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What Risks Should The Department Store Industry Try To Avoid?

2013/8/8 10:56:00 24

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Department Store Industry Department Store Industry Self Operated Mode Clothing Brand

< < a href= > http://sjfzxm.com/news/index_c.asp > > department store > /a > and brand dealers adopt the mode of joint operation. The brand is set up in the shopping malls of department stores, and after sales are generated, the two sides are divided according to the contract according to the contract.

Deng Huadong, director general of Guangzhou 100 shares, said that the long-term mode of joint operation led to serious homogenization of commodities in department stores, and the low price impact of electricity suppliers. The operation and profit margins of traditional department stores were all squeezed.

The development of proprietary business has become a positive attempt for department stores to look for new profits and face new shocks.

In 2012, intime department store set up its own department, and tried to buy the brand of its own brand. Guang Bai shares signed a strategic cooperation agreement with Hongkong Lufu group to bypass the intermediaries for the first time.

"although many department stores are promoting the proportion of self run companies, the self financing mode requires relatively high capital and enterprise management capabilities. In the next five years, it can not become the mainstream business mode of department stores."

Guo Zengli, director of China shopping center industry information center, believes that although the mode of self operation is more flexible and profitable than the joint mode, he has a relatively conservative attitude towards large-scale pformation of department stores to self run mode.

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although retail companies such as Yintai department store and Guang Bai share have been exploring the mode of self operation, the joint mode still occupies a leading position in the department store industry.

CITIC Securities research report pointed out that as of October 2012, from the perspective of income structure, the income of domestic department stores 80%~90% came from the joint venture income.

At present, the proportion of joint ventures in department stores is about 95%.

in the 90s of last century, the mode of joint operation supported China's department store industry through capital difficulties and effectively avoided operational risks.

However, China's department stores under the joint venture mode seem to be getting poorer.

Guang Bai shares in the 2012 annual report of the board of directors, said that the joint mode led to homogenization of goods, coupled with the impact of low price of electricity providers, the traditional department store business and profit margins were squeezed.

the earnings report of a number of listed companies. In 2012, the gross profit margin of Wangfujing department store was 17.51%, the gross profit margin of Wuhan Zhongshang was 12.73%, and the gross margin of Guang Bai shares was 16.4%.

a senior retail industry member said that the cost of rentals and manpower has been rising, and the net profit of the department store has been reduced to about 5% under the joint mode.

"In the mode of self purchase, the net profit of department stores can reach more than 10%."

The source said that the self operated mode could release profits that were taken away by middlemen.

in addition, the mode of co operation not only squeezed the profit margins of retail enterprises, but also increased the circulation link, thus pushing up the price of terminal products.

After the layers of agents, the terminal prices of goods in department stores have been pushed up too much.

This is also one of the main reasons for the high price of department stores.

Less than P, especially in the competition with the electricity supplier, the department store has no advantage in product price.

And in the self run mode, < a href= "http://sjfzxm.com/news/index_s.asp" > department store < /a > the company can gain more voice in price control.

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test water self purchase: /p >

at present, there are two kinds of direct operation modes in China: self purchase and private brand.

Self purchase is the "buying system", which is decided by a department store buyer to decide what brand to buy and how to sell it, while the private brand is a brand created by department stores according to their needs, and then commissioned by the foundry.

The two case involves domestic department stores.

Guang Bai shares set up platinum Shang Jewelry Co., Ltd., acting on the brand of LF, while trying some brands in stores: < a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > agent or buying brand self operated brand management mode.

"P" in the 2012 annual report, the joint-stock shares said that, in 2013, the joint-stock continued to expand the agency surface to improve the proportion of self - operated goods in sales.

Deng Huadong said that Guang Bai has been actively trying to break the single mode of joint distribution and pform into agent and buyer system.

"P" is unique. In Wuhan, China Merchants also said in its 2012 annual report that we should expand our own business and develop our own brand, first pilot, and then gradually expand the scope.

"P >" Tianhong mall "also said that actively searching and introducing agent brand resources, further expand brand agents, speed up the introduction of brand business.

Those who are familiar with the business of Tianhong shopping mall indicate that their proprietary business is gradually increasing.

a senior retailer said that the current self purchase in the industry is better than that in Wuhan, with an estimated ratio of 15% or so. The self purchase ratio of Wangfujing department stores is about 5%.

In China, the proportion of self purchase can reach more than 5%.

"In general, the total size of department stores is small."

in the first half of this year, the survey results released by China Chain Operation Association showed that the ratio of the three modes of sample brand association, self purchase and counter leasing is about 89.6:7.1:3.3.

Li Baosheng, deputy director of Xinhua Department store, said that at present, the business mode of Xinhua Department Store 100% is p, and there is no intention of developing proprietary business for the time being.

the risk of self run mode /p >

"self run mode does have many advantages, for example, the most direct embodiment is to improve the profitability of enterprises, to achieve differentiated operation, so as to enhance the core competitiveness."

Guo Zengli thinks.

like the two sides of a coin, the high risk of self run mode is also obvious. The funds occupy a lot, especially the inventory needs huge working capital.

This may be the primary pressure for department stores to start self employment.

In addition, the long term joint mode has led to a general shortage of professional buyers and inadequate accumulation of management level in department stores.

"the expansion of the proportion of self run helps market to better grasp the resources of goods and avoid being restricted by brands and agents.

But the proprietary mode must be supported by enough sales and profit contribution rate.

Cang Wenhui, a retail expert, believes that if the business model is run poorly, it will face major risks.

from the perspective of the development trend of international retail industry, private brand is an important means for enterprises to raise gross margin, reflect differentiation management and maintain customer loyalty. The highest proportion of private brand in retailing industry is Switzerland, accounting for 45.4%.

many practitioners in the retail industry believe that self employment mode is one of the pformation directions of the department store industry in the future.

Li Baosheng said that retail enterprises could not change from a joint venture mode to a self run business at any time. "That is also a matter of many years later."

Guo Zengli believes that the self run mode is not the only way for the general merchandise industry to seek breakthroughs.

For example, Lotte made children's stores, youth stores, senior stores and high-end stores for the market segments.