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    The Global Department Store Magnates The "China Consumption" &Nbsp, And Actively Seeks To Change.

    2011/6/14 9:25:00 33

    Global Department Store Giant

       "China consumption Producing magnetic field Effect


    The Global Forum on department stores is the world. Department store Federation of industries Establish The professional Summit Forum is held every 2 years, and the first forum is held in Moscow. "China's influence in the world continues to grow, and the Chinese market offers new opportunities for retailers, branding providers and suppliers in many different ways." Studer, Secretary General of the World Federation of general merchandise industry, believes that China has gradually become the largest retailer in the world. market One is for retailers and the world's department stores seeking to develop in China. Supplier and brand Business is of great significance. "The decision-makers of the retail industry must integrate these new factors into strategic planning."


    It is reported that at the 2010 World Federation of general merchandise industry executive committee meeting, all the representatives put forward the 2011 global department store high-level forum to be held in China. Many overseas members of the Federation urge to come to China and have a strong interest in China's consumer market.


    According to McKinsey's research, the growth rate of retail industry in China has continued to rise in recent years. In 2010, the total retail sales of consumer goods in China amounted to 15 trillion and 700 billion yuan. During the "11th Five-Year" period, the total retail sales of consumer goods in China grew by an average annual growth of 18.1%. As one of the most important channels in the retail market, the average sales and store numbers of 35 main chain stores in 2010 increased by 23.2% and 18.5% respectively.


       Traditional business is facing great challenges.


    Chen Yougang, director of the McKinsey Co Shanghai office, pointed out that although the development speed is fast, China's traditional business is facing enormous challenges. First, in the past, the development of department stores was the most important place; now, because of the vigorous development of commercial real estate, the original location advantage has been gradually weakened. Secondly, department stores have won many kinds of stores. Now, the types of network sales are far more than those of physical stores. Third, from multi-level circulation channels, low circulation efficiency and high overall prices of Chinese business, fourth, 5-10 years ago, beautifully decorated Department stores were enough to attract consumers, but now, "thousand shops and one side", decoration is a luxury game, but consumers still do not buy it. The most profound change in traditional business is from Internet sales. Compared with the United States, China's network sales are developing very fast. From an incremental perspective, China's development in one year is equivalent to two years in the United States. In the next 5 years, China is likely to become the largest online sales market in the world, which will have a great impact on traditional formats.


    What are the driving factors of e-commerce purchase? 41% of people choose the price, nearly 60% of consumers think it is convenience and choice of diversity. In the two or three tier cities, the development of physical stores is insufficient, which provides opportunities for online sales. Chen Yougang believes that in the next 5 years, e-commerce will become a very important business channel, and department stores should actively formulate e-commerce strategies.


       Taking consumers as the core to seek new breakthroughs


    Li Guoding, general manager of Shanghai Bailian Group Limited by Share Ltd, said: "Chinese consumers have undergone great changes in the past ten years. Their consumption psychology is becoming more and more mature, and their consumption demand tends to be more abundant. They are less and less interested in traditional marketing methods such as price war.


    According to the survey, 24% of consumers are willing to spend more money; 36% of consumers are adjusting their choices and weighing their buying behavior. Some types of market pressure increased, others had larger increments. Li Guoding introduced that China has added at least 10 million consumers every year. China's retail industry is facing a huge and rapidly changing market. China has become the second largest consumer of luxury goods, but many consumers no longer regard luxury as a status symbol, and are more interested in using the brand with cultural connotation to embody their individuality.


    Lining Zhang Zhiyong, a CEO sporting goods company, believes that when building brands, the consumer market must be broken down. The conversion rate of Chinese consumers is very high, and the true brand loyalty has not been established in the Chinese consumer market. To mold a brand, we must have personality and core consumers, and we should go global in brand building. The survey found that Chinese consumers prefer global brands and realize that they have a global perspective, which is very important for the younger generation.


       Department store giants actively seek change


    Chen Yougang said that compared with the United States, China's top five retailers account for a relatively small market share, and single retailers are not very strong. Li Guoding also believes that the characteristics of regional separatism in China's department stores are obvious, the concentration is not enough, Jiangsu has golden eagle, Beijing has Wangfujing, and Shanghai has Bailian. At present, these regional leaders are working hard to develop outwards, and there will be nationwide department stores in the future. Bailian is making use of the advantages of the two or three line cities to actively deploy the whole country. Li Guoding pointed out that China's department stores should introduce the factory into the store as the main business mode. In the future, chain store enterprises must transform their general agents and total distributors, and self owned brands should account for 30%.


    Zheng Wanhe, chairman of Wangfujing limited, said that Wangfujing department store has completed the reform of the purchase and sale system, has implemented unified procurement for all stores, and has launched the development of its own brand. "The department stores have three modes of purchase and sale. The first is the buying and selling system, which depends on the difference between the purchase price and the selling price. The second one is the sales agency, and the department stores only provide the selling platform for the selling and selling expenses. The two modes currently account for 10% and 5% of the purchases and sales of the Chinese department stores respectively. Zheng Wanhe said that with the increase of costs, the profit margins of the joint posting mode will be squeezed. The department stores in the future will need to transform themselves to increase distribution and self management, so as to enhance the intensive management and procurement of enterprises.

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