Yintai Business Accelerates Internet Pformation. Traditional Department Stores Are Facing A Crisis Of Disappearance.

< p > the domestic traditional department store giant Yintai business group finally took a decisive step in embracing the Rome avenue of the Internet.

In March 31st, Yintai business group announced that Alibaba group will invest strategically in Yintai business with HK $5 billion 370 million.

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"P" is different from previously limited business level, and Yintai will pfer at least 25% of its shares to Alibaba group.

Last year, it was renamed as Yintai business and sold shares this year. It can be seen that this department store giant has no choice but to make decisions in the pformation of the Internet to develop the electricity supplier. This move can provide a reference for more department stores who are struggling in the dilemma.

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< p > < strong > Yintai won the 5 billion 370 million Hong Kong dollar injection of Ali, and developed O2O business in a comprehensive way < /strong > /p >

< p > March 31, 2014, Yintai business group and Alibaba group jointly announced that Alibaba group will invest strategically in Yintai business with HK $5 billion 370 million.

The two sides will then form a joint venture. The joint venture will develop the online and offline (O2O) business by making use of the retail network, resources and infrastructure of Yintai business in China, as well as the Alibaba group's ability to analyze e-commerce platforms and consumer data.

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< p > according to the joint announcement of the two sides, the two sides agreed that in the next three years, under the premise of relevant laws and regulations, Ali group can be converted into the common stock of Yintai commercial through convertible bonds, so that the shareholding ratio of Ali group in Yintai business will be no less than 25%.

It is reported that if Ali fully exercised the shareholding, it will hold 26.13% stake in Yintai, second only to Shen Guojun, chairman of Yintai company.

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< p > calculated with HK $5 billion 370 million stake of 25%, the Yintai business valuation of this round of investment exceeds 20 billion yuan.

It is reported that the market value of Yintai business is about HK $17 billion 700 million.

Although Ali group has given a premium of more than 20%, the price of Yintai business has dropped by 7.53% on that day.

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Zhang Yong, Alibaba group COO, told the media at a subsequent press conference that the two sides will form a joint venture to build a 020 infrastructure system and open up to the whole society and attract more partners.

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< p > according to the reporter, after the strategic investment, Ali group and Yintai business will fully open up the membership system and payment system, and at the same time, realize the docking of commodity system.

On this basis, the two sides will build a set of basic systems to open up online and offline businesses, so as to realize the seamless trading of commodity pactions, affiliate marketing and membership services under online and offline businesses.

The system will be open to all sectors of the society and serve all major commercial groups, retail brands and retailers.

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< p > data show that Yintai business is one of the largest commercial groups in China, mainly engaged in department stores and shopping centers.

By the end of 2013, Yintai business had operated 36 stores, including 28 department stores and 8 shopping centers.

Yintai business currently has nearly 10 million commodity data base system and 1 million 500 thousand member membership system.

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< p > for the cooperation between the two sides, an analyst pointed out to reporters that Alibaba group represents e-commerce online resources and Yintai advantage is online.

After the investment, the two sides increased their cooperation in the field of electricity supplier, especially in the O2O area. After Alibaba Group invested in Yintai, it opened up the experience of purchasing, offline logistics, payment and user flow, and more users would like to shop on the platform of Yintai + Alibaba group.

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< p > the above analysts believe that the mode of the joint venture has solved the problem of interest game. Because it belongs to the same company, the issue of interest distribution can be solved in other ways, and there will be no divergence in the distribution of interests.

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< p > < strong > Yintai Department pformation Yintai commercial department business to electricity supplier tilt < /strong > < /p >

< p > as early as the Yintai 2012 performance press conference, Shen Guojun once mentioned that Yintai department store is a traditional business, but the department store will be cautious in the future. The shopping center plate is the focus of expansion, and the electricity supplier is the future development trend.

According to Shen Guojun's plan, Yintai hopes to grow rapidly in shopping centers and e-commerce business, so that department stores, shopping centers and e-commerce business will be "three points in the world" with the potential of 1 to 1: 1.

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< p > however, contrary to expectations, Yintai business has made great progress in Yintai network, but has fallen into a long-term loss.

Soon after, Yintai network CEO Liao Bin quit entrepreneurship, Yintai network also settled in Tmall "under the fence".

Data show that, by the Yintai network, the electricity business section is still small, accounting for only about 4% of Yintai department store, far from 1: 1: 1 in Shen Guojun's mind.

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< p > industry insiders pointed out to reporters that intime department stores in the domestic department store industry involved in the "a href=" http://www.91se91.com/news/index_c.asp "electricity supplier < /a > relatively early, and made some attempts, but from its product structure, the docking with the consumer online shopping habits compared with Tmall still has a big gap.

