General Merchandise Industry: Injury And Weakness

Recently, even the LV shop has been unforeseen in the industry.

The Nielsen retail property industry report 2015 shows that in terms of luxury consumption, consumers in Beijing and Shanghai will choose overseas purchasing instead of local purchase. Chengdu consumers have more choices to purchase luxury goods, besides buying locally, they will also choose to buy or buy in other cities.

More and more Chinese have chosen to buy or buy from overseas because of the difference in price and visa, for example, Chinese tourists spent 80 billion yuan in Japan last year.

This means that more Chinese customers' high-end brands, and even some consumer brands, do not take place in the Chinese market.

This has caused a lot of high-end brands to be very upset. Their counters in Chinese department stores are quite advertised, and the actual consumption is mostly overseas.

Jia Jia, the founder of Jiaqi Tourism Organization, said frankly.

Under such circumstances, a large number of brands began to consider shrinking the offline counters and stores in the Chinese market.

Under the mode of joint pooling, the pricing power of goods in department stores is not in the hands of department stores, but in the hands of brand dealers. In the past, the department stores were more powerful, the uncooperative brand operators and the department stores would let the other party withdraw their counters.

However, such a "bullish" scene can not be seen now. More and more brands have opened up network sales channels, and some brands have begun to tilt towards the network platform.

"We have official online stores, and there are counters in the physical stores. In recent years, the sales of our online stores are getting better and better. At present, the proportion of our network sales has reached about 15%, and it is estimated that it will rise in the future."

Clothing brand Taiping bird market public relations responsible person Xu Sisi told reporters.

"There are personnel, rent and inventory costs in the physical store, such as the brand of shoes, one of which has several colors, and each color has 5~6 sizes, which means that the physical stores need to store large quantities of stock in department stores. These are all costs.

Relatively speaking, the cost of operating online stores will be relatively low.

In addition, there is a hidden reason - the physical store is a brand, in order to retain the signs, the goods sold in the store are basically authentic, but some of the operators will sell inferior products in the network channels. The inferior products are not cottage products, and are also authorized by the manufacturers. However, there will be slight differences in the workmanship. If these goods are destroyed, they will be economic losses. If they are placed in the physical store, they will affect the brand, and the low price sales will make the brand profit.

Zhu Xiaoyun, who runs a shop in Taobao for a long time, told our reporter.

Many businessmen pointed out that there are many cottage goods on the line, which are cheap. Some consumers know that the goods are not authentic, but they will still buy online because of low prices, which diverts many passengers.

"In the final analysis, the department stores simply can not control the pricing power of goods. Once the price of online goods is lower than that of physical stores, consumers will naturally flow to the online market.

Once goods are in trouble, department stores are hard to control, and they can not manage the supply of goods. "

Durbin pointed out.

Then can't we hold the pricing power?

"If we adopt the self-employed mode or the buyer system, we will create a" self-employed "system.

If you purchase goods directly, you can master the pricing power.

However, in the Chinese market, the popularity of private brands is mostly low. The success of overseas famous brands such as Martha, high island stores and other international famous brands is because of their own brands. However, when they introduce a large number of private brands or personalized design cards into Chinese stores, they are not recognized by Chinese consumers because they lack public awareness.

Senior retail expert Ding Haozhou analyzed.

The same is true of the buying system. RET Rui Yide research shows that the very popular buying system in China has not been able to open up the situation. The buyer's shop has not been favored by most Chinese consumers because of its small number of products, its low brand reputation and high price.

"As far as I know, this year and next year, many department stores

There will be a shrinking plan, that is, the withdrawal of part of the 100 stores, at least there will be no new shop plan, which will cause the already heavy hit department store operators to encounter investment difficulties in the next 1~2 years, which will lead to further closure of department stores, and even the vacancy rate of the overall commercial real estate projects may increase.

Zhang Yongru said.

Wang Tian, chairman of BBK, pointed out that according to the National Bureau of statistics, in the first 10 months of 2015, the construction area (including office buildings, business premises and other) of the non residential commodity housing, which had been completed but not rented or sold, has reached 250 million square meters, an increase of 25.1% over the same period in 2014, which is 1.74 times that of 2010.

In the first half of 2015, the stock of commercial property in China's 20 largest cities has exceeded 97 million square meters. By 2018, it is estimated that 61 million 460 thousand square meters of visible new supply will continue to open in the market, accounting for 63% of the existing stock.

This means that within three years, the stock market competition and the pressure of future supply will continue to rise in most cities in China.

In order to change the status quo, Wang Tian suggested that the real estate investment trusts should be launched as soon as possible to boost the de stocking of commercial real estate in China and push forward the reform of commercial real estate supply side in order to control the vacancy rate of commercial projects.

Durbin pointed out that

When operating at a disadvantage, the most direct idea is, of course, to get rid of difficulties as soon as possible. If capital conditions and hardware pformation conditions permit, it can be appropriately expanded. For example, in early 2016, the Wangfujing proposed an increase of 3 billion for the construction and preparation of shopping centers in Harbin, Zhengzhou, Xi'an, Foshan, Nanchang and Yinchuan and the construction of O2O channels.

Or pform into a convenience store in the community.

Convenience stores are thriving in the Chinese retail industry, which is slowing down overall growth. More and more formats begin to embrace convenience stores.

In the first half of 2015, Tianhong opened 8 new micro convenience stores (7 in Shenzhen and 1 in Xiamen), while closing 3 stores.

Department stores can also be pformed into a specialty store with a dominant category or several related categories.

Messi department stores opened 5 discount stores in September 2015, and plans to open 50 discount stores in the next two years. While small department stores, such as name creation products and Sanford stores, focus on parity fashion positioning and expand rapidly.

"Of course, there is another move that is" one way or another ". The department stores also seek to extend the online pformation. As Yonghui takes the lead in Jingdong, Wanda joined hands with Tencent, Yintai and Suning have launched strategic cooperation with ALI. The online and offline accelerated integration mode of O2O has become the trend of the retail industry.

Du Binru said.