Why Does Traditional Department Store Fail To Make Electricity Suppliers?

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< p > by the influence of the electricity supplier, the entity < a href= "http://sjfzxm.com/news/index_c.asp" > the retail industry < /a > frequently releases the signal that the store is closed. In the first half of 2013, there was "Jinsong Wangfujing shop, which was forced to close because of a loss." the news came out that Shenyang's Yi Dan was shut down due to poor sales performance, and the Wuxi ocean department store and the Wuhan branch of Guang Bai department store were forced to withdraw.

Wangfujing has also announced that it will spend 100 million to expand the online shopping market, but the effect is not obvious.

The traditional department stores' ecosystem is shocked, but why can't they do well? The author of this article gives three considerations.

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At the beginning of 2013, I was invited to do research and overall project planning for a unit to expand the e-commerce market in the traditional department store, and found some new problems and new ideas which are totally different from the traditional business logic. P

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< p > in fact, the so-called "enterprise gene", "channel conflict", "lack of team" and "poor logistics" are often nagging problems in the electricity business circle. For the department store industry, it is likely to be a superficial phenomenon, which really restricts and affects the root cause of the development of e-commerce market in department stores. It is the three major game secret behind the department store.

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< p > < strong > 1, system limitation leads to < a href= "http://sjfzxm.com/news/index_s.asp > > department store < /a > electricity providers dare not take steps" /strong > /p ".

In the Internet market of P, China has never had any shortage of national teams. Even if they have monopolistic advantage resources, they have never been the mainstream team in the Internet industry.

Many people attributed the failure of the national team to the bondage of the state-owned system, but few people can really understand the system and the specific operational level which has constrained the development of the national e-business Corps.

Now, the traditional department store enterprises expand the electricity supplier market is a very classic interpretation case.

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< p > China's department stores are mainly divided into two categories: state department stores and private department stores.

With the rapid development of retail industry, the proportion of private department stores and state department stores is relatively close. However, in the three main retail factors, such as sales scale, enterprise brand and location area, state department stores occupy huge advantages and market status is hard to shake.

Many people may not know that almost all the famous department stores in the country are state-run department stores, such as friendship department store in Guangzhou, Guang Bai share, Beijing Wangfujing department store, Shanghai Yongan department store, etc.

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< p > > therefore, the traditional department stores in our country expand the e-commerce market, in fact, the state department stores expand the electricity supplier market.

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< p > although people all over the world know that e-commerce is the general trend of the development of the commercial society, although the earth people feel the tremendous impact of e-commerce on the department store industry, few people will know that in fact, the leaders of department stores do not want to expand the e-commerce market.

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< p > here, I explain the reason and motivation with the words of the chairman of a well-known department store.

He mentioned: < /p >

< p > "as the leader of the enterprise, we must know more about the impact of e-commerce on our traditional department stores. Our group's sales scale in 2012 is more than ten billion, but our actual net profit is only 2 hundred million, and this 200 million is not sales profits, but our own fixed asset premium. If we vigorously expand the online shopping market, how much money can we invest? Department stores belong to a highly homogenized industry. In the face of Jingdong, Tmall and other tens of billions of capital investment, we really do not have many odds.

We are all in such a dilemma that we should not talk about those private department stores that are weaker than us.

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< p > according to the author's enquiry, in June 2012, Beijing Wangfujing announced the investment of 100 million yuan to expand the online shopping market. It should be the largest single investment amount of traditional department stores to the electricity supplier market so far.

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< p > chairman continued: < /p >

< p > "we are a state-operated listed department store. The leader is a replacement in three years, appointed by the government.

We do electric business, there is little chance to generate profits in the early stage, and no profit means loss.

The stock price of the department store has been declining for many years. Once we have a bigger loss, our share price must drop rapidly. How do we explain it to shareholders? How can we explain it to the government? As a leader, it is a lie to say that we do not want to continue our promotion.

If you do not engage in electricity providers, there will be 200 million net profit. If you engage in electricity providers, 200 million will not be able to keep up with it. Why do you want to go up there? Which government officials dare vote for you? "< /p >

< p > the chairman sighed with some reluctantly: "e-commerce still needs to be done, but it can only comply with the government's intention to promote the development of e-commerce.

In fact, the real purpose of our business is to give top leaders' resume a bonus, which is said to have made innovations in the traditional mode during their term of office and has the courage and courage to innovate.

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"P" has to be said that this is indeed a rather ironic event. But I also deeply believe that the view of the head of the state department store is very representative. Behind his viewpoint, I am afraid it reflects the real mentality and motivation of the whole Chinese department store for the online shopping market.

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< p > in fact, no chairman of a state department store will put the above thoughts openly and openly.

They are able to put forward the sounding reasons for such conflicts as channel conflict, logistics warehousing, and lack of professional electricity suppliers. These are all reasons, but these reasons can be solved for a company and executives who really want to work.

Is it possible for a director of a department store to carry out an electric business with a desire to be meritorious but not to have a good attitude to make an electronic business? If he wants to create a new marketing mode, can he do it well?

< p > to understand the cause and effect of the above reasons, it is not difficult to understand why in the department stores expanding the electricity supplier market, a better department store is only Yintai, because Yintai department store is innate from private department stores.

