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    The Location Of China'S Department Stores Is Ambiguous, Products Are Identical, Brands Don'T Sound &Nbsp, And The Road Of Characteristics Is Not Easy To Say.

    2011/11/28 11:56:00 20

    Location Characteristics Of Department Stores

    Messi stores in New York, France, and the department store in Paris, France.

    When more and more Chinese consumers go abroad, they are featured by products, considerate services and brand names.

    charm

    When they were attracted, they also questioned the business situation of the large and medium-sized department stores in China.


    At the 2011 China Department Store Development Summit held recently by the China Textile and apparel times, the China Federation of Commerce and the China Textile Business Association, experts attending the meeting believed that the rapid development of China's department stores is facing the awkward situation of ambiguous positioning, identical products and brand failure.


    Since the reform and opening up, China's department store industry has undergone tremendous changes in its business format and development mode. However, the clothing industry is the main character of department stores. The status quo of the department stores has not changed, especially when electric appliances, furniture, lamps and lanterns and other large commodities are self established, and the function of department stores as textile and clothing shops has been strengthened.


    Peng Guifu, executive vice president of the China Textile Business Association, said that today, consumers have formed the mindset of buying electrical appliances to Suning, Gome, and buying furniture to the red star, the United States and the home.

    But where can we buy "clothes"? We can only locate department stores that are not clear, have no obvious characteristics and do not understand consumption.

    He believes that the market strong clothing terminal should be: selling self owned brand goods, reasonable prices, excellent quality, good service, ease of purchase and consumption, problems can be negotiated, and never give consumers "I bought a loss" feeling.

    Is there such a clothing terminal? {page_break}


      

    Lack

    Differentiation

    Management


    At the present stage, how large is the scale of China's department stores?


    Cao Lisheng, deputy director of the China National Business Information Center, Deputy Secretary General of the China Federation of Commerce and senior economist, provided a set of figures to reporters: since the 90s of last century, China's large department stores with annual sales of over 100 million yuan have been on the rise.

    Among them, there were only 94 in 1991 and 150 in 1992, and this figure rose to 624 in 1995.

    By the end of the 90s, the number of large department stores reached 1000 in China.

    After entering twenty-first Century, the area of single department stores has been expanding.


    Unfortunately, there are not many differentiated stores in China.

    The main reason is that the Department Store generally adopts the mode of continuous operation and the profit of the bottom point, that is, no matter how much the sales of goods into the store can reach in a year, the suppliers should return the profits to the department stores according to the agreed sales volume.


    Cao Lisheng said that the bottom line deduction profit mode really reduced the business risk of department stores, but also caused the department store to give up the ownership and pricing power of commodities, so that commodity differentiation in department stores became an extravagant hope, and the homogenization of commodities increased.

    Moreover, this profit model also highlights the contradiction between zero supply relationship and serious problem of bullying.


    Take the Beijing market as an example. For those consumers who are rich and who only love high-end clothing and luxury goods, Seth, Yansha and Xinguang are the first choice. For those consumers who also love the famous brand clothes, but also consider the economic expenses, they can see their appearance in recent years.

    But for more consumers who like to choose their favorite products in the middle and high-end department stores, they often feel that they are unable to start with the more and more expensive shops and the similar products, brands and similar displays.


      

    Profit model

    Bring ills


    At the forum, experts attending the meeting also thought that the Chinese department store's profit margin mode of the bottom point deduction also produced a series of chain reactions.


    First of all, department stores own brand influence and competitiveness is weak, the quality of their operations, mainly depends on the competitiveness of the store brand goods.

    Secondly, ignoring the training of senior buyers and professional salesmen makes shopping malls less competent in guiding and innovating consumption.

    At present, sales personnel of large and medium-sized department stores are mainly composed of sales promoters of commodity suppliers, and they can not provide distinctive services.

    Third, business models are simple, lack of characteristics, various kinds of discounts, rebates, festivals and festivals, and shopping cards bundled together with group buying, which is one of the main means to expand sales and attract consumers.


    In addition, ignoring the need for 80% and 90% of the mainstream consumers of fashion consumption is also a weakness in the development of domestic department stores.


    The rising tide of online shopping has also brought new challenges to the department store industry.

    In 2010, the scale of China's Internet market reached 523 billion 100 million yuan, an increase of 109.2% over the same period last year, equivalent to 3.4% of the total retail sales of consumer goods.

    80, after 90 has become

    Online shopping

    The main group of consumption is also the main consumer group of future department stores.


    Cao Lisheng also mentioned that

    market

    With the continuous subdivision and the change of the consumption pattern of the residents, the commodity variety of our main department stores is decreasing. The growth of its sales volume is mainly driven by clothing, cosmetics and gold and silver jewelry.

    {page_break}


    According to the statistics of the China National Business Information Center, the proportion of clothing sales has increased from 24% in 2005 to 26.6% in 2010. The share of gold and silver jewelry sales has increased from 5% in 2005 to 9.1% in 2010.

    In the 1~9 month of this year, gold and silver jewelry sales accounted for 11.7% of the total sales.


      

    How to get lasting

    Competitive power


    In the interview, the reporter learned that the department stores like Messi and department stores have huge purchasing power to consumers. Besides their long brand and rich merchandise, distinctive services and the development of their own brand goods are also the key to their sustainable competitiveness.

    For example, there are more than 10 elegant and elegant bars and restaurants in the 100 year old department store. Besides, they offer free professional VIP shopping guide, free fashion show, foreign currency exchange fee free service and appointment of famous brand professional makeup guidance for female customers.

    In recent years, it has also provided free Chinese Paris map for a large number of Chinese tourists.


    In addition, foreign department stores which have certain influence are bought by advanced buyers to purchase goods, so as to achieve differentiated operation.

    At the same time, developing private brand is also an important means for retailers to pursue differentiation and obtain high profits.

    Statistics show that in the United States, Europe and other regions, the total gross profit of self-employed department stores can reach more than 40%.

    Due to the lack of characteristics, the average gross profit margin of our department stores has dropped from 18.7% in 2008 to 14.5% in 2010.


    Based on the current situation and challenges faced by the department stores in China, experts from the participating sectors have come up with suggestions.


    Peng Guifu's "prescription" is: updating the business mode; identifying the market orientation; strengthening the service function and service ability to highlight the advantages; and deepening cooperation with the textile and garment industry.

    He believes that good and thoughtful service should be the obvious advantage of department stores in comparison with other formats.

    At present, the department stores in China are planning to set up innovative consultants in various buildings, such as color consultant, shape consultant, gift consultant, etiquette dress consultant, home furnishings consultant, children's clothing consultant and so on.

    He also stressed that as a main channel for textile and clothing, department stores should provide more support for the current domestic textile and garment industry, which is stepping up to maturity by strengthening creativity, focusing on brand, implanting culture and increasing added value.


    Cao Lisheng believes that in the future, China's department stores will present the following development trends: first, the diversified development trend of various major retail group formats is very obvious. On the basis of department stores, the development of chain stores, convenience stores, shopping centers and other formats will be strengthened, especially in the development of shopping centers.

    Two, the development of commercial real estate is accelerating and the pace of integration with department stores is accelerating.

    Three, the expansion of chain expansion of large department stores has accelerated the pace of mergers and acquisitions, and actively explored the two or three tier market.

    Therefore, he reminded the general department store that we should change the business mode and gradually increase the proportion of self run business.

    At the same time, we should strengthen the development of online store sales and give full play to the advantages of combining online stores with physical stores.

    In addition, we should enhance the brand image and brand competitiveness of enterprises, and enhance the brand premium capability of enterprises.


     
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