Clothing E-Commerce Rises Frequently In The Cold Winter Of Department Stores

The living environment of e-commerce and physical stores, at least at this stage, is changing.

When Ma Yun, Chairman of the Board of Directors of Alibaba Group, said that the key point of the "Double 11" is not the number of transactions, but how to keep the high price of commercial real estate down. Traditional department stores are ushering in their worst "winter".

Sanli Department Store, located in the prime area of North Second Ring Road, Dongcheng District, Beijing, has closed its business since August 31 this year. Since this year, Beijing has closed at least four department stores. The latest one is "HQ Shangke Department Store" located in Zhongkun Square of Dazhong Temple, which was officially closed on November 6.

"If you want to open a store, don't open it in this mall. It will definitely lose money," said Li Ye (a pseudonym), a shopping guide of Beijing Tianqiao Department Store.

Faced with the strong impact of e-commerce, the future of commercial real estate developers who bear huge costs is uncertain.

　　 The Winter of Department Store Industry

"The wine flag plays in the city of Tianqiao, and many tourists do not remember their homes", which was once the portrayal of the Tianqiao Mall, but now the Tianqiao Mall is very sad. From 6 to 7 in the evening, it is the time to leave work, but there are only a few people in the Overpass Mall, most of whom are people in their forties and fifties. Several middle-aged and elderly guests in the mall Clothes & Accessories Wandering in front of the store, he left. Due to the poor customer flow, the salesmen of several retail stores gathered to chat.

Li Ye, the salesperson of Xuezhongfei down jacket on the third floor of the mall, said, "There are too few people in the mall. In addition, the customer base is middle-aged and elderly, and the purchasing power is not strong. Some beautiful new models launched by Xuezhongfei this year can not be introduced." Li Ye complained that although it is the peak season for down jacket sales, it is difficult to achieve the sales target of 600000 yuan for November set by the company for the store, But in other stores, it can easily exceed one million yuan.

Li Ye expressed with emotion that the operating status of the Skybridge Department Store has deteriorated from year to year. Last winter, Xuezhongfei's sales in the Skybridge Department Store reached 8 million yuan. Although the sales target has been reduced to 5 million yuan this year, from the current sales situation, the completion is not very good.

From the perspective of brands in the flyover mall, most brands in the flyover mall are unknown, except for the Xidan down jacket store on the third floor and several sports brands, such as the second floor clothing "Colorful Snow Lotus", "Jeep Clothing", "Wanshun Hengrun", etc, shoes It is suspected that the brand "Belle Belle" and "German Shoes" of Belle are fake, and there are also stores such as "Kaidong Performance Clothes".

What's more surprising is that a hotel has even opened on the fourth floor of the flyover mall. Li Ye told the 21st Century Business Herald that some small brands in the flyover mall are basically private, and some are even directly introduced from the wholesale market.

Skybridge Mall is still breathing, while Sanli Department Store has completely closed.

Sanli Building can be seen after Andingmen of Metro Line 2 comes out. The building is now in a downward trend. The Everbright Bank on the first floor of the whole building is still on, and the words "24-hour self-service banking service" are only "24-hour service".

The reporter of the 21st Century Business Herald saw the words "Closed" on the front door of the department store, and the "Notice on Closing" on the doorpost showed that the store was closed from August 31. At present, Sanli Department Store has only one underground supermarket and one discount store for Erdos woolen sweaters. The supermarket is pasted with "Store Closed for Sale", and there are also for sale clothes Shoes and socks, and food commodities.

　 Cost difference

In the eyes of people in the real estate industry, Ma Yun's talk about high prices of commercial real estate is not without arrogance, but the reality is that the low-cost operation of e-commerce is really challenging the reality of high costs of commercial real estate.

In the "Double 11" Alipay transaction amount of 35 billion yuan, many brand flagship stores played an important role. These brand flagship stores are shifting from offline to online, which is exerting a huge impact on traditional commercial real estate.

Taking Tmall as an example, a merchant entering Tmall only needs to pay an annual technical fee of 30000 or 60000 yuan a year, and the other costs are trading volume commission expenses and deposits. For a 50 square meter shop in an ordinary location offline, the monthly rental expenditure should be 30000 to 100000 yuan, not including various costs incurred in many circulation links.

The huge cost difference has great attraction for merchants. The reporter found in the communication with many commercial real estate developers that they generally reflected that the biggest dilemma of commercial real estate at present is the difficulty in attracting investment, and the main reason for the difficulty in attracting investment is that on the one hand, there are few retail brands, and on the other hand, there is cost pressure.

A general manager of a brand commercial real estate dealer told the reporter that the operating cost of a shopping center is quite high. The fixed cost includes three parts, labor cost (own employees and outsourced security, cleaning, etc.), energy cost and annual maintenance and renovation cost; In addition, the shopping center will also incur some promotion costs, which basically require a half subsidy from the developer at the beginning of the opening of the mall.

The above is only the operating cost, not including the initial land price, construction and installation, depreciation and other costs.

Some emerging shopping centers can increase rent through good operation, but for traditional department stores that lack innovation, due to poor operation, merchants are naturally unwilling to pay high rent, and eventually push them to the border of death.

Jianguomen Guiyou Building is located in a prime location, close to the International Trade Center, but the operation of this mall is also worrying. In women's wear area, brands such as "Saist", "Abu" and "Liddell" can be seen, while in men's wear area, brands such as "Buma" and "Kardini" are not competitive.

