Loss Expands The Choice Of Old Buddha'S Department Store

Losses continue to expand

In October last year, the Aegean Sea shopping center was unveiled in the debut of the French virgin flower department store and the Star Maiden's march into commercial real estate.

In the past year, Aegean Sea shopping center, which invested a lot of manpower and financial resources to save itself, began to move closer to the mainstream commercial projects.

On the contrary, the bigger department store is still in the freezing period.

In the latest earnings report of I.T group, the operation figures of the department store were first disclosed.

For the I.T side, what does the loss of the HK $20 million in old Buddha's Department mean? Last year, the loss of I.T group's retail business in the mainland market was HK $14 million.

The joint venture with Lafayette department lost HK $10 million 700 thousand.

At present, the I.T group has lost its profits in the mainland business and realized a profit of HK $30 million, but the joint venture still maintained a state of a bottle of oil and its deficit continued to expand to 86.92%.

In the two earnings report issued earlier, the joint venture between I.T group and Lafayette general store has the following description: "the two sides are still in the early stage of operation, and the revenue is not enough to cover the cost of operation. They will continue to optimize the product mix and service level, and strive to achieve this goal in a predetermined time".

The quarterly report of the fiscal year is described as "the group's operating costs are rising and its operating losses with the Department of Lafayette department are running at an early stage.

Cause negative effects ".

Now, for the French partner, I.T group's description has become "in the current difficult business environment, this business will need more time to develop to make a profit contribution".

Compromise or persistence

And many entering China

In the same way, old Buddha's department store also faces a difficult choice: let consumers adapt themselves or to cater to the market.

At present, regardless of positioning or price system, Lafayette department stores remain at the former level.

The large number of exclusive brands brought by the department stores has broken the homogenization of the brand of Xidan commercial circle. In the innovative operation of department stores, the display and service of the department store are all outstanding.

The parking lot built by old Buddha's department store has become the gospel of many car owners going shopping in Xidan because of the lack of Xidan's joy city.

However, this is not a good thing for the old Buddha's department store.

In the industry's view, the location of the Department of Lafayette, which sticks to its own path, is significantly higher than other shopping malls in the Xidan business circle.

Xidan's joy city is targeting 18-35 year old young customers.

Xidan shopping arcade follows the subdivision route. Jewelry, clocks and sports brands are strong points.

Han Guang Department store and Jun Tai Department store are mainly "all customers", operating a large number of middle end brands and a small number of light luxury brands.

Enter the first floor of department store, Veneta, FENDI, Givenchy, Balenciaga, YSL and other international brands.

The price of these brands is as high as tens of thousands of thousands, which makes the mainstream consumer groups in Xidan business district at a loss.

At the same time, the mainstream audience of these brands is mostly young people with a certain consumption ability, but these people are obviously different from the shopping idea of "local tyrants" who love luxury goods.

They are equally sensitive to price, and the price difference of up to 30%-50% allows the group to choose more purchasing agents or foreign tourism consumption.

Unknown future

The Department of Lafayette wants to convey a more advanced concept to Beijing consumers. The more than 500 fashion brands and more than 300 brands in the store are bought from the global buyers, and the more than 200 brands are introduced into China for the first time, representing the latest fashion trend.

However, from the early stage of operation to the present day, the department stores left more impression on consumers than high-end ones.

In fact, the price of Lafayette department store from hundreds of dollars to tens of thousands of yuan, part of the brand price can be accepted by young audiences.

But high-end labels deepen the sense of distance from young customers.

The department store is changing too.

Recently, it was reported that the Department of Lafayette department appointed CEO for the first time for Chinese companies. He was a CEO consultant Paul Burke of Hongkong fashion buyer chain store.

Burke has been in Asia for the last 15 years and has 25 years of international experience in the retail industry.

But it seems that Lian Fu's operation in the mainland is not optimistic.

In September 1st, Burke was in charge of managing Chinese stores and monitoring its expansion in China.

This means that in the next few years, there will be new stores in the department store.