15 Years Business Road &Nbsp; How Did Denis Store Break Into TOP20?

Denis department store

Deputy general manager Liu Yongsong

Zhengzhou Denis department store was established in 1995 and opened in November 1997. It is a retail group of Taiwan Dongyu group, which combines department stores, hypermarkets, convenience stores and logistics centers.

At the time of Zhengzhou's business downturn, the arrival of Denis's department store was like a spring breeze, bringing a new business mechanism, actively introducing the form of hypermarket, enriching the commercial form of Zhengzhou and showing Zhengzhou citizens new consumption concepts and urban fashion.

Over the past decade, Denis, taking Zhengzhou as the core, radiated Henan province and created the myth of chain stores in Central Plains.

Liu Yongsong, the first generation of Denis's department store

Forming differentiated management with competitors

Denis developed from a popular department store to a boutique department and gradually became a synonym for high-end department stores.

In the growing number of business tycoons, a brand differentiation road has been set up, and a fixed main customer layer has been built up by brand.

This made it not only be unaffected by competition, but also laid a good foundation.

Reporter: in your opinion, how many stages can Denis department store develop in the past ten years in Zhengzhou?

Liu Yongsong: according to one stage of five years, Denis can be divided into three stages. From 1997 to 2002, it is positioned as the standard Taiwan popular department store, like the operation mode of the Pacific department store. In 2002, Denis made the brand promotion and the pformation of the shop's interior and exterior decoration, and began to make famous brand stores, and imported imported cosmetics, watches and boutique accessories, and completed the upgrading and upgrading of famous department stores from 2002 to 2007. From 2008, Denis entered the boutique department, such as the introduction of luxury brand GUCCI and other international first-line brands.

Reporter: in these three stages, Zhengzhou's business environment, consumer demand and mentality have undergone tremendous changes. How did Denis cope with these changes?

Liu Yongsong: every stage of adjustment should be combined with the consumption consciousness and consumption demand of local consumers.

For example, in 2007, Denis was moving from the second to the third stage, and the big business group was stationed in Zhengzhou at that time.

We have quickened the pace of development and gradually separated from our competitors.

In 2008, the Denis store opened in Huayuan Road. In the same period, our competitors opened second stores across us. The volume and scale of the store were larger than those of Denis.

At this stage, Denis increased and followed up activities, but the most important thing was to do it.

At that time, 50% of the brands were making adjustments, we rely on brands to train the main customers, and introduce high-end brands suitable for their own positioning, such as Calvin Klein Jeans, MISS SIXTY, M.TSUBOMI, CARA, KLOVA and so on.

The successful introduction of these brands also laid a good foundation for the garden shop.

In addition, the location of two stores in Denis department store is different, one is boutique department store, the other is fashion famous department store, 40% of the customers may be coincident, but there are still 60% differences. This brand combination can broaden our customer base and occupy a larger market share.

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Good at facing consumers and partners

Consumers' recognition of shopping malls is based on what kind of services, merchandise and shopping environment provided by consumers for the market. Denis, as a business mode of multi formats, from daily necessities to luxury products to satisfy consumers of all walks of life.

It enables Zhengzhou people to access the shopping information of the first tier cities as soon as possible, and to purchase necessities at the nearest distance.

Reporter: can the sales volume of Denis's department be disclosed last year? What are the hot clothing brands of Denis department store over the years?

Liu Yongsong: the performance of the Denis group in 2011 exceeded 10 billion yuan, which is the first place in Henan province. The sales area of the people's shop is about 40 thousand square meters. Last year's sales volume was 2 billion 600 million yuan. If the performance is alone, it should be ranked among the top twenty of the national department stores.

Cosmetics, Estee Lauder's sales ranked sixth in China, Lancome was seventh, Chanel also entered the country's top five.

This shows that Zhengzhou people have the ability to consume, fashionable and consumers have high awareness of brands.

In terms of clothing, there are many brands that sell to the top ten of the same stores in the country, such as Koroba and Ke Liliano, who rank the top three in the country.

The most important thing for a department store is to create a company image. Only when the customer recognizes the store, will the product become more recognised.

Just like us, Denis is not only interested in brand, but also in shopping atmosphere and service.

Reporter: before you interviewed other media, you said, "Denis department store is good at facing consumers and being good at partners". Can you explain in detail the two "good at"?

