Is It A Shortcut Or A Lost Way To Start A Collective Pformation Of Department Stores?

Anyway, China's department stores need to find new selves in a very long time.

The joint venture system is difficult and difficult.

In the fifth year of the lunar new year in 1999, when Ma Yun and his "Eighteen Lohan" plotting the commercial revolution, they were also planning to deal with the traditional Chinese department store industry invaded by foreign retail giants by means of asset reorganization and chain operation.

10 years later, in 2009, the number of Chinese online shoppers broke for the first time. With the Alibaba and Jingdong as the representatives, they gradually became strong new forces in the retail industry.

At the same time, the physical retail industry is heading in the opposite direction, and businesses are closing up at a time.

According to incomplete statistics of Lian Shang net, the number of main chain retailers in China has been around 30, 35 and 201 in the past 20122014 years.

Among them, as the main retail department, the number of department stores is 7, 15 and 23 respectively.

Although the rise of e-commerce coincides with the downward trend of traditional retail industry, if the main reason for the decline of the entity store is only attributed to the impact of the electricity supplier, it is obvious that the gains and losses are biased. The proportion of online shopping accounts for the total retail sales of social consumer goods is 10.5%, up to the two quarter of 2015, and does not occupy the "big head".

"If we want to quantify the impact of electricity providers on the physical retail industry, about 10%."

Wang Wei, senior consultant of China shopping center industry information center, told orient weekly.

In the view of Wang Yongping, Secretary General of the China commercial real estate alliance, the responsibility of the department store to push the bad life to the electricity supplier is more like the self insurance of the professional manager, because most of the time, their fall is due to the competition.

For China's department stores, the monotonous, boring and "store side" form is only more and more unacceptable to the market.

"It is neither a property nor a commodity, which is a source of lack of competitiveness."

Wang Wei said.

In the relatively developed western countries, department stores are self-management and self-employed business integrators. They adopt the "buying system" mode, as well as their own exclusive products, which earn profits from commodity sales.

In China, the department store mainly adopts the joint operation system, that is, the department stores rent the premises from the developers, then sublet them to the brand dealers to collect the rents, and draw a deduction from the sales volume to a certain proportion as the source of profits.

In 1995, when the Beijing contemporary mall was opened, the proportion of self run and joint operation accounted for 50%.

In the subsequent development, self operated commodities gradually shrank, and the scale of the joint venture continued to expand until it became the main business mode.

The joint venture system has indeed brought enough glory to the Chinese department store industry.

Data statistics, in the retail industry has just opened to the outside world in 1992, the country's annual sales of more than 120 million yuan in the large department stores for 98, by 1997, this number rose to 1000.

This kind of joint venture mode, which does not bear risks such as sales, inventory and so on, does not occupy a large amount of funds and manpower. It was once regarded as a treasure by department stores.

But in Wang Wei's view, this is not a real sense of general merchandise.

"Shopping centers are rental venues for brands, and department stores can also enter shopping centers in the form of store stores, but Chinese department stores are more like" quasi shopping centers ".

No matter what it looks like, this pattern looked good at that time.

However, before and after 2000, as a result of the "siege" of new retail formats such as supermarkets, member stores and professional stores, department stores accounted for more than 80% of the total retail sales to 40% 50%.

At this time, China's department stores still do not want to change the pool mode, but magnify it by expanding the chain way.

Data show that in 2000, there were less than 25 chain stores in the top 100 retail enterprises, and in 2002, they all embarked on this road.

The joint venture system adopted by department stores is shifting risk.

At the same time, it also handed over the right of management and pricing to the two landlord.

This laid the foreshadowing for the department store industry to encounter difficulties later.

Unlike in the west, Chinese department stores usually refer to purchasing managers who are not buying proprietary products, but more like investment managers. The main commercial activities are focused on negotiating with the stationed brands for the rate of deduction and the terms of cooperation.

Generally speaking, the brand associations take into account their sales situation, inventory backlog and sales returns, taking into account the style and quantity of the goods on the counter.

In this mode, department stores can not fully grasp the information of customers, nor are they able to grasp changes in consumer demand and make category adjustment in time.

Of course, as a "two landlord", department stores also have no pricing power for goods, and they are also limited in after-sale services, marketing strategies, and business layout.

For consumers, the brands in department stores are very similar. Store display and window design are not unique. The competition or marketing means among department stores are nothing more than old practices such as promotional coupons and so on.

By contrast, the advantage of self owned mode of foreign old department stores possessing commodity ownership is obvious.

For example, Messi stores in the United States have subsidiaries specializing in the design, development and marketing of self owned brands and licensed brands, which guarantees that the goods of Messi's department are different from those of their competitors.

Messi stores will also look for potential young designers all over the world to buy their unique products.

"People tend to look for the cheapest when choosing electronics or appliances, but in Messi stores, 46% of the goods are not available elsewhere."

Messi, Terry Landgren, chairman of the department store, told the media.

His pride is also due to this.

However, the Messi department store, which is mainly based on its own mode and its own brand operation, avoids the problem of poor communication with different brands when conducting e-commerce layout. Therefore, the "all channel" strategy can be promoted in the United States.

"Now the domestic hot O2O, the US Department store industry has been doing it 15 years ago."

Wang Wei said.

There are also self run cases in China's department stores.

In 2002, Liaoning Xing long large family business group hit the middle street of Shenyang, which is known as the first commercial pedestrian street in China.

"Brand dealers have been told that if they want to enter a thriving family, they have to withdraw from my store."

Wang Wei said, "finally, Li Weilong, the founder of the thriving family, made his own clothes, opened his own restaurant, and introduced the entertainment and leisure facilities from the foreign market to the shopping mall.

