Yintai Department VS Wanda Department Seize Third Retail Waves

From the rise of Hangzhou intime department store, precise positioning, open and changeable, good use of resources, the introduction of Ali injection, integrating Tmall rookie network, become an evolutionary sample of the department store industry. The Wanda Department store, which is separated from Wanda, has the same scale advantage and ecological advantage. But Wang Jianlin never put himself on the opposite side of the Internet and Ma Yun. The whole Wanda Group has been placed under the ideology of O2O integration.

One enjoys the perfect commercial ecology of Wanda Plaza, has the advantage of ground passenger flow, and has the advantage of relying on Ali network platform and wired integration. No one wins or loses, but the commercial origin of the Department Store: knowing all kinds of customers, grasping diverse needs and creating channel value.

　　 The protagonist of Yintai VS Wanda's supporting role.

Yintai group: department store business is the center of gravity.

As one of the main businesses of Yintai group, Yintai business was founded in 1998. This department store recruits from Hangzhou's oldest city gate, Wulin gate, and runs all the way, quickly becoming one of the leading industries in the department store.

However, the starting line of the department store, Shen Guojun, chairman of Yintai, a bank born, was forced to help. "The shopping mall of Wulin Road is more than 40 thousand square meters. At that time, the financial turmoil, we all have no money, we found the Pacific (601099, stock bar) and Parkson, no rent for several years to come.

Shen Guojun's request for this shopping mall is different. Under the operation of overseas teams, Yintai Wulin store is positioned in the fashion trend, redesigned the decoration style of shopping malls, and introduced the international brand for the first time in Hangzhou, which changed the original traditional positioning of goods.

Although it was a red shot later, Shen Guojun was still not interested in the department store industry. "One is that the profit margin is not high, and the two is that I don't know anything about it." Until 2004, when many funds came to visit, Shen Cai really took up interest and looked back at the department store industry. "Cash flow is large and growth is stable." So he carried out a series of adjustments, such as promoting mainland executives, introducing Huaping fund and so on, so that Yintai stores entered the track of M & a development.

In 2007, intime became the first private department store listed on the Hong Kong Stock Exchange in mainland China. Focusing on the rapid development of Yintai department store, Yintai group has also developed rapidly and has become a diversified industrial investment group, which is mainly composed of six major businesses, namely, commercial retail, real estate development and operation, mineral resources, intelligent logistics, investment and finance.

In 2013, intime department store was renamed as Yintai business. At present, it has three major formats including Yintai department store, Yintai shopping center and Yintai network. It has a total of 36 stores, including 28 department stores and 8 shopping centers.

　　 Wanda Group: department store business is jigsaw puzzle.

Wanda is more like a supplement to commercial real estate. Wanda's predecessor was a thousand department store, founded in 2007, 9 years later than Yintai department store. In 2012, in order to standardize Wanda brand and make full use of the value of intangible assets, Wanda Group renamed Wanda Department store as Wanda Department store.

At present, Wanda has opened 75 stores in Beijing, Shanghai, Wuhan and Chengdu, and has become one of the largest chain stores in China.

The establishment of Wan Qian department store is closely related to the upgrading of Wanda Plaza. Wanda Group was founded in 1988, mainly residential market, and then entered commercial real estate. Now it has formed four core industries: commercial real estate, high-end hotels, cultural tourism and chain stores.

By constantly developing new commercial real estate projects, Wanda Plaza continuously integrates excellent supplier resources from all over the country to its own platform, and combines different business resources according to the business location of commercial projects. With the increase of merchant resource base, Wanda Department store also came into being. The Department Store plate was set up in the four major industries of Wanda Group, and the group also gave a great strategic input to Wanda Department store.

However, from a positioning point of view, Wanda Department Store is also a "wonderful flower": its original intention is to cooperate with Wanda Plaza's investment promotion and residential sales. It can even be said that after many years of operation in Wanda Department, the industry did not regard it as a regular department store format.

As a pillar industry of Yintai group, Yintai business has led the group to develop and extend its related industries. Its location has been at the excellent port of the core business circle.

In 2013, due to postponing the opening of several stores such as Changsha and Wuhan, Wanda Department readjusted its revenue plan in half a year, but finished only 15 billion 490 million yuan at the end of the year, an increase of 39% compared to the same period last year. Only 91% of the adjusted plans were completed, and net profit increased by 7% compared to the same period last year. This is the first time that Wanda has failed to complete its profit plan in history, and it is also the only company that has failed to fulfill its target.

