Yintai'S Turnover And Profit Fell In The First Half Of The Year

In Zhejiang, Hubei, Shaanxi, Anhui and Beijing, you may see many "silver Thai".

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Market.

Yintai, founded in 1998 in Hangzhou, has been developing for 18 years. At present, they operate and manage 29 department stores and 17 shopping centers throughout the country.

In June 30th, Yintai business announced that they had received

After the stock exchange was completed, Alibaba held 757560738 shares of Yintai, accounting for 27.9% of all issued shares, which means Alibaba became the largest shareholder in Yintai.

In the middle of 90s, domestic counterfeit products were flooded, and Yintai was one of the first retailers to brand.

They seize the opportunity of increasing residents' income and provide breakthrough products with clothing and cosmetics, providing quality products and services that are different from other families, and have achieved prosperity in the following 20 years.

But now, people's shopping methods are upgrading, the homogeneity of domestic department stores is serious, and the competition of the retail industry under the domestic line is becoming more and more intense.

The China department store industry development report released in March 31st by the Chinese general merchandise business association surveyed 80 retail businesses under the line. The total sales volume of these enterprises increased by 9.3% compared to the same period last year, but the total profits decreased by 12.05%, and the profit margins dropped by 19.53%.

Of the surveyed enterprises, 46.25% of the total sales decreased.

In the first half of this year, Yintai had a bad time.

On Wednesday, Yintai business group released its 2016 first half financial report.

According to the June 30th earnings report, the same store sales in the first half of the year fell by 4.1%. The so-called same store sales refer to the same store's sales during the same period, which is an important index to measure the profitability of retailers.

At present, there are 45 stores in Yintai, and more than half of the 43 stores that have opened for more than a year have a drop in sales.

Especially in the old stores established before 2010, it is facing a general loss.

In Zhejiang, the number of double digit sales dropped in many stores.

Hangzhou Wulin Yintai store was founded in 1998. It is the oldest store in Yintai. According to the financial report, the sales volume of the store in the first half of this year was 975 million 800 thousand yuan, down 6.9% from the same period last year, and fell below the 1 billion mark.

The worst case is Yintai City, Tangshan, Hebei. This Yintai city was opened in December 2013 and is one of the newly established department stores in recent years.

After 2010, there was not much loss in Yintai store, but Tangshan Yintai city was an exception. However, in the first half of this year, the sales volume of this store decreased by 37.8%.

In fact, in 2015, the data of Yintai were not so.

According to the December 31, 2015 annual report of Yintai 2015, their total sales increased by 6% compared to the same period last year, and the net profit of their parent companies increased by 17.5% over the same period last year.

In the earnings report, Yintai attributed the rise in profits to the same store sales growth (0.5%), the sales performance of new shopping centers and the growth of rental income.

But after last year's double rise, Yintai failed to maintain this growth in the first half of this year.

Yintai mall

In the past, Yintai used franchising to expand.

In 2015, the total proceeds from Yintai sales amounted to about 16 billion 700 million yuan, of which only 10.8% were obtained from direct shopping malls. Franchised stores contributed up to 83.5% of sales.

The predecessor of domestic department stores was the state-run stores in the past, and the market in different regions was different. The multi-level distribution of brands made the domestic department stores in a long time in the situation of local monopoly.

For example, about 65.8% of Yintai stores are located in Zhejiang Province, and more than 65% of Golden Eagle stores are located in Jiangsu, and 55.9% of Tianhong stores are located in Shenzhen and surrounding cities.

Local leading companies caused the market entry barriers to be relatively high, hindering the development of department stores to the national chain.

Franchising has facilitated the expansion of department stores in order to enter more markets.

But now it seems that franchising is likely to kill the poison and quench thirst.

It is difficult to maintain the overall quality and brand image of department stores, and also reduces operational efficiency.

In 2015, Yintai was trying to increase its ability to operate independently.

They took the form of deep joint venture and buyout sales, trying to integrate supply chain and increase profit margin.

"Over the years, Yintai has been reducing the agency level.

It turns out that the brand is a first class agent, a two level agent, a three level agent, and a trustee, but we are reducing it step by step.

We hope to establish a direct relationship with the brand. The original structure is not conducive to improving the efficiency of the supply chain. "

Yintai commercial CEO Daniel Chan said earlier in an interview with the media.

However, from the figures in the first half of this year, the integration and cost control of the supply chain has not yet had very good operational results.

In 2015, Yintai put forward the slogan "new Yintai". They cooperate with Alibaba to develop