Does The Chinese Traditional Department Store Industry Disappear In The Eyes Of Americans?

The decline of P is the key period for the rise of online shopping in China.

Many shopping malls in China are dying out. At the same time, Chinese people are richer than ever before, and spend more money than ever before.

Overall, retail sales increased by 13% in 2013.

These two different trends can be explained in almost one word: Taobao.

It is well deserved to be the largest online shopping center in China, and is also the most important business of Alibaba group.

Taobao, along with its sister website Tmall, and other far less online retailers, including Jingdong, Amazon China, WAL-MART holding, and so on, has been hitting the Chinese retail industry like asteroids, overturning the ecosystem that supports China's traditional retail industry, especially attacking offline brand clothing stores.

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< p > online shopping has far greater influence in China than it does in the United States or other countries.

The fundamental reason is undoubtedly the price.

Taobao and other e-commerce providers sell the same brand goods on the Internet, but the price is usually 30% to 50% cheaper than the mall.

Online shopping is even more powerful than income rising, greatly improving the living standard and purchasing power of ordinary Chinese people.

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P online shopping has swept across the globe in just over a decade, and its core is a tool to discover and compare prices.

Now, hundreds of millions of Chinese have discovered that they have been exploited for a long time by the super high prices of traditional stores, especially by those who sell famous brand clothing and electronic products at home and abroad.

These stores usually occupy more than 70% of the retail area of a shopping mall.

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< p > a href= "http://www.91se91.com/news/index_c.asp" > Alibaba < /a > and other online businesses are happily and easily benefiting from the growing dissatisfaction of Chinese traditional shops with high prices.

The price of physical stores is not only much higher than that of online shopping, but it is often higher than that of the same or similar products sold in WAL-MART or Target in the US.

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These two American retail giants have adjusted tactics to fight online retailers, using their strong bargaining power to provide cheaper prices than the Internet, and no retailers in China have seriously tried to do so in P.

China's retail industry is still looser and less creative.

Many industries in China are full of vitality and innovation, but only a great local enterprise has not appeared in the retail industry.

Such a disordered state makes Alibaba and other online retailers comfortable.

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< p > they used government ties to obtain valuable commercial blocks in the urban central area.

Then they mortgaged land from the bank to build a fancy shopping palace, which was charged by the benchmark rent and from the sale of shops.

The rent collection method of this sales division makes retailers reluctant to lower prices.

Because if prices are reduced, they may not be able to meet the minimum monthly turnover stipulated by the owners.

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To add to the local retailers of shopping malls, P adds that the owners of shopping malls often send the best ground floor to the world-famous brands, such as Louis Weedon or Prada, in order to enhance the high-end business atmosphere of the shopping mall.

Big luxury brands do not seem to sell well in China, but they are actively using Chinese stores which are heavily subsidized by market owners as a form of brand promotion.

The result is that domestic brands are placed on higher floors.

In a mall, the higher floors mean less traffic.

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< p > the result is like the picture of the mall on the recent Sunday, and the storefront is storefront.

China is creating a new retail pattern -- a luxury shopping mall located in a nice section of the city, upstairs like a riot in downtown Detroit, where cardboard and almost no consumers have been erected.

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< p > in other parts of the world, there are so many vacant shopping malls either to slash rents or to mortgage property to banks.

But this has not happened in China.

For now, banks often have patience.

The mall that has been in operation for several years may have paid off the loan principal.

But the new loans look very risky.

There are hundreds of shopping malls that are building or going to be used by banks in China this year.

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Worse than P, worse than a href= "http://www.91se91.com/news/index_c.asp", retailers less than /a have just begun to leave the mall.

China has surpassed the United States as the largest online shopping market in the world, and there are indications that the move from offline to online is accelerating and seemingly irreversible.

Online sales in China have reached 10% of the total retail sales of consumer goods, far higher than the 6% level in the United States.

China's first estimate is expected to increase to more than 15% in the next ten years.

This is because more Chinese will move to online shopping, especially shopping by mobile phones, because China can buy cheaper products on the Internet than anywhere else.

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For P, online merchants also want to thank the whole nation's parcel express companies, especially the leader, the downwind.

This is another structural advantage of China's electronic shopping compared with the United States.

The delivery fee of the express company such as the wind is only about 1/10 of the two major US express delivery companies, FedEx and UPS.

Therefore, in China, it is economically meaningful not only to buy high priced clothing and consumer electronics online, but also to buy packaged food, soap, personal care products and even less than $1 gadgets online.

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< p > as an American who often goes shopping at < a href= > http://www.91se91.com/news/index_c.asp > Taobao > /a, I also find that online shopping in China is not only cheap, but also customer service is usually better.

Most businesses on Taobao manage and run their own online stores. Taobao is also a platform for bringing together millions of aggressive entrepreneurs.

They spend almost all their time online, answering questions during the day or night by telephone or online chatting, and even willing to offer additional discounts at the request of buyers.

In my experience, they are smart, confident, friendly and competent.

The sales in the mall are often young girls with a small salary. They are always a group of people gathered behind the cashier.

They obviously don't enjoy their jobs too much, nor are they trying to improve their customers' shopping experience, sometimes even the other way around.

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< p > then what will China's shopping malls look like in the future? China already has more than 2500 shopping malls, two times the size of the United States.

New shopping malls are open all over the country every week.

Are they all going to end up like the mall in Shenzhen? Who will fill up so much space? But the shortage and depression of traditional retailing will also provide powerful investors or operators with the opportunity to earn large fortune.

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P > restaurants in the mall are still doing well. They don't need to worry about Taobao's threat.

However, restaurants generally occupy the top floor or basement, paying more rent than the retail store per square foot.

The demand for the top offices in the city centre and shopping malls nearby is still strong.

Should shopping centres become food and entertainment centers or commercial offices? No matter what path it looks like, it will not be easy.

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< p > the United States had a wave of market bankruptcy in 90s. Large operators such as DeBartolo and Campeau failed, and better Simon Property Group and West field group (Westfield Group) are still developing vigorously.

Excellent operators cut costs and improve economic efficiency. Like those retailers, such as Vitoria's secret, Abercrombie&Fitch (A&F), Hollister, Juicy Couture, H&M, apple, Papyruys, Teavana, Nordstrom, they create a very competitive retail empire that can compete with Internet sales.

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China's traditional retailers face a big crisis because their prices are too high and lack of innovation, and they are less concerned in winning customers' loyalty. P

Alibaba and other online sellers are pushing them towards extinction.

As more and more American investors know what changes are being made in China's retail industry, this will directly lead to more convincing and more attractive Alibaba IPO, and IPO's share price will also be higher.

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