A New Opportunity For Chengdu Department Store Industry To Develop The Two Tier Market

At the beginning of this year,

Chen Long, the representative of the local high-end department store, is seeking to make a pformation. He has taken a store in the Chengdu international financial center and opened a watch and store store which specializes in two brands of Rolex and Tudor. In August 16th, Ito Yang Hua Tang rebuilt the shop in Chengdu city's flagship store - Shuang Nan shop, which not only adjusted the commodity structure greatly, but also added many experiential facilities; while renhun spring carefully opened shop in Chengdu, it increased the expansion of the second tier cities in the province, the Nanchong store will open in September 2015, and the Dazhou store will also open in 2016.

according to

In the first half of 2014, the number of department stores in the country reached 15, the highest in history, and the data were constantly being refreshed.

There are signs that the department store industry, which has gone through 10 years of gold, will usher in pformation and pformation.

Reporters learned in the interview that although the department store in Chengdu did not have a large shop to close its customers, the signs of decline had emerged.

Developing two tier market and finding new business opportunities

As the oldest and most senior in Chengdu

Renhe Spring is very attractive to consumers in the two tier market.

However, due to the difficulty of parking and the small area of the business area, there is no place to introduce new brands and ancillary services, and become the fatal injury of Renhe Spring East people's shop. These conditions also exist in other stores to varying degrees, which greatly restricts the development of Renhe Spring.

Wanda's business is dismal in Chengdu, but two years ago, it opened successfully in Mianyang, and now it is preparing second stores.

Towards the two tier market, which provides a reference for Chengdu counterparts.

Beginning in 2012, Renhe began to pay attention to the two tier market. After losing its place with Mianyang, Leshan and other cities, it finally decided Nanchong as the first stop in Sichuan's two tier market.

It is reported that the Nanchong benevolence and spring will be opened in September 2015, and the Dazhou store will open in 2016.

Chengdu is also a high-profile department store, is also the Wangfujing group's Star Department Store - Chengdu Wangfujing department store, also quietly prepared Nanchong store.

Under the Wangfujing group, Chengdu Wangfujing department store has made brilliant achievements. Its annual sales account for 15% of the total sales volume of the group. But it can not make up for the decline of its national department stores and open up new markets. This is another issue facing Chengdu Wangfujing department store.

Following the opening of a shop in Wenjiang by Ito, the Leshan store is also in the process of preparation.

Going out to seek development has become a common decision of department stores.

Relying on department stores, enterprises are struggling to survive.

The biggest and most shocking news of Chengdu's department store this year is that Chen Long, the founder of Chengdu's high-end department store, has opened a watch store in the international financial center (IFS).

A boss of a department store does not open his own shop in his own store, but it is rare to set up stores in other department stores.

It is reported that the shop in Chengdu IFS monthly sales of 80-90 yuan, Chen Long is very satisfied.

"It should be considered for the listing. Chen's fashion industry only lacks watches and clocks."

A Meimei Cheng middle-level staff told reporters, "at present, in addition to the department store business, maimei Li has also made many brands of regional agents, such as Ferragamo, DAKS, DKNY, VERSUS and other brands are the agents of Mei Li Cheng, and opened nearly 100 stores in the whole country."

As a matter of fact, Chen Long's strategy of shifting the focus of operation began a few years ago. He first took the national agency of Italy brand CUCINELLI, and became a buyer herself. Before the entry of Italy's national treasure Damiani into the Chinese market, the company opened its counters to Chengdu Meimei Cheng.

In contrast, some of its high-end department stores, such as MontBlanc and CELINE, have been evacuated.

The reporters found that the two shop, the first of the real estate in Tianfu Road, Chengdu, which once vowed to open in 2014, has no signs of opening.

According to relevant sources, the store was initially postponed to 2015 due to funding problems, and it is still unknown whether it can be opened or not.

