Guangzhou Department Store "Covet" High-End Supermarket &Nbsp; Cross Boundary Business Is Hot.
Department stores to their affiliated supermarkets
Management
The pattern is undergoing fundamental changes.
Guang Bai
Department store
Characteristic life supermarket
In the near future, Guang Bai will open an independent supermarket with characteristics of life in Zhaoqing, Guangdong province. The business area of the supermarket is nearly 5000 square meters.
What is particularly noteworthy is that Guang Bai supermarkets and department stores are two completely different team operation and operation modes, which has aroused the hot debate of the Department on cross-border operation of department stores.
Supermarkets have been attached to department stores.
Now, more and more old department stores have stripped supermarkets from department stores and started to operate independently.
Moreover, more department stores have stepped into the high-end supermarkets.
Coveted high-end
In fact, the department store, which is independent of supermarkets, is not the first one.
Yansha
The high-end department stores, such as Seth and Parkson, have begun to run their own boutique supermarkets. Intime stores have entered the supermarket business through purchasing more than 30 new supermarket chains in Suizhou, Hubei.
In Wuhan, Zhongbei and Wu merchants have been known for their life theaters and super life houses. After these two department stores, Wuhan Zhongshang group also opened up high-end supermarkets.
What caused great repercussions in the industry is the Beijing urban and rural trade center Limited by Share Ltd, which has not opened a new store for 10 years. At the end of last year, it invested 260 million yuan to buy 3 building in the North District of Meiyuan home in Fengtai District, Beijing, for the development of supermarkets.
Not long ago, Guangdong's Yat Wang's department store Limited signed an agreement with the US Department store to introduce the AEON SUPERMARKET (SM format) into the mainland and enter Guangzhou's East department store.
It is revealed that there will be 3 SM stores in Guangzhou this year, and the proportion of imported food and organic and nuisance free commodities will be increased appropriately.
Experts say that department stores have independent operation of supermarkets, mainly in the development, department stores can not highlight the characteristics of supermarkets, and compared to the profits of department stores, because most supermarkets mainly sell consumer goods, which makes the supermarket mostly for high sales, but low profits, these factors prompted department stores to cross the integration stage after trying to go out of a new path.
On this road, department stores have been trying, but the results are often not optimistic.
Take Guang Bai as an example. In 2002, Guang Bai shares and Carrefour set up a Canton supermarket, which accounted for 25% of the shares.
Data show that from 2002 to 2006, the 5 accounting year, home Canton supermarkets are in a state of loss, and finally in 2008, Guang Bai will sell all the shares of Guang Guang supermarket.
In addition, in 2003, Guang Bai department store built a new supermarket of "supermarket + boutique department" in Hainan, and withdrew from the market in only a year. Insiders revealed that the loss amounted to more than 50 million yuan.
Nowadays, it is a more daring attempt to open supermarket independently.
It is understood that Guang Bai is about to open a high-end life supermarket in Zhaoqing. Now it has entered the tense decoration preparation. The appearance of the supermarket will be worth our expectation.
Yan Shenghua, deputy general manager of Guang Bai group, said that no matter how many obstacles, supermarkets will continue to open stores independently, and supermarkets and department stores will be two completely different team operation and operation mode, so as to ensure the professionalism and independence of supermarkets.
Hu Hetian, deputy general manager of Fujian Jie Long department store, believes that although supermarkets and department stores are two different modes, many resources can still be shared. For example, department stores have strong funds to support supermarkets to move to the high end, and the development of supermarkets can lay a good foundation for the rapid preparation and development of department stores.
In the view of Xun Zhenying, chairman of Guang Bai group, digging profits is also an important reason for the decision of "cross boundary business". He said that the contribution rate of supermarkets is as high as 50%, not less than department stores.
Of course, Xun Zhenying specifically refers to the profitability of high-end supermarkets, so his location for the supermarket is only high-end high-end lifestyle supermarket, not big stores, the purpose is to form a difference with the surrounding business district supermarket.
It will be even harder.
Consumers are no longer familiar with high-end supermarkets.
More and more retailers are concerned about its characteristics, high profits and relatively low management.
Supermarkets, such as Shanghai city supermarket, Wuhan Zhong Bai and Wuhan Zhong Shang, have been involved in this format for 2005-2006 years. In the department store, Beijing Hualian's BHG brand also has the format of high-end supermarkets.
It is for these reasons that the department stores independently operate supermarkets are locked in high-end.
But in the eyes of those companies that have long been running high-end supermarkets, this format is the most difficult piece of "bone" in the supermarket industry.
It is understood that Wuhan's life theater and Wu Shang super life hall's profitability is not optimistic.
Huarun Wanjia also changed the 3 Beijing Ol boutique supermarkets in the Kerry Center, Gemini building and east ring Plaza to ordinary supermarkets.
The difficulty of high-end supermarket operation is first reflected in the cost is twice higher than the mass market.
Secondly, unlike the ordinary hypermarkets, the mode of joint operation is mostly adopted. At present, the import commodities of boutique supermarkets are mainly self operated. The channel merchants buy goods from the agents, and are responsible for buying, selling, and storing links, and assume corresponding operational risks.
