Electricity Supplier Impact &Nbsp; PE Stop Department Store Investment

With VC and PE investing more and more in e-commerce, related department stores Investment Also into the freezing point. According to China Venture in the group statistics, in the five years of 2007~2011, the domestic department store industry only completed 12 pens. financing The cumulative disclosure scale is only 2 billion 333 million yuan. Although the scale of the industry continues to grow, the rapid rise of e-commerce in recent years has made a real impact on the department store industry.

China Venture group analyst Wan Ge told the first financial daily (micro-blog) daily that because the department store has unique brand effect, shopping experience and consumer groups, it can not be completely replaced by e-commerce. But the department store industry has entered the integration stage.

　　 Consumption is hot and department stores are getting colder.

Vogg believes that the guidance issued by the Ministry of Commerce in February 6, 2012 on the promotion of retail development in the "12th Five-Year" period is correct. Retail This is great positive news.

The "opinions" put forward a development goal of China's "12th Five-Year" retail industry as follows: the scale of commodities remained stable and rapid growth, the total annual growth of social consumer goods was 15%, and the added value of retail business grew by an average annual growth rate of 15%.

Promoting consumption from top to bottom also lets PE see investment opportunities. China Venture to invest in the group's financial data products CVSource Since July 2011, thousands of keywords and tens of thousands of search results have been searched for statistics. After that, five key industries, such as consumption, manufacturing, new energy, TMT (technology, media, communications), energy and mining, have been searched for 73.4% of the total keywords. Among them, consumption accounted for 27.3%, becoming the most concerned industry of VC/PE investment institutions in the second half of 2011 to 2012.

But at the same time, the investment in department stores is not optimistic. China Venture group statistics show that the department stores received less VC/PE financing cases. In the five years of 2007~2011, the department stores only got 12 financing, and the total disclosed financing scale was only 2 billion 333 million yuan. In June 8, 2008, the new Tianyu, new deal TEDA Investment, Hongyi and Goldman Sachs invested 675 million yuan to invest in new century department stores, becoming the largest scale of the Department Store financing in the past five years.

Historical data show that from 2007 to the end of 2011, there were 11 IPO cases in department stores, of which the scale of IPO financing in 2010 reached the highest value in nearly 5 years. 01700.HK, 002336.SZ, Tianhong shopping mall (002419.SZ) and year old treasure store (00312.HK) were respectively landed in the capital market, raising a total of 8 billion 205 million yuan.

Industry bottlenecks need to be broken

In 2011, Beijing Pacific PCCW could not close the store because it could not afford high rent. Similarly, in Guangzhou last year, sales of many department stores in Guangzhou continued to decline within 10%. In the first three quarters, the total retail sales of social consumer goods in Guangzhou increased by 4.7 percentage points year-on-year. In addition, authoritative sources revealed that by the end of last year, about 80% retailers in Guangzhou had not completed the sales task of that year.

Vanguard analysis Electronic Commerce With the rapid growth of the market scale, the rapid development of the logistics industry, and the concessions brought by the electricity providers, the consumers of the second tier cities with strong consumption ability are gradually changing their consumption habits, and the market share of the department stores is increasingly occupied by e-commerce.

Many traditional retail department stores have begun to enter e-commerce. Suning.com is officially launched. Gome urgently promotes B2C business. WAL-MART has announced its entry into e-commerce. Xidan shopping mall has launched IGO5 love shopping website in 2001. By February 2010, the IGO5 website has realized profits and sales volume is more than one million yuan, but it is still less than Xidan's 1 billion 200 million yuan annual revenue volume. So far, no department stores in China have explored a more successful model.

The future of the traditional department stores is uncertain. However, in the rich department store industry, there are still a few subdivision providers who have handed out satisfactory answers. Although they are still relatively young, their growth rate and unique attention are attracting attention.

In addition, vogg believes that the integration and transformation of the department stores is fundamental to enhancing the competitiveness of the department stores. At present, the revenue of department stores mainly comes from four aspects: self run business, joint business, management fee and rentals. At present, the department stores in China mostly take the form of joint operation, and the income from joint ventures is also the main source of income for the major shopping malls. The brand enters the shopping mall directly, so that consumers can enjoy homogeneous brands, prices and services in different regions and different shopping malls, but it also makes the shopping mall in the minds of consumers deeply differentiated, so that the competitive advantages of specific department stores can hardly be reflected.

