Buyers Make Heavy Returns&Nbsp; Chinese Department Stores Are Once Again "Running Solo"

　　 Online shopping And the rise of brand stores in shopping centers have forced the traditional department store industry into an embarrassing situation. “ Joint deduction points ”Under the mode, the department store industry is facing the declining profit 。

　 　“ pool Deduction "mode to be changed

The so-called joint venture deduction points are those that lead factories into stores, the stores provide business sites, ask agents or brands to open counters in the stores, which are operated by agents, and the stores collect entry fees and deduction points from suppliers through Camp mode.

"For China's general merchandise industry, over the past 20 years, more than 80% of the industry has adopted the joint venture discount purchase and sales mode, and the remaining 10% has adopted the distribution mode of buying out the goods and owning the ownership, while the rest has charged agency fees Consignment Mode. " Said Zheng Wanhe, chairman of Beijing Wangfujing Department Store Group Co., Ltd.

"In the past two years, with the continuous increase of various costs, malls have had to raise entrance fees and deduction points to ensure the gross profit margin, and the increased costs have been passed on to consumers, pushing up the price of goods." Li Guoding, general manager of Shanghai Bailian Group Co., Ltd., said, "Taking clothing as an example, there is a" 1 × 8 " The cost of one yuan is 8 yuan at the retail end. " High retail prices have virtually affected consumers' desire to buy. The negative effects are transmitted to each other until they hurt the department store itself.

"Joint operation deduction", which was once popular in department stores, can no longer bring generous returns to department stores as before. The trend of network and product homogenization is weakening the ability of this model to attract money.

It is understood that in addition to the joint operation deduction model, there are two major purchase and sales models in the department store industry. The first is the buyout distribution model, where the department store owns the ownership of goods and makes money by the difference between purchase and sales; The second is consignment. The department store does not own the ownership of the goods, but only provides the sales platform to collect the commission fee.

Some insiders believe that the "joint operation deduction" not only weakens the business ability of merchants, but also constantly squeezes the profit space. Therefore, in the future, the department store industry will change to the distribution and self support system, improve the intensive management and procurement of enterprises, and cultivate the buyer team.

　　 "Buyers" make weight

It is understood that at the beginning of the reform and opening up, due to the lack of commodity types, department stores all adopt the buyer system, that is, they purchase and operate all kinds of commodities independently. However, with the rise of hypermarkets, the department store industry began to take the brand, and the buyer system declined.

"Some people have suggested that we just want to cancel the entrance fee and restore the buyer system." Hong Tao, a professor at Beijing Technology and Business University, believes that this is because he does not understand the basic situation of the department store industry at this stage. In the past, there were only thousands of thousands of goods, and there were few brands to choose from. Consumers' awareness of brands was not high. The function of department stores was only to organize goods, and the problem of buyer system was not serious; But now there are tens of thousands of goods, hundreds of thousands of goods, which sell well? What will be unsalable? It is difficult to judge that the risk of buyer system is much greater.

Many shopping malls in Beijing also said that the buyer system requires special buyers; There will also be a large amount of capital, because there will be inventory; Based on talent, capital and other factors, the buyer system is difficult to become a trend.

In fact, the original buyer system was replaced because of the "joint operation deduction" model, and there was almost no risk in department stores. Chen Liping, a professor at Capital University of Economics and Trade, believes that "joint operation deduction" is a profit taking model, which actually means the loss of self support ability of retail industry. In this mode, the most fundamental differentiation of the retail industry, that is, the differentiation of commodities, has also been lost. {page_break}

"Due to the limited number of good brands, all department stores want them, which leads to serious homogenization." The relevant person in charge of the China Department Store Business Association said that the competition under the serious homogenization is to fight a price war, which makes the profit margin lower and lower.

According to statistics, in the United States, Europe and other regions, M&S and other self run department stores can achieve a comprehensive gross margin of more than 40%, while in China, the gross margin of department stores in Beijing and other first tier cities has dropped to about 20%.

At present, a number of international foreign-funded retail enterprises with strong funds are implementing centralized procurement, and some have even achieved global joint procurement.

Industry experts said that the department store industry is developing rapidly, and the competition for commodities and brand resources is fierce. Self support can improve the control of commodities and brands, and thus enhance the competitiveness of enterprises. The self-supporting mode enriches the form and types of goods of department stores, which can solve the agony of consumers' shopping around a hundred stores in the joint venture mode. Moreover, the expansion of self operated business can also play a certain "leverage effect" in the department store investment negotiation, so as to maximize the benefits of the department store industry.

Some insiders believe that it is the general trend for the department store industry to explore the centralized procurement mode and increase the proportion of self operated goods. If local retail enterprises want to compete with international retail giants at home, and even seek global development, they must take this step.

Although more and more department stores are aware of the benefits of self support business and have begun to develop self support business, in fact, when enterprises are ready to carry out self support business, they do not know where to start. After preliminary analysis, many enterprises have chosen projects in a hurry and started to carry out them. As a result, most of them do not operate well, and even face development bottleneck 。

In this regard, some insiders said that the brand pool model has long occupied the mainstream profit model of China's department stores, and generally accounted for more than 80% of the total sales of department stores. Because of the long-term existence of the joint venture model, department stores have degraded their ability to operate their own goods, and lack corresponding talents and mechanism preparation.

"Although it is difficult to go from the joint venture mode to the self operated mode, we must go." Li Guoding also said that most malls such as Marks&Spencer in the UK adopt the self operated mode, and their comprehensive gross profit margin can reach more than 40%. In China, the gross margin of department stores in first tier cities is only about 20%. He believes that returning to the self support mode is a call to the reality of the department store industry.

In fact, several giants in China's department store industry, such as Bailian, Wangfujing, Yintai and Jinying, have begun to seek new self support exploration. "As far as Bailian is concerned, the European boutique leather goods store in our Oriental Mall is its own general agent and distributor, as well as the French Commodity Week and Italian Commodity Week held every year. The commodities marketed in these festivals are directly purchased by Bailian's own buyer team in the country of origin, which forms a difference from the commodities in other malls," Li Guoding said, In the future, the proportion of self operated goods will continue to increase.

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