Paris'S Old Buddha'S Department Store Is Coming Back To Beijing Again.

After more than 10 years,

The Department of general Lafayette finally announced the date of returning to Beijing again.

Liu Yongjie, head of Paris's Lafayette department store (China) Limited, said in a recent interview that the first store in Beijing, which will open in September 1st next year, will open 16 stores in the Chinese market in five years.

In 1997, Lord Buddha entered Beijing and chose the address on a side street in Wangfujing.

In the second year, he had to close the Beijing store due to a loss of business.

The failure of this Asian market, old Buddha

The managing director of the Asia Pacific region says that because the market is not yet ready, the supply chain is not guaranteed to be complete, and the problems in the operation layer are also the cause.

For its re-entry into Beijing, CIC Consultants

Researcher Du Yanhong thinks it is because it is bullish on the Chinese market.

Zhu Zhen, editor in chief of Lian Shang network, said that under the condition of the whole industry downturn, the buying system of Lord Buddha is still at the stage of brewing in China. "Low familiarity and high rents", it is still difficult for old Buddha to go to Beijing again.

The prospect is still hard.

Once again, he was cautious.

It has formed a joint venture with Hongkong's I.T fashion group, which is a 50% equity joint venture, Paris's old Buddha's department store (China), which has reduced its operating risk by half.

For its preferred Asian market, Beijing, the head of the Asia Pacific region said that Beijing's department store market is relatively fragmented and concentration is not enough.

But from last year, the sales performance of the whole department store was not optimistic.

Some large department stores in Beijing and Shanghai have been closed down.

Including the recent Shanghai old brand Yongxin department store, Parkson Shopping Center and so on, there has been a closed shop phenomenon.

The company's announcement shows that in the first half of this year, Shanghai's nine hundred operating profit was 10 million 450 thousand yuan, down 25% compared with the same period last year, and the total profit was a sharp decline of 89.39%.

The larger Wangfujing did not decline in profit, but the growth rate slowed down significantly.

In the first half of this year, Wangfujing's operating income was 9 billion 70 million yuan, an increase of 8.54% over the same period last year, while the growth rate in 2011 was 23.93%. The total profit was 519 million yuan, an increase of 5.53% over the same period last year, while the growth rate last year was 31.54%.

As for Lord Buddha's entry at such a time, some people in the industry think that the Department of general merchandise is looking at the Chinese market.

"Although the department stores in China are in the plight of multiple formats competition and joint venture mode, China's consumer demand is gradually showing personalized, diversified and service demand."

Du Yanhong believes that the department store will rely on quality services to open up and occupy the market.

Some people in the industry are still not optimistic about the two degree arrival of Lord Buddha.

Zhu Zhen told the daily economic news reporter that in the first half of the year, Beijing's 30% department stores were losing money. Although the old Lord Buddha positioned the high-end, the economic downturn still had some impact on them.

Second, the old lord is still buying the route. "This trend is good, but the whole market is still in the process of brewing."

In addition, the location of the new store is rentable, and it is also a difficult problem for the old Buddha. "I am not very optimistic about many people I touch."

Expansion of foreign department stores

Since the opening of China's market, foreign capital stores have come forth one after another.

However, many foreign department stores have encountered difficulties in their domestic development, and some have even withdrawn from the Chinese market.

"There are few department stores that expand their regional development."

Zhu Zhen said that taking domestic Yintai as an example, it has been very good to develop in Hangzhou, but after expanding the area, it still can not avoid losing the game.

According to the insiders, there are three main problems faced by foreign department stores in the domestic market: localization, business competition, and network establishment.

Du Yanhong said, on the one hand, foreign department stores do not know the needs and characteristics of consumers as well as local department stores. At the same time, there are not many outlets for foreign department stores and less occupation of core business circles.

According to industry experts, after the entry of foreign department stores, due to the low familiarity in the short term, the impact on local department stores is not large.

"More is the impact on the local department store business mode, making it more diversified."

Zhu Zhen told the daily economic news reporter.

In addition, Zhu Zhen said that the follow-up of Lord Buddha's future is to see how to do well in differential competition. "Serious homogenization is a major sticking point of the department store."