What Will The Future Of A Department Store Be Like?

Shopping centers can shout "go to department stores", and mall can claim to "go retail", even though the so-called "go" is only relative, and can not be absolute.

But you can't sell a department store. You sell a department store and go to a department store. What do you do?

Department stores can not only "go to department stores", instead, they must work hard and make great efforts in commodity management.

Of course, the characteristic is not the pursuit of completely different, otherwise entered the other extreme, completely different department stores are not competitive, this point has been repeatedly proven by Marsha, department stores, shopping mall and so on. The popular brand in the market and the basic positioning brand must not be absent. The so-called "characteristic" and "differentiation" are only partial or certain. If a department store can achieve 30% difference, the differences and characteristics are basically established.

The slogan of "returning to the essence of retailing" has been shouting for several years. Self run and deep joint venture may be the landing of this nature. Its important significance is that the brand regional agency system may collapse in the future.

More realistic significance is that many department stores have difficulty in attracting investment and have no resources to adjust themselves.

In addition, incorporating catering, entertainment and other experience formats into department store management system, changing the previous single lease mode and extensive operation is also a content of the department store's "heavy mode".

This not only helps to grasp data, standardize management, but also helps improve efficiency.

The first meaning of "heavy mode" is to maintain property.

It may be difficult for the department store to rent a place to rent again, but on the one hand, the rent is too high for years to grow.

For example, a three line city, a 46 thousand flat department store, the annual rent of about 20000000, an annual increase of 10%, but sales of shops are difficult to grow, profits decline year after year, and stores exert more efforts, are all working for the landlord; on the other hand, it is easy to make the field hot, the property value has increased, the tenancy has arrived, the landlord immediately increased the rent substantially, the original hundred stores went out, fat east to Xinxiang shop is a living example.

The second meaning of "heavy mode" is self run and deep pool.

Self employment has many advantages, but it is also very difficult. When brand regional agency system prevails, department stores can not revert to the whole state of the last century, but a certain proportion of self run, variable lease or simple joint venture can be done and should be done.

Regional leading department stores can do their own business by acting brand and buyout goods, which can make differentiation and specialization, and also improve the gross profit. It is worth exploring and promoting. In fact, some enterprises have done well, such as the fat east of Xuchang in Henan, the Yintai immortal merchant of Hubei Xiantao, especially the latter. The whole category has made great efforts to operate itself. It has achieved 45% sales by 1/3's self occupied area and contributed 55% of gross profit.

The operating mode of joint venture may not withdraw from the historical stage in the short term, but it will not be the same. It is the inevitable trend to intervene in brand goods management and inventory management in department stores, and there is no obstacle in technology. The powerful ERP system has completely supported the management of single product.

Deep joint ventures, department stores extend to the upstream, assume corresponding responsibilities and risks, and gain more voice and benefits, which may be one of the important directions of "practicing internal strength" in department stores.

Department store industry is "content is king".

There is a saying that is very reasonable, he said, "China is not short of demand, lack of effective supply, you have good products, do not worry about the guests."

Commodity stores are one of the main sources of experience. Effective commodity organizations are very important and there are many ways to introduce them.

First of all, self employment can solve part of the problem. Almost every department store has a large number of special sales every year. In the past, many brands were doing it. In fact, buying their own products and selling them was a good way.

Secondly, cross border purchase can also bring a part, especially in the current China, South Korea, China and Australia FTA agreement came into effect, a large number of goods imported from Korea and Australia will import zero tariff into our country. In this regard, department stores that lack sufficient sensitivity and action will lose their good opportunities.

Thirdly, it is also a kind of differentiation to do some fine features.

Face to face, sometimes it is also lost in face and face. The department stores that are small in size are better suited to all kinds of advantages.

Finally, the good things and new things on the market emerge in endlessly. Drones, robots, air purification products and so on can all be introduced into shops to create topics and attract eyeballs.

The key is department stores should have a pair of eyes that are good at finding, and have an institutional mechanism to support flexible decision-making and quick response.

Another important aspect of "commodity is king" is that the price should be close to the people and the cost performance is high.

Millet, one of the most mobile phone brands shipped from obscurity to the world, has launched 1100 stores in 3 years to achieve sales of over 5 billion, with high performance price ratio, and the "outbound purchase" continues to be hot. The annual "explosion buying" is over trillion, largely due to the high price of similar goods in China.

Why is the real "closing shop tide" likely to come? Because the factors causing the difficulties of department stores have not been eliminated, but have been deepened and deepened.

From the big background, the economic situation is getting more and more serious. The eight prohibits and four winds are getting tighter and tighter. Consumption change has never stopped and the prosperity index of the department store has been decreasing.

From the perspective of competitive environment, the impact of electric business has intensified, and the consumption of department stores has never ceased. The diversion of shopping centers is becoming more and more serious, and there is no relentless influence on the popularity of department stores.

In contrast, the latter is particularly lethal.

Previously, shopping centers sprang up in a second tier city, and department stores closed mainly in the second tier cities. However, under the "channel sinking" strategy, the three or four tier cities will become the home of shopping centers, while the market capacity of the three or four tier cities is weaker, and the impact resistance of department stores is not strong.

From the perspective of enterprises, the mode of "two landlord" in department stores has not fundamentally changed, and the pulling effect of O2O channels is not obvious. The rent and labor costs are still growing rapidly, and the tax burden is still high. The way of expanding sales revenue of department stores is still limited to various marketing promotions, but marketing is more about the "price war" of gorgeous packaging. Although it has attracted popularity and stimulated consumption, it has also sacrificed profits and pulled up the cost. The net interest rate of many department stores is less than 1%.

What is more difficult is that the string of marketing promotion in 2015 has been "full". Where is the room for growth in the new year?

Starting from 2016, there may be more department stores going bankrupt. The real "shop closing tide" may come. Under the ebb tide, those department stores that are leased, small scale, difficult investment and no adjustment of resources are likely to go to the end. A second tier city yesterday was the three or four or the line city today or tomorrow.