportunities, but also make the department store's online shopping business and physical store realize differentiated operation.

In addition, he also said that the brand resources that can be sold into department stores can not be abandoned. If these brands can customize some special products for department stores, the attraction of department store business will be greatly increased.

Compared with Xidan shopping malls and urban and rural areas in Beijing, the largest department store chain in Beijing has larger movements in Wangfujing. According to a person familiar with the matter, Wangfujing department store's online shopping upgrade plan is about to enter the board discussion session. {page_break}

A trillion dollar market share

According to the statistics of China Electronic Commerce Research Center, the annual volume of domestic online shopping market will exceed one trillion yuan in the next two years, which will account for more than 5% of the total retail sales of domestic consumer goods.

And business experts predict that during the "12th Five-Year" period, the online shopping business will maintain an increase of 30%-40%, which will be much higher than that of the total retail sales of domestic consumer goods. Online shopping will become a new purse for traditional retailers in China, where department stores generally adopt joint operation mode and profits are shrinking.

But in the view of the industry, now is the best time for the traditional department store to enter the online market, and it is also a severe challenge to the online shopping mall.

As a matter of fact, online shopping is still a novelty a few years ago, and the traditional department store brand "touting net" can be seen as an active positive attempt. Nowadays, the mainstream department stores in China once again pay attention to the online shopping business collectively, which is more like a counterattack after being forced to "Liangshan".

At present, including Jingdong mall, Dangdang and other Internet operators who originally operated digital and Book products, they have expanded their business scope and launched department store business. The increasing market share of online department stores such as Jingdong mall is actually constantly encroaching on the territory of traditional department stores.

According to one data, the top ten Internet retailers in China are net retailers. The sales volume of department stores is much smaller than that of physical stores, which is even more difficult to compare with pure network retailers. If we can not break the current situation of chicken ribs, the future of the department store online shopping will be narrower and narrower.

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Four major difficulties of traditional department stores touching the net

In the view of the industry, if you want to make the new wallet of the traditional retailer no longer be furnishings, you need to break the four major difficulties of source, experience, price and experience.

Difficulty 1: tourist source

Tourist source is the base of a shopping mall, and the same is true for its online business. At present, many online shopping department stores, most of which are loyal customers of online stores.

The source of the store is an important asset of the department store, but this part of the customers is far from being able to make the Department online shopping business take the initiative. Moreover, the loyal customers of shopping malls will probably not go to the physical store for consumption after shopping online.

Difficulty 2: experience

Although almost the same commodities are moved from offline to online sales, it is a subversion to traditional retailers. As a matter of fact, traditional retailers are aware of this. They have excavated talents from well-known Internet business teams to enrich their team. New world department stores and other shopping centers even set up branches at large expense to operate online shopping independently.

However, taking the mode of digging talents and setting up an operation team also brings hidden trouble for the future operation of enterprises.

Difficulty 3: price

Price factors will be the most important factor to attract consumers in online shopping for a long time. This is also true for department stores.

Because most of the department stores in China operate by the mode of joint deduction, rather than buyout the goods themselves, the actual management rights are mostly in the hands of brand owners, resulting in almost no difference in the price of the same commodity in the same city.

Even in the face of strong retailers, it is hard for brands to "open the door" to offer special discounts. If this situation does not change, it will be difficult for department stores to have a price advantage, which means that they lose the most critical advantage of attracting customers.

Difficulty 4: experience degree

At present, many consumers who are keen on online shopping will regard shopping malls as fitting rooms, which indicates that there is still a distinct shortage of online shopping experience. However, compared with the e-commerce platforms such as Taobao and Jingdong mall, the operation experience of department stores has a lower degree of experience. If this situation can not be changed, the department stores will have no competitive advantage compared with pure Internet dealers.