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    O2O Is Not A Panacea. Self Employment Of Department Stores Will Face Enormous Inventory Pressure.

    2014/8/6 9:56:00 17

    Department StoresSelf CateringO2OClothing

    < p style= "text-align: center" > img border= "0" alt= "align=" center "src=" /uploadimages/201408/06/20140806095852_sj.JPG "/" < < > >


    < p > under the influence of macroeconomic tightening, rising operating costs, diverting electricity providers, < a href= "http://www.91se91.com/" > consumption less than /a, lack of confidence and other factors, the department store business pressure increased, the phenomenon of closing stores increased.

    The Ministry of Commerce's survey data of typical enterprises in nearly 1000 stores show that in the 1~5 months of this year, department store sales grew by only 6.9%, which is at the lowest level in retail formats, far below the growth rate of retail sales of consumer goods.

    Some department stores in the 1~5 months of this year sales fell two digit year-on-year.

    Although the department store industry has already begun the exploration of pformation, these data indicate that the pformation of the department store industry is not a smooth road.

    < /p >


    P > strong > self perplexity < /strong > /p >


    < p > no commercial products, just as the role of the two landlord, limited brand control, department store's traditional joint mode of deduction has been criticized for many years.

    Promoting self-management and deep joint venture is the direction of many department stores in recent years, and there are many successful cases.

    For example, Andrew department store in Anhui has developed into a regional leading commercial company with 3 department stores, 1 shopping centers and more than 30 supermarket stores and annual sales volume of over 1 billion 300 million yuan from the original county department store. The core driving force lies in its insistence and selection of self operated roads.

    < /p >


    The listing prospectus disclosed by P & Andre revealed that in the year 2013, Andre department store achieved 1 billion 300 million yuan in business revenue, and net profit reached 53 million 283 thousand and 400 yuan, with an average profit rate of over 4%, reaching the advanced level of the industry.

    Chen Xuegao, chairman of the Andre department store, said that compared with the joint mode, the proprietary mode has six advantages: Taking the initiative to control the quality; having independent pricing power, reducing intermediate links, allowing commodity prices to return to reasonable and ensuring profits; meeting the needs of consumers quickly; avoiding homogenization competition; exercising procurement teams; enabling enterprises to replicate quickly.

    < /p >


    < p > but it is easy to run a department store.

    The director and vice president of Liqun group, di Tong Wei, recently spoke at the Symposium on innovation and development of department stores organized by the Department of circulation development of the Ministry of Commerce. At present, domestic brand self-management almost started from buyout business and agency brand management, and studied and studied various aspects such as brand and brand culture, brand promotion, customer awareness and terminal follow-up in the market, and then started the second step, through the OEM, OEM and other ways to operate its own brand.

    At present, most brands in China are faced with three factors: purchasing buyer team, brand operation team and terminal salesperson team.

    < /p >


    In addition to the need for professional personnel resources, the P self operation mode of department stores will also face enormous operational risks such as inventory pressure.

    According to Chen Liping, director of marketing department, School of business administration, Capital University of Economics and Business, the slogan of letting department stores return to self employment has been shouting for many years in China, but the pformation is faced with multiple obstacles and slow progress.

    Because of long-term inertia, it is difficult for Chinese department stores to abandon the business philosophy of "sales first".

    Moreover, the long-term joint operation has led to the loss of skills in department stores, making it difficult for them to get rid of their dependence on suppliers.

    < /p >


    < p > besides, there are more and more commodity subdivision types such as household appliances, furniture, household bedding, < a target= "_blank" href= "http://www.91se91.com/" > clothing < /a >, which puts forward higher requirements for self pformation of department stores.

    < /p >


    < p > < strong > O2O is not a panacea. < /strong > /p >


    It is an indisputable fact that electronic commerce has caused a great impact on traditional department stores, and its sales record has been constantly refreshed by P.

    The pformation of "OCS" has become a common choice for the development of department stores in recent years.

    But the brutal reality is that many department stores have built up online shopping centers and pushed them slowly. Some even built them, and their operation results are also poor.

    The case of "touch net" failed in the department store.

    < /p >


    < p > in recent years, O2O has become an active exploration mode in department stores.

    Tmall, suning.com, Jingdong, Yintai and other enterprises are the forerunners of the O2O model.

    Driven by their efforts, consumers can try out the a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > and try the 3C products to the entity store, and only need to scan the two-dimensional code of the products to get different amount of online shopping vouchers or promotional coupons.

    The Internet has become the front desk for offline pactions, and physical stores can also become the experience space for online shopping.

    O2O seems to have found a good pformation mode for the troubled department store industry.

    But the fact is that O2O is not a panacea.

    < /p >


    < p > insiders believe that O2O has not yet seen the synergy effect of 1+1>2.

    After all, from the offline trial to the online order chain, the electricity supplier is selling functions, and for traditional brands, it is not enough to sell products on the electronic business platform at low prices.

    Because the online market is still a low price market, brand online price war, it is difficult to implement the same price under the line.

    Under the channel conflict, O2O is impossible.

    < /p >


    Under the heavy pressure of P, department stores have embarked on the road of pformation.

    O2O has tried it, and some department stores have even opened WeChat stores.

    New technology, new marketing mode, department store industry is constantly trying, but success depends on performance.

    Under the background of the economic downturn, the difficult pformation department stores must have a long road ahead if they want to see the dawn.

    < /p >

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