NOVO Department Stores Shrink The Buying System And Seek New Breakthroughs.

As early as the end of 2013, Tang Yuhuan, President of NOVO, had indicated that NOVO department would take a full shrinkage strategy in 2014.

In November 30, 2013, NOVO department store, Chongqing China World Trade Center central store was closed. Recently, Chengdu Tianfu store, NOVO department store, also announced the closure of the store. What kinds of problems did NOVO department store encounter after the successive shutting down shops?

It is understood that, as the representative brand of -NOVO, department store of the Department of fashion, department stores in 2003, NOVO department stores opened 20 stores in mainland China, and closed 3 by the end of 2013. However, its official website shows that the number of NOVO stores in the mainland has been reduced to 14 (including Tianfu store in Chengdu).

"There are still some adjustments.

In 2015, NOVO department stores expected to maintain 15 stores. "

Tang Feiyu said, "the goal is to seek stability."

NOVO has introduced many tide cards through buying and self-supporting modes, which has also made full popularity.

But in the mainland, where the main mode of joint business is department stores, NOVO has gradually abandoned its early foothold.

Today, the self financing ratio of NOVO department stores has declined to less than 30%. "Earlier, the proportion of self owned brands reached seven or eight."

"Self earning is hard money, more risk and initial investment," explains Zhao Ping. "Joint venture is relatively easy."

This statement has also been confirmed by NOVO department store.

Tang Feiyu, taking another multi brand integrated store's current business situation as an example, "hoarding a lot of goods is almost all discount items."

On the other hand, the popularity of Shanzhai products has also made the hardworking brands lose competitiveness gradually.

"If customers do not distinguish between true and false, they will do great harm to the brand."

A NOVO department store manager revealed.

It is worth noting that the failure of NOVO department stores in the mainland market has made many traditional department stores that are trying to buy water and buy a system feel a chill.

According to the Oriental Wealth Choice statistics, three quarterly reports in 2014 showed that only 4 companies in the 22 shares of department stores listed A shares grew in the three quarter, 80% declined in corporate revenues and 12 in the 12 enterprises, accounting for over 50%.

When the industry downturn, Europe and the United States are very mature.

Gradually by the domestic traditional department stores.

In April 4th this year, Nanjing new hundred announcement announced that the British department store Fraser (HouseofFraser) was successfully acquired over the past 200 million pounds.

The former said it would take this opportunity to introduce Fraser's mature private brand and buyer's mode of operation to achieve a major pformation from traditional department stores to modern department stores.

The old department store Wangfujing also proposed in August this year to carry out the "all channel revolution". One important aspect is to "train its own buyer team, directly purchase goods, and form a unique self operated commodity area".

In addition, Chongqing department store, a regional department store leader, launched the slogan of buying water for testing water earlier.

Can the buying system become a "life-saving straw" for saving traditional department stores? "For the time being, there is no successful case in the mainland, and there is still a long way to go before we buy it."

Zhao Ping told reporters.

As a matter of fact, foreign department stores trying to continue buying the buying system in the mainland market also appeared to be acclimatized.

A typical case is that the first half of the year has been widened to HK $20 million, and the "pride" buying system of Lafayette department store has not found its place because it is not suitable for the national conditions.

In contrast, the NOVO department store's retreat can only be regarded as a "magic trick".

stay

It seems that the traditional department stores are faced with three difficult problems, namely, buying and selling water and increasing the proportion of self employment.

"First, lack of funds.

Because of the long-term role of "two landlords", most of the mainland department stores are light assets, with limited liquidity, and the self financing mode of buyout requires a large amount of capital and stockpiling in the early stage, and the risk is higher. Secondly, there is a shortage of talents.

Zhao Ping pointed out that "third is the lack of mechanism.

The mature buyer system takes the buyer as the core, and the purchasing and promotion strategies of the enterprises are all made around the buyers, but the majority of the mainland department stores are state-run, which makes it difficult for the decision-makers to be buyers.

It is worth noting that in order to reproduce its "buying system" advantages and accelerate the pformation, NOVO department store has launched the electricity supplier strategy, and at the end of 2013, when Tang Yuhuan interviewed, NOVO department store had not yet started the intention of the electricity supplier.

"In the early December,

Micro business has been launched, and will be launched on Tmall international in January 2015. Cooperation with several major e-commerce platforms will also begin.

Tang Feiyu said that NOVO's 3 million effective fans in the mainland market are also valuable resources to activate online pactions.

According to him, the shops in Tmall international will be launched with the state as the unit.

"First of all, the" Korean Pavilion "will play the advantage of previous buyers, introduce thousands of Korean local brands, and achieve direct overseas purchase, so as to reduce operating costs.

Tang Feiyu bluntly said that relying on the electronic business platform, will adhere to the differentiation, "online and offline brands will never repeat."