Analysis Of The Present Situation And Future Development Trend Of Department Stores

Competition in the retail market is spreading, and new businesses and online shopping continue to diverge from traditional department stores. Department store Industry feels pressure to operate. Domestic and foreign department stores are living in dire straits, and most enterprises have devoted themselves to full channel reform without obvious improvement.

The department stores are facing multiple problems such as reshaping the supply chain, changing the business mode and finding new profit points.

In the future, the focus and core competitiveness of department stores should be more mastered. Exclusive resources We should re capture consumers through personalized and differentiated brands and products. In the transition stage, in order not to take up a large amount of capital and reduce operational risks, domestic department stores still need to maintain a large proportion of brand goods that are developed and sold in cooperation with suppliers. The mixed operation mode of "self run + private brand + joint brand" will become the mainstream trend of the future development of department stores.

　　 Status quo

Keywords 1 foreign capital stores

Local department stores are struggling in deep water, and foreign department stores are struggling. Closing shop is the most notable label attached to foreign department stores this year. Parkson, the first foreign capital store, withdrew from the two markets of Changzhou and Ji'nan and closed the East Fourth Ring Road store in Beijing. The Japanese hate hall ended the operation of Beiyuan shop, Wangjing store and Xizhimen store. Its performance was not satisfactory, so that Beijing Hua Tang adopted a strategy of shrinking and put its focus on the operation of key stores. Even in the mainland, the losses in the Department of Lafayette department, which brought more buyers, continued to expand, and the direct Marsha general store began to seek local partners to promote growth in China.

In response to the current changes in China's relevant policies and the changing market environment of consumption trends, the general market reaction of foreign department stores is not keen. In the face of the challenge of localization process, most foreign-funded enterprises need to wait for headquarters' opinions and make adjustments. However, due to differences in distance, culture, life, consumption and other backgrounds, headquarters's ignorance of Chinese business culture and consumer psychology leads to a final strategy decision that can not match 100%.

A large number of enterprises will be eliminated during the reshuffle of the general merchandise department. The winners will be strong enterprises with strong financial strength, quick market response and business characteristics. Consistent with the transformation of local department stores, foreign department stores also opened a self rescue mode. In the face of the worst performance since its listing in China, Bisheng founder Zhong Ting sun has personally launched a global takeover or acting as a well-known brand. Japan's htang hall wants to change the mode of cooperation with suppliers, and jointly carry out the design, development and sale of special products.

　　 Keywords 2 all channels

The trend of online consumption is becoming more and more obvious. The concept of O2O (online to offline) has spread to the whole retail industry, and the industry has an unprecedented attitude towards channel construction. This year, most department stores put the whole channel into the strategic level with abundant manpower and financial resources. Department stores such as big business, Wangfujing department store, Yintai business, Tianhong mall, Chongqing department store and friends' group have entered the field of electronic commerce, and gradually completed the layout of all channel ports on the online and mobile terminals.

In order to deepen the reform of the whole channel, this year's main business department headed by Wangfujing department store and Yintai business has opened strategic cooperation with the Internet giant Alibaba and Tencent. Yintai business and Alibaba set up a joint venture to develop online and offline businesses in China, including shopping centers, department stores and supermarkets. Alibaba invested 5 billion 370 million Hong Kong dollars in strategic investment in Yintai business group. After a breakthrough in mobile payment between Wangfujing department store and Tencent, the two sides will continue to push forward the whole channel construction with the business mode of integration and linkage.

However, the total channel value realized by department stores is directly proportional to the investment difficulty. Because the coincidence degree of goods is close to 50% or even higher, the whole channel is more reflected in providing consumers with multiple ways of buying. Some enterprises are guiding consumers to consume under the line in the form of issuing red packets, rebates, etc., but the activity level is still on the upper level of the line, and the conversion rate is not high. Due to the lack of a clear profit model, most enterprises' construction of the whole channel only stays on the basic stage of building online platform. Optimism is likely to accumulate in the future.

　　 Keywords 3 Shopping Center

This year is the least year for new department stores. The growth of department stores in the first tier cities is negligible. The new world department store will further sink its channels and seek opportunities in the three or four line market. By contrast, some enterprises have almost abandoned the development of department stores. Wu Shang Group announced that the new development projects in the future will no longer be involved in department stores. Wangfujing department store will focus on the development of shopping center and Oteri J format, and join Hengda in the field of commercial real estate cooperation.