As the operation of the mall is much worse than before, the mall can only reduce rent to attract merchants. A restaurant owner in Guiyou Mansion told the 21st Century Business Herald that although the location of Guiyou Mansion is so good, the rent is very cheap. The Xiushui Street across the street rents an ordinary store for 30000 yuan, with a deposit of 30000 yuan and a monthly rent of 20000 yuan. But you can pay 7000 rent per month in Guiyou Building.

Wu Yao, Vice President of Sunshine Xinye, believes that the decline of the department store industry has a lot to do with its business model. Most department stores adopt the way of adding entrance fees and commissions, which is a way of thinking of only making money without losing money. But for some businesses, they are not good at department stores, so they are naturally unwilling to pay high costs.

A shopping guide of Huanteng Shoe Cabinet in Jianguomen Guiyou Building introduced that their monthly turnover was about 50000 yuan, but compared with other stores, it was too bad. The monthly sales of Guomao Store could exceed 300000 yuan.

Manager Zhou of the Publicity Department of Guiyou Mansion said, "In view of some current threats, there is no major change in Guiyou Department Store, and there is almost no impression."

　　 shuffle the cards

The general manager of the above brand commercial real estate told the reporter that they were also discussing the impact of e-commerce on real business these days. The conclusion is that this is the inevitable result of market development, and they can only adjust themselves to adapt to changes.

The result of market reshuffle is the decline of department stores and the strengthening of experiential experience in emerging shopping centers.

According to the survey report of Shenwanyan News, in recent years, the gross profit margin of department stores has been relatively stable, but it has gradually declined. The gross profit margin in the past three years has been 22.58%, 21.84% and 21.57% respectively. The deterioration of competition in the first and second tier cities requires department stores to provide more favorable discount points for suppliers in order to gain a comparative advantage in horizontal competition; The expansion of the layout of the third and fourth tier cities has led to the decline of the overall commodity grade of department stores, and the average gross profit of low-grade commodities has been reduced; The intensified competition also forced the department stores to carry out more price reduction promotions, further lowering the gross profit margin of the whole business. They judged that the gross profit margin of department stores would decline further in the future.

According to the transcripts of three listed department stores in Beijing in the first three quarters, Wangfujing, Shoushang and Cuiwei all suffered a decline in net profits, with a decline of 4.62%, 6.71% and 9.04% respectively, of which only Wangfujing International achieved 9.93% growth in operating revenue.

The emerging shopping center is not as beautiful as expected. According to a senior person, in order to attract investment smoothly, most shopping centers adopt the method of rent deduction plus rent. For some powerful big brands, some even adopt rent free, pure rent deduction. In the initial stage of operation, some shopping centers introduce some big brands and also give subsidies such as decoration fees.

Wu Yao said that consumption habits have changed, and the format and operation of commercial real estate must be changed. Excellent commercial real estate developers should be forward-looking and even guide the consumption trend. As a result of future reshuffle, commercial real estate will become more concentrated, layout and site selection will become more and more important, and some community businesses will achieve faster development.

A relevant person in charge of Joy City told the reporter that they have now set the new growth point of the shopping center on the experience economy. According to a survey conducted by them, consumers attach more importance to the environment of shopping centers than to commodities, which is enough to show that consumers attach more importance to the environment creation and experience function of shopping centers, which has changed from the most basic shopping needs to the needs of "emotional experience".

The person in charge said that the Joy City's "experience economy" strategy has enabled consumers to meet the needs of "emotional experience" in Joy City, which has brought about the recognition and follow of the brand, driven consumer consumption, realized the continuous growth of operating income, and higher commercial value.

Behind the experience economy is the adjustment of commercial formats. According to the above general manager of commercial real estate, the whole shopping center is now de retailing, that is, to strengthen the ratio of catering and entertainment.

Faced with the challenges of e-commerce, many developers have begun to attach importance to community commerce that was previously ignored. Jia Yupeng, Marketing Director of East Asia Xinhua Real Estate, told reporters that, "The customer orientation of the shopping street we promote is to serve the people around the community within 1km. The business type planning is a convenient store form closely related to people's life, such as community supermarket, boutique clothing store, catering, fitness SPA, mother and child supplies, etc. Such shops are not large in area, flexible in investment, and not too high in total price. For example, our East Asia Fifth Ring International covers an area of 110 square meters Meters to 752 square meters, all of which are temporary independent double deck shops. At present, the first phase of customer booking is very active, and the booking has been basically completed before the opening. "

Wang Yongping, secretary-general of China Commercial Real Estate Alliance, said that the impact of e-commerce on commercial real estate is obvious. Internally, the supply is too large, leading to vicious competition, local bubbles and serious homogenization in the industry; Externally, the marginal entity sales are affected, and the survival of the department store industry is becoming more and more difficult.

Wang Yongping believes that there are two reform directions in the department store industry at present. One is to go to the direction of shopping centers and introduce more experiential catering and other formats. However, the main function of catering and other businesses is to attract people and make little contribution to profits. The clothing industry makes greater contribution to profits, which requires wisdom to achieve a balance. The other is to follow the O2O e-commerce model, and compete with e-commerce by building a website, but not keeping up with the fashion. We must combine offline experience with online shopping to bring customers something different.