Is The Traditional Department Store Close To The Electricity Supplier Embarrassing Or Returning?

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Xiaobian network to introduce to you is the traditional department store close to the electricity supplier is embarrassment or return?

Under the environment of slowing economic growth and changing formats, the traditional department stores under the dual attack of shopping centers and electricity providers, business fatigue is highlighted.

In August 12th, the Wangfujing department store (600859.SH, hereinafter referred to as "Wangfujing department store"), which was regarded as the leader of the state-owned enterprise reform in Beijing, formally announced the launching of a comprehensive strategic pformation, which mainly consists of four parts: core competence building, full channel construction and new technology application, format development and enterprise organization pformation.

More than 200 of its core suppliers participated in the conference to jointly carry out "deep pool" and "all channel" strategic communication. Meanwhile, Wangfujing department store announced that it no longer opened shop with traditional department stores, and shifted the focus of development to the shopping center and Oteri J format (OUTLETS sold mainly over the season, off shelves and broken yards).

As a leader of "Northern Department Store", the pformation of Wangfujing department store has been brewing for a long time.

Since 2013, the company has begun implementing the online and offline integration strategy and reached a cooperation with WeChat in February 2014.

Wangfujing department store in the first quarter of this year appeared the first single quarterly income decline in the past four years, the same store growth rate in 2013 was only 2.61%, and the weak performance also needs new growth power.

Since the late 90s of last century, the department store industry has been focusing on the management of light assets. 20 years later, Wangfujing department store is determined to return to "heavy" assets and rebuild its commodity management capability.

More than Wangfujing department stores, other department stores are also diversifying their businesses and merging their businesses with entities to cope with the downturn.

Return to "heavy" assets

The environment is not optimistic, the impact of electricity suppliers, department stores can no longer be "rentals" live.

It is understood that Wangfujing

We plan to strengthen commodity management capabilities through "deep pool" and self built buyer teams and self operated areas.

Fan Yanru, Executive Deputy Secretary General of the China brand business alliance, told the Economic Observer newspaper that the "buyer and self run" mode was a common phenomenon in department stores in the early 60s and 70s to the early 90s. When the department stores were operated by the salesmen, they sold and sold. In the late 90s, the "buyers" salesmen gradually retired, and the department stores were more inclined to "light assets" management.

Fan Yanru believes that the pformation of Wangfujing department stores in this regard is essentially a "return".

"Asset management" is actually weakening the operation capacity of commodities, so now from the single product (hereinafter referred to as "SKU") management, we can gradually take the original part of the missing slowly, and through deep joint operation exercise ability.

Zuo Jing, deputy general manager of Department Store Department of Wangfujing department store, admitted that at present, the proportion of self employment in Wangfujing department stores is not high. In the next 3 to 5 years, it will focus on "deep pool", while deepening and optimizing the self management mode and the buyer team.

At the end of this month, the Wangfujing department store plan will carry out the research on the SKU single product management model with the supplier and realize the system docking in November.

Starting in January next year, the first batch of Beijing department stores and Shuang an shopping malls will bid farewell to the pure department store mode and switch to the SKU management mode that is synchronized with the suppliers.

In the next two years, this change will be promoted to the national stores of Wangfujing department store.

In Zuo Jing's view, the most difficult part of the SKU management mode is the heavy workload and labor costs. However, the construction of this part of the system will have a more detailed understanding and accumulation of the sales data, which will greatly help the development of the self and buyer teams.

More than ten years ago, many department stores in Beijing tried to buy off some of their own products. But due to the size restrictions and the level of buyers, many commodities bought up, resulting in backlog of stock and capital flow.

In Fan Yanru's view, although the management system is more advanced, the traditional department stores lack the understanding of consumer demand and product data. Even if the fund problem is solved, the demand for self-employed and buyer's business capability has not changed, and the talent is the biggest problem.

It is understood that the strategy of building commodity management capacity within the department store of Wangfujing is in addition to "deep joint venture", building buyer and self-supporting team. It also plans to cooperate with some brands in total distribution and general agency, create value type or supplementary private brand, gradually develop positioning brand, and ultimately form competitive advantage of commodity differentiation.

