Guangzhou Stores Are Marketing Low End Products.

Entering the summer break season of July and August, the major shopping malls in Yangcheng are bustling with excitement, and businesses are playing the same game with a big marketing show. On the one hand, the promotional campaigns launched by the five major department stores in Yangcheng during the same period were launched on schedule, and sales efforts were much better than in previous years. On the other hand, with the summer blockbuster "Transformers 3" booming, some shopping malls were playing the same "Transformers" model. Even two shopping centers along the same road appeared two versions of the Dinosaur Fossils Exhibition. All kinds of marketing war can not help but make people wonder: is the consumer in Guangzhou absolutely unable to sell without discount, or is Guangzhou department store marketing tool already in a desperate way?

Throughout Beijing, Shanghai, Wuhan and other cities Department store Shopping malls, this summer, the phenomenon of discount is quite calm, especially in the national development and Reform Commission, the China Association for consumers and consumers issued a notice, in the whole country to promote the real price of the code, shopping malls in the common "fold", "send", "reduction" signs are now almost extinct, instead of the brand goods are almost identical price. Even in Hongkong, a shopping paradise, the discount rate is lower than in previous years due to inflation. In the past, the discount rate was lower than 30 percent off, and this year it is all over 20 percent off. But look at the department store in Guangzhou, marketing war is still heating up.

Since the summer, almost every weekend in Guangzhou, some department stores have a larger scale. Discount? Promotional activities, and the renovation of the past, the voucher, full play reduced to become vouchers, full, full gifts, points...... The promotion of the department stores at the same time is continuing. Guangzhou friendship held VIP summer honor day, most goods 50 percent off plus 5 times points, shinguang department store members were below half off of the venue, Mei Dong Department held 1 yuan for 2 yuan, modern department stores 300 new products 300, or 168, Wangfujing department store 15th anniversary 300 300 200. In all kinds of new play, promotion efforts and span are higher than in previous years, the entry into Guangzhou in July, the major department stores passenger flow is quite hot.

Apart from discount promotions, cultural marketing is also very busy. For example, just a single sports east road's good Plaza and Wan Ling Hui, the two shopping malls launched the "Dinosaur Fossils Exhibition" on the same theme for the summer vacation marketing. It advocated a "return to the Jurassic" and highlights the real experience of the Jurassic environment. The other claimed that the fossils came from the Cretaceous in the age of dinosaurs, and popularized dinosaur science knowledge as a selling point. However, Baiyun Wanda Plaza and Jiayu Sun City are pushing the Transformers Model Exhibition in the same city. The degree of fierce competition in Guangzhou shopping malls can be seen.

Guangzhou Department Store Thousands of shops and homogeneity are known throughout the country. The apparent reason is that Guangzhou is a relatively open city. Many government administrative intervention measures are calculated by the market. On the other hand, the major department stores have almost held large-scale discount promotions in order to sprint annual performance, and if they do not do so, they will lose market share. From a deep perspective, Guangzhou's department stores are following the "joint mode". Due to the restriction of brand agency area, some of the better selling brands are in the hands of a few agents. This leads to a high overlap rate of brands and a serious competition in department stores, which leads to frequent price wars. At the same time, the department stores lose too much bargaining power to brand suppliers.

In fact, due to frequent price wars and marketing wars, the profit of department stores has been thinning out in recent years. Recently, the HSBC Global Research Report showed that inflation and labor costs have increased, new shops are losing money and the cost of financing has increased, resulting in rapid expansion of the company's profit margins. Guang Bai shares last year's net profit was only 174 million yuan, a slight increase of 5.04% over the same period last year. The popular "buyer" model in Europe and the US is that shopping malls send buyers to the world to collect new high-end designer brands, instead of directly introducing famous brand stores that consumers already know well, but this pattern has not yet formed a climate in China. According to the survey data, the proportion of self owned brand merchandise in the market is less than 1% in China. Some experts also admitted that now, apart from individual strong enterprises, they can still do their own business. Many companies have not yet been able to get rid of the mode of joint venture, and it will take some time to realize the mode of joint operation. Therefore, it is foreseeable that the discounted tide will continue to exist for a long time and become more and more intense.