China'S General Merchandise Industry Is Taking The Lead In Self Employment And Finding A Way Out

In the 90s of last century,

It is a general trend to explore the centralized purchasing mode and improve the proportion of self operated commodities in department stores.

At present, most department stores in China carry out the mode of joint operation, that is, department stores introduce brand manufacturers, and the latter manage and pay a certain proportion of sales to "return point" as a reward, and accept the management mode of the former's daily management.

In the joint venture mode, business competition is becoming more intense and homogenized.

With the continuous increase of operating costs and the increasing demand for differentiated competition, with the increase in the cost of store rentals and personnel, the joint venture mode has been unable to bring more room for gross margin in China's department stores.

Joint explicit fatigue

After the reform and opening up, the commodity market has developed rapidly, and the supply and demand balance has been rapidly realized.

When commodity richness and retail resources have not kept pace, many clothing brand suppliers have to chase several limited department stores.

In the historical environment of insufficient supply, retailers began to gradually abandon the right to purchase.

From then on, China's

In the background of that time, joint venture was "popular", but the mode of self operation was somewhat unacceptable.

For example, in 90s of last century, when Parkson just entered the Chinese market, it adopted a completely self operated mode, and the market environment was very high.

But at that time, its products were not suitable for consumers' appetite, and the management situation was not good enough.

After several adjustments, Parkson hired management talents from some department stores in China, and then adopted a joint mode to adjust the layout of commodities again.

Zhao Chao, an industry manager who has been in the store for many years, said that as a joint mode of innovation mode, there were many advantages in the 90s of last century than that of the self operated mode, which did not occupy the working capital, relieving the worries that there was no commercial capital in a department store at that time, and no inventory pressure.

For China's department stores

However, with the development of the times, the old mode of joint operation began to lag behind the times.

"In the past two years, with the continuous increase of all kinds of costs, the mall has to raise the entry fee and the deduction point to ensure gross profit margin. The cost has been pferred to the consumer and pushed up the price of the goods". Li Guoding, general manager of Shanghai Bailian Group Limited by Share Ltd, said, "taking clothing as an example, there is a eight rule, the cost of one yuan has turned to eight at the retail terminal."

The development of China's department stores in the past ten years has brought about a situation of high price and huge profit margins.

Jin Yuhua, President of Beijing contemporary commercial city, believes that although joint ventures have obvious advantages such as reducing capital investment in department stores, reducing operating costs and reducing risks.

However, it also squeezed profit space in department stores, lost control of the pricing power, and made the homogenization of commodities in major department stores seriously, which made it difficult to build the brand of shopping malls.

Self employment?

At present, a group of well funded international and foreign retail enterprises are implementing centralized procurement, and some have even achieved global joint procurement.

In department stores such as Europe and America and Japan, independent brands dominate.

For example, in department stores in the United States, there are usually one or more floors dedicated to selling native American designer brands or more distinctive brands.

Messi's department store, a famous chain store, is mainly based on its sales of various brands in the United States.

Japan's famous department store, Edan Dan, although the first floor is generally used to sell European cosmetics and luxury brands, but in its men's and women's wear floors, it still supports the Japanese local brands.

Some high-end department stores in Ginza, Tokyo, Japan, do not even see the signs of western international brands. They sell only high-end local brands in Japan, most of which are self-employed.

Industry experts say that the department store industry is developing rapidly, and the competition for commodities and brand resources is fierce. Self run can enhance the control degree of commodities and brands, and further enhance the competitiveness of enterprises.

The self management mode enriches the form and types of merchandise in the department store, and can solve the trouble of "shopping in a hundred houses like a house" under the joint mode.

Moreover, the expansion of proprietary business can play a certain leverage effect in the department store business negotiations, so that the interests of department stores can be maximized.

It is a general trend to explore the centralized purchasing mode and improve the proportion of self operated commodities in department stores.

If local retailers want to compete with international retail giants at home, or even seek globalization, they must take this step.

In fact, in the face of China's increasingly open environment, a number of domestic enterprises have realized this and begun to act.

For example, Wangfujing department store and Shanghai Bailian Group began to focus on the centralized procurement of brands, and did some work in the self adjustment of structure, but most of them were small and heavy.

Although more and more department stores are aware of the many advantages of proprietary business, they have begun their own business expansion plans, but in fact, when enterprises are ready to launch their own business, they do not know where to start.

Not a few

In this regard, insiders said that the brand association mode has long occupied the mainstream profit pattern of China's department stores, and the general proportion accounted for more than 80% of the total sales of department stores.

Because of the long-term existence of the joint operation mode, department stores have been degraded in the operation capacity of self operated commodities, and lack of corresponding talents and mechanism preparations.

"But interest can be tempting and difficult."

The industry said positively.

"Although it's very difficult from the joint mode to the self run mode, it has to go."

Li Guoding, general manager of Bailian, also said that most shopping malls, such as Marsha's department store, adopt self operated mode, and their gross gross profit margin can reach over 40%.

In China, the gross profit margin of department stores in the first tier cities is only around 20%.

He believes that the return to self run mode is a call for the reality of department stores.

In fact, at present, several big tycoons in China's department store, such as Bailian, Wangfujing, Yintai and Jin Ying, have begun to seek new self exploration.

"For the Bailian shares, our eastern boutique leather goods museum is its own general agent and distributor, as well as the annual French commodity week and Italy commodity week. These holiday marketing products are purchased by the Bailian own buyers team to the origin, and they are differentiated from other shopping malls."

Li Guoding said that the future will continue to increase.