For department stores that have been accustomed to the joint venture mode, the difficulty is even greater.
Xiong Jie, a retail expert, thinks that the department stores should also face the problems of professional talents, teams, suppliers, resources, investment and so on, and there are still some obstacles for department stores. Therefore, at present, supermarkets still need to make a supporting part, and the operation of affiliated stores will be more reliable.
Yan Shenghua said, Guang Bai supermarket will be based on high-end, but not only high-end price, but will pay more attention to experience and characteristics.
He said, take a bottle of mineral water as an example, if we calculate according to the product economy, how to sell will not be higher than two or three yuan, but if we add an experiential connotation, such as making consumers drink happy and happy, it can also achieve the health care function. How much is it worth? So that a bottle of water sold for 10 yuan or 50 yuan is possible.
Yan Shenghua believes that department stores are providing this kind of enjoyment and experience service besides material.
Now many department stores display products that provide people with information, happy and simple life. They are not simply selling products.
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New Yijia opens Yijia department store
Under pressure
Fan Yanru, Deputy Secretary General of the Chinese Department Store Association, said that this is an inevitable trend of department stores, because supermarkets were part of department stores, but supermarkets were partly independent, but still attached to department stores.
Now independent, one is to seize market space, the two is to allow professional teams to operate supermarkets more professionally.
In the view of retail expert Zhou Yong, department stores independently operate supermarkets and have pressure from the market.
He analyzed that supermarkets have been infiltrating the department stores, and if department stores do not change, they will become more passive in the future.
This is indeed the case.
In the Beijing supermarket industry, the market share led by Wuming, after Xinhua Department store, opened the shopping center of San Xi 8 in Haidian District, Beijing, and became the second department store brand in the Beijing market.
Prior to that, Beijing Kelong opened the Jiulong department store, and everyone opened the department store.
This year, the Chai lung supermarket in Quanzhou, Fujian will open two department stores in November.
Nowadays, these supermarkets' Department of department stores' initial stage of "acclimatization" has gradually adapted to the market and began to expand.
The second stores of Xinhua Department store will unveil the mystery.
Che Guorong, deputy general manager of Xinhua Department store, once said that the expansion of Xinhua Department stores was based on the gradual start of profit in the first store. Last month, the monthly sales growth of Xinhua Department Store increased by 26% over the same period last year, and gradually got rid of the stage of improving sales performance by reducing gross margin.
It is not just the Xinhua Department store that seeks to expand the brand, but also the Jiulong department store of Beijing Kelong.
Although the Jiuxianqiao store of Jiulong department is still in the incubation period, the layout of potential business circle ahead of time will lay a solid foundation for the future development of the enterprise in the region.
At the same time, Jiulong department store has started a new store in the green tower and Changping.
In Zhou Yong's view, the penetration of supermarkets into the department stores will squeeze the market space of department stores a little bit, so at this time, the department stores enter the supermarket format, which is also a way out for department stores.
But in his view, supermarkets are easy to enter the department stores, and the department stores are more difficult to enter the supermarket industry.
Experts pointed out that although the department store brand entered the supermarket industry, the threshold is relatively low, but the department store's operation mode is relatively extensive, the supermarket's huge volume of goods, prices, inventory, gross profit and other management is very meticulous.
It is urgent to absorb suitable management team and adapt to the operation rhythm of supermarket as soon as possible.
News 1+1
How to make supermarkets in department stores?
Supermarkets in department stores are actually designed to increase passenger flow.
If we are in a dominant position in the market competition, we can compete against the competitors, but the pressure can only solve the problem for a while, which may affect the passenger flow of the competition shop for a period of time, but after a cycle, the popularity of the competition shop will still be restored.
Of course, if we were in a disadvantaged position in the market, we could take market disrupting practices and make our opponents uncomfortable, but eventually everyone was hurt.
The principle of competition is to enhance the profitability of enterprises, at least not to damage the long-term development goals of enterprises.
Therefore, how to operate supermarkets under department stores should be viewed from a long-term and global perspective.
As a whole shopping center structure, supermarkets drive passenger flow, clothing improves gross profit, and other categories of commodities enhance market share. So we should start from this point of view, that is, how to make use of supermarket commodity structure to drive the overall passenger flow rather than the supermarket passenger flow.
If a competitor is positioned low, he will give up the biggest advantage of competing with you: brand and grade.
Then, we should work hard on the commodity structure and brand concentration in the supermarket, so that the overall positioning of the department stores and the positioning of the supermarket will suppress the opponent.
At the same time, increase the correlation between other commodity categories and supermarket products, for example, in the promotion, the formation of various departments linkage, various categories of commodity interaction.
The development of supermarket in department stores can not be compared with professional stores, and can not unilaterally pursue the overall indicators of supermarkets.
It is relying on the supermarket to play the role, which is meaningful for the overall sales.
Therefore, the regular introduction of negative gross profit commodities and the constant adjustment of brand structure will be a contribution point of supermarkets to department stores.
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