Zuo Jing said frankly, deep joint venture is a learning and accumulation process for Wangfujing department stores, so as to better improve customer service and experience and respond to the impact of shopping center formats on traditional department stores.

Format innovation

At the strategic pformation meeting in August 12th, Wangfujing department store announced that it would shift its focus to the shopping center and Oteri J format.

It is understood that the old department store of Wangfujing department will decide whether to restructure according to the actual situation. The new store will have a more "shopping center" embodiment.

In December 5, 2013, due to the completion of the acquisition of Wangfujing department store, spring department stores were delisted from the Hong Kong stock exchange.

In spring, department stores have 16 department stores and 3 Oteri J in the whole country. After the completion of assets injection, the Wangfujing department store is expected to form a multi format layout of "department stores + shopping centers + orlies", and the total number of stores will reach 50.

According to the analysis of the personages in the industry, the development of the outlets is valued by Wangfujing department store. It has not brought real benefits, and the performance will be under pressure for a certain period of time.

In Fan Yanru's view, the future of Wangfujing department store will turn to "shopping mall + outlets" format, and it will not go too fast.

Now that the market is not good, we need to stabilize the assets of the original about 20000000000 sales, and then adjust it to ensure development.

Moreover, the pformation of location in traditional shopping malls is not accomplished overnight.

Compared with the same high-end high-end chain stores in the whole country, Wangfujing department store ranked fourth, the top three 600827.SH, 600694.SH and Chongqing department store (600729.SH) were operating at 51 billion 900 million yuan, 33 billion 747 million yuan and 30 billion 246 million yuan respectively.

After integrating the assets of the department stores in spring, the Wangfujing department stores are more similar to the friendship stock stores, and both sides are local state-owned assets supervision and Administration Commission enterprises.

The pformation of Wangfujing department store has many lessons to learn from the format of friendship department store.

There are 27 department stores, 15 shopping centers and 4 outlets in the friendship group. The analysis of Shenyin and Wanguo pointed out that the new business format of "shopping center + orlies" of friendship shares is in the lead in the whole country, with a large number of reserve projects, and will expand to the whole country in the future to support the long-term development of the company.

In addition, the "full channel" strategy is also an important part of the pformation of Wangfujing department store.

It is understood that the whole channel construction and new technology application of Wangfujing department store mainly contain the following three contents: channel development and construction, process design and basic operation, and IT system construction.

Liu Chunji, deputy general manager of the Wangfujing department store e-commerce company, told the Economic Observer newspaper that the "get through" is to integrate all the previous construction channels into a main body. Through the advantage of the physical store, it can provide the store to pick up or deliver door-to-door services, and inventory and price linkage online and offline, and the online sales revenue is also related to the relevant stores.

We should create a closed loop for the whole retail ecology of enterprises and achieve the goal of "one consumer, the same Wangfujing".

It's not just Wangfujing department stores that are changing. Other department stores are also making diversified and full channel development adjustments.

Intime department store is developing its main business from department stores to commercial real estate and e-commerce. It has jointly established a "rookie network" with Alibaba. It has vigorously integrated online and offline businesses, CO operated with Tmall O2O, and has worked with Alipay to provide Alipay services in the physical store. Its Tmall online store realized sales income of 37 million 40 thousand yuan in 2013, 6 times that of 2012.

Tianhong Department store also launched the concept of "full channel". As of January 10th this year, WeChat has been running on all stores.

Another important part of the format pformation is online rainbow, which introduced more than 70 thousand single products last year, and sales increased by 26.24% over the same period last year, much higher than its 11.51% revenue growth.

At the same time, it is still practicing online ordering, offline self promotion and other O2O services.

However, the traditional department store is close to the electricity supplier, and still faces the awkward conflict with the supplier's online business.

Fan Yanru said frankly, online and offline merger is actually a kind of return.

At present, the traditional department stores have not yet reached the level of success.

Due to the difference between Tmall and other e-business, its online business can not be invested hundreds of millions of dollars.

Fan Yanru suggested that the homogenization of department stores is too serious at present, so we should consider the change of originality.

For example, consider layout and agent designer brand or some less imported foreign countries.

When the commodity is scarce or even unique, the autonomy of the enterprise will become stronger and the pricing power will be more flexible.