Because the supply chain is short, the commodity price has advantages, and it is popular with the people. "

Then the story was that the department store that had originally pushed the thriving family had to give up the site.

Xing long family in Shenyang, the commercial real estate surplus, became the first successful department store shopping center.

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The rise in land prices has led to a rise in the cost of real estate development and construction, which has brought rent pressure to department stores.

However, department stores do not seem to mind too much, and hand over the cost of labor and Hydropower to the branding business.

"Brand companies have to rush ahead and engage in big sales to flicker consumers."

Wang Yao, director of the China National Business Information Center, held the twelfth annual meeting of the China commercial real estate development forum held in April 2015, referring to the recent actions of department stores and brands to "force consumers to move". For example, "the highest rate of Chinese women's clothing can reach 20 times and ninety percent off times 2 times."

Wang Yongping told this reporter: "the price is too high and the goods are not different. In the long run, the department store is more and more like the" fitting room "of the electricity supplier.

It is also necessary to see that in recent years, the total number of commercial real estate is surplus, and the number of competitors, especially the shopping centers, has increased.

Therefore, in the game with brands, department stores that do not have the right to speak have no bargaining power, often in a passive position in cooperation, and the gross profit is continuously compressed.

According to the industry estimates, the average gross margin of China's department stores is around 17%.

And foreign department stores have an average gross profit margin of 30%, thanks to their ability to operate goods and develop their own brands.

"The success of the thriving family is only a counter attack case of a self run department store mode."

Wang Wei thought, "if we want to find a way out in the fierce competition, the department store must first change its traditional joint operation mode."

Because the ability to absorb customers is strong, and can help digest some relatively difficult to rent stores, department stores as a "main store" form, in the volume of hundreds of thousands or even hundreds of thousands of square meters of shopping center in the eyes was once expensive.

However, in recent years, more and more shopping centers show the trend of "going to department stores".

In 2012, Beijing Chaoyang Joy City and department store Yong Wang Jusco (Ji Ji Dao) officially broke up for two years, which has caused a great shock in Beijing's business community.

"At the beginning, Yong Wang Department store really helped the merchants of Chaoyang Joy City.

But later, passenger flow data survey found that the shopping center to Yong Wang brought the passenger flow far greater than the Yong Wang brought to the shopping center passenger flow.

Wen Juan, director of the Promotion Department of Beijing Chaoyang Joy City, explained to "Orient orient weekly".

Although Zhou Peng, general manager of Beijing Chaoyang Joy City, has clarified on many occasions that he is not totally going to department stores, the move is still interpreted as a "main store" in the department store.

"In fact, when we made plans for Huarun multicolored city in 2008, we proposed that we should go to department stores."

Li Jingya, senior director of Rui Yide strategic consulting department, told our correspondent, "we judged at that time that the future department store could not play the main store."

It is understood that the main store of Chengdu Huarun the Mixc shopping center -- Thailand's largest chain store department store, will be closed by the end of August 2015, which is the third the Mixc department store after the Mixc has been withdrawn from Hangzhou and Shenyang.

Wanda stores, which are always like the Wanda Plaza, have been dragged down for the past two years.

Since 2015, Wanda Department stores, which are not performing well in some cities, are being closed down or compressed. In August 3rd, official official reply of Wanda confirmed the fact.

"Traditional department stores, as shops in shopping centers, usually have a lease of twenty or thirty years, and rents are relatively low. Nowadays, people can not bring money and have no cash flow, so they are becoming more and more unpopular."

Wang Yongping analyzed the outlook orient weekly, saying that the joint Department department stores had strong substitutability.

In the last fierce competition, the department stores who had grown up in the last fierce competition may have sniffed the crisis for more than a decade.

However, China's high economic growth, especially the economic stimulus policy after the international financial crisis in 2008, has contributed to the investment fever of the real estate industry, and has also partly obscured the hidden worries of the fast earning mode of commercial real estate.

In Wang Wei's view, the biggest baby boomer born in China in the past 19601975 years was 3550 years old in the 19952010 years of China's economic take-off. This huge work and consumption population has not only made the real estate gold ten years, but also brought about the prosperity of the retail industry, especially the joint Department department store industry.

However, since 2010, the situation has changed markedly.

In addition to the decline of demographic dividend, the rise of e-commerce and the change of consumption habits of the younger generation, homogeneous retailers are facing the threat of being replaced.

In addition, since 2012, China's macro-economic growth has slowed down, and the total retail sales of consumer goods have slowed down year by year.

Another important factor is the sharp decline in gift card sales.

In 2014, the retail industry set the top more than 200 stores.

A large number of listed companies also declined in 2014.

For example, Changbai group's net profit fell by 98.34%, and Wangfujing department store's operating income and net profit in 2014 decreased by 7.64% and 8.36% respectively; the Guangzhou friendship group's operating income was 3 billion 363 million yuan, down 17.83% from the same period last year, and the net profit of the parent company was 263 million yuan, and the same ratio decreased by 14.96%.

However, not everyone in the industry is so pessimistic.

"Compared with other channels, department stores still have an irreplaceable advantage."

Pu Jiajia, general manager of Han Guang Department store, told orient weekly, "we can not claim that the whole department store is not going to survive because of the closing of individual businesses."

In fact, compared with shopping centers, department stores are not too bad.

Taking Shanghai as an example, from the point of view of Ping Ping effect with index significance, in the overall slump of retail trade in 2014, the average efficiency of 150 shopping centers was less than 10 thousand yuan, while the traditional department stores remained at 20 thousand yuan.

"Under the tide of market oversupply, we can see the vitality of department stores."

Wang Wei said.