Revitalize The Business Competitiveness Of Department Stores

< p > as a traditional retail channel, department stores used to be "high, big and high" in Chinese national memory.

However, in the past few years, the domestic department stores are no longer in sight: sales growth is exhausted and profits are deteriorating.

Faced with difficulties and challenges, department stores are seeking pformation and breakthroughs in many aspects such as market environment, commodity service combination, business mode, real estate strategy and new technology application.

"China's consumer market still has huge room for development. In the foreseeable future, China's retail market will remain double-digit growth.

In order to get out of the current predicament, it is imperative for the department store to enhance and revitalize the core competitiveness of the department store industry.

In an interview with reporters, Chen Zhongwei, director and executive director of the China Research Department of the world bank, said: "department stores can start from three aspects: store network expansion, business mode optimization and new technology application."

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< p > Chen Zhongwei analysis shows that domestic department stores are facing various difficulties and difficulties. For department stores, the rapid development of China's economy and retail industry is both a huge opportunity and a rapidly changing internal and external environment. This is also the origin of all kinds of external difficulties faced by the 100 cargo industry in the pformation of retail industry.

First of all, the difficulties of department stores lie in the slowdown of domestic economic growth, the slowdown in total retail sales, the rise of diversified retail formats and the continuous upgrading of business competition. The rapid development of online shopping has affected the physical retailers, among which the traditional department store industry has been greatly affected. The rising cost of personnel and rents has further occupied the profit space of department stores.

The internal worries of department stores are: today, with the abundance of social goods and the increasing diversity and experience of consumers' shopping demand, the limited business area of the department stores objectively restricts the further development of the department stores; the excessive dependence of the department stores in China on the mode of joint operation has led to the weakening of its commodity operation capacity, and the profit space has been eroded by the rising operating costs.

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P is facing the situation of internal and external difficulties. In recent years, the voice of traditional department stores has been increasing.

According to the statistics of World Bank Richard, the main countermeasures of department stores are: department store shopping center, self operation business, upgrading the proportion of private property and online and offline business linkage.

Chen Zhongwei's proposal is that department stores must upgrade their pformation and respond positively. First of all, department stores are shopping centers: shopping centers are gradually becoming consumers' preferred places of consumption with their rich formats and good shopping environment.

The traditional department stores, which have relatively simple formats, hope to create a shopping experience similar to the shopping center through the expansion of shopping malls, the introduction of fashion brand flagship stores and the increase of shopping experience elements.

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To carry out self run business is an innovative way to explore. < p >

The experience of famous foreign department stores shows that mature self-employed businesses can often provide more profitable profits for department stores. Therefore, self service business is regarded as a good prescription for domestic department stores to get out of difficulties, and has increased investment in recent years.

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It is a good recipe to increase the proportion of < a href= "http:// www.91se91.com/news/index_c.asp" > property < /a > P.

The research data of CB Richard Ellis show that the rents of quality shops in major cities in the past ten years have reached a compound annual growth rate of 6%, and rents have been increasing year by year.

In order to control the rising rental cost, some department stores have increased the proportion of their own property through development or project acquisition; some department stores have started the online and offline business linkage.

With the flourishing development of online shopping in China, they began to pay attention to and test the construction of the Internet platform.

Department stores hope to build the online shopping platform and satisfy consumers' online browsing, offline experience and online order buying behavior, so that consumers will be locked in a seamless sales closed loop.

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< p > > a href= "http://? www.91se91.com/news/index_c.asp" > electricity supplier < /a > spring tide and China's department store industry changes. Many department stores put forward the idea of creating "boutique department stores" to misplace most of the low-end products from online shopping.

For this problem, senior director of China business service department, Xiang Xiang Yun, said: "simply pursuing high-end products can not fundamentally deal with the homogenization problem of 1000 stores. Compared with the goal of mining target customers, the" boutique department "created by precise positioning, selected special products, meticulous service, access to the whole life circle, well constructed shopping environment and technological advances with the times should be the direction for the future development of the department store industry.

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< p > > a href= "http:// www.91se91.com/news/index_c.asp" > Chu Xiang Yun < /a > put forward three suggestions: first, expand the store network and expand the scale of the chain.

Due to the short development time and the "separation" of local department stores, few domestic department stores have established a real national network. Meanwhile, the construction of shopping centers in recent years has made shopping centers catch up with the trend of department stores in the importance of retail channels.

Therefore, the general merchandise industry should speed up the layout of the whole country to consolidate the channel scale advantage and expand the chain effect.

There are two ways for a department store to expand its network: endogenous expansion and extension.

When carrying out endogenous expansion, it is suggested that department stores should adopt the two wheel drive real estate strategy based on their own conditions to balance their scale, capital and operational risks in the expansion process.

However, the extended expansion makes the department stores obtain the possibility of using mergers to break market barriers and improve market share.

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< p > Second, we must deepen our joint venture and gradually develop our own business.

Self capacity is the core business capability that enables the department store to distinguish itself from shopping centers.

The manpower, capital and business resources required for self capacity must be accumulated and cultivated for a long time. Therefore, in a long period of time, through the "single product management" to strengthen its own commodity management and management capabilities, deepening the joint venture will still be the mainstream business mode choice in the rapid development of the department store industry in China.

The high profit consideration of proprietary business is buyout, pressure and capital risk, as well as the training of designers, buyers, sales and management teams. The ability of domestic department stores to develop their own business will be a gradual and long-term process.

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< p > Third, the introduction of new technology to create a full retail channel.

The large-scale application of new technologies, such as e-commerce and mobile Internet, is an irreversible change. It brings the unexpected impact of physical retail but also makes it possible for online and offline integrated channel retail mode.

CBW recommends that as a traditional entity retail terminal, department stores should firmly stick to their own store network and brand advantage, and March from the localization life and offline experience and service to online business, and move towards full channel retail across mobile, online, multi-level stores.

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