Liu Yongsong: first of all, Denis's change is based on the needs of consumers, based on what kind of services, products and shopping environment for consumers. I hope that some products in Beijing and Shanghai also have in Zhengzhou.

This will enable consumers to receive first-rate shopping information in Zhengzhou at the fastest time and feel new changes every time they come to Denis.

Secondly, we have many business models such as department stores, hypermarkets, convenience stores and so on to satisfy consumers at different levels.

From another point of view, more than ten years ago, Zhengzhou shopping malls did not hold the theme of Valentine's day, mother's day and Christmas. Denis was the pioneer of these activities and made Zhengzhou people more and more fashionable.

Besides, for partners, Denis still has fourteen years of cooperation.

We regularly interact with manufacturers, and only when we have common ideas in cooperation can we produce good results.

Another point is that compared with other similar stores in China, many of Denis's brand profit margins are relatively high.

Because we are not discount stores, and do little discount or rebate activities, so single store performance is relatively high.

Most importantly, Denis has never been in arrears with any manufacturer because of his own reasons.

Reporter: Denis is getting more and more upscale. Some consumers think that it is no longer a place for working-class consumption. What do you think of this comment?

Liu Yongsong: when Denis goes to boutique department, the mainstream is the high-end customer layer.

But not all department stores are fine products, there may be 20% - 30% is a boutique, and 50% - 60% are the name of the domestic white-collar consumption, in addition to 10% of the popular goods, such as the tide of the three Museum.

Of course, we will gradually increase the development of popular products, which are both famous brand and low price. We expect to make 20% of the proportion to meet the emerging population of the society.

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The advantage of regional chain stores is their own property.

Under the assurance of "own property", Denis has maintained healthy development.

Some people say that Zhengzhou has achieved Denis, but rather Denis's keen vision, advanced consciousness and distinctive ideas have created a unique business mode in the second tier cities.

Reporter: at present, Denis's department store spreads all over Henan province. What are the reasons for its good performance?

Liu Yongsong: Denis's multi format business in Zhengzhou can satisfy consumers from department stores to hypermarkets, convenience stores, from the necessities of the people's livelihood to high-end luxury goods, and its functionality and convenience are no match for other businesses in the locality.

At present, apart from Zhengzhou, Luoyang is the most important city, followed by Pingdingshan, Anyang, Nanyang, Shangqiu, Luohe, Jiaozuo and other prefecture level cities. Denis's department stores and hypermarkets are basically owned by their own property in these cities.

In 2015, Denis's own property will reach 3 million square meters in Henan Province, including department stores, mall, hypermarkets, convenience stores and other formats.

Reporter: the cost of pre investment in private property is very high. Why did Denis choose this way?

Liu Yongsong: the investment of private property will be very large in the early stage, but the advantage is that the pressure of follow-up business is relatively small. This is because Denis is pure commercial development without any other fields.

So far, Denis property has not yet sold 1 square meters, all for personal use.

So our capital chain is developing healthily.

Reporter: as a chain store retailer in Henan Province, does Denis adopt the mode of "separation of business and production" or "integration of business and mining" in the operation of chain stores?

Liu Yongsong: these two models have their advantages and disadvantages.

Denis was a separate business model before 2010 and September, and then developed rapidly in the whole province.

In order to integrate resources and better replicate various stores, it is also convenient for unified management. Later, we adopted the business mode of combining business with mining.

The two modes are not absolute good or bad, and only depend on the development stage of the enterprises.

Denis is currently in the expansion stage. It is expected that in the next three years, it will open to more than 20 department stores in Henan, including MALL and outlets. The company will develop in many formats.

Reporter: in the process of chain operation, did Denis develop smoothly outside Zhengzhou?

Liu Yongsong: Denis in Henan province has annual sales of 2 billion 600 million yuan stores, there are 200 million yuan shop, the provincial capital and prefecture level city's suspension is very large, we must collect more brand resources, only then can satisfy each city shop demand.

If Denis wants to store his store in every city of Henan Province, it needs to pay more energy than the same level stores in China.

China's regional economic development is very different. The environment of prefectural cities is not as good as that of Zhengzhou. On the one hand, there are competition from local shopping malls in prefecture level cities. On the other hand, the standardization of business is not strong, and the concept of each operator is different. These problems need to be solved slowly.