Now, the performance of the Wanda Department store at the bottom of the group has become the object of "transformation". Wanda Plaza has completed its investment mission after the completion of the investment in Wanda Plaza and the steady sales of the supporting residential buildings. Wanda Department has fulfilled its mission when the brand of Wanda gradually stabilized.

Comment: Yintai department is the backbone business of Yintai group, and everything is around it. The emergence of Wanda Department store, which originated from the needs of group related businesses, has always played a supporting role in the group. This congenital factor has led to its passive position in the business portfolio.

　　 Focus on fashion VS diversified formats

Yintai: fashion and match with fireworks

The Yintai store, which leads the fashion, hit Hangzhou. In 2003, a record of selling 82 million yuan per day for a single one hundred store in the country has established the fashion orientation of Yintai department store.

In 2012, in the ranking of the national department store industry, the six major management indicators of Yintai department, including flat income, flat profit, flat tax, per capita income, per capita profit and per capita tax, ranked first in the country.

So what is the logic of the rise of intime department store?

First of all, brand positioning is accurate, specializing in fashion. Yintai has mastered more than 2000 domestic and international fashion brands, and has become the largest channel provider of international luxury brands in mainland China. With the foundation of these luxury operations, Yintai can create freshness on the brand mix and avoid homogeneous price promotions.

Next is management, making elephants dance. Although the IT system is necessary for department stores, it has to mention the efficiency of Yintai. Yintai's IT system is connected with headquarters, suppliers and more than 50 stores nationwide, and can supply and sell data in real time. Even through mobile phone APP application, Yintai suppliers can find their products in real time in Hangzhou Wulin store in the morning, and how many sold in Wuhan Yintai in the afternoon.

Finally, experience and create fireworks. For example, holding "eat goods Festival". In November 11th, we were regarded as "singles day". But "the electricity supplier is a fire, but you can't eat on the Internet?" Yintai regards it as "two pairs of chopsticks", and then consortium catering business in the shopping mall, holding free or low discount promotion "eat goods Festival". 5 days after the "food festival" in 2012, the sales promotion of Yinlin Hangzhou Wulin shop attracted about 200000 people and eventually launched a single day sales record of 110 million yuan.

　　 Wanda: high school low end multiple attempts

Different from the development mode of Yintai department from strengthening a store and a region to infiltrating the whole country, Wanda Department store has been focused on the whole country since its birth.

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This is due to the congenital superiority of Wanda Department store. Wanda Department store, located in Wanda Plaza, has a large passenger flow and has been fully nourished by the city commercial complex. The commercial streets, hotels, entertainment, catering and other retail formats in the Plaza, together with Wanda Department store, have created a dynamic space full of fun and rich shopping experience.

In terms of operation, Wanda Department stores also have bright spots. For example, it emphasizes both selling goods and selling services, and the fashion experience center is an innovative attempt. This experience center can carry out omni-directional automatic testing for customers including body type and skin color, and recommend the most suitable clothing matching with the current popular elements.

Wanda Department's performance is not strong, Wang Jianlin said: "they take the two landlord mode, but this is the core secondary reason. The core reason is to shop too fast. There are too few profitable shops and too many loss shops. " But Wanda's problems are not just those reasons.

All along, the location of Wanda Department stores is concentrated in the mainstream consumer market. But after changing the name, Wanda Department Stores divided the store into four types: high-end, exquisite, fashionable and community life four stores form, covering high and low end. Following the opening of the Hefei store, Changsha and Wuhan will open high-end department stores. Since then, the proportion of Wanda fashion boutique will gradually decrease from 9 to 7.

The wandering crowd of Wanda Plaza is not a separate consumer group with clear attributes. High and low consumption people almost have coverage, so Wanda Department intends to develop in the two directions of high-end and low-end. But at present, there are some problems in these two directions, which require Wanda Department store to solve them.

The embarrassment of positioning makes Wanda Department operators move away from the technology, and it is not easy to develop high-end. For example, the location of regular department stores is located in the core business circle, while Wanda Plaza often chooses a more remote area in order to get cheap plots, which is known as the "city sub center". This brings great business difficulties to high-end investment.

Community life shops also have some problems. At present, ZARA, H&M, UNIQLO and other clothing pads are one of the main sources of Wanda Plaza, but they will inevitably impact the internal operation of Wanda Department store. Fortunately, Wang Jianlin also saw this point. The two floor of the new Wanda Plaza will completely abolish the format of clothing and strive not to recruit retail formats. The format of the 75 squares that have been opened will also be adjusted before 2015.