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< p > "from the development track of Yintai network, it is easy to see that Yintai has failed to develop its own e-commerce platform.

Therefore, cooperation with Alibaba is undoubtedly the helplessness of the integration of Yintai business and the realization of the breakthrough of the curve. The industry insiders say that the Alibaba group's stake in Yintai business may play a role of "relief" for Yintai.

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< p > in addition, according to the reporter, Shen Guojun and Ma Yun are intimate friends who are closely related to each other. Ma Yun's negative views on traditional retail department stores also affect Shen Guojun's judgement on the prospects of his department.

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Under the background of P, Yintai company and Shen Guojun have tried many times to cooperate with Alibaba group.

In May last year, Ali group jointly established Yintai group, Fosun Group, Fuchun group, Shun Feng, Shen Tong, Tantong, Zhong Tong, rhyda, a new logistics company "rookie network".

Shen Guojun, chairman of Yintai group, served as the rookie network CEO, Ma Yun as chairman of the board.

Tmall is the largest shareholder of rookies, investing 2 billion 150 million, accounting for 43% of shares.

Yintai invested 1 billion 600 million in Beijing Guojun Investment Co., accounting for 32% of the shares.

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< p > October 2013, the two sides announced a strategic cooperation to explore the integration of online and offline (O2O).

As the first step in the two sides' cooperation, during the double eleven period in 2013, all the stores in Yintai participated in the Tmall double eleven shopping carnival.

This year, "3.8 Taobao mobile life festival", Yintai also worked with Taobao mobile and Alipay to launch shopping virtual cards.

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< p > < strong > sales of traditional department stores are seriously declining or becoming a disappearing industry < /strong > < /p >

Behind the pformation of P is the cruel reality of China's traditional department stores.

More analysts pointed out that the traditional department stores will become the next physical bookstore, and disappear in the streets.

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Fan Yanru, Deputy Secretary General of the Chinese Department Store Association, said that since the 2003 SARS, the Chinese department store industry has gone through nearly ten years of golden development. Now, influenced by the economic environment and industry competition, the department store industry is facing the pressure of pformation.

In the retail industry, the industry is less and less about the "department store". Instead, it is a shopping mall with larger volume and stronger customer capacity. "Department store", which once used to satisfy consumers' shopping as the main goal, is gradually away from us.

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"P", a department store employee who did not want to be named, told reporters: "since 2011, the sales performance of China's major department stores has dropped sharply, and now it is a sharp drop.

This is a phenomenon that has never happened in the past 20 years, and some department stores have to pay their own brands in order to complete the task.

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< p > < a href= "http://www.91se91.com/news/index_c.asp > > department store < /a >, the boss told reporters that in the past two years, the department store industry showed a downward trend overall.

Although the sales volume of some shopping malls was flat or slightly increased compared with the same period, "the actual sales volume is declining considering inflation."

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< p > a general manager of department stores said that while sales were slowing down, the cost of human resources and rents rose sharply as a new pressure on department stores. "Compared with last year, the cost of labor increased by nearly 30%, coupled with the increase in costs of water and electricity and rent, and the overall business cost rose by about 30%", a new world department store executive told reporters.

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< p > however, in many factors leading to the depression of department stores, it is the electricity supplier that poses the greatest threat to traditional department stores.

Data show that in 2013, the scale of China's online retail market reached 18851 billion yuan, representing an increase of 42.8% over the 13205 billion yuan in 2012, accounting for 8.04% of the total retail sales of consumer goods.

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< p > analysts pointed out that the increasing annual online shopping market has eroded the share of traditional department stores. "It is undeniable that the decline in the department store industry is also the category" a href= "http://www.91se91.com/news/index_c.asp" > Network < /a > buying the fastest growing category, such as household appliances, IT products, clothing and so on.

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< p > for the Yintai and Alibaba's "marriage", some analysts pointed out that if the development is successful, it will cause the domestic department store enterprises to follow suit.

According to the reporter, the integration of traditional retail and e-commerce is now increasing.

Wangfujing department store group Limited by Share Ltd CIO Liu Changxin has said that the retail industry embraces the mobile Internet is the development trend of the industry.

In the future, the boundaries of online and offline pactions will become increasingly blurred. The two sides will share many links except distribution, experience and after-sale.

And the future of the retail industry will also evolve to provide a seamless online service system for consumers.

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< p > there are rumors that many famous department stores including Wangfujing department store and new century department store are trying to cooperate with some Internet companies.

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However, the challenges also exist. Some analysts have pointed out that the cooperation between Yintai and Ali is an example. How to strengthen the self dealing ability of department stores and how to coordinate the online and offline businesses of P and make seamless link and integration is a problem that needs to be solved before the two sides.

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