Online Shopping For Strong Retailers Still Needs To Cope With The "Winter" After The Festival

Just after the new year's holiday, the annual sales promotion data released by the Shanghai Municipal Commerce Commission showed that Trading Area Only one day's turnover was over 500 million yuan, and the sales volume of the major brand department stores increased by an average of more than 30% over the same period last year. It is worth noting that online shopping has become an emerging force in holiday spending, and holiday business turnover of some online shopping businesses has increased by more than 100%. However, the industry pointed out that under the impact of online shopping and various high cost, physical retail will enter a small off-season after new year's day and Spring Festival, and the negative gross margin promotion is not sustainable.

Cross year promotion of entities and networks

Shanghai City Business affairs Commission data show that the four major shopping malls in Pudong New Area Sale Substantial growth, 505 million yuan a day. In December 31, 2011, Zhengda Plaza extended its business hours to 2 a.m., and the total passenger flow exceeded 100 thousand passengers, an increase of 15.8% over the same period last year, achieving a retail sales of 13 million 200 thousand yuan, an increase of 20.1% over the same period last year. Shanghai's highest sales volume of the eight hundred year end activities is 480 million yuan. The first eight hundred partners took the strategy of increasing sales promotion from one day to three days in the past year, and the average passenger price increased by 34.3% over the same period last year, reaching 2667 yuan.

The sales volume of nearly 30 member enterprises such as department stores, shopping centers and Oteri J of Bailian Group's friendship company has increased by 77.3% over the same period in December 31, 2011. Among them, the sales of the central shopping center of the Oriental Shopping Center was nearly 13 million yuan, and the sales of Yongan Department stores grew by 30.8%. The sales of the two direct selling squares of Bailian Qingpu and Hangzhou Xiasha outlets increased by 57.7% and 90.8% respectively, while the sales of Dongfang commercial and Qingpu stores exceeded 25 million yuan, up 93.9% over the same period last year. Century Lianhua Company launched the "2011 Christmas Eve, the end of the year to buy and reduce activities", 62 stores in Shanghai to achieve an increase of 25.7% year-on-year sales.

After the establishment of the New Huangpu District, the District Commerce Committee first led the span year marketing campaign. The bags rate of the major commercial buildings in Nanjing and Huaihailu Road two famous commercial streets has been greatly improved. The new world city sold 292 million yuan on that day and maintained the leading position in the Sales Department of the department store. Sales of land Plaza exceeded 11 million yuan, Huaihai store of Pacific department store and Huaihai store of Dongfang commercial store increased by 12.1% and 50% respectively.

It is worth noting that online shopping has become a new highlight of holiday spending. The major websites also launched year-end promotions at the same time, and the retail sales increased by 50%, 90% and 1.36 times respectively in a day. Mr. Zhang, who is engaged in online clothing sales, said that his sales in holidays exceeded 100% on weekdays.

Retailers' winter

Although the new year's holiday has given retailers a good record these days, Mr. Zhu, a department store member, is not optimistic about the long-term development.

"Because online shopping has a great impact on the physical store, it is necessary to start the new year sales promotion in advance from November 2011, and the intensity will be greater than before. Otherwise, it will not be able to compete with Taobao's" 11. 11 "and" 12. 12 "sales promotion. Although some consumers also know that online shopping is hard to kill seconds, people always like discounts, so the department stores can only follow large discount sales. Mr. Zhu told reporters that a big promotion intensified the overdraft of consumers' consumption in the first half of the year. After the Spring Festival, the retail business entered the off-season, and then the negative sales promotion could not continue. Consumers would not be tempted if the goods were restored to the original price. This is the real winter for the real retailers.

"The gross profit margin of the general merchandise industry is generally over 20%, but with the impact of online shopping and various kinds of costs rising, it is becoming more and more difficult to keep this proportion." First, the founder of retail network Ding Li Guo analyzed that the rental and manpower cost of the stores has increased by about 30%. The retailers can only make up for the loss through the high priced goods or the cost of the brand, but this will cause the retailers to enter a vicious circle. And the low price war of online shopping has forced the physical stores to carry out a big promotion year too. In the short term, the entity retailers gather the popularity with a negative margin. But in the long run, the profit margins of the entity retailers will be smaller and smaller. Once the gross profit margin of the department stores is less than 20% and the gross margin of the super businesses is less than ten percent, it will be more difficult to maintain operation or expansion.