Shanghai Retail "Disease" More Cooperation "Abortion" Transformation

In the afternoon, Shanghai, one of the most prosperous business circles in Nanjing West Road, is crowded in mealong Town, CITIC Pacific and Hang Lung Plaza. However, in the vicinity of these three shopping malls, Shanghai Golden Eagle International Shopping Center, which is also located in the golden section, is left behind. Reporters yesterday saw a lot of shops closed in Shanghai Jinying, showing the status of decoration, its internal staff said that in addition to the first floor of GUCCI and BV continue to operate, the mall will close shop in May this year, replacing almost all brands.

Shanghai Golden Eagle Jinying International Group, a superior company, is a "tyrant" in Nanjing's retail industry. It has been operating in the local economy. However, Shanghai Golden Eagle has been in poor operation for about 10 years. According to the insiders, a series of core problems such as Shanghai Golden Eagle's geographical location, unclear location and poor investment have led to the project's dilemma. Simply copying the "Nanjing model" is not feasible.

Many diseases

This is not the first time that Shanghai Eagle has "changed blood quickly". It has undergone similar labor pains several years ago. The golden eagle, officially stationed in Shanghai in 2004, has a total area of about 39000 square meters, which is at the junction of Nanjing West Road and North Shaanxi Road. It is located in Shanghai.

"The project has been damaged since its beginning." The above insiders pointed out that Shanghai Golden Eagle is in Nanjing West Road business district, but the location is more partial. Most people will only flow to mealong Town, CITIC Pacific and Hang Lung Plaza, but not to Shanghai Golden Eagle in Shaanxi road. Do not belittle the gap between the 50 meters, even if the business location is a little bit worse, it will be fatal. Another big injury is that the project is too high, there are 8 layers. From the commercial line, the more up the floors, the fewer passengers. So many shopping centers are to increase the floor area of the floor, control in the 4~5 building, to ensure the flow of people. "Shanghai Golden Eagle's 4 floors above shops are obviously difficult to attract passenger flow. At first, the project did not even have hollow atrium. As the main body of marketing propaganda and activities, atrium is very important, and the original design is very unreasonable." The insider said that after several years of opening up, Shanghai Golden Eagle made a refurbishment to get through the hollow atrium, but the high-level and geographical location of the injury still can not be solved.

Adding insult to injury is that there is "soft rib" besides "hard injury". "The core elements of business operation include location planning, merchandise and marketing. Nanjing market positioning is very successful for young and fashionable Jinying department store, but this kind of department store is not suitable for Nanjing West Road business circle in Shanghai. Some two or three line brands can not attract consumers in Shanghai, but too high-end brands can't match the CITIC Pacific and Hang Lung Plaza. The insider said helplessly.

Inaccurate positioning and geographic location deviation also result in problems of commodity elements. A person who had been responsible for investment in Shanghai Golden Eagle revealed that many brands were reluctant to enter because of too much location. As a result, the two or three line brands of other non main stores were reluctant to come. As a result, the brands that were originally recruited were totally unknown brands, which further confused the positioning. Since then, a series of supporting works such as marketing and business services have been difficult to carry out.

Cooperation "abortion"

After several years of low tide, Shanghai Golden Eagle decided to relocate in 2010, replacing about 85% brands at that time.

"After the big exchange transfusion, brand There has been some improvement. However, due to the hard conditions and some of the previous business problems, Shanghai Golden Eagle has not been turned around. The only impressive thing is that at that time, the Golden Eagle of Shanghai brought the two brands of GUCCI and BV, including GUCCI, which has a turnover of about 200 million yuan per year. The turnover is calculated by about 10% of the deduction point, which contributes a lot to Shanghai Golden Eagle, while BV also has 60%~70% growth every year. The two are very good. The insider said.

However, there are positive and negative aspects of everything. When the two luxury brands make Shanghai Golden Eagle a little bit of improvement, it also brings problems. For example, according to the regulations, the main line stores need shopping malls to pay for decoration and rent free or low rent. According to the insider, it was only about 35 million yuan for the renovation cost of GUCCI.

"The decoration fee is not much, the industry is like this. The key is that a shopping mall can not rely solely on two brand support. Due to the structural damage of Shanghai Jinying property, leading to the GUCCI and BV two brands taking the place along the street, other brands no longer have good berths. The big brands need large areas and advertising spaces, so that it blocks the access of other brands. So even though there were more than 80% shops, there was still a lack of competitive brands. Perhaps it is to catch the only big brands, so Shanghai Golden Eagle is too prominent GUCCI, which led to its own positioning is not clear, Golden Eagle brand is ignored, our industry also referred to the project as "GUCCI building" rather than Shanghai Golden Eagle. RET Durbin, director of Business Services Department, said.

Shanghai Golden Eagle, who was in trouble, once had an idea - to cooperate with CITIC Pacific.

"At that time, there was research, the only way out is to cooperate with CITIC Pacific, the two stores opened up before and after the operation, the introduction of abortion. But we must know that CITIC Pacific has a very good operation and is very strong. CITIC Pacific believes that Shanghai Golden Eagle must agree that capital merger or acquisition can make cooperation, and that Shanghai Golden Eagle belongs to one of the largest retail groups in Nanjing. It can not bow down, so the cooperation between the two sides is lost. The insider knew frankly that the Golden Eagle of Shanghai was embarrassed again.

Reporters yesterday from Shanghai Golden Eagle learned that after the closure of the store, in addition to retain the two brands of GUCCI and BV, all the other brands to re investment. At present, some shops in the shopping mall have been closed, and it is not known when they will open again.

Can the transformation be successful?

According to the planning of Jinying International Group, it has about 40 billion budgets in recent years, and intends to increase 20 new stores. Wang Heng, chairman of the group, said in an interview that the new project will emphasize the "whole life" mode in the future, that is, to introduce more new formats.

"Before the golden eagle in Shanghai, there was a problem of lack of lifestyle. In fact, too high floors could not attract people, so they should do more food and drink, and introduce passenger flow. However, the original catering and supporting investment in the project were not ideal. Therefore, if we want to re invite investment this time, we should consider the layout of new formats. The insider thought.

In this regard, Shanghai Jinying said that all the investment promotion will be arranged by the higher level group. According to the group's thinking, the concept of "whole life" should be introduced, and the investment in catering and entertainment should be strengthened.

The idea of "transforming the whole format" is right, but we must pay attention to the detailed layout of investment and the introduction of specific brands. Shanghai Golden Eagle must learn from the experience and lessons learned before. In addition, unlike the commercial projects which are generally close to the community, Shanghai Golden Eagle is located in the office building area. If it is too popular to introduce children's formats and family consumption, it seems that the popular concept will be lack of residents, but it will be unfavourable. It should focus on catering and other related formats that attract white collar workers. Durbin told reporters.

It is understood that although Transformation It is imperative, but there is a problem of frequent turnover of talent in Jinying department store. One of the reasons why Shanghai Golden Eagle has been embarrassed is that its management flow is too frequent. Some managers have left for only a few months. This is also related to the idea of human resources management. Therefore, in addition to re inviting business transformation, the stability of personnel in this project is also very important.