Department Stores Join Hands With Shopping Centers To Get Out Of Trouble

Statistics from 100 million China show that the total sales volume of 130 member units of the Chinese general merchandise business association has increased year by year in the past 2005-2013 years, but the growth rate is decreasing, and the industry development rate is slowing down.

In 2013, the total sales volume was 643 billion 768 million yuan, an increase of 11.55%, and the growth rate was further narrowed.

"China's consumer market still has huge room for development, and the core competitiveness of department stores should not be underestimated."

Chen Zhongwei, director and executive director of the Department of research and development of the State Department, said: "with the goal of mining target customers as the core, using precise positioning, selected special products, meticulous services, access to the whole life circle, meticulously created shopping environment and sophisticated technology department to create sophisticated department stores should be the direction of future development of department stores."

This point coincides with the first time that the US retail real estate developer, CityOn and Wangfujing department store, first joined hands to create a shopping center in Xi'an and Zhengzhou, and Zhang Guohua, managing director of the tower in Asia and China, said: "in the United States, Taboman is committed to providing an exceptional shopping environment for 64 years. Now it has become a synonymous with high yield and high quality in the US retail industry.

As of 2014, sales of $806 per square foot had created the highest record in the industry.

But when we come to China, we need a senior "guide" like Wangfujing department store as a partner.

It has successfully built the first "non pillar design shopping center" and "the first retailer with movie theater shopping center" to develop the Chinese market.

Chinese consumers can increase their disposable income, increase their consumption power, and pursue the enthusiasm of high quality life. Especially in the two or three tier cities, the purchasing power and consumption demand of consumers are increasing day by day. However, the shopping mall in the local market has such problems as single function and insufficient number of brands.

As a result, retail brands entered the two or three tier cities in 2014.

In 2014, Forever 21 opened the first West China store in Chongqing, and first entered the eastern second tier cities of Wuxi and Hangzhou. New Look continued to expand in Shanghai and Suzhou and landed in Tianjin.

H&M's subordinate line brand Monki and COS landed in Chongqing, while H&M Home first entered Tianjin.

It is worth noting that some of the fast fashion brands in the first tier cities in China are having trouble getting into the two or three tier cities. Usually, the decisions and coordination of these large foreign enterprises often depend on their global structure.

But the decision makers at the core of the headquarters tend to stay away from the Chinese physical market. This situation is likely to create constraints for foreign fashion giants to plough deep into the two or three tier cities, and urgently need to find partners in China, which gives the shopping center a chance to hand in department stores.

According to statistics from the research department of the world bank, the traditional department stores, which are relatively unitary based on changes in consumer habits and behaviors, are actively seeking to change, hoping to give shoppers a similar shopping experience as shopping centers by increasing the types of retail formats, adjusting the type of business and improving the shopping environment.

For example, the Dongfang shopping center south east store added a whole layer of catering business, the sun department store added fast fashion brand, entertainment and entertainment formats, food and beverage, cinema, dance training and so on. Fuzhou's Eastern Department Store Group store increased the artistic display area, the air garden and so on.

Unlike the shopping center pformation, taboman Asia and Beijing Wangfujing department store are strong together to emphasize the quality experience created by the details: two shopping centers jointly built by two companies are located in Xi'an and Zhengzhou's rapidly developing urban areas, and the surrounding business entities and high quality communities are growing rapidly. At the same time, they are directly connected to the subway, and the buses are accessible in all directions. The shopping center has enough parking spaces and elevators to ensure that consumers have no worries. In addition, the interior of the shopping center has adopted the Taboman sign without column design to make the line of sight wider and wider; and the humanized design of moving lines has made shopping very enjoyable.

Apart from Wangfujing as a main brand store, nearly 300 well-known high-end fashion brands, restaurants, entertainment, cinemas and other leisure facilities.

This "department store + shopping mall" mode of learning from each other, or stimulating vitality in the two or three line city, has become another successful case of "exotic" shopping center in China's original creation of DNA.