Shandong Ginza Department Explains Today's Business Development

Under the banner of the Shandong Merchants Group Ginza department store As the earliest and largest department store in Shandong Province, it will usher in the 18th anniversary birthday. 18 years old, for a natural person, it has extraordinary significance. After the ceremony, life will open up a new pattern and blossom in a more independent and mature manner. So what does it mean for a company to be 18 years old? In the fierce competition of the entire retail business environment, what kind of attitude will Ginza department store take to greet its adult propriety? Zheng Liangyu, general manager of Ginza department store, and listen to his answers and sharing.

Lian: Ginza has been developing well in Shandong province. What are the plans for expanding shop in the province?

Zheng: in fact, the development space in Shandong is still very large. The major strategy of Ginza's development in the province is three dimensional development and intensive infiltration. Three dimensional development refers to the development of many formats, including shopping centers, department stores, supermarkets, convenience stores and so on. Intensive penetration refers to the large-scale development of multi city and County stores in the region on the basis of good central stores.

While consolidating the Ji'nan market, the next step is to focus on the development of Jiaodong, including Qingdao, Yantai and Weihai, three cities. The total investment of three projects in Qingdao is over 10 billion.

The way of expansion is to open a large store in key cities, and then to radiate in depth, forming a chain of three stages of development: "headquarters, central stores and regional stores". On this basis, dislocation management, complementary advantages and intensive cultivation are carried out.

Lian: compared with the top of the province, the development of Ginza outside the province seems relatively slow. What are the difficulties encountered in the process of expanding from "regional enterprises" to "national enterprises"?

Zheng: the idea of expanding Ginza outside the province is a key point. The focus is placed on two provinces in Hebei, Henan. The main reason is that the two provinces are located in the the Yellow River Valley, and their culture, lifestyle and market structure are all similar to those of Shandong. For example, Henan Puyang, now has 6 stores, business is very good.

At present, the expansion of the province is mainly based on acquisitions, and some problems have indeed been encountered in the expansion process. First, the brand influence of Ginza outside the province needs to be further improved; the two is the issue of trade barriers; the three is the integration of corporate culture after takeover. How to implement our management system after the session is a challenge and challenge.

But in my opinion, in the final analysis, we should do well for ourselves, and these problems can be solved as long as the enterprises are strong enough. So the focus of Ginza is still on the provincial level, upgrading stores and upgrading services.

Lian: what changes have taken place in the domestic retail pattern in the current economic environment? What do you think retailers should do?

Zheng: the current situation, the retail pattern can be said to be changing rapidly, even the big guys can not calm down. Ma Yun shares Yintai, Wang Jianlin to enter the electricity supplier, are making new attempts.

The situation facing physical retailing is indeed very grim, the retail giant. Wal-Mart China's development is facing great challenges, and Ji'nan's Parkson has recently withdrawn from the Ji'nan market. A major problem facing physical retailing is cost, especially labor costs. Wages and investment are increasing while sales are falling.

Although e-commerce is developing rapidly, I think this is not the root cause of the weakness of traditional department stores. From the first department store to the present, the department store industry has a history of more than 160 years. The entity department store itself has already formed a set of survival rule and self adjustment mechanism. In the face of all kinds of difficulties, it will self regulate and improve itself. If someone falls down, it is not to lose to the electricity supplier, but to lose to oneself.

Therefore, I think that there is no need for the entity department store to panic or mess up because of the electricity supplier.

Lian: you don't have to be afraid of the electricity supplier. Do you think the entity stores compare with the electricity supplier? What are its advantages?

Zheng: I think everything in this world will change to the ground at any rate. After the emergence of the aircraft, the car will not die. Similarly, electricity providers can not completely replace physical retail. Now many electricity supplier enterprises are seeking cooperation with entity stores, because they need to land. Now, there are also many good online brands that are actively communicating with us, hoping to seek some win-win cooperation under the line.

The advantage of physical department stores lies in its immediacy and experience. For example, young people are in love, watching movies, eating and shopping. These actions can not be carried out online. Moreover, many brands have been using online and offline differentiated products. Some brands will use online as a channel to clean up inventory, so products on line are different. Therefore, some customers began to return to the store. Last year, the growth of sports brand in Ginza mall was very obvious. Most brands grew by more than 20%, and some even reached more than 50%.

There are many ways to do well, such as reclassifying our stores, such as dividing the stores in the system into four categories: boutiques, fashion shops, mass stores and discount stores. We should avoid homogenization and precise counterpoint. For example, we should do a good job in commodity management, further understand consumers, and grasp the service's integrity, enthusiasm and marketing skills, such as personalized marketing. Now the younger generation after 80 and after 90 is gradually becoming the main force of consumption. They advocate individuality and publicize themselves. How to satisfy their needs has become a topic we need to focus on.

The future trend of China's department stores should learn from Japan: feminization, life and entertainment. Learn the richness and refinement of their products, and learn from their service "moistening things without saying anything".

Lian: you mentioned that prices are returning to reason. What do you think is the reason why the commodity prices in department stores are so high?

Zheng: almost all of the revolutions in retailing are price oriented. Nowadays, the most direct factor is the price of entity stores. The high price of goods in department stores is partly due to the popularity of large-scale promotions in the past few years. In order to deal with the crazy discount sales, the manufacturers set the tag price high. Of course, the comprehensive cost is also one of the reasons. Ginza is also coordinating this problem with suppliers. We strive to provide a relaxed environment for our suppliers. Last year Ginza launched a policy of "recuperation" to save suppliers a lot of expenses. I believe that in the near future, the commodity prices of department stores will gradually drop to a rational level.

Lian: how is Ginza department store doing all its channels? What are the future plans?

Zheng: Ginza's own electricity business platform Ginza network, last year's sales volume of more than 1 billion, but from the whole group income, the share is still very small, accounting for only about 0.5%. Physical department stores Online retailers The most important thing is to recognize the direction. We should not just open a store on the Internet. Instead, we should build the online platform into an entrance to a physical store, drain the online customers to the line, and ultimately make online services offline, and truly integrate.

Now the part of the electricity supplier has been put on the group level, called "cloud life", which is being prepared. We will also try to cooperate with large Internet Co, analyze customers through big data, do precise marketing, provide targeted products and services for different customers' needs, and make precise counterpoint. In addition, the development and operation of APP, micro-blog and WeChat are continuing. In the future, we plan to achieve full coverage of WiFi in all shopping malls and enhance customer experience.

Lian: now the department stores are all there. Shopping Centralization, do you think the department stores should focus on self employment or heavy joint ventures in the future?

Zheng: it must be a combination of the two. It is impossible for us to operate completely, but I think it is necessary for us to run our own business. For example, a department store can be combined with manufacturers to design products for sale to a particular group of people. This will be a big market. It is a powerful complement to the joint operation.