Ito and Yang Hua Tang were also adjusting their business strategy. Two weeks ago, the opening ceremony of Ito Yang Hua Tang Shuang Nan shop was opened. Besides adjusting the commodity structure, a lot of experiential facilities were added.

Ito, Saegusa Fuhiro, general representative of China, told reporters that although the area of the double Nan shop is not big enough, it is urgent to make the department store into a shopping mall. In order to increase the rest area and upgrade the children's District, Ito Yang Hua Tang has sacrificed a lot of business space. "These changes come from the needs of consumers. We made a very detailed analysis before making such a decision."

For many local department stores, such a change is almost impossible.

Another high-end department store in Renmin Road, Chengdu, has been making brand adjustment, hoping to add more experiential projects to drive more shops on the third floor.

According to relevant sources, the Renyuan Plaza does not pform the department stores such as Renhe Spring and other non experience projects as competitors, and focuses on the emerging shopping mall mode.

In addition, Renheng land Plaza has taken a commercial land on the south side. The two phase of the project will add more diversified experiential projects.

Where to find straw?

For Chengdu department stores, 2014 was an embarrassing year. The decline of the economic situation, the impact of e-commerce, and the acquisition of the market by large foreign shopping centers made Chengdu department store somewhat at a loss.

"No early training of the soldiers, so some embarrassment, tall and blocked on the route, and no lower body marketing strategy, the corresponding measures are not comprehensive enough."

This is the evaluation of many industry people for this year's department store in Chengdu.

The most notable industry heavyweight is Chen Long, the founder of Meimei Cheng, a businessman who started out as a brand agent. He once worked on the DAKS that was originally on the verge of death, making it one of the most popular brands of Chinese middle class.

In 2014, when he was depressed in the department store industry, he returned to his old bank, the brand agent, who had set foot in the bell watch industry which had never been involved, but the shop was in other stores, which made all the people in the industry confused.

Some people say that he is preparing for the listing of his fashion industry. Others believe that he likes some fresh challenges in his bones. But it is certain that his department store business is not good enough to enable him to distract himself from doing these things, instead of speeding up the preparations for the two store.

After years of wandering, Renhe Spring will finally set up shop in Nanchong.

However, this may not be a good time -- the great decline of Chengdu business in 2014 made Renhe Spring's opening in Nanchong no longer worth looking forward to.

Those dealers who are not necessarily able to earn money in Renhe Spring Chengdu stores are still willing to follow Renhe Spring to Nanchong to open up, which is a real problem.

"Chengdu Renhe Spring this year's market has not collapsed, but every enterprise has a bottom rent, so whether the business has been affected is temporarily unable to see.

However, it can be confirmed that many dealers have been paying the floor rent every month instead of being a good time for business.

A clothing dealer sighed.

Focusing on the department store in Chengdu, there are few real estate companies that have not set foot in it. Ito Yang Hua Tang is one.

The bold and meticulous management and constant adjustment of Japanese operators has played a key role in the success of their business. But how long can Ito's myths persist and the industry is watching.

Such as Renheng land Plaza, Renhe Spring and even more department stores, to some extent, rely on real estate and survive.

"Business brings around the rise in housing prices, upgrading office rents and residential prices.

Even if the department store business is a little bit worse, it is also a strategic victory for the group company. The Mixc's influence on the twenty-four cities is a typical example.

A senior person told reporters.

It is reported that Chengdu Wangfujing department store and Renhe Spring projects in Nanchong are working with local real estate developers, developers need commercial cooperation, the condition is to avoid part of the rental department stores, and department stores take this opportunity to enter the two tier cities smoothly.

But with the support of real estate and their survival status, can the future direction of the development of department stores no longer rely on real estate? The development of Chengdu department stores in the two tier cities may give us answers.

More embarrassment comes from the pformation of department stores, which is often an inevitable move rather than a battle of preparation.

The expansion of formats, the radiation of two tier cities and even the pformation agents, the pformation of different forms, indicating that the department store operators have no bottom, where to find straws?