On The Experience Of Life And Death In Shopping Centers

As director of investment promotion in Beijing Chaoyang Joy City, Zhang Li often bustles about like a haste.

A phone call, he would get away from the interview to meet the appointment of customers, leaving a promotion director, Wen Jun, to answer a question that he did not know how many times he answered.

Chaoyang Joy City opened for 4 years, and sales performance went well. Last year's sales increased by 150% over the same period last year, breaking through 2 billion 100 million yuan, which is called "heterogeneous" under the online business downturn.

You know, in the first half of the year, there were 15 stores in the department stores, let alone those retailers whose sales volume plummeted.

Statistics in the first half of the year showed that the retail sales volume of 100 major large-scale retail enterprises decreased by 0.2% compared to the same period last year, and the growth rate dropped by 10.9% compared with the same period last year.

People regard Chaoyang Joy City as a model of offline commercial attack on the trend of e-commerce, and throw the above questions to Wen Juan and her team again and again.

There are many versions of the answer to this question. Some people say that the impact of e-commerce is too fierce.

Wen Juan prefers to believe that "external causes work through internal causes".

In fact, the same is true of online business and retail brands. The fierce competition between them is not the same thing in the eyes of customers and consumers.

The reason why the traditional retail industry is declining is far more than the impact of the electricity supplier. It is rigid in mode, backward in service and single in experience, pushing the traditional retail industry to the edge of "precipice".

What Zhang Li and Wen Juan's team should do every day is to provide customers with the rationale for returning to the "store business", and to create a full experience service terminal through the east wind of the "electricity supplier".

Li Jia, general manager of Hongxing commerce, Aegean Sea shopping center, also believes that "people always want to go shopping."

The biggest advantage of physical business is that it can provide something that electricity providers can not provide, that is, experience.

10 kilometers northwest of the city of Chaoyang City, the Aegean Sea shopping center and the Baisheng Beijing flagship store Sun Palace store in the neighborhood.

The distance between the two is far away, but the state is quite different.

The so-called "East" sunrise west rain, the former opened less than a year, passenger flow and sales grew by more than 50%, while the latter declined and lost brilliantly. The Parkson group interim results showed that as at the end of June 2014, the total sales revenue of Parkson group was about 9 billion 964 million yuan, down 4.5% from the same period last year.

Affected by the weakening of speculation in gold and jewellery, the gross profit margin of overall commodity sales rose slightly by 0.4% to 17.8% in the first half of the year, but operating profit fell 28.5% to 315 million yuan over the same period last year.

The decline in performance allowed Baisheng Group founder Zhong Tingsen to go back to the mountains and open up the strategic adjustment of Parkson China.

Closing shop is one of the key points.

In May 5th, Ji'nan Baisheng Guan shop; May 20th, Changzhou new North Baisheng Guan shop; July, Beijing East Fourth Ring Baisheng Guan shop - two years, Parkson has closed 7.

Instead of saying that the department store industry is declining, the pformation and pformation of the department store is imminent.

One of the first agents to enter the Chinese market is Helmuth Hennig, the director of Haining's department store. The impression of Chinese department stores is always "first floor cosmetics, women's clothing on the two floor, men's clothing on the third floor, and no need to go in."

After 30 years of immersion in the Chinese business community, as a partner of many high-end department stores, Haining has no sense of freshness. It can only tell consumers what they can buy and what they can not buy.

Of course, department stores often occupy the best commercial location in a city.

Take Beijing as an example, Baisheng, Huate and other department stores are almost at the center of their respective business circles.

Haining believes that this is an advantage, but these advantages have not been turned into attractiveness.

More customers just regard department stores as "fitting rooms" - try the styles and numbers in the counters, then go online to Taobao.

Department stores look in the eyes, and the pain is in the heart.

As a result, they began to think of the Internet and set up their own electricity suppliers.

Parkson, spring department stores, Wangfujing and other department stores have invested huge sums of money in e-commerce.

But these online stores have not brought any chance and hope to department stores, and blood loss and closure are continuing.

"Electric shock" is not the most appropriate way of self redemption. Department stores need to focus on adjusting their product mix and service contents, improving consumer experience in their supplies. Jing Linbo, Professor of the Financial Strategy Research Institute of the Chinese Academy of Social Sciences, said that department stores did not find the right stop bleeding point.

Some old international department stores may provide references for domestic department stores.

Most of them have a strong buyer team and bring rich products from all over the world.

"Their products are really very good, and the way of display gives people the desire to shop."

In Wen Juan's view, if the customers can not have the shopping experience of "material richness and dazzling", department stores have no advantage.

Customer is

Businesses are also customers.

Li Ka believes that the importance of business experience is also related to life and death.

Department stores have strong organization and management of goods, but there is a cycle of return. The cash value deposited in this cycle is in the hands of department stores, not merchants.

No matter how businesses operate, they must pay a fixed percentage rent according to the contract.

"The business experience is bad in your field, why do people continue to do it?" Li Jia said.

It is more accurate to describe the brand with "love hate".

Shi Hairong, chairman of the war wolf clothing Limited company, admitted that although department stores can help brands establish channels and set up brands, but the high discount points and slow repayment have already made the Min Fu clothing brands such as wolf clan not regard department stores as the main battleground.

Settled in

An outdoor sports brand member of Sun Palace told reporters that their sales task was not enough before. Even though the discount activities continued this year, they never completed the corresponding tasks.

"Our brand has never been discounted before, and it has recently been thirty percent off."

Reporters in early August in Parksun Sun Palace store, six buildings, three or four brands just choose to leave.

Facing China

Since its worst performance, Parkson has begun to try to get rid of the department store's coat and pform its brand into a breakthrough.

In 2014, Parkson's top management team has been investigating around the world, buying or acting as a well-known brand that meets the company's expectations.

Zhong Tingsen's idea is that after buying the brand, Parkson can enjoy profits while reducing commodity prices to attract consumers.

More importantly, after having more brand resources, Parkson can also achieve differentiation with other peers.

However, this model is not optimistic about the industry.

Earlier, the Japanese department store, isdan and Sino Korea joint venture Lotte Yintai department store tried exclusive brand agents and buyout operations. However, due to the inaccuracy of the market and the capital pressure caused by the unsalable goods, the two department stores were defeated.