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    Xinhua Department Store'S Difficult Pformation "Trilogy"

    2014/10/14 15:52:00 14

    XinhuaDepartment StorePformation

    Facing the severe challenges of the three formats of department stores, supermarkets and electrical appliances, the chairman of the company, Qu Kui, explained to the China Securities Daily reporters the details of the pformation of the company in the future.

    Xinhua Department store will accelerate its pace from three dimensions: accelerating the pace of electronic commerce in the sales of electrical appliances, adopting the "Wanda style" shopping mall mode in department stores, and accelerating the construction of "small and beautiful" fast convenience stores in the supermarket business.

    Industry development is facing difficulties

    The declining consumption and the increasingly fierce competition in the retail industry are becoming the two major predicaments faced by Xinhua Department store.

    Zhang Fengqin, a general manager of the China Association for Ningxia, said to reporters that the consumption of "eight countries" and "anti three public" had a great impact on the operation of the company.

    Sales of hot storage cards, shopping cards and other products were down, and purchases of gold and jewellery and other gifts and luxury goods also decreased significantly.

    Public information shows that since 2004, the revenue of Xinhua Department has been growing for 10 consecutive years, from 1 billion 600 million yuan in 2004 to over 6 billion 600 million yuan in 2013.

    In the first half of 2014, the company achieved a revenue of 3 billion 400 million yuan and a net profit of two hundred million yuan.

    The company said that the retail industry is faced with factors such as the slow recovery of consumption and fierce competition in the channel.

    As the main retail enterprises in Northwest China, the market performance of the regional market is not satisfactory, and the competition situation continues to intensify. The company is facing greater growth pressure.

    In response to the impact of the retail industry, Qu Kui said, "shopping card sales, the company will increase sales through the purchase of individual customers; in addition, with the arrival of the peak season, the company will also promote sales through a series of marketing activities."

    In addition to promoting sales, Xinhua Department stores will also boost profits from cost savings.

    Qu Kui said: "in the long run, the retail industry will be in a doldrums, which requires Xinhua Department store to change its business mode.

    The company will increase the intensity of its own operation, and the agent brand will also gradually become proprietary, reduce the intermediate cost and reduce the price.

    In terms of brand introduction, we should actively introduce hot and popular brands both at home and abroad to reduce the impact of policies on sales.

    In addition, Xinhua Department Stores divestitures many of its assets.

    In April 30th of this year, the company announced that it would pfer the 45% equity interest of Ningxia International Dairy Development Co., Ltd. to Shanghai dairy investment (Hongkong) Co., Ltd., with a paction price of 300 million yuan.

    In addition to cash pactions, the company obtains a piece of land with great potential of appreciation through lower price pferable shares.

    Qukui said.

    Three formats: "march together"

    With the advent of the Internet era, the three major formats of department stores, supermarkets and electrical appliances of Xinhua Department store are facing the impact from the electricity supplier.

    Qu Kui said that the impact of the electricity supplier has continued to enlarge the trend, but the entity store will not be replaced, the two should be complementary to each other.

    "But in the process of balancing, the entity store will be very miserable.

    Xinhua Department store has opened an online shopping mall in Jingdong, and will try more in the future.

    Reporters in the official website of Jingdong mall saw that the new 100 flagship store had more coverage of household appliances, electronics and electrical appliances, and the service evaluation reached 9.7 points.

    Qu Kui said that the sales volume of Jingdong is about 10000 yuan / day, and the company will continue to expand its work.

    However, qukui said that from the current situation, most of China's electricity providers have yet to find a clear path to profitability.

    Take Alibaba as an example, it is more like a platform, and it does not make goods in itself; while Jingdong is making goods, but from the statement, the sales of goods have not yet been profitable.

    Therefore, the investment of electric providers needs to be cautious.

    As for the competition between Xinhua Department stores and controlling shareholders, the company's secretaries Li Baosheng clarified.

    Li Baosheng said that according to the principle of "substance is more important than form", new shops marked "LOGO" marked by "wumi" in Ningxia and other places have not invested a penny in the major shareholders, all of which are invested by listed companies.

    According to the principle of who will benefit from investment, these stores have nothing to do with Wumart.

    The controlling shareholder of the company has made it clear that the "Wumart trademark" is freely available to Xinhua Department store. Xinhua Department store has reported to the Ningxia Securities Regulatory Commission and other regulatory departments for approval.

    And competitors from outside seem more powerful.

    Reporters learned that Huarun, Beijing Hualian, Wangfujing and other retail giants have the intention to enter the Ningxia market, especially with Wanda as the representative of the emerging business format constantly in Ningxia and other areas to attack the city, eroding the site of Xinhua Department store.

    Local people in Yinchuan said that Wanda had two shopping centers in Yinchuan, and one-stop shopping attracted many young people.

    "Department store industry, Wanda model represents the direction of the physical store."

    Qukui said that we should learn from Wanda's business model, not simply do traditional department stores, but also pform the shopping mall mode to increase the functions of catering and entertainment.

    In the future, Xinhua Department stores will directly adopt the shopping mall mode in the new shops.

    In terms of supermarket business, qukui revealed that it will give full play to the superiority of Lian Chao's integrity, and intensify the construction of "small and beautiful" fast convenience stores while building "big and beautiful" stores.

    "The impact of electric business on department stores is the strongest, and the reason why supermarkets can resist the impact is largely due to fresh businesses, and the public needs fresh supermarkets."

    Create a new logistics mode

    along with

    Shop opening speed

    Constantly accelerating, the company's business area is not limited to Ningxia, but the growth of sales scale and the expansion of management radius make the distribution supply chain problem prominent.

    Reporters learned from the company that Xinhua Department Store is speeding up the construction of distribution centers, hoping to achieve the dual purpose of saving costs and integrating resources by way of "logistics mode".

    According to Qu Kui, the logistics center is not simply building the warehouse, but the supply chain management engine, is the tool of supply chain integration, is beneficial to the company's unified management of the goods and suppliers, is conducive to the unified management of the operation of the store, breaks through the bottleneck of the fast opening and opening of the foreign port, and helps to expand the scale of the company and improve the overall return rate of the company.

    At present, the two phase of the logistics base construction of Xinhua Department store has already started, and will become a new "engine" to boost the two pioneering development of Xinhua Department in the future.

      

    xinhua department store

    The project of Wuming Xinhua northwest modern supply chain project, which is invested and constructed in the Wang Yuan Industrial Park of Yongning County, Yinchuan, has been basically completed and put into operation in the first phase of about 150 acres. The project integrates commodity storage, agricultural and sideline products processing and distribution, and the total distribution of goods in the first half of this year is about two hundred million yuan.

    The two phase of the project is being implemented according to the plan. The project will be built as the hub of the comprehensive logistics system with the largest scale, the most perfect function, the most complete supporting facilities and the most extensive radiation range.

    Reporters in Xinhua Department Store

    logistics

    Center site saw that ten thousand square meters of room temperature storage and 2500 square meters of cold chain warehousing has been put into use.

    Dozens of automated electric vehicles move between different shelves, greatly reducing labor costs.

    Qukui told reporters that, now, the direction of logistics is right. Now our logistics company has become the largest modern logistics company in the northwest region, and will also be involved in the third party business in the future, so that the logistics company can become a processing or sub Contracting Center.

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