Shanghai Commerce Builds Department Stores And Self Brand Highlands

Shanghai department stores adjust as consumers change.

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Shanghai was established by commerce and trade. The earliest local department store industry originated from the grocery store distributing in old Chengxiang before the Opium War. By the 30s of last century, Shanghai became a famous shopping paradise in the Far East.

Known as "the four largest global department store", Yongan, Xinxin and Daxin have pioneered the modern department store industry. Now, Daxin, Yongan and Xian Shi three have evolved into Bailian's 100th goods, Yongan company and Shanghai fashion company after a hundred years.

It is the "business pulse" of this city that attracted the first time that the top level forum of global department stores came to China.

"What kind of department stores do Chinese consumers want to visit?" "how big is China's impact on department stores and suppliers?" in the recent global forum on department stores held in Shanghai, "China consumption" has become the focus of global department stores.

The "China Power" represented by the Bailian Federation of domestic retailers shows a new way of thinking.

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Opening the largest "ole" in China by Disney, Shanghai

"Bailian has reached a consensus with the world's most famous operators of orlies, to build the largest, most advanced, top notch and best priced Disney outlets in Shanghai," as one of the organizers of the Shanghai forum, said Ma Xinsheng, chairman of Bailian Group.

During the "12th Five-Year" period, the largest Bailian couplet in China will open 800 new stores nationwide, including 10 shopping malls. Each year, two outlets will be added to the whole country. It will also focus on the development of the greater Hongqiao region, Disney entertainment resort, post Expo area, rail pit hub and large residential areas. At the same time, there will be more sites in the Yangtze River Delta and Shanghai suburbs.

"Orlies is the focus of the new expansion in the future. Our Qingpu outlets have already returned to the capital. There are two big orlies in Wuxi and Chongming in preparation for the construction, all of which are our own property.

But we will further cooperate with developers in the future to expand business projects to increase profits of listed companies.

After all, about 100000 square meters of large projects have a relatively long payback period.

Ma Sheng revealed.

It is reported that "horse race enclosure" is still the key word for the development of department stores in Shanghai.

Take Bailian Group as an example, in 2010, the business revenue for the first time was over 100 billion yuan, reaching 115 billion yuan. By 2015, business income or over 180 billion yuan was among the top 500 in the world.

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Build a private brand and expand its scale

Full delivery, 1 fold...

In recent years, with the commercialcompetition becoming more intense and homogenization increasing, price war has become the main means for most shopping malls to attract customers, but at the same time, it leads to a series of problems.

In this regard, Wang Liuhe, Secretary General of the Shanghai department store business association, believes that most domestic department stores now implement "joint mode", that is, department stores introduce brand manufacturers, and the latter will pay a certain percentage of sales to "return point" as a reward, and accept the management mode of the former.

In this mode, department stores do not have their own brands, commodity pricing power, salesmen and so on are suppliers. Suppliers have a tendency to increase sales in order to seek more profits, while department stores are not willing to get rid of the "problem enterprises" because of the demand for "deduction".

"To some extent, the problem of consumer complaints, such as promotion trap and poor salesperson attitude, is related to this mode."

Another group of data can also illustrate the problem: at present, the average gross profit margin of domestic department stores is generally 20%, and Bailian's brand can reach 23%, but the European and American department stores are up to 30%-40%.

The biggest difference between the two lies in their different modes of operation, especially the independent brands of department stores in Europe and the United States account for 45% of the total merchandise in their stores.

"If we have more products, we can make a bigger brand. If we become stronger, we can have more say in the full competition," Ma Xinsheng admitted.

A few days ago, the Zhang Yang shop of Hualian Shopping Center changed its face. "Transformation" is the largest jewelry shop in Yongan, which has a business area of 6500 square meters. The number of self made gold ornaments is more than 35 thousand, and the cost of finished products is 10%.

This is only the beginning of Bailian's "self brand" strategy. In the future, Bailian's shopping center, Oteri J, hypermarket, e-commerce platform and other terminals will have Bailian's own brand. Self-reliance "one stop" can change the old retail group's "good old lady" who is only good at business, and will also inspire the top buyer team that can earn more than CEO.

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Building personalized shopping centres to seize market segments

China's department stores face the highest number of visitors in the world. Why hasn't there been a world famous department store like French "old Buddha" and "Harold" in Britain? For this reason, the global department store giants emphasized on the forum that the personalized shopping malls will be the magic weapon for the future "business war".

As Bao Daxiang only sells children's comprehensive products, Li Guoding, general manager of Shanghai Bailian Group Limited by Share Ltd, said that Bailian is planning to build a silver shopping mall. It is precisely the trend of the aging trend of the city that Shanghai has a purchasing power.

The individual consumption habits of different consumers after subdivision also make the department stores and their suppliers aware of the need to vary from person to person and suit local conditions.

Recently, Estee Lauder, the world's largest skin care product group, completed its Asian R & D center in Zhangjiang. It is also the third cosmetics company to develop its base in Shanghai after Unilever and L'OREAL.

Shen Xiangmei, managing director of Estee Lauder Group China, said that the continued increase in investment was due to the fact that "the demand for consumers in the Chinese market is enough to guide the global high-end skin care market". It is reported that the Asia Pacific R & D center will focus on the most popular plant skincare cosmetics in Chinese shopping malls.

Zhou Yupeng, President of the Shanghai Modern Service Industry Federation, said at the seminar on the theme of "brand building of Shanghai's service industry". At present, the brand construction in Shanghai has been characterized by the shift from daily consumption to luxury experience, to the development of consumer goods brands, from the development of basic consumer goods brands to service brands, and the development and cooperation of Chinese time-honored brands and international brands.

In 2010, the turnover of Shanghai department store reached 83 billion yuan, of which the share of independent brand operation was about 5%. It is estimated that by the end of 12th Five-Year, the Hushang department store, which is led by Bailian, is expected to increase the proportion of self brand income in operating revenue from the current 5% to 20%.