How Much Can Businesses Reduce At The End Of The Year?

In order to rush sales, Department store Market Underwear Sales promotion activities of shoes and caps 1 to 60 percent off are everywhere.

Discount! Send tickets! At the end of the year, it turns out to promote the big show, which has long been the preserve of many businesses. On the eve of Christmas, Guangzhou businessmen again launched a more crazy promotional activities.

This year, however, Guangzhou Some department stores, after being affected by the environment and economy, are in a position to be "good at themselves" when the "cold current" comes. The large-scale sales promotion not only advances "war" in advance, but also makes the discount more powerful than in previous years. Reporters visited various shopping malls every day and found that clothing shoes and hats 1 to 70 percent off were not unusual. Even new products were constantly offering 20 percent off benefits to attract customers.

Insiders pointed out that this year, Guangzhou department stores to achieve the established sales and profits of the dual goal of "very difficult", so most of the department stores chose to sacrifice profits to promote sales to ensure sales.

In view of the vigorous promotion of department stores, experts also suggested that the increasingly large discount activities began to cause the department store industry to become more and more unprofitable and drop in profits in the whole industry. Experts believe that repeated sales promotion will not only maintain a steady passenger flow for merchants, but also make gross profit margins continue to suffer.

　 phenomenon

The preferential war continues from national day to Christmas day.

Business war is fierce?

In the grim situation of "cold current" in department stores, Guangzhou's major department stores have already sold the "discount wind", and sales promotion activities at the end of the year have not stopped after the golden week of October.

Most of the products in the stadium are 52% off; inlaid jewelry, gold 50 percent off; denim casual wear, sportswear 32% off; cosmetics, underwear 22% off; brand discount shop folded 30 percent off ". Information like this is everywhere in the consumer market or in the high-end shopping center.

Just entering the first weekend of December, Guangzhou friendship ring city east store held the VIP winter celebration day promotion activities, most goods 50 percent off plus 5 times integral points, caused the Ring Road East traffic jam; during the same time, the Beijing branch of Guang Bai department store was wearing 50 percent off of the commodities, the shopping crowds surged, so that the clothes on the counters were too crowded to cover with cotton quilts.

Then, in the first half of Christmas, the modern department store has launched a 10 day large-scale Christmas promotion. Most of the new products are 400 yuan in cash for 1000 yuan, equivalent to as low as sixty percent off.

At the same time, there are many department stores that sell large promotions. Even on ordinary weekends, there are many promotional activities. Last week, most of the new products of Xinguang department store were 200 yuan in cash for 500 yuan coupons; the friendship mall was three days in the whole store, and most of the products were half off; the new store in Guang Bai department store was 50 percent off on the weekend of two days, and most of the goods in the new Beijing Road store were 3 to 50 percent off.

Christmas and new year's day are coming. This week's holiday promotion is more dazzling. In order to celebrate the acquisition of the "national civilized unit", Guangzhou friendship held 12 days of preferential activities at the stores, most of which were 30 percent off for men and women, for footwear, for leather, for bed and for children, and 20 percent off for jewelry. Tianhe City Department Store Tianhe store this weekend most of the goods 50 percent off; Xin Guang Department store, modern department stores respectively launched 380, 400 for 1000 coupons activities.

　 Consumers are overwhelmed with various forms.

Promotional diversity?

Reporters found that before the end of this year, not only did businesses promote more frequently, but also lasted longer. Guangzhou friendship store and Guang Bai department store had only one day's "full half off" promotion, but at the beginning of this month, the big promotion of friendship store east city store and Zheng Jia square store took three days.

In addition to the sales promotion, in order to attract more tourists, department stores have also worked hard to launch various exciting activities. It is estimated that in order to allow the public to watch and participate in Christmas activities free of charge, several major shopping malls in Guangzhou have invested more than ten million yuan.

Among them, Tai Gu Hui spent millions of dollars to create a Christmas atmosphere with the most flavor. On the 17 day, the most authentic Santa Claus came to Guangzhou to collect pictures.

Huacheng Hui's Christmas activities are also very special. It sets up the largest and brightest Christmas tree group in Guangzhou city in December 23rd. It will also hold the most popular "Christmas Flash dance" and Christmas magic, clown performances and international percussion band performances from December 23rd to 25.

The good Plaza is playing the charity card. Last weekend, a special Christmas lighting ceremony was held at the good Plaza. Some mentally retarded children in Guangzhou were invited to perform on stage, and for the first time, a Christmas themed exhibition of mentally retarded people was lit.

The industry has observed that Christmas and new year's day and Spring Festival have become the most important stage for businesses. How to attract crowds to make people feel the joy of different festivals and fashionable shopping experience in shopping malls has become a problem of thinking among businessmen.

　 Probe into

The overall economic situation affects the retail consumer market.

Will the desire to buy go down?

Xie Shiping, managing director of Mei Dong department store, told reporters that the recent international and domestic economic situation is not ideal and the overall demand has declined. At present, the domestic property market, stock market downturn, high prices, this series of phenomena will eventually be reflected in the retail terminal consumer market.