The sales capacity of department stores with merchandise sales decreased significantly, resulting in a decline in operating income. The performance pressure of department stores can be imagined if the operating costs of property rents and human resources are increased. The lack of retail power has led department stores to seek external solutions. Some hundred stores have learned from shopping center formats to adjust their catering areas and formats. In the case of limited property conditions, the industry generally believes that the adjustment of shopping malls is only suitable for the transition period, not a permanent solution.

　　 Trend sheet

Key words 1 financial services

Facing the depressed market pattern, it is a general trend for the traditional department stores to find new profit channels. Yintai business, Wangfujing department store and Alipay, WeChat respectively launched a store membership card. A membership card, which is endowed with internet thinking and financial concepts, brings more imagination to the department store in the financial field.

The impact of relevant policies has led to an end to the sales of commercial prepaid cards, which are important components of corporate profits in the past. If the membership cards with internet financial nature attract individual consumers to store money in the form of storage value, profit increase, rebate and other forms, they will become a new growth point of the department store's performance. Department stores can also take this opportunity to gradually infiltrate this financial thinking into cooperation with suppliers. Prior to that, Jingdong launched a "Jingdong White Bill" for consumers, and launched a 3 minute debt financing product, "Jing Bao Bei", to launch a comprehensive effort in the financial sector.

In fact, department stores have made efforts in the financial sector. Guangzhou friendship intends to raise 10 billion yuan in cash to acquire 100% stake in Yuexiu Financial Holding Group Co., Ltd., and transform it into a A share listing platform operated by two main businesses in finance and department stores. Chongqing department store invested 150 million yuan to set up hundreds of small loan limited liability companies to cut into the financial sector. Through handling various microfinance, bills discounting and other financial services, we can better serve the main business of Chongqing department store and increase business revenue. However, there are a lot of risks in the financial field. Enterprises need to be very careful in every decision involving capital operation.

　　 Keywords 2 market segmentation

The market outlook of traditional department stores is becoming dim. The number of department stores in the first tier cities will be smaller in the future. In the three or four line cities with insufficient market, there may be a number of department stores. Last year, the department store's performance decreased by 12.9%, and sales growth obviously lagged behind the expansion of business area. Although the experience type format can restore a certain proportion of the lost passenger flow, the department store needs to focus on strengthening the dominant category and subdividing the market line if it wants to regain its stability in the competitive commercial market.

Beijing APM main store Dongan market this year carried out a 75% proportion of brand adjustment, shopping malls have transformed from comprehensive department stores into youth, fashion trend Pavilion. Xidan shopping center will add 200 square meters of jewelry counters on the first floor, expand the sports brand lineup, strengthen the advantage category, and grasp the customer segments. The competition of commercial projects should not be a football game. The players should fight for a ball together, and should compete in the swimming pool and advance in their respective lanes. This means that the corner of business enterprises is to seize their target customers in the market segments.

Market segmentation requires a clear and firm definition of location in department stores. The so-called market segmentation is to classify consumers with similar needs according to the different characteristics of consumer demand. By studying a certain type of consumers, it supplements and optimizes the unsatisfied and incomplete consumer demand. Market segmentation tests enterprises' familiarity with the market and requires department stores to turn from the thinking of commodity management to the study of consumers.

　　 Key words 3 force own brand

Domestic department stores are good at learning from their mature business experience abroad. Department stores in the US and European countries are mainly self operated, and enhance their operating profits and differentiate themselves through their own brands. The change of traditional management mode is the key to reshape competitiveness of department stores. At present, many department stores are actively exploring commodity self employment, but the road to return needs to be gradual.

Department stores will devote more effort to suppliers' deep pool and private brand. The new world department store's own brand LOL shop has been promoted throughout the country. In order to improve market penetration and brand awareness, the new world department store also intends to expand its LOL brand store in the form of franchising. DQ shares vigorously promotes the business mode of "direct selling" in the enterprise, and promotes the gross profit margin of commodities through unified procurement and development of private brands, and compression of middlemen links. However, due to the differences in market environment and zero supply relationship, the proportion of self owned goods and private brands in foreign department stores is more than 90%, but the ideal share of domestic brands is 20%-40%.