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    China'S Department Stores: Seeking Transformation In Thin Ice

    2014/11/20 15:53:00 33

    ChinaDepartment StoresTransformation

    Transformation and closing stores are the main theme of this year's department store. Transformation It has to be done. A commonplace topic is whether there is any room for survival in the general merchandise industry in the attack of electricity suppliers and shopping centers. The answer given by everyone is yes, but where is the future of department stores?

    Most foreign department stores choose to close shop. "The first foreign capital store" has withdrawn from the Ji'nan and Changzhou markets, closed nearly ten stores in the past two years, and Japan's department stores also closed stores, and the stop businesses ended. Thailand department stores also ended the Hangzhou and Shenyang market stays. The local department store brand has opened up the curtain of transformation. The Department Store giants are frequently interconnected with internet giants and real estate bigwigs. Inside, the business strategy has changed, and the focus of future development has been on shopping centers and Oteri J formats. Southern department store has launched a diversified attempt to open the first shopping center and first convenience store this year.

    In the past, the annoyance of department stores was different from that of homogenization. Now, who can keep pace with the rapid changes in the consumer market? From the perspective of appearance, Retail world We should pay attention to the speed of development, but this speed is not blindly expanding and emulating. In the transformation of a department store brand, we will focus on suppliers.

    Some limited department store brands find opportunities for success in market segmentation. After the adjustment of 75% percentage brands in Dongan market, the shopping mall has been transformed from a comprehensive department store into a youth and fashion trend Pavilion. The shopping mall has strengthened the advantage plate, with an additional 200 square meters of jewelry counters on the first floor, and will expand the sports brand lineup at the same time.

    Seemingly clear brand, category and portfolio adjustment is not easy. In order to cater for the changes of consumers, the profit model and business mode of department stores also need to be changed. The department store business will evolve from a single joint mode to a self operated + joint venture + leasing structure. On the profit model, the brand of the spike, the brand of the passenger flow, the proportion and the fall of the high rent merchants also need to be carefully pondered.

    In restaurants, entertainment and children's shopping centers, limited department stores are trying to integrate new elements. When the bottom line of "pure department store" dominated by commodity management is broken, the boundary between department stores and shopping centers is becoming more and more blurred, and department stores are learning from shopping centers. In the form of management, there may be differences between the two, but the development trend will converge with each other and the relationship will also merge. At present, the shopping center has changed from the rent theory in the past to inviting fast fashion, catering, children and other low rent formats to enter; the department stores also gave up only recruiting high button brands, and chose to introduce more in line with the positioning of shopping malls. brand 。 The two changes are all centered around an object. Good service consumers are the trump card to win the market.


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