What Is The Department Store Of The Latecomers?

There are indications that this once advanced format has begun to suffer. market The challenge is to find the reasons for the decline of the industry and spanform it in time. Department store Urgent business issues.

And only developed in recent years. Cross-border electricity supplier It has also become one of the most important attempts in the spanformation of these department stores.

Where is the way out of the loss of commodity management capability?

It is a regional retail department store listed in Shenzhen Stock Exchange in 2009. Its headquarters is located in Changsha, Hunan. Its annual sales volume is RMB 7 billion. Like other department stores, friends stores are facing the "dilemma" of declining sales and reduced passenger traffic. At the 2016 China e-commerce innovation and Development Summit hosted by the billion power network, Hu Shuo, the founder of Ahai outsourcing company, tried to use the data of a medium-sized store in the company to reflect the changes encountered by department stores in recent years.

A case study of Ho Hai, a friend of aahai, provides a case of a medium-sized store.

"The sales of this store began to increase from 527 million in 2008, and reached a peak of 1 billion 221 million yuan in 2013. Since then, sales have begun to face a sharp decline, with sales of only 1 billion 53 million yuan last year and sales of goods from 1 million 100 thousand to 1 million 580 thousand in 2008. From the sales volume and sales volume, the customer traffic is decreasing year by year. He said. Hu Shuo believes that one of the reasons for the decline in the traffic of these stores is that customers are shunted by other stores. He pointed out that in recent years, the shopping area and quantity of the city have increased in a large scale, but the volume of users can not keep pace with the expansion of the department stores.

In the case of Changsha, for example, in 2008, the number of shopping establishments above designated size was only more than ten thousand square meters. This year, the number is more than 1 million 500 thousand square meters. No matter how the population and the economy grow, it will not match the growth rate of the shopping area. " He said. At the same time, the sales mode of integrated products realized by integrated products has gradually lost the ability of department stores to operate their commodities. Hu Shuo said that the focus of the department store is integration of categories, design of mobile lines, atmosphere creation and customer maintenance, but rarely involves the level of single commodity. At present, department stores can only manage the brand level at the most, and then it is impossible.

And Hu Shuo believes that the loss of commodity management ability directly leads to the following two commodity structure problems:

First, the price of brand products is high.

"A domestic brand shirt in a department store is often three thousand or four thousand yuan, but the price of the international famous brand shirt in the same style and quality of Ortles is only one thousand yuan." The fact that the price of such a domestic brand is higher than that of the international brand is the trigger for consumers not to go to the department store.

Second, homogenization of commodities is serious.

At present, the goods purchased by consumers in any department store can also be bought in other shopping malls. Chinese consumers' pursuit of goods is mostly "new and old," and old and homogeneous products can not stimulate their interest.

In the case of Hu Shuo, in the case of per capita shopping area expansion, homogenization of goods and high price of brand goods, the best way for the department stores is to find other stores that have no or no imitation to supplement the lack of the whole commodity, and bring new fancy products to consumers to stimulate their desire to shop. The cross-border O2O model fits the needs of the friend's department store.

Using the cross-border O2O to fight back?

In March last year, friends began to try to do cross-border offline experience shop: there are various kinds of samples of overseas goods on the counters of the experiential shop, consumers can go directly to the shop to experience, but they can not pick up goods immediately, and need to scan the two-dimensional code, online payment and other products from the customs clearance to the home again. After a year's practice, Hu believes that the cross-border O2O model is widely accepted by consumers. "A small shop of more than 30 square meters can achieve nearly six hundred thousand sales per month, which is an effective standard for department stores (an important criterion for evaluating the strength of stores," which means the average sales volume per square meter) is very high. He said. After a taste of the taste of the Japanese import experience Museum, friends of Asia began to make more radical layout in cross-border O2O. In April of this year, you established a 200 square meter Japanese experience Museum. More than 5 thousand single items in the museum are collected directly from the local cosmetics store and retail store in Japan. In addition, you also try to make a customized overseas luxury experience store for high-end users. Last month, he established a strategic partnership with Marche, Italy, the most important leather shoe manufacturing area in Europe, and signed the two largest luxury brands AtelierGuarotti and AnibaldiGiancarlo&C.Snc in the region. For these two brands, you will set up a customized experience store in the second half of this year. Consumers will directly select products, try on and customize products in the experience store. After the order is placed online, the goods will be sent directly from Italy to the user.

Hu Shuo believes that for friends, the biggest value of these cross border O2O attempts is to let friends and friends get access to more abundant products and suppliers around the world, or even some customized products. This undoubtedly allows a department store to enrich their faces and give them the ability to "grab customers" that other shopping centers can not possess. "Correspondingly, for consumers, through cross-border O2O, they can experience the world's outstanding and interesting products from local channels. After all, not all consumers have the opportunity to go shopping abroad frequently. " He said. What is the fight against Internet companies?

In fact, it is understood that in addition to friends, including traditional department stores such as Wangfujing department store, BBK group, Bailian Group, Tianhong shopping mall, modern department store and Guang Bai department store, all of the traditional department stores began to join the cross-border O2O army from the year before last. But prior to this, with the advantages of cross-border electricity providers online, a series of e-commerce enterprises such as Tmall, poly America, Fung Hai Tao, temple library and fresh life have already launched the layout of cross-border O2O, and have opened up the cross border logistics chain. Therefore, the cross border O2O competitors of department stores can not just be confined to traditional retailers, but also a group of e-commerce enterprises who want to "subvert" traditional retail businesses.

It is worth noting that, unlike department stores, the electricity supplier enterprises have a common point - they all know how to carry out commodity operation and create explosive funds, but this is precisely the weakness of most traditional department stores.

What is the department store of the latecomers fighting with the electricity suppliers?

Offline experience will become a major advantage of traditional department stores. Zhang Yi, director of Bailian cross border operation Department, pointed out to reporters that the essence of cross-border O2O experiential shops is still open, so they all involve the problems of shopping center selection, store location, store cost control and offline operation.

In addition, the word-of-mouth basis of department stores has become a major trump card for cross-border O2O.

"Consumers often have two pain points from the perspective of cross border commodity experience: first, whether goods are genuine; second, after sales." Bailian Group Bailian COO Zhang Shenyu, a similar retailer with many years of experience, has a very good brand endorsement, allowing consumers to maintain trust and feel the protection of department stores. In addition to brand word of mouth, Hu Shuo also pointed out that the accumulation of passenger volume in traditional department stores is also a resource that can not be underestimated. Relying on the existing passenger flow of traditional department stores, overseas suppliers can quickly tap these stock users, and are more likely to sell their sales volume than those who re create brands to catch users, so suppliers will also be more willing to cooperate with traditional department stores. At the same time, with the help of this passenger flow, the traditional retail enterprises can also directly pull consumers onto the line to build the entire electricity supplier ecosystem. Zhang Shenyu believes that the cost from the line drainage line is much lower than that of direct line drainage. According to its disclosure, in the Bailian global purchase platform, offline drainage has reached 44% of the total traffic volume, while the offline stores of the company have 1 billion passenger trips a year. In addition, compared with many of the self-made cross-border e-commerce platforms, traditional department stores have a deeper accumulation of goods, which is the bottom line of many department stores when doing cross-border business. "We have been importing, and we have a large supply chain system with a large number of goods, so we have distinct advantages in procurement." Liang Hailing, general manager of Guang Bai department store, said.