Fuzhou High-End Department Store Lowered Its "Figure" To Small Shopping Mall

　　 A high-end department stores no longer push "VIP closed"

Fuzhou high-end department stores used to launch "VIP closed door marketing" in the middle of the year, but this term has quietly disappeared this year.

Last weekend, the East Street store of Oriental Department Store opened the "VIP Summer Festival". This annual VIP day used to require invitations or other vouchers to enter the site, but this year no threshold was set.

The VIP Day of Fuzhou Department Store was initiated by the East Street Store of Dongfang Department Store at the end of 2007. It was closed for VIP customers, which is the so-called "rich people's exclusive sale". I still remember that the number of guests was limited at that time. More than 8000 VIP customers (one accompanying person is allowed to enter the site). All guests had to enter the site by invitation. The 9-hour turnover exceeded 10 million, of which some high-end luxury goods accounted for one third.

Since then, such a unique marketing method has been emulated by many department stores in Fuzhou, especially the three stores taking the high-end route.

However, as early as 2011, Dayang Jingdian, one of the high-end department stores in Fuzhou, has lowered the VIP closing threshold, such as offering "VIP gift certificates" or requiring bank credit cards, which makes the closing of the store unworthy of its name. This year is even more serious, and we will abandon the "closed museum" directly.

The Mid Year Celebration of Oriental Department Store Qunsheng did not take place as scheduled this year, but postponed to October in coordination with brand adjustment. The "VIP Closed House" launched in the mid year celebration of the previous year will no longer be used at that time, and is seeking more innovative thematic marketing techniques.

As for the disappearance of the "closed door" marketing, the insiders frankly said that the VIP closed door marketing did not really close the hall and did not stick to the bottom line of the VIP, which caused the VIP customers to lose the market without feeling of VIP, and after several years, they also felt tired for customers.

The above mentioned people mentioned that the most important thing is that there is a big risk in closing the hall. Not only do we need to spend more money on publicity, but there is no guarantee that the VIP customers covered by the publicity will be able to reach the store. In the current situation that the sales performance of each department store is not very good, everyone tries to grab customers. If the store is not closed, there will be some free customer flow.

Therefore, under the superposition of many factors, the department store industry will not only value VIP customers, but also will not refuse ordinary potential customers.

　　 B Increase the business type to small shopping mall

Last year, the sales of many mainstream department stores in Fuzhou showed negative growth for the first time. Against this background, Fuzhou high-end department stores not only began to abandon the outdated marketing methods, but also made adjustments and upgrades in business formats to seek breakthroughs in performance.

This year, the main theme of Oriental Department Store will be "new experience, new image and new space".

Yesterday, people related to the Qunsheng stores of the Oriental Department Store said that this year, from the first ten days of April to the end of September, large-scale adjustments and upgrades have been carried out for the store formats, with an unprecedented span and strength.

It is understood that the adjustment and upgrading of the Oriental Department Store Qunsheng was carried out at the same time as the reconstruction and expansion project of Fuzhou Workers' Cultural Palace. The second floor will be upgraded to an international second tier famous product, the fourth floor will be upgraded to a children's play hall, and the first floor will also introduce catering. At the same time, it is planned to take one floor as an artistic exhibition, and make a hanging garden on the top floor. In addition to the original beauty salons, restaurants, etc., the goal is to turn "gorgeous turn" into a small shopping mall.

However, the above people said that after the increase of business types, it will be a new department store experience store, and department stores will still be its main business type.

Dayang Jingdian, which also takes the high-end route, also has a big move, and the adjustment involves most floors except the first floor.

According to the industry, the sales performance of the two most high-end department stores, Oriental Department Store Qunsheng Store and Dayang Jingdian, did not exceed 500 million yuan in 2012. However, the performance of the first floor of the luxury goods concentration center of Oriental Department Store Qunsheng accounted for half of the whole store, while that of Dayang Jingdian was higher. It seems that the performance of the other floors of the above two department stores is not optimistic.

Not only are high-end department stores adjusting their formats, but mainstream department stores in Fuzhou are upgrading their floor brands every year in order to improve their performance with some new elements.

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　　 C The discount frequency of international famous products in Rong becomes higher

In addition to cultivating themselves, high-end department stores have begun to increase the discount frequency of their international brands. From the middle of June to the end of July, the mid year discount season for international famous products in high-end department stores in Fuzhou was held.

Recently, the publicity of "famous products shocking prices" in the plaza outside the Oriental Department Store has been put in the most prominent position, with a 30% discount on the PAUL&SHARK part, a 25% discount on the Aquascutum designated goods, and a 30% discount on some CERRUTI1881 goods... Not only that, many international second tier brands have marked Dongbai VIP gold cards and diamond cards with a 10% discount.

The second tier luxury brands are generous in promotion, while the first tier brands are quietly offering discounts. For example, some of the products of the palace luxury brand GUCCI are given a discount of 70%, which is known as a 60% discount on some of the products of the British royal household goods BURBERRY. Some Armani goods will be reduced by 60% to 80%. However, the reporter found that the discount season of first-line luxury brands was quite low-key, and the word "SALE" was not mentioned in the enterprise publicity of the discount season of international famous products of the department store and their respective stores.

"Since the year before last, the discount frequency of international famous products has become higher." A senior manager of a high-end department store in Fuzhou recalled that the discount was usually only at the end of the year, but now even on Mother's Day, it will cooperate with the department store to launch discounts. In this year's luxury discount season, Fuzhou has kept pace with the international market.

In addition, according to the 2012 annual report released by Dongbai Group, GUCCI ranked third among the top five suppliers in terms of sales in 2012. In 2012, GUCCI achieved a total operating income of 42.93 million yuan. Although the daily average sales reached nearly 120000 yuan, it decreased by 5.8% compared with 45.57 million yuan in 2011.

It is worth noting that a group of luxury brands that originally held the flag of logo have played "logo free fashion". Hermes, Fendi, Celine and other big brands launched the "no logo" series as early as this spring and summer. A quarter passed, the sales performance of some big brands increased by 20% year on year, while some did not improve. In the face of the reality of "slowing growth", the big brands collectively "de logo" the most profitable handbag products.

In addition, the chairman of LVHM Group, a French luxury giant, said recently that LV would comprehensively curb its expansion and would not continue to open stores in China's second and third tier cities. The CEO of PPR Group, Gucci's parent company, also announced that he would not open stores in new cities in 2013, while upgrading the existing stores. In addition, Burberry Group also said that it would slow down its expansion in China.

　　 Expert opinion

Innovate business types and do a good job in deep distribution

Professor Chen Zhangwang from the School of Management of Fuzhou University believes that high-end department stores should do a good job in "cross selling", cooperate with different industries, do a good job in deep distribution, extend their tentacles forward, and do a better and deeper analysis of customers. At the same time, it is necessary to change from "being a trader" to "being a trader". While maintaining the high-end positioning, it is necessary to constantly carry out business innovation. The diversified shopping center will bring more customers to the department store.

He said that nowadays, the competition of high-end department stores in terms of price and brand is not so obvious, and soft services are also needed to expand the extension space. Unlike e-commerce, department stores can provide experience and personalized customized services.