In contrast, the mode of self marketing is to buy goods through shopping malls, re shape and package the products, and then form a private brand. This way can greatly improve the differentiation degree of shopping malls, meet the individual needs of consumers and enhance the profit of department stores. Vanguard believes that under the premise of existing brands entering and becoming the main source of revenue, the domestic department stores can develop their proprietary businesses and carry out industrial chain appreciation, so as to enhance their core competitiveness. Such department stores are also worthy of proper attention by PE institutions.

Annex 2007~2011 VC/PE financing case of department stores

Source: CVSource

Enterprise financing investment financing financing scale

The nature of time institutions (100 million yuan)

Liqun department store November 23, 2011 Goldman Sachs PE-Growth 3.35

Baby island March 1, 2011 Huarui / Chuang Wei VC-Series B 0.50

Commercial capital December 30, 2010 New Horizon Capital / Hongyi investment / PE-Growth N/A

Guo Yuan investment / Anhui venture capital

Wangfujing international December 27, 2010 CITIC fund PE-Growth N/A

Baby island March 1, 2010, VC-Series A 0.32

New supply and marketing in March 1, 2009, Kate innovating to invest in VC-Series A N/A

New century department store June 1, 2008 New Horizon Capital / Hongyi investment / PE-Growth 6.76

Goldman Sachs / new TEDA Investment

Fu's January 8, 2008 VC-Series A 2.74, Sai Fu fund

Nancheng department store founded in December 29, 2007, Albert / VC-Series A 0.43

China International December 17, 2007 PE-Growth 3.32

Friends and shares June 20, 2007 Sheng Bridge Capital PE-Growth 0.75

ITAT March 9, 2007 Lanshan China / Morgan Stanley PE-Growth 5.16

Revenue sources for department stores

Source: China Venture research group

Main business income

Joint venture: importing brand dealers to sell directly

Self run: re brand self creation after buyout of goods

Other business income

Rent: rental income from fast food chains, theaters, games, etc.

Management fee: charging fee, brand promotion fee and so on.

China's e-commerce market is booming. It is becoming a new force that can not be underestimated in the retail industry. The traditional department stores are facing greater challenges.

As VC and PE invest more and more in e-commerce, investment in related department stores is also frozen. According to statistics from China Venture, the domestic department stores only completed 12 financing in the five years of 2007~2011, and the total disclosed financing scale was only 2 billion 333 million yuan. Although the scale of the industry continues to grow, the rapid rise of e-commerce in recent years has made a real impact on the department store industry.

China Venture group analyst Wan Ge told the first financial daily (micro-blog) daily that because the department store has unique brand effect, shopping experience and consumer groups, it can not be completely replaced by e-commerce. But the department store industry has entered the integration stage.

Consumption is hot and department stores are getting colder.

Vogg believes that the guidance issued by the Ministry of Commerce in February 6, 2012 on the promotion of retail development in the "12th Five-Year" period is good news for the retail industry.

The "opinions" put forward a development goal of China's "12th Five-Year" retail industry as follows: the scale of commodities remained stable and rapid growth, the total annual growth of social consumer goods was 15%, and the added value of retail business grew by an average annual growth rate of 15%.

Promoting consumption from top to bottom also lets PE see investment opportunities. China Venture has invested in thousands of keywords and tens of thousands of search results of its financial data product CVSource in July 2011. It has found that five key industries, such as consumption, manufacturing, new energy, TMT (technology, media, communications), energy and mining, occupy 73.4% of the total database keyword search. Among them, consumption accounted for 27.3%, becoming the most concerned industry of VC/PE investment institutions in the second half of 2011 to 2012.

But at the same time, the investment in department stores is not optimistic. China Venture group statistics show that the department stores received less VC/PE financing cases. In the five years of 2007~2011, the department stores only got 12 financing, and the total disclosed financing scale was only 2 billion 333 million yuan. In June 8, 2008, the new Tianyu, new deal TEDA Investment, Hongyi and Goldman Sachs invested 675 million yuan to invest in new century department stores, becoming the largest scale of the Department Store financing in the past five years.

