Guangzhou'S Traditional Department Stores Are Facing Difficulties.

After the season, the Department Store changed from the comprehensive brand discount shop to the LILYS life hall, the Chinese department store changed from the special price field to the expensive department store, and entered the four year Hualian Department Store in Guangzhou. Because of its poor performance, it changed its name to "BHG" at the end of last year. At the same time, it shifted from the discount field to the fashion department store.

A large number of department stores in Guangzhou have recently revealed that the traditional department store's road is hard to go, and the new department store, which is forced by competition, can only seek pformation and take the theme specific route.

It is no doubt that the special field market has been developing vigorously in the past four years. The most flourishing stage of Guangzhou's department store industry is shinguang department store, Ji Hou Feng Department store, Lite department store and so on.

However, because most of these new department stores are private enterprises or mixed ownership system, their reputation is not high compared with the old department stores such as Guang Bai, Xin Da Xin and friendship. Therefore, most of them start with the special price field and seize the market share.

In August 28, 2001, the Chinese department store, which appeared in the identity of "save field" in the Chinese Plaza, appeared in the image of a special price field. The Hualian Department store, which entered Guangzhou for four years, claimed that it was a female department store, but it was actually a discount field. In January 15, 2005, the Plaza Plaza, which opened in January 15, 2005, was a comprehensive brand discount department store with a total of more than 10000 square meters. It was a comprehensive brand discount department store with clothing, accessories and footwear in various formats. Modern department stores, Xinguang department stores and new Daxin also frequently launched promotional activities such as buying 200 to send 200, full 100 to reduce 50, and even the Guangzhou Friendship Store launched the first large-scale VIP discount evening market in the past 48 years at the end of last year.

"Promotion is a double-edged sword, and the more we do it, the more we lose."

Kuang Junsong, general manager of China Plaza, pointed out that because the unit price of the special price is low, it is difficult to raise sales and gross margin simultaneously. With the increasing competition of new department stores, the way of special stores has been very difficult to go.

From the big to the small, the industry recognised that Guangzhou is the most difficult city for all provincial capitals in the country to make department stores.

The new department store, which appears in the special field, has encountered many problems during its operation.

The theme department line of private sector stores is actually forced by competition.

Li Suisheng, vice president and general manager of general merchandise Plaza, said that the market recognition of private department stores was low at the beginning.

It is reported that this year's "May 1" advance on the road to run along the Department of Le run department store will be positioned as a community department store, is expected to open next year, the Department of general merchandise will also be positioned as a single boutique department stores.

At the same time, when new department stores began to take the theme department store routes, the private department stores that had taken the special price route also sought strategic pformation.

In August of last year, 4 million of China's general merchandise department had been upgraded and adjusted to the original department store. The sales volume of Chinese department stores increased by 10% over the same month. In December last year, Hualian Department store was renamed as "BHG" because of its poor performance. At the same time, it shifted from the discount field to the fashion department store, which is the fourth integrated business of Hualian Department.

"New department stores are moving from big to small in the past."

Huang Huajun, President of the first commercial network, said that it is not easy for new department stores to have a share of the Guangzhou department store market. In addition to the self promotion of hard work, the new department store can also seek a win-win situation through the establishment of a regular information communication mechanism.