Xie Shiping analysis shows that the impact of macro environment on retail industry is mainly manifested in two aspects. First, under the influence of inflation, the disposable income of residents is decreasing. High prices lead to increased consumption of food for consumers, squeezing the clothing and fashion consumption space. On the other hand, in the economic recession, consumers are uncertain about the future, resulting in a decline in consumer psychology and a lower desire to buy.

Huang Huajun, President of the first commercial network, also said that the discount is the usual way at the end of the year. In order to increase sales, it is inevitable to clear goods at the end of the year. He believes that food and other necessities such as food prices have risen rapidly this year, and the structure of consumer spending has changed. In order to stimulate consumption and avoid risks caused by economic instability, businesses have resorted to discounting measures to quickly clean up inventory and return funds so as to reduce costs and ease financial pressure.

It is understood that department stores and brand dealers in the settlement period is generally between 1 and 3 months, merchants at this time a large number of inventory clearance, but the funds need to be back in March next year or so. Next March is the biggest off-season of sales after the Spring Festival. It is also the most difficult period for dealers to prepare new products and capital turnover next year. So now we should speed up the turnover of goods so as to ease the pressure next year.

　 Hongkong shopping centres scramble for tourists

Passenger flow loss?

Although Christmas is a Western holiday, Christmas is a season of promotion for department stores that have festivals and festivals. As Christmas draws near, the shopping malls in Guangzhou are full of all kinds of creative Christmas decorations.

However, every year around Christmas is the peak season of Hongkong discount sales. Due to geographical advantages, many consumers in Guangzhou and the Pearl River delta still choose to spend time in Hongkong on Christmas and new year's schedule.

According to statistics, between January 2011 and December, the Guangdong and Hong Kong Railway travelled to and from Hongkong, Guangzhou, with a daily average of 9500 passengers, an increase of 19% over the same period of the previous year. After entering December, the data rose again, and in the first half of the month, the number of tourists returning to Guangzhou and Hongkong through Guangdong and Hong Kong Railway increased by 20% over the same period last year.

"Many shopping malls in Hongkong are now entering the" discount period ". Many sports brand products that fit our young people have already hit forty percent off, and then the exchange rate of Hong Kong dollars to the renminbi is very cheap. In the view of Miss Chang, a discount brand name can be used to offset the cost of the round-trip journey. Therefore, shopping in Hongkong every year before Christmas is one of the most popular consumer actions at the end of the year.

For Hongkong's shopping malls, the mainland's consumption power has also been more valued. In recent two or three years, a lot of Hongkong shopping malls have launched a series of activities for mainland customers. Various promotional activities have begun to be sent to consumers in the Pearl River Delta. According to the heads of several shopping malls in Hongkong, the number of mainland customers visiting Hongkong has increased year by year, and the consumption power is strong. Eight or nine of the jewelry watches and clocks have been sold to the mainlanders.

In order to retain those consumers who divert to Hongkong's consumption in Guangzhou, they also become another important factor for merchants to increase sales promotion. Reporters found that the past did not participate in shopping malls promotional cosmetics counters, now joined the discount camp.

　　 depth

Promotion is not the only weapon to break the ice.

Department stores can try to experience and culture marketing.

Reporters learned in the interview that a number of department stores said that the year-end discount promotion is a preservation program for the department store every year, and a major promotion in the year. The purpose is to add firewood and fire to the sales season of the department stores in the end of the year and sprint year-end sales.

However, many industry experts say that the market is not favorable, and sales promotion is not the only way to improve the performance of the department stores. Long term discount sales will only make businesses less profitable and eventually usher in a real "cold wave". The department store industry needs to break through the ice and wait for the innovative profit model.

A women's clothing brand agent told reporters that the brand could maintain a profit of 15% to 20% per month before participating in the large-scale sales promotion. After the discount, although the sales volume went up, the overall profit was reduced by about 5%.

In addition, according to the reporter's understanding, most department stores now use the last knock-out system, and the brands that sell after the sale will be cleared. Each year, the brand that has been eliminated from the sale ranks 20% or 30%. Some brands can only respond to promotional activities in the marketplace in order not to be cleared.

Wang Xianqing, director of the Institute of circulation economics of Guangdong University of Business, said, "discount sales promotion is a way of doing nothing." The necessity of discount is because the retail industry is still in the extensive stage, the pressure of supplier inventory, business has not been realized, and it needs to change the space for the next year's production. If the department stores sell customers in discounted sales for a long time, they can only kill each other in the end.

The increasing discount has begun to cause department stores to fall into the dilemma of losing profits and falling profits in the whole industry. "The department store industry can not take the" discount sale "as its main marketing means for a long time. This will not only drag down the upstream and downstream related industries, but also consumers will have a conflict mentality and show the situation of weak consumption. Huang Wenjie believes that department stores through big sales promotion has played a certain role in stimulating sales, but after the discount phenomenon is daily, consumers will have "discount fatigue". If consumption is still tight, then the killer of businesses will lose "sharpness". Successive promotions will not only maintain a fixed passenger flow for merchants, but also make gross profit margins continue to suffer.

"Let consumers not only shop for shopping, but also experience service." Wang Xianqing said that in the face of increasingly fierce commercial competition, we can try to attract customers through new ways such as experiential marketing and cultural marketing. We can have more cultural elements in marketing, more urban civilization and more moral cultivation.