Retail Industry: Internet Attack &Nbsp; Pformation Of Traditional Department Stores

1, China is in the period of rapid development of online retailing, and has broad prospects for the future.

Since the emergence of Internet retailing from the United States, it has spread rapidly to all countries in the world. Online retail businesses have sprung up everywhere, and the retail sales volume of the network has begun to grow rapidly.

Relying on C2C and

2, online retailing participates in channel competition, tradition.

With the growing maturity of online retailing and the change of public consumption habits, the network platform, as a retail channel, has gradually penetrated into the commodity category of physical department stores, and the competition pressure of traditional department stores has increased.

At present, the areas with high penetration rate of online shopping are economically developed cities. The online shoppers are mainly middle and low income youth. The products of online consumption are concentrated on clothing, shoes, hats, 3C, books and other standardized products. Therefore, we believe that the impact of online retail on the first tier cities is greater than that of the two or three tier cities, and the impact on high-end luxury goods consumption is limited. Compared with traditional department stores, the experience and service functions of online retailing are insufficient.

3, under the background of intensified competition in online retail, the pformation of traditional department stores is breaking through.

Although online retail competition has intensified the market competition faced by traditional department stores, traditional department stores still have their own growth space. We believe that the feasible ways to break through traditional department stores include:

1) relocate and find more accurate market segments, such as highlighting service functions and strengthening the advantages of high-end department stores.

2) change the traditional business mode and enhance the entertainment function to maintain its ability to collect customers, such as developing the shopping center format and maintaining the advantages of its customers.

3) develop e-commerce business to maintain and expand market share.

4, investment proposals

We believe that under the environment of high consumption growth in China, the traditional department stores and online retailers are expected to maintain a relatively high growth rate.

At the same time, we are optimistic about the department stores that can adapt to the increasingly rising consumer demand and reflect the impact of online retailing.

1) actively carry out B2C business initiative to open up the online market, and can actively maintain and expand its own market share of quality department stores.

Such as: Tianhong mall, Wangfujing;

2) actively develop high-end department stores, and have the unique advantage of the two or three line city leading department stores.

Such as: e Wu Shang, Eurasia Group, Great Eastern;

3) take the shopping center format as the development direction of department stores, such as BBK, and look forward to the future of its department store business.