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< p > strong > two, team factions, restricting the operation of department store electricity market < /strong > /p >

< p > lack of professional e-commerce operation team has always been one of the reasons for widespread circulation in department stores and electric business circles. In fact, even if traditional department stores attract professional electronic business teams, it is extremely difficult and difficult to do well in the department store business. There are two main reasons for this dilemma: first, power, and second, interest.

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< p > a few days ago, the electricity supplier circulated a deep throat article about Foxconn's original investment to do "Flying Tiger shopping shopping", which mainly described the flying tiger's Tesco's operation team, which was mainly divided into two major factions, namely local and foreign, and two teams were fighting each other, and the internal consumption was serious.

In fact, this kind of story in traditional enterprises to expand the electricity market, almost every family will be staged.

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< p > traditional department stores expand the electricity supplier market. Due to the lack of professional talents and experience of the original team, it is sure that the appropriate business operation team will be recruited from the outside.

Based on traditional enterprise management thinking, most of them will also deploy personnel from the original department store channel to the business segment.

This is that we often see that many people who have never done electricity before will become the leaders of traditional enterprises to expand the electricity supplier market, and these senior executives often come from the original offline system of the enterprise, while the large traditional enterprises such as Gome, Suning and BELLE enter the online shopping market.

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< p > on the one hand, it is a new professional electricity supplier team. On the one hand, it is a veteran of the department store under the line. The two sides will easily lead to contradictions and differences in the actual operation of the electricity supplier, thus gradually forming the two major factions of "new monk" and "old monk". The distribution and balance of power will become the focus of the struggle between the two sides.

In order to strengthen the right to speak, the new e-commerce team must rely on performance to speak and insist on the market strategy of "big investment and strategic loss". In fact, this strategy is not only different from the traditional retail operation strategy, but also with the attitude of the "top to bottom" attitude, which is very difficult to implement.

Excessive factional disputes will lead to serious internal friction, thus directly affecting the actual operation of the electricity supplier business.

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< p > if the dispute of factions is the inevitable threshold for many traditional enterprises to expand the electricity supplier market, then the game of interest is the unique attribute of traditional department stores.

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"P", the traditional department stores almost all have a special commodity purchasing department. In the traditional retail format, the purchasing department is a special department with deep water.

The reason why this department is the main reason is: first, the person who can sit in this department, must be the high level personal letter level person; second, in the process of commodity purchase, it is likely to involve the issue of rebate.

The issue of kickbacks is certainly not a problem arising from this day and now, nor is it a commercial phenomenon peculiar to China.

For some large department stores that sell over 100 million or even billions of dollars a year, there are many imaginable operating spaces.

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< p > traditional department stores do electric business. Based on location, channel, category and other issues, they often take the operation of online merchandising independently, and are responsible by the colleagues in the electricity supplier's forum.

This strategy has undoubtedly hurt the vested interests of the traditional department stores, and, in a profound sense, may even hurt the vested interests of some department stores.

This is something that vested interests can not tolerate, but the secrets inside are equally bad. So their most likely strategy is to create many difficulties and twists for the e-commerce project intentionally or unintentionally, so that the electricity supplier project is always in the state of being half dead and alive, which is the only way to meet the interests of all parties.

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< p > strong > three, tax rate difference, extrusion < a href= "http://sjfzxm.com/news/index_c.asp" > department store electricity supplier < /a > survival space < /strong > /p >

< p > at present, the tax rate of our traditional department stores is about 17%, while the electronic commerce enterprises belong to high and new technology, enjoying a tax rate of 8%, and the difference between them is more than two times.

Some of the business enterprises that have obtained government support funds will be able to lower the actual tax rate after they have been offset, thus enhancing the comprehensive competitiveness of enterprises.

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< p > a lot of department stores in the early days tend to touch the net with the mentality of testing the water. Most of them do not dare to invest heavily in independent operations before they have achieved certain achievements (especially when they do not really want to do the business).

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< p > this strategy, according to the relevant laws and regulations of the state, is still taxed according to the traditional department store retail tax rate of 17%. Compared with the professional e-commerce enterprises such as Jingdong and shop No. 1, the tax rate of 17% will undoubtedly greatly reduce the power of the traditional department stores to expand the online shopping market, and at the same time, reduce the market competitiveness of department stores.

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"P", which can not operate independently, often suffers from many fetters from the original system, so it is hard to give full play to it.

A careful study of traditional enterprises in developing online shopping market fails or half lives, most of which are more or less the problem.

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< p > based on the reason that the online shopping market is flattened, the online price of the same commodity is about 20%-30% lower than that of the offline price.

Under the premise of brand, team, technology, experience, capital and so on, traditional department stores should expand the e-commerce market, and bear higher tax rates and lower retail prices. The profit margins of their merchandise sales will inevitably be further squeezed, so as to further enhance the difficulty of expanding e-commerce market in traditional department stores.

At the same time, the deeper consideration of traditional department stores is that there is not much progress in the electricity business, while online sales have lowered the sales below the line.

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< p > has not yet set out, it is already a thorny road, and the hardships can be imagined.

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< p > profound insight and understanding of the difficulties and problems encountered in these practices are of great value and significance to traditional enterprises in expanding e-commerce market or in the practical operation level of electric business.

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