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    Department Stores Are Committed To The Reform Of Their Own Business Models.

    2013/8/24 9:59:00 10

    Department StoreBusiness ModeTransformation And Transformation

    < p > recently, the "a href=" http://www.91se91.com/news/index_c.asp "> department store" /a "has disclosed the China Daily, among which the number of department stores that achieve two digit net profit growth is few. Hangzhou's first half net profit in the first half of this year was 10.56% lower than that in the first half of last year, while Fujian Eastern Group's net profit fell 2.88% in the first half of the year. Although Chongqing's department store realized a net profit rise of 16.11%, its profit margin remained at a low level of around 3%. < /p >
    < p > Du Yanhong, a researcher in the retail industry of CIC, pointed out that transformation is the main theme of domestic department stores in the next two years. In this process, the performance downturn or even decline is expected to happen. At the same time, the quality of department stores, such as a href= "http://www.91se91.com/news/index_s.asp" and property resource < /a >, will also arouse the favor of all kinds of capital, and the probability of merger and reorganization is great. < /p >
    < p > the impact of electronic commerce, the quality experience of shopping centers, the competition of supermarkets and subdivisions of community supermarkets all create heavy competition pressure on the department stores. The increase of labor cost and rental cost has also increased the difficulties of department stores themselves. At the same time, the operation mode of the joint operation has led to serious competition in the department store industry. The department stores have been reduced to the "landlords" who are mainly investment oriented, and their retail business capability has gradually been lost, and their ability to resist external environment changes has gradually weakened. < /p >
    < p > in fact, no matter the aggravation of competition, the rising of operating cost, or the malpractice of the business mode, in the final analysis, it is the change of the whole consumption market environment. In the consumer market with material abundance and oversupply, consumers become the core of retailing. Who can better understand and grasp the habits of consumers, who can occupy the commanding heights in the changeable market. However, domestic department stores lack the initiative to contact and communicate with consumers directly, and this right is handed over to their brand merchants. < /p >
    < p > currently, the consumption habits of personalization, diversification, high-end and service in the second tier cities in China are taking shape. Meanwhile, the upgrading of consumption in the three or four tier cities is accelerating. Facing the consumer characteristics of multi-level, < a href= "http://www.91se91.com/news/index_s.asp" and "regional characterization" /a, the domestic department stores need to make corresponding changes to cope with the changes in the market environment. Transformation refers to the transformation from high-end, characteristic, large scale, or department stores inside shopping centers to the consumption characteristics of consumers. Reform refers to the reform of department stores' own business mode, and the mode of "collection of rent" from the joint operation to the business mode of earning price difference based on proprietary business. < /p >
    Hu Zhiliang, director of the industry and Policy Research Center of CIC, pointed out that the industry will usher in a tide of mergers and acquisitions under the background of the downturn of the industry and the decline of business performance. P On the one hand, the regional department stores have grasped the property resources of the high quality business circles in the region. On the other hand, although the performance of the department stores is low, their cash flow is very abundant, which attracts the rob of all kinds of capital. In addition, department stores maintain strong market competitiveness and scale expansion is also an effective and feasible way. < /p >
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