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    Shenzhen's Traditional Department Stores Plunged Into A Downturn With Poor Experience.

    2013/9/4 17:01:00 16

    Traditional Department StoresTraditionsDepartment Stores

    With the completion of the first shopping mall, Hai Ya group, a local retail enterprise, the pace of transformation and upgrading of several leading traditional stores in Shenzhen, such as Tianhong, Mao ye, and Bao Bao, has begun to accelerate and the shopping center has become an important transformation direction.


       Shenzhen's traditional department stores are in the doldrums


    According to the first half of 2013 annual report released by a number of retail enterprises in Shenzhen, most businesses are gloomy. Despite the increase in total retail sales, net profit has declined to varying degrees. Maui international net profit fell 14.9%. The loss recorded by the year old treasure store expanded from 13 million 830 thousand yuan in the same period last year to 76 million 550 thousand yuan. Only Tianhong realized a 4.93% increase in net profit.


    The depression of traditional department stores in Shenzhen did not appear this year. In September last year, the "pioneer" of the high-end department store was withdrawn from the new city square. At the same time, other cities also appeared in the Department Store closure. In February, Guang Bai Department announced that it closed the MALL store in Chengdu due to its worse business than expected. Industry analysis, the industry or warmer in the second half, but the situation is still grim.


       Poor experience of department stores "soft rib"


    The stagnation of traditional department stores is not only related to business strategy, but also by the change of consumption environment in Shenzhen. Consumers' demand for high-end consumption and experiential consumption is increasing. The traditional form of single department stores can not satisfy the current consumer groups.


    The first Tianhong shopping center in Shenzhen will open as soon as the end of October. Tianhong said that the shopping center will provide catering, leisure, shopping, entertainment and other forms of one-stop shopping experience. Zhang Xiaoduan, director of Research Department of DTZ, Southern China, said that compared to the shopping mall's spacious, transparent shopping environment and diversified formats, the traditional department stores had a small building area, a simple format, a mixed format, and a vertical display of goods, which was not conducive to the shopping experience of consumers. DTZ In addition, the traditional department stores are squeezed by the rapid development of e-commerce, and the cooperative alliance merchants have to get rid of the department stores' "self door", plus the monopoly stores, boutiques, shopping centers and other formats to encroach on the traditional department store market, diverting the consumption crowd of the traditional department stores, making the traditional department stores unable to bear the increasingly high rental cost, and strive for the way of transformation and upgrading.


    Transformation to shopping centers


    Hai Ya group said that after the Baoan Hai Ya colorful city, will be in Zhongshan, Kunming, Liuzhou and other cities to create shopping centers. Year old department store also built shopping centers in cities such as Humen, Shenzhen, and Maoye proposed to replan the original commercial projects into Maoye world, Maoye department store, community home and four outlets, among which Maoye world is the driving force for building a new shopping center.


    However, the traditional department store water trial shopping center looks beautiful, but it is not smooth. Netizens broke the news that the opening of several shopping centers transformed from department stores in Shenzhen has not achieved satisfactory results for several months. Reporters on the spot investigation found that the popularity of shopping centres needs to grow. Tianhong side said that with the penetration of A export and the opening of two brand stores, I believe that popularity will increase significantly.


    Lin Xiaohua, general manager of Shenzhen real estate marketing, believes that the traditional department store can not be viewed from the short-term income. "The rent in the core area is very high. Self built shopping centres do not have to pay rent, but also rent some shops to get cash flow and enjoy long-term land appreciation."


    Whether the transformation of shopping centers to traditional shopping centers will mean "leaving the rivers and lakes"? Zhang Xiaoduan believes that traditional department stores still have a large market for target consumption. "It's just a matter of shopping rather than shopping. When buying online is not reassuring, shopping for department stores is still a choice for many people."


    Xie Yongming, director of the Shenzhen retail business association's external liaison department, said that the consumption level of department stores is still quite high in cities where domestic consumption level is not very high. There are also regional stores in Longgang and Baoan outside Shenzhen. But he admitted that with the increase of people's consumption demand, the pressure of survival of traditional department stores is still great.


      Developing shopping centers is not the only choice.


    When the entity bookstore is impacted by online bookstores such as Dangdang and excellent network, the sincere bookstore from Taiwan attracts a lot of consumers with an experiential book buying center, which combines boutique, coffee shop and lecture salon. Nowadays, traditional department stores have been squeezed from all sides, and have begun to "transform". However, no matter what direction they are changing, they should focus on the two words of "experience". This is the most gorgeous demand of people after the improvement of living standard.


    However, emphasizing experience does not mean developing shopping centers is the only option. The department store industry in China has a history of more than 100 years, and the form and shopping choice and experience of department stores are constantly changing. Some department stores are limited by the building structure, can not be transformed into shopping centers, and can not be built elsewhere. They will upgrade local businesses, increase food and entertainment, and improve the shopping environment. Compared with the past, the shopping environment of shoppers in a narrow space can not be improved. Now the department stores have made great progress in space comfort.


    Nowadays, shopping centers in Shenzhen and other first tier cities are everywhere. The homogenization of formats, brands and building structures makes the competition between shopping centers bigger. Shopping centers are struggling to find differentiated competitive strategies. If all the department stores join in the excitement, I am afraid that I have just come to a gorgeous turn and have to ponder over the next change. After all, the days of shopping centres are not so solid.


    In the first two years, Tianhong successfully upgraded the Tianhong shopping center in Futian Central District as a monk Shang department store in light of the luxury consumer market. Tianhong side said that this is a double brand strategy for the market segments, and will continue to adhere to the strategy in the future. At the same time, it will vigorously develop the electricity supplier, and strive to build a full channel shopping platform that integrates online and offline development.


    It seems that there are many ways to cater to the different needs of different markets. After all, business needs to suit local conditions, not all places are suitable for the development of shopping centers, but some community based department stores also play a decisive role.

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