Da Shang Group Zhang Yaozhi: Urban Warming Up Of New Sample Department Stores

"Big business" new sample department store's urban warming -- Interview with Zhang Yaozhi, President of Dalian Da Shang Cci Capital Ltd

Schopenhauer once wrote, "everyone takes the limits of his own vision as the limit of the world."

It can be seen that the broader the vision of a person, the more accurate and precise he is about his daily experience, and the same is true for an enterprise.

DQ group regards the concept of management as "unlimited". As the "northeast store network" has been close to the goal, the pace of developing the "North China store network" has also taken off, and has begun to enter the Central Plains.

In April 21, 2011, the Anshan New Mart Mart was officially opened as a new business Mart.

Where the city is, the big business goes where it is. In the two or three line cities, different samples are built to form a network structure and quickly infiltrate into the city life.

Scale effect, momentum is difficult to block

Reporter: how many large shops are there in the big business? It seems that this number is updated every month. What are the characteristics of these stores?

Zhang Yaozhi: big business group is the largest in China.

Reporter: for big business, the value of "store net" is a lot.

Zhang Yaozhi: it is true in Northeast China, but in recent years we have begun to open up markets in Shandong and Henan.

Henan has developed very rapidly and now has 27 stores.

Reporter: we expanded the development of Henan in big business. Last year, we made a report. Zhengzhou New Mart store opened a lot of records, such as opening shop speed, selling over 100 million a day.

Zhang Yaozhi: Chairman of the board of directors, chairman Niu Gang's grasp of the Henan market opportunity, now plays a key role in the whole group's strategy of advancing into the Central Plains.

The group's expectations for Zhengzhou are not just sales and profit targets, but also a direction and breakthrough.

See today's Zhengzhou New Mart store, as well as the commercial brands of big business in Henan cloth store's achievements, Zhengzhou New Mart's golden shop has done its best.

In 2006, through auction bidding, our group photographed the three year lease management right of "golden bull city", known as "Zhengzhou's local commercial flag", at a price of 421 million yuan. At that time, we did not understand why such a high rent should be taken for a store.

What big business cares about is not a business gain or loss, but an opportunity.

Although the shop has not been profitable for the first few years, we have opened more than 27 stores after entering this store in Henan, and most of them are making profits.

This is the strategic vision of entering the market with a way that others dare not think of and opening the market quickly.

This year, we decided to let department store brands enter the first-line market and achieve the goal of expanding from small to medium-sized cities to big cities. This is also a strategic decision of big business.

At present, our department store brands are successful in the two or three line cities, and different samples have been set up. These experiences provide a ready for big business to enter the first-line market.

After entering Beijing and Shanghai, the cooperation between more international brands and big business groups will be promoted.

The big business vigorously implements the new sample in the two or three line market, is advantageous not only to the existing market development, but also to the Beijing, Shanghai and other tier cities.

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The latter is not necessarily without profit.

Reporter: digging the potential of small cities is the impression that DAC has left to the industry before.

As for today's fashion market, the potential of the two or three line market is still great. Just now, you mentioned that the goal of big business this year is in the first tier metropolis.

How do we understand this "second generation sample" New Mart in Anshan?

Zhang Yaozhi: GUCCI, CHANEL, PRADA, CK these international first-line brand luggage products in Anshan New Mart store in the form of integrated stores have been stationed.

This shop is what you say is the second generation of New Mart, the development of the first tier cities, not that the two or three line is not done, but the two or three line to do the new sample department store.

The recent changes in the fashion market determine the appearance of such samples.

According to the consumption concept of Anshan people at that time and the channel strategy of international brand, five years ago, we could not do such a store.

There must be two conditions for doing so: first, there must be a market; two: these brands happen to have changes in marketing strategy in China.

Recently, many international brands including LV have visited Anshan, and we just caught the best opportunity.

Reporter: with the Anshan New Mart store as the representative, over the past few years, big business has contributed to accelerating the pformation of the two or three line market's business pattern and format, and stimulating the consumption potential of small and medium-sized cities.

But for big business, do you find it difficult to enter the first tier market at this time?

Zhang Yaozhi: Although the business circles and department stores in Beijing, Shanghai and Guangzhou are very mature now.

But in terms of individual situation, many department stores have some shortcomings in terms of format and function due to time and other reasons. They are not suitable for brand layout, or auxiliary functions can not keep up with today's consumer demand.

So it's not mature or perfect, but there's no chance for newcomers.

We will enter the market with a full format mode. There must be no rivals.

As long as we expand the format of Anshan New Mart store, expand it in Beijing and Shanghai, we can definitely open the market.

At present, many shopping malls in the first tier cities lack the layout of all kinds of super large parking lots, five star hotels and high-end supermarkets.

Reporter: but last year, did Beijing begin to restrict the construction of large shopping malls within the three rings? If big business entered a mature business district to realize this whole format, is it feasible?

Zhang Yaozhi: neither is it. It is not to discourage the construction, but to carry out the plan.

Now the government is also encouraging the use of this format to meet the needs of urban consumption, but it is hard to get it. However, it is possible for us to find a good place in the Third Ring Road of Beijing. Shanghai has the same opportunity.

At present, our two stores in Shanghai are not bad, but their functions are not perfect.

We want to further expand our functions, enlarge our volume, brand portfolio, function combination and service combination, and get Beijing and Shanghai to represent new business strength.

