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Interpretation Of Traditional Department Store'S Self Run And O2O Mode

2014/1/23 15:55:00 39

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Traditional Department Store Self Run O2O Mode

According to the data released by the China National Business Information Center (P), in the general pattern of the decline in China's retail efficiency in 2013, the department store business in recent years has been declining dramatically. The net profit of the 42 "a href=" http://www.91se91.com/news/ index_c.asp "department store" /a "has been released, and the net profit has dropped by an average of about 16%.

Among them, Baisheng group, Wuhan China business and Hangzhou's net profit decrease were 38%, 26.44% and 19.24% respectively.

If the main business is not contributed, the net profit of department stores will be even bigger.

traditional department stores are facing difficulties: /p >

There are many reasons for the sharp drop in profits in the department store industry (P).

From the perspective of the environment, the Central Committee of the Communist Party of China has made improvements in its work style, closely linked to the "eight provisions" of the masses, and the "six prohibitions" issued in April 2013, which has greatly affected the sales of large department stores which rely heavily on public funds in recent years.

In addition, since 2012, the operating cost of physical retailing has increased significantly, among which the increase of rents, labor costs and financing costs of retail stores is the most obvious.

That is, in recent years, the number of callers has been selling at a low price for a number of years, and the impact on traditional department stores is greater than that of other formats.

Another reason should not be overlooked. With the rapid appreciation of the RMB since 2012, the price advantage of the same brand products in overseas purchases has become more prominent, which has stimulated a large number of middle class consumers to increase their overseas travel and shopping, thus forming a "crowding out" effect on the sales of domestic department stores, especially imported brands.

in the above reasons, there are some difficulties caused by external factors, such as the impact of electric business and the appreciation of RMB. However, other factors reveal the fragility of China's department store "a href=" http://www.91se91.com/news/index_c.asp "business mode < /a >.

Taking the prohibition of public spending prohibited by the central government as an example, since the launch of the "eight regulations" by the CPC Central Committee in December 2012, almost all sales of goods related to consumption of public funds have declined, and the decrease in promotional prices resulting from reduced demand has made the contribution of gross profit in department stores significantly lower.

In addition, according to relevant information, 40% of the sales of domestic department stores in recent years came from the contribution of various prepaid cards, while prepaid cards had a large proportion of public funds.

China's department stores are highly dependent on consumption of public funds, and will inevitably face difficulties when confronted with the wave of anti-corruption and public spending regulation.

as for the increase in operating costs of department stores such as rent and labor costs, under the traditional distribution system, the gross profit margin can generally be digested.

However, the joint mode of department stores in China has formed the "cap interest rate" situation objectively, so that the suppliers entering the shops lose their elastic space when the cost of digestion is rising.

In addition, if the profit source of a business model depends solely on the collection of suppliers' fees and sales commission, its parasitism and unsustainability are self-evident.

Therefore, it can be said that the long-term mode of joint operation is a deep reason for the department stores in China in recent years.

the mode of joint venture has been criticized much less than /strong > /p >

joint venture system is a special business mode that has been formed and popular in East Asian countries since the rise of "a href=" http://www.91se91.com/news/index_c.asp "brand" department store "/a" since the middle of 90s.

Under the principle of "buyer bearing risk" paction in the European and American department stores, the way of operating the goods is different. The joint system of department stores in our country is to avoid the business risk as the purpose, to attract the brand merchants and agents to enter the store management by inviting the investment method, and the store by formulating the warranty sales terms and deducting the sales volume, and supplemented by various fees as profit model.

Many experts believe that the retailer in this mode of operation has completely divorced from the "qualitative stipulation" of the retail industry, because the retailer is neither a retailer, a commodity operator, nor a retail object, but a retail carrier.

Experts point out that in the three elements of the retail main body, retail object and retail carrier, the first two are the most essential things in the retail industry, and the retail outlet is the store that can be leased.

Therefore, the problems brought by the above mode of operation are very worrying.

first, the long-term mode of joint operation has led to the loss of the core business functions of the department store's commodity purchase plan and commodity pricing power, and the direct provision of sales service and shopping experience.

The department store was pformed from the original merchandise operator to the selling house renter, that is, the "landlord" of the shop operator, thus turning the original department store into a "brand trade mall".

secondly, as a brand chamber of commerce enters the stores of many department stores, the joint system inevitably leads to the homogenization of "thousand shops and one side" in each department store, and the loss of "individuality" in the commodity structure will lead to vicious price competition among department stores. Frequent price wars will not only increase the sales cost of the brand operators entering the shops, but also lead to the continuous accumulation and upgrading of the contradiction between supply and demand, which will lead to the loss of brand reputation and the loss of some loyal customers.

once again, the pfer of brand operating cost under the joint mode will directly push up the commodity prices of department stores and form a mechanism of cost continuous pfer and ultimately consumers' payment.

This mechanism is a double-edged sword, which not only harms consumers but also damages the businesses themselves, because the rising prices of brand goods will not only inhibit domestic consumption demand, but also accelerate the flow of domestic purchases to overseas.

the road of pformation of management system is long and hard.

industry pointed out that in fact, a few years ago, some visionary department stores in China began to realize the drawbacks of the joint venture system and tried to make changes. Especially since 2012, under the severe and complicated external economic environment, many department stores have accelerated the reform and innovation of business mode, and explored various ways of self employment.

These explorations are not the simple regression of the traditional distribution mode, but are endowed with the characteristics of the times and their respective characteristics.

Large scale department stores such as Wangfujing department store and Cui Wei Department Store began to expand the proportion of self picking products at home and abroad. At the same time, they accelerated the cooperation with producers and designers in developing their own brands and designer brand goods, and explored in depth the mode of P marketing combined with independent distribution and brand association.

some department stores, on the premise of expanding the proportion of their own businesses, constantly improve the level of management and marketing of members, improve the level of independent operation and service level of stores, and strive to promote the "shopping centralization" of department stores.

some large department stores represented by Yintai department store and Tianhong Department Store actively explore the O2O mode and expand self sales through integrating online and offline sales platforms.

however, most experts also realize that once the department store mode is formed, it is not easy to change it.

First of all, after the establishment of the joint venture mode, its organizational system itself will form an inert operation mechanism. Because the joint venture is neither risky nor able to collect money for the shopkeeper, it will inevitably lack the power to make changes. Secondly, from the joint operation to self employment, it will also touch the gray interests of the relevant personnel of the store, and there is a human resistance that can not be ignored. Once again, if the department store wants to embark on its own way to collect goods, take risks, and make profits through the purchase and sale of goods, it will need to rebuild the internal commodity procurement system and sales service system, especially to establish a team of "buyers" with a discerning experience.

However, due to the loss of long-term basic business functions and the lack of operational skills, rebuilding the business system of enterprises will also be a long and difficult process.

some experts believe that the time for China's general merchandise industry to reshuffle has come again, but only those who change their business methods early and accelerate self innovation can win the bright future.