Historical data show that from 2007 to the end of 2011, there were 11 IPO cases in department stores, of which the scale of IPO financing in 2010 reached the highest value in nearly 5 years. 01700.HK, 002336.SZ, Tianhong shopping mall (002419.SZ) and year old treasure store (00312.HK) were respectively landed in the capital market, raising a total of 8 billion 205 million yuan.

Industry bottlenecks need to be broken

In 2011, Beijing Pacific PCCW could not close the store because it could not afford high rent. Similarly, in Guangzhou last year, sales of many department stores in Guangzhou continued to decline within 10%. In the first three quarters, the total retail sales of social consumer goods in Guangzhou increased by 4.7 percentage points year-on-year. In addition, authoritative sources revealed that by the end of last year, about 80% retailers in Guangzhou had not completed the sales task of that year.

Vanguard analysis believes that with the rapid growth of e-commerce market scale and the rapid development of the logistics industry, the preferences of the electricity providers have prompted the consumers of the second tier cities with strong consumption ability to gradually change their consumption habits, and the market share of the department stores is increasingly occupied by electronic business.

Many traditional retail department stores have begun to enter e-commerce. Suning.com is officially launched. Gome urgently promotes B2C business. WAL-MART has announced its entry into e-commerce. Xidan shopping mall has launched IGO5 love shopping website in 2001. By February 2010, the IGO5 website has realized profits and sales volume is more than one million yuan, but it is still less than Xidan's 1 billion 200 million yuan annual revenue volume. So far, no department stores in China have explored a more successful model.

The future of the traditional department stores is uncertain. However, in the rich department store industry, there are still a few subdivision providers who have handed out satisfactory answers. Although they are still relatively young, their growth rate and unique attention are attracting attention.

In addition, vogg believes that the integration and transformation of the department stores is fundamental to enhancing the competitiveness of the department stores. At present, the revenue of department stores mainly comes from four aspects: self run business, joint business, management fee and rentals. At present, the department stores in China mostly take the form of joint operation, and the income from joint ventures is also the main source of income for the major shopping malls. The brand enters the shopping mall directly, so that consumers can enjoy homogeneous brands, prices and services in different regions and different shopping malls, but it also makes the shopping mall in the minds of consumers deeply differentiated, so that the competitive advantages of specific department stores can hardly be reflected.

In contrast, the mode of self marketing is to buy goods through shopping malls, re shape and package the products, and then form a private brand. This way can greatly improve the differentiation degree of shopping malls, meet the individual needs of consumers and enhance the profit of department stores. Vanguard believes that under the premise of existing brands entering and becoming the main source of revenue, the domestic department stores can develop their proprietary businesses and carry out industrial chain appreciation, so as to enhance their core competitiveness. Such department stores are also worthy of proper attention by PE institutions.

Annex 2007~2011 VC/PE financing case of department stores

Source: CVSource

Enterprise financing investment financing financing scale

The nature of time institutions (100 million yuan)

Liqun department store November 23, 2011 Goldman Sachs PE-Growth 3.35

Baby island March 1, 2011 Huarui / Chuang Wei VC-Series B 0.50

Commercial capital December 30, 2010 New Horizon Capital / Hongyi investment / PE-Growth N/A

Guo Yuan investment / Anhui venture capital

Wangfujing international December 27, 2010 CITIC fund PE-Growth N/A

Baby island March 1, 2010, VC-Series A 0.32

New supply and marketing in March 1, 2009, Kate innovating to invest in VC-Series A N/A

New century department store June 1, 2008 New Horizon Capital / Hongyi investment / PE-Growth 6.76

Goldman Sachs / new TEDA Investment

Fu's January 8, 2008 VC-Series A 2.74, Sai Fu fund

Nancheng department store founded in December 29, 2007, Albert / VC-Series A 0.43

China International December 17, 2007 PE-Growth 3.32

Friends and shares June 20, 2007 Sheng Bridge Capital PE-Growth 0.75

ITAT March 9, 2007 Lanshan China / Morgan Stanley PE-Growth 5.16

Revenue sources for department stores

Source: China Venture research group

Main business income

Joint venture: importing brand dealers to sell directly

Self run: re brand self creation after buyout of goods

Other business income

Rent: rental income from fast food chains, theaters, games, etc.

Management fee: charging fee, brand promotion fee and so on.