DQ has sufficient market experience and has the opportunity to overcome the weaknesses of existing department stores in metropolis.

Backward can see through the shortcomings of others, coupled with their own experience, to form a new form of general merchandise.

Niu Gang, chairman of the board of directors of big business, attached great importance to the innovation of business format. "New Mart" is the business model that he fully summed up the development of department stores at home and abroad.

In recent years, we have been trying to make this model more mature and perfect. We believe that the group can do well in a metropolis such as Beijing and Shanghai.

Reporter: what is the difference between SHOPPINGMALL and the full format department store?

Zhang Yaozhi: the existing SHOPPINGMALL in our country should be called MALL department store.

Take "MALL" as the main form to lead the department store format.

What big business is doing is department store MALL, leading by department store, leading "MALL".

Now, this format is more suitable for our national conditions.

Reporter: through the verification of big business in all cities, department store MALL is more suitable for China's development?

Zhang Yaozhi: it should be said that it is especially suitable for the development of international brands in China, and is also suitable for the development needs of China's emerging fashion brands.

It is an inevitable trend for channel manufacturers to acquire brand enterprises.

Reporter: in the form of "brand upwards and channel downwards", the MALL of general store, which is a full format shop, can satisfy the demand of fashion brands to enhance the image sink channel.

This is also the beginning of the re layout of the fashion market. In the process, what kind of support will the big business group provide to the brand?

Zhang Yaozhi: the trend of channel sinking is very obvious, mainly due to the improvement of consumer spending power.

Our two generation sample department store, with its emphasis on the development of the whole format, pays special attention to displaying the image of large enough space for the brand, which is very advantageous for fashion brand enterprises.

Reporter: UNIQLO has put forward the slogan of "Wan Dian" in China. The sinking of international fashion brands will have a great impact on the development of China's local fashion brands dominated by the two or three line market.

Zhang Yaozhi: I don't think so. I can only say that we have broadened the vision of domestic brands.

Using international fashion brands to keep up appearances, it is the domestic fashion brands that really bring about actual sales.

Although the international famous brands are the resources of department stores, the national brand is often the source of benefits for more people.

Such as white-collar, Zhuo ya, Sabatini, brother and so on, these are the most popular brands.

In the past, nine posture was not particularly conspicuous, but now it can achieve 6 billion sales.

In fact, in the domestic market, the sales of Chinese fashion brands are much better than that of Yu Yang brand.

Moreover, the positioning and design concepts of domestic fashion brands have been keeping an eye on the international market. Under the current circulation and information conditions, domestic fashion enterprises can quickly aggregate fashionable fabrics and new trends, and do not lose international brands on products.

Like my wife, most of them wear white collar, which is more suitable for the taste and stature of middle-aged women in China.

With the enhancement of awareness of these brand promotion, people's awareness of domestic brands is getting higher and higher, which represents unlimited development space.

Coupled with the tremendous pressure and challenges from international brands, China's fashion brands will only be promoted faster.

Reporter: big business has opened more than 100 department stores, and China's clothing enterprises are also dealing with the most.

In your opinion, how can Chinese fashion brands get the favor of businessmen?

Zhang Yaozhi: we should establish our own characteristics and form our own brand style. Only if we have a cultural brand can we closely lock our own consumer groups.

As a business, customers like what we like.

Now, domestic fashion brands know more about their market than international brands, but there are still many deficiencies in capital, management and operation mode.

If these problems are not solved, there will be obstacles to their development.

Reporter: if some enterprises solve these problems, what do you think of the fashion consumption market in China? What will happen to the big business?

Zhang Yaozhi: China's fashion brand enterprises, including department stores are still in the original accumulation stage, and did not achieve the scale effect after the operation of capital, so the current market looks very scattered, and most of the enterprises are parallel development.

Only one enterprise can achieve 10 billion yuan a year's profit, and Chinese fashion enterprises will extend up or down.

For example, when the department store industry has reached the stage of saturation, capital flows will naturally develop to the upstream, buy manufacturing enterprises, brand enterprises will make the channels to the utmost, and will also acquire channels, so as to enter the real stage of capital operation.

Now the industry does not have such a large capital flow, mainly because the parallel market has not yet been saturated.

Tai Shang Group is China's largest department store group. We have tried our own clothing brand, but it has not been successful.

Now, it is better to buy a brand with better market performance than being a private brand.

It is an inevitable trend for channel merchants to develop and buy brand enterprises, and the brand will also gain great development space.

But no one will succeed if he is early.

I think at least five years, five years later, the annual profit of big business will reach 5 billion yuan, and its shop network is also becoming saturated.

Recently, I saw an American brand very good. We are also talking about the cooperation of the general agent. Far from it, it is possible to invite designers to cooperate and purchase near.

We have been thinking about where the big business will develop in the future. What should we do when the market is saturated?

Business background:

DAC group, the largest department store group in China, has large shops in more than half of China, with a total construction area of over 5 million square meters. In 2010, DAC group's sales exceeded 86 billion 100 million yuan, creating a new record for Chinese department stores.

DAC group has grown into a leading enterprise in the department store industry and has become an important force in the revitalization and development of Northeast China.

Many media and analysis reports are called "the most powerful force in China's retail industry".

In 2011, in order to achieve the great dream of creating a reputation for the world's largest companies, the group has moved towards the goal of "100 billion companies."