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    Why Did Foreign Department Stores Appear In China?

    2016/5/1 22:30:00 55

    Foreign Department StoresChinese MarketDepartment Stores

    30 years ago, with the curtain of reform and opening up, China's economy began to take off. However, the retail industry in China is still in the stage of slow pition from planned economy to market economy. The state owned industrial and commercial system and supply and marketing cooperative system are the main force of the business system. "People's growing material and cultural needs can not be met, which is one of the major contradictions in the current society."

    It is against this background that some enterprises that are optimistic about China's economic prospects will take the lead in entering the mainland market first. In 1993, New World Department Store (Hongkong), Pacific (Taiwan) and yishid (Japan) entered the country in succession. In 1994, Parkson opened the first Parkson department store in Beijing.

    A market that is in short supply, which contains huge business opportunities, plus "foreign monks will chant scriptures", from overseas departments stationed in China, along with the rapid development of China's economy, they have also quickly conquering the city and singing all the way, creating outstanding achievements and market reputation, and become a large scale enterprise that can resist certain risks.

    Therefore, we will take the new world, Parkson, yishdan.

    The Pacific Ocean

    Ito, Yang Hua Tang, Ping Hun Tong, Jiu Guang, Xinguang Tiandi, Lotte Department store and Cheng pin life are classified as "10 feet". Such as Parkson, though the pressure of performance growth is huge in recent years, it has 56 stores, covering 36 cities, with a total performance of 18 billion 500 million yuan in 2015.

    However, the early or late entry time is not the only factor determining the success or failure. From the sincerity life of Taiwan, the first store opened in Suzhou in 2015. Although the volume is only 40 thousand square, it has become popular since its opening.

    We do not want to sum up the success of the 10 foreign department stores mentioned in the past as a historical opportunity. However, for an enterprise, different time points are indeed different market environments.

    Those who entered the market in those years should be very clear and objective in acknowledging all kinds of opportunities for business to do well in the year, and the difficulties in managing the market today.

    However, in any period of time, the market has its needs and opportunities, but the quantity and opportunity of these needs are different.

    In today's market, consumers pursue various formats of entertainment and sense of experience, and pursue self individuality. Although material life is very rich, the spiritual needs are seldom satisfied. Therefore, we not only observe the success of the sincere bookstore, but also observe the success of Fang Xi and Sisyphus bookstore.

    If foreign department stores enter the country, if the business model of "two landlords" is similar to domestic department stores, it will inevitably lead to homogenization and can not survive in fierce competition.

    The Shang Tai Department Store from Thailand has successfully entered the three cities of Hangzhou, Shenyang and Chengdu. It is precisely because the "two landlord" business model has no characteristics in the commodity mix and space design, and even some brands overlap with the shopping center in the Mixc. These problems have led to the fact that after 3 years of struggle, Shang Tai had no choice but to withdraw from the Chinese market.

    Even with its own business characteristics, if there is no precise location in specific business strategies, it will also face enormous challenges.

    with

    The Buddha

    For example, in 1997, it entered the Chinese market and opened a shop near a side street in Wangfujing, Beijing. However, due to its too advanced positioning and huge performance losses, it had no choice but to quit.

    After 16 years, in 2013, Lafayett department stores restarted and entered Beijing again. From the maturity of the market, this time is right, but it is still puzzling to implement the project site selection. Xidan, Beijing, is a popular shopping and sightseeing business circle.

    Friends in the retail industry firmly believe that "Location" has a key impact on the success or failure of a project. Therefore, many people in the industry believe that Lord Buddha should be in the vicinity of Beijing Xinguang world or Sanlitun. If it is in Shanghai Xujiahui or Nanjing Xinjiekou, it will also be a good choice.

    In 2015, from Japan.

    Big pill department store

    In cooperation with Shanghai new world group, the first new world big ball department store in China has been opened in East Nanjing Road Commercial Pedestrian Street, known as the first pedestrian street in China. However, a few days ago, it was seen from the earnings report of Shanghai new world city that the project lost 400 million yuan.

    Big pill has beautiful interior and exterior design and stunning escalator. There are luxury goods such as Gucci, Ferragamo, Tiffany, Dolce & Gabbana on the first floor. However, this positioning is greatly deviated from the customers of Nanjing East Road. The bustling passenger flow of Nanjing East Road, more than 90% comes from domestic tourists. The goods and services provided by the new world pill do not match the needs of tourists.

    The recent words circulated in the industry are quite meaningful. "Tears in the eyes of merchants are the water in the brain when positioning."

    As far as we know, big balls didn't shed tears when they were inviting merchants, but they were tearful of the international brands that were kidnapped by the Japanese headquarters of the big pill. However, to date, these tragic figures in the new world big pill financial report have proved that this positioning is a mistake.

    In the current market environment, if foreign capital stores want to enter the domestic market, they must respect the local consumers, pay attention to the needs of consumers, and go out of a road of differentiation in order to smoothly import the market.

    As far as we know, the old British department store House of Fraser will also be stationed in China in September this year. Its first store is located in Xinjiekou, Nanjing, and is targeting the new middle class, represented by many British style brands, and is expected to make a magnificent appearance, which is worth looking forward to.


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