In recent years, the top management team of Wanda has continuously replaced many people, which has not brought about a significant increase in profitability. Many of the management departments of Wanda Department are from old department stores. They are accustomed to following the original industry tradition. But at present, the department store industry needs to break the original thinking rather than tinker with the old mode.

At present, Wang Jianlin said: "we must also follow the custom and self owned mode", so that private brand, exclusive agent brand and designer brand will occupy the mainstream and take the middle price and quality boutique route. This strategy may be larger than the two directions.

Comment: the difference between the two is mainly decided by different paths. At the beginning of its establishment, intime department decided to consider the operation of department stores and make decisions based on consumption. Wanda Department Store is the layout of the service group driven by the upper level, and then it has its own location. First, a single store capacity and efficiency will then be rolled out, and the other is to do the overall scale first and then to seek operational benefits.

　　 Open and leveraged VS O2O Army group

Yintai: Leveraging Ali

Yintai department store has a strong sense of integrating online and offline. In November 2013, consumers once scanned the two-dimensional code of Italian merchandise. And then wait for Tmall's "double eleven" activities to buy goods at promotional prices.

Yintai business has an independent electronic business platform. How can it be changed from competition to cooperation with Tmall? Shen Guojun said: "no matter online or offline, traffic is the core. In addition to clothing stores, hotels, cinemas and even small amusement parks, large shopping malls can be replaced by electricity providers, but life services can not be replaced. These offline services need to be realized through commercial real estate.

It is this open attitude. In March 2014, Yintai business and Alibaba carried out group strategic cooperation. Ali invested strategic investment in Yintai business with HK $5 billion 370 million, and constructed a set of business infrastructure system to open up online and offline businesses.

In March 8th, Yintai business group jointly launched Alipay's wallet to promote the virtual membership card, "Yintai Bao", to create the first virtual membership card for China's retail industry to get through the cards, store value and pay the whole link. Within 4 days, Yintai has issued 400 thousand cards through Alipay wallet.

Through the mobile Taobao platform and Alipay wallet, Yintai network registered more than 1 million 700 thousand members in 30 days, more than the total number of entities accumulated over 16 years under the Yintai line (the number of members before the store is 1 million 500 thousand). At this point, the total number of members of Yintai business online exceeds 3 million. After the cooperation with ALI, on the index of the number of members, "Yintai Bao" in a short span of 30 days was better than the 16 years under all the department stores of Yintai. This brings great shock to traditional department stores.

Earlier, Yintai business has been exploring online and offline business areas.

Members are Department store And the core of the shopping center. The large number of loyal members trained by Yintai in the past 16 years has contributed more than 50% of sales to enterprises. With the large number of online card members gathered, "Yintai Bao" in the first battle, we can see that online and offline members integration and opening up, the experience brought to customers is unprecedented in domestic retail, providing a variety of possibilities and solutions for the membership gathering and performance growth of Yintai entity stores. It is no exaggeration to say that Yintai business is one of the few boldest, farthest and best performing traditional retailers in O2O.

For Ali, "Yintai Bao", which is working with Yintai, is a small front line for its O2O strategy. But for Yintai, it is a big attempt in the transformation of O2O practice. And Alipay In addition to bringing huge membership, the credit card fee rate dropped to 1%. Yintai Bao brings more qualitative changes to the future marketing of Yintai department store.

When most companies have not yet figuring out what the big data will do, Yintai has taken a step forward in the application of big data. Once the data of Yintai Bao and Ali are opened, the line will be clear at the end. Ali's powerful data analysis capability and various data analysis models, combined with Yintai's own IT system, can provide the most scientific, detailed and accurate analysis results for Yintai's membership data mining, and can predict the next shopping trend of different members.

Yintai has to do more than that. According to Taobao COO Zhang Yong, Ali's stake in Yintai will be divided into three steps: first, to open up user accounts, including 600 million Alipay users, 300 million Taobao user accounts and 1 million 500 thousand Yintai membership accounts; now it should also include 1 million 700 thousand silver Tae Po members. The second stage, using Ali's Internet and big data advantage, to excavate a brand new commercial value. The third stage, Yintai's 7 million SKU commodity library will be used by Ali electric providers. The future of Ali's products will also serve users of Yintai, creating a new O2O cooperation standard for the industry.