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    The Buying System Is Coming Back To &Nbsp; China's Department Stores Are Running Again.

    2011/9/23 18:28:00 22

    Buying Department Stores

      

    Online shopping

    And the rise of brand stores in shopping centers has forced the traditional department store industry to an awkward position.

    "

    Joint deduction point

    Under the "mode", the department stores are facing the declining trend.

    profit


     

    "

    pool

    "Button point" mode to be changed


    The so-called joint pooling points, that is, from the factory into stores, shopping malls provide business sites, agents or brands to store to set up counters, run by agents, shopping malls uniform charge, suppliers to collect fees and points.

    through

    Camp mode.


    "For China's department stores, over the past 20 years, more than 80% of the industry has taken the joint buying and selling mode, and the remaining 10% take buyout products and have the distribution mode of ownership, while the rest take the agency fees.

    Consignment

    Pattern. "

    Beijing Wangfujing department store group Limited by Share Ltd chairman Zheng Wanhe said.


    "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 in order to guarantee the gross profit margin. The higher cost is pferred to the consumer, pushing 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" 1 x 8 "rule, and the cost of 1 yuan will turn to 8 yuan at the retail end.

    High retail prices also affect consumers' desire to buy.

    The negative effects are pmitted to each other until they are hurt by department stores themselves.


    The "joint deduction point", a popular mode of buying and selling department stores, has not been able to bring substantial returns to department stores as before.

    The homogenization trend of network and product is weakening the absorption ability of this model.


    It is understood that in addition to the joint point deduction mode, the department store industry still has two modes of purchase and sale. The first is the buyout system. The department stores own the ownership of goods and make money by buying and selling the difference. The second is selling goods on behalf of the department stores.


    Some people in the industry believe that "joint point deduction" not only reduces the business capacity of the business, but also squeezes profit margins.

    Therefore, the department stores in the future will shift to the self distribution system, improve the intensive management and purchase of enterprises, and train buyers.


      

    The "buyer" system comes again.


    It is understood that in the early days of reform and opening up, because of the scarcity of commodities, department stores adopted the buying system, namely, independently purchasing various commodities.

    However, with the rise of hypermarkets, the department stores began to brand, and the buying system declined.


    "It has been suggested that we are going to cancel the entry fee and we need to restore the buying system."

    Beijing Technology and Business University professor Hong Tao believes that this is not understanding the basic situation of the department store industry at this stage.

    In the past, there were only a few thousand kinds of commodities, few brands could be selected, and consumers' awareness of brands was not high. The functions of department stores were only the role of group goods, and the problem of buying system was not large. But now there are tens of thousands of commodities, hundreds of thousands of commodities, and which are good sellers?

    Which will be unsalable?

    It's hard to tell that the risk of buying is much greater.


    Many shopping malls in Beijing also say that buyers need to have special buyers, and a large amount of funds will be generated because of the inventory. Based on talent, capital and other factors, buying is difficult to become a trend.


    In fact, when the buying system was replaced, there was almost no risk in the department store because of the "joint deduction" mode.

    Chen Liping, a professor at Capital University of Economics and Business, thinks that the "joint deduction point" is a kind of profit oriented mode, which in fact means the loss of self-supporting ability of the retail industry.

    In this mode, the most fundamental differentiation of retail industry, that is, the differentiation of commodities, is also lost.

    {page_break}


    "Because good brands are limited, all department stores want to, and the result is serious homogenization."

    The head of China's Department Store Association said that the competition under homogenization is a price war, which makes profit margins lower and lower.


    According to statistics, in the United States, Europe and other regions, department stores such as Martha, self employed department stores, their gross gross profit margin can reach more than 40%, while in China, the gross profit margin of department stores in Beijing and other first tier cities has dropped to about 20%.


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


    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.

    Self management mode enriches the form and types of merchandise in department stores, and can solve the problem of consumers visiting hundreds of households in the joint venture 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.


    People in the industry believe that the exploration of centralized purchasing mode in department stores and the improvement of the proportion of self operated commodities are the general trend.

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


    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.

    After a preliminary analysis, many enterprises launched a project in a hurry, and the results were mostly unsatisfactory and even faced with development.

    bottleneck


    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.


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

    Li Guoding 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 Group of their own buyers to the origin, and they are differentiated from other shopping malls."

    Li Guoding said that the proportion of proprietary commodities will continue to increase in the future.


     

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