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    The Luxury Tycoon Came Back To The Old Buddha And The Mainland

    2013/12/29 17:45:00 27

    LuxuriesOld BuddhaLafayette

    Less than P, a foreign luxury department store is surging in China. The luxury tycoons who once died in China's retail industry are now coming back again. Can the domestic retail industry cope with it? < /p >


    Under the wind of China's economic slowdown and anti-corruption, it does not seem to make foreign capital less than a href= "http://www.91se91.com/news/index_f.asp" > luxury /a less than P.

    Recently, Galeries Lafayette, the French luxury department store, one of the largest retail groups in Europe, announced its opening in Xidan, Beijing.

    Coincidentally, Hongkong's famous luxury department store Crawford also opened the largest store in Shanghai in times square this month.

    < /p >


    Luo Gaozhan, general manager of Hejing culture communication, told China Daily News reporter that with the increase of per capita income level in China and the individualization of consumers' aesthetic concept, many a href= "http://gwj.sjfzxm.com", which has taken the luxury line, has been booming in recent years, which indicates that the potential of China's high-end personalized brand market is huge. P

    Lord Buddha and Lafayette entered China at this time. They did their homework well, and got the rhythm of the early development of China's high-end department stores.

    < /p >


    < p > in fact, whether they are old Buddha or Lafayette, they are just a microcosm of the Chinese market.

    According to media reports, American luxury department stores Niemann Neiman Marcus and Messi's department store Macy 's chose the curve to enter China.

    < /p >


    Less than P, it is worth mentioning that in 1997, Lord Buddha, who opened in a side street of Wangfujing, lost its business model in 1998. After that, he no longer had ambitious ambitions to enter the Chinese market.

    In fact, with the fate of Lord Buddha, Lian Kai Fu opened his first store in Shanghai in 2000, but failed to fully open in the mainland because of its poor performance in 2006.

    < /p >


    < p > an interesting phenomenon is that the old Buddha who once lost the business circle of Wangfujing once again set his eyes on the opening of the prosperous Xidan commercial circle, while Lian Crawford also chose the "a href=" http://www.91se91.com/news/index_p.asp "> Shanghai < /a > which had been defeated. The two extravagant crocodiles had the great significance of recovering the lost land. At the same time, it also meant that the" big cake "of the 1 billion 300 million consumer market in China was sending out an alluring fragrance.

    < /p >


    < p > Xu Junsong, an industry researcher at the China Information Network Industry Research Institute, said that the premise of returning to China was the potential of the Chinese market. It can be said that the two luxury giants had been very optimistic about China's potential many years ago. However, due to the lack of research on the psychology of Chinese consumers, improper location of shops, people's consumption ability remained to be improved, the mode of operation was not suitable, and the timing of entry was not mature, finally, they had to withdraw from the Chinese market.

    < /p >


    < p > "in addition to the increase in the consumption power brought about by the increase in income level, the expansion of Chinese consumers in the pursuit of market is also the reason for the two luxury giants to return to the Chinese market. From this we can see that they all want to be positioned in fashion, not luxury goods.

    Xu Junsong said in an interview with "China made news" reporter.

    < /p >


    < p > in recent years, with the rapid development of the electricity supplier, the traditional department stores in China are in the mire of profit margins and losses.

    Xu Junsong said that even without the impact of the electricity supplier, the domestic department store itself, as a relatively shallow business model of moat, will cause other factors to lead to a decline in profitability. These include rents, wages and peripheral competition.

    < /p >


    < p >, then the foreign luxury goods giant chooses to enter China again at this time. Can we achieve the desired result? < /p >


    < p > Luo Gaozhan believes that Lord Buddha and Lafayette belong to high-end department stores. The competition in the market segment of China's retail industry is not fierce, and to some extent, there are even value depressions.

    < /p >


    < p > in fact, there is more than one person with the same view.

    Xu Junsong told reporters that luxury goods department giants are making a comeback, not to grab more, but to create a market segment.

    The "light extravagance" of Lord Buddha and the "buyer system" mode of Lafayette are different from those of the vast majority of department stores in China. This differentiated management approach fits the development trend of China's future department stores, and also gives inspiration to domestic department stores.

    < /p >


    < p > Xu Junsong stressed that in the face of competition between the electricity supplier and the same industry, the traditional department stores in China need more advanced management concepts, and more differentiated business strategies and higher customer service levels can occupy a place in the minds of consumers.

    If we continue to linger in the lower end of the industry, there is no way out for homogenization competition.

    < /p >


    < p > finally, Xu Junsong said that what the department stores need to do is to study consumer psychology, consumption patterns and behaviors, and keep pace with the upgrading of consumption.

    If the department store industry has remained unchanged, even without the competition of foreign brands and the impact of electricity suppliers, the department stores in China will also constantly eliminate department stores that are not able to keep pace with market changes.

    < /p >

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