China'S Department Stores: Transformation Is Very Urgent

In the context of the "great catastrophe" of the traditional retail industry in the world, the transformation and upgrading using the advanced Internet technology and e-commerce tools become the only choice. For traditional retail department stores, this is the trend and the future.

In response to the current situation of the department store, Shen Danyang, spokesman of the Ministry of Commerce, said in an interview with the media that the way out is mainly to explore the change in the market competition by the entity retailers themselves. As the commerce department, the Ministry of commerce is also ready to intensify efforts from three aspects to promote the transformation and innovation of the entity retail enterprises.

"One is to promote the transformation of business mode, to support the joint procurement of brand goods, to guide retail enterprises to increase the proportion of proprietary business, to develop their own brands, and to transform from the" two landlords "joint mode to the joint, proprietary and private brand mixed development mode. Two is to promote online and offline integration, and guide traditional retail enterprises to embrace actively. Internet We should develop the advantages of physical outlets and logistics, and develop the integrated development mode of ordering stores, ordering online stores, sending offline experience, online ordering and online payment. The three is to guide multi format collaborative development. guide Department store The shopping center will improve its layout and enrich its service functions such as catering, education, leisure and entertainment to meet the needs of consumers at different levels.

"Since 2003, China The department store industry has gone through nearly ten years of golden development, and the favorable environment has made it easier for the department store to maintain its two digit growth every year, and objectively created a change in the department store industry. Xia Lin said that under the new situation, the transformation of the department store industry is more urgent than anyone else.

"Department stores should slow down the pace of expansion at present, open up new stores and seek healthy development." An insider told the newspaper reporter.

"In recent years, the cost of department stores has increased significantly, mainly in terms of manpower and property. In recent years, the average annual increase in human cost has been between 10% and 30%." Xia Lin said that under the pattern of deep adjustment of traditional retail industry, the department store industry needs to adapt to market demand and accelerate transformation and innovation.

The industry believes that department stores hope to reduce the number of shops and close some department stores that are unable to reverse losses in the short term, trying to ensure net profit. However, the department store industry is only a microcosm. In the context of the rising consumption pattern, the "closed shop tide" has become the sole key word of the domestic retail industry in 2015.

"The deep-seated contradictions accumulated behind the massive expansion of the department store industry in the past few years have not been highlighted, but the department store industry has entered a period of adjustment because of the slowdown in economic growth, the impact of emerging businesses such as electricity providers and the rising cost of their own businesses." Xia Lin, Deputy Secretary General of the Chinese Department Store Association, said that some shops were closed because of difficulties in their operation, and others were motivated by their own need for active transformation.