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    Cross Border Expansion Of Guangzhou Department Stores Meets "Curse" Again

    2014/5/23 18:46:00 36

    GuangzhouDepartment StoresExpansion

    < p > it is noteworthy that Guangzhou department store in recent years has experienced a series of "regional acclimatization" failures, including not only the regional leading enterprises such as Guang Bai share, Tianhe department store, but also the show of Guangzhou department store such as modern and Xinguang.

    In particular, the Foshan market has almost become a "forbidden place" for Guangzhou's department stores. Besides Guangzhou friendship store, it is still struggling to support it.

    < /p >


    < p > in fact, since 2012, Guang Bai shares, Tianhe department store and Guangzhou Wangfujing have identified the location of Foshan new store, while modern department stores are also in close contact with the hope to return to Foshan market.

    But now, on the one hand, the impact of the electricity supplier, the pressure brought by the longer incubation time of the new store, the other side is the news of closing the store, which once again cast a shadow and uneasiness on the latecomers.

    What is the problem of Guangzhou department store? What are the problems facing the cross regional expansion of department stores? Nandu journalists recently interviewed businessmen and insiders to try to find out the answer.

    < /p >


    < p > < strong > > a href= "http://www.91se91.com/news/index_c.asp" > Huang Wen Jie < /a > (executive director of Guangdong Circulation Industry Association) < /strong > /p >


    If P does not change, enhance the sense of specialty and the advantage of variety, the development space will be smaller and smaller in Foshan or Guangzhou. Traditional department stores need to abandon tradition.

    < /p >


    < p > 1.. This is a problem of the whole industry.

    In recent three years, the consumer market is at a low level, coupled with the impact of the electricity supplier, the impact of the department store industry, the impact of the new store is more obvious.

    After two or three years, it has been normal for us not to be able to cultivate mature department stores, but it is also normal for us to make decisions; /p


    < p > 2. their common feature is that they are not in the commercial mature area, but in a partial area. There are relatively few people in the surrounding area, and the fixed consumer group is not enough to support the needs of department stores. Therefore, it is more necessary for the department store itself to have more powerful business characteristics and advantages before it can radiate further areas; < /p >


    < p > 3. business characteristics are not enough.

    If the location is poor, it is necessary to expand the scope of the radiation. Then we need to manage the characteristics, business characteristics come from business support, but business support comes from the size of department stores; < /p >


    < p > 4., the scale of the department stores in the whole country is not high enough.

    Compared with the scale of hundreds of thousands of supermarkets, department stores are basically ten digits.

    From the national perspective, there are ten scales in Parkson, Yintai and Wangfujing. The size of local department stores in Guangzhou is very small, so the scale advantage is hard to play; < /p >


    < p > 5. department stores in Guangdong, except for friendship listing, others are concentrated in private sector and are not strong enough in terms of financial strength.

    And used to separate the counter into cooperative system, not accustomed to buying hands.

    The former is highly homogenous, and varieties rely on businesses without initiative.

    < /p >


    < p > < strong > < a > href= > http://www.91se91.com/news/index_c.asp > > Hu Liping < /a > (deputy general manager of Xinguang department store) < /strong > /p >


    "P > 1. closes the stores in Foshan, on the one hand, because of the pressure of operation, but in less than two years, we have not deviated from all aspects of the budget. The main reason for the closure is that the owners have an adjustment to the future business positioning of the project, turning from the traditional industries like supermarkets and department stores to the format of the cultural industry. This is a big departure from our passenger flow. In the long run, we give up.

    < /p >


    < p > 2. the training of department stores needs market, but there are more and more people who cut cakes. Besides, we do not know the consumers from familiar business circles to strange business circles.

    The problems encountered by department stores are not only external competition, but also internal disadvantages.

    For example, we do not have a high degree of self possession of goods, and are not sensitive enough to consumers, so it is difficult to master first-hand information about consumers, so many department stores are now trying to sell their own products.

    When developing the market, department stores need to be very adaptable, not just goods, but consumer habits.

    < /p >


    < p > 3.. The growth and maturity of a commercial project need time, place, interests and harmony.

    The larger the environment is, the easier it is to cultivate the market. The advantage of geographical location is a very important factor. For the entity, the favorable geographical conditions will make it easier for the project to have the function of lifting. Otherwise, even the strongest investment and operation will require more cost and cost.

    < /p >


    < p > < strong > > a href= "http://www.91se91.com/news/index_c.asp" > Dou Huai Shan < /a > (general manager of China general merchandise department) < /strong > /p >


    < p > 1. Foshan has its own characteristics, all towns are relatively developed, but these department stores are not in the center and the most golden location of the town.

    For commercial property, location is the primary factor, especially in department stores. If the site selection fails to achieve the best result, it will be very hard; < /p >


    < p > 2. Guangzhou department store has a weak capacity to open shop in other places, such as Guang Bai, many shops in the field are closed, and Tianhe City has fewer shops in the field.

    The department store in Guangzhou was too conservative in the early days to go out very late, and missed the prime time of opening the shop (late 90s of last century).

    Other department stores, such as Wangfujing, have opened stores earlier in the field, and the property is relatively good. When it is late, it is difficult to choose the best location.

    < /p >

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