Challenges Faced By Traditional Department Stores In Shanghai

Today, Shanghai has said goodbye to "want to buy clothes,"

And so on, all kinds of commodities must go to the age of Nanjing road and Huaihailu Road.

There are more places for consumers to buy things, and the competition among businesses has intensified.

Recently, there is news that North Sichuan Road's Spring Department store renovation is seeking pformation.

Analysis of the industry, single store department is difficult to form the scale effect and the impact of e-commerce and other factors have become the main reason for the closure of shopping malls.

How can we retain our "spring" in the traditional department store challenge? What kind of tricks will the businessmen want to innovate in the face of competition?

tradition

Industry faces challenges

Recently, media reports reported that due to the lack of long-term popularity, the spring department store in North Sichuan Road was quietly closed.

Subsequently, there were media reports that from the North Sichuan Road comprehensive development office, it was learned that the spring department store was only to adapt to the needs of North Sichuan Road's pformation and development, and was renovated. The fa ade and interior structure of the shopping mall would be redecorated to show the public in front of new faces.

According to people familiar with the matter, the shopping mall has been closed down in early August. The notice posted on the door said: "because of the internal decoration, the shopping center will stop business immediately. This is the announcement.

North Sichuan Road Comprehensive Development Office official said that after the closure and adjustment, it will no longer be a traditional department store or adjust the direction of the import commodity exhibition center in the future.

In the future, after the overall pformation, the southern section of North Sichuan Road will be upgraded to a distribution center for imported commodities to enhance the commercial popularity of the region.

Opened in North Sichuan Road in 1996, it was opened by Shanghai tobacco group Hongkou Tobacco & Sugar Wine Co., Ltd., mainly engaged in retail tobacco, wine, food, general merchandise, etc.

And cultural products.

In 2002, the mall combined with the new round of pformation of North Sichuan Road commercial street, repositioned the commodity structure, put forward the management idea of "charming spring, fashionable women", and introduced brand merchandise with women's clothing as the theme, attracting many female customers.

However, in recent years, popularity has been declining.

Insiders said that in recent years, the rapid development of electricity providers, foreign capital shocks the retail market, the rapid development of suburban commerce, intensifying the competition of the department stores in the downtown area, and the pressure of department stores is facing severe challenges.

In recent years, such old department stores as spring department stores have been closed for a long time due to factors such as lack of popularity and so on. In the area of North Sichuan Road, the famous department stores such as the 700th goods and the new Kaifu mansion have closed down once and for all.

"Pin Mao" one-stop service has the advantage.

Facing the shopping rush of large shopping centers, community business areas and e-commerce market, traditional department stores are facing great challenges.

Shopping is the favorite thing for Xiaoxia and girlfriends to do on weekends.

It is a little strange to mention the 4 words of "department store".

"I really seldom go to department stores, and I usually go to the one-stop" pin Mao ".

Xiaoxia said, "department stores can only buy things, while" pin Mao "can eat, watch movies and so on.

For the meaning of Xiaoxia's words, people in the industry know better.

An industry insider said, "at present, the homogenization phenomenon in department stores is more serious. One of the most important points is the similarity of goods, such as clothing.

That's also home.

Shopping malls, in contrast, have more advantages.

Generally speaking, there will be a main store, supermarkets, restaurants, cinemas and other entertainment facilities in the shopping mall.

That is to say, consumers can not only buy the commodities they need, but also consume food, entertainment and so on.

According to Xiaoxia's theory, "if you want to buy something in a department store and go to a nearby" pin Mao "to eat and watch a movie, then I will choose to go directly to" sell Mao Mao ", and do it one stop.

"A lot of times, shopping consumption is impulse consumption. For example, it is for the rest of the day to go out to eat and wander, and finally bought a pile of clothes and shoes when returning home.

The "one-stop service" offered by "pin Mao" has seized these opportunities.

Insiders say.

Marketing can't just price war.

How to get out of the predicament? Two words of "innovation" have been mentioned again and again in the industry.

"For businesses, good marketing is undoubtedly very important, and today's marketing can not simply be on the price of goods than discounts.

We need to work hard to establish the image of the shopping mall and serve the customers.

Shanghai six hundred of the relevant person in charge told the author.

The "six hundred" in Xujiahui business district renovates in 1992.

"In the early 90s of last century, in order to enhance the overall mental outlook of salesmen, we launched the standing service, which is the first batch of shopping centers that launched vertical services in Shanghai."

In the new century, shopping malls have undergone more concentrated floor renewal, thus pforming them into modern department stores.

{page_break}

In terms of business positioning, six hundred adheres to the "popular fashion" route.

"The positioning of commodities is close to the public, attracting the largest number of consumers.

Of course, we are also improving the level of brand introduction. "

The so-called "there is".

In 2005, six hundred "cut off" the home appliance business in the mall.

"For our shopping malls, the original appliance business has been doing well, many customers are crossing half a Shanghai to buy appliances."

And six hundred chose to "go back in a hurry".

Six hundred of the staff said, "at that time, when the appliance store was rising, no matter the scale or the price, the traditional shopping centres could not match it."

Today, six hundred is the thematic route.

"The so-called theme, that is, the mall is to determine a category of goods as the theme."

The staff told the author, "our shopping center takes clothing as the theme, and also provides leather bags, shoes and caps, jewelry and other commodities around this theme."

For the two word "innovation", Yongan department store has its own interpretation. "Facing bottlenecks and seeking breakthroughs in problems is an innovation."

A relevant official in Yongan department store said that in the face of fierce market competition, the traditional department stores must first find a clear positioning, "for us, it is to strengthen the dominant category."

After years of planning and adjustment, Yongan department store has formed a strong category such as watches, jewelry and cosmetics through continuous efforts.

It is reported that by introducing strong brands such as OMEGA and Rolex, Yongan has gradually upgraded the brand energy level of Yongan wrist watch category. In recent years, Yongan has made many adjustments to the wrist watch category, expanding the operation area of Rolex and OMEGA, making OMEGA Yongan special store one of the OMEGA Shanghai flagship stores.

At the same time, the separation of Longines and Tudor brand from the comprehensive hall, creating an independent hall, echoing with the rear area watch hall, formed the shopping list of Yongan classic shopping list.

Wide-angle lens

Selling products also needs innovation.

It is not just traditional department stores that encounter homogenization.

"A product with a one-stop feature" will also encounter homogenization problems. If you want to win from the market competition, you also need innovation.

One industry insider said.

Not long ago, when the 2012 commercial and cultural development forum was held, the innovation of "Mei Luo" mansion and Mei Luo city also mentioned.

The forum is based on the release of the commercial innovation mode of the city of Roland, with a cultural terminal cut in, to promote the combination of Commerce, brand and culture, to enhance the brand level and explore a new way for the pformation and development of commercial enterprises. At the same time, the forum also discusses how to better cope with the market crisis and challenges from the macro level cultural role in the economic background, and puts forward the thinking of straddling and cross-border.

At the same time, the city of Morgan released a cooperation project with Lai Shengchuan, a famous Taiwan director in China, who built "Star Theater" in the city of MOR and performed in a performance workshop led by Lai Shengchuan.

According to the introduction, "Star Theater" covers an area of about 2000 square meters, and is scheduled to start construction early next year. It will officially open to the public in October next year.

In addition to the performance of the classical drama of Lai Sheng Chan workshop, the theatre, which accommodates about 800 people, will also receive excellent performance groups at home and abroad to enhance the cultural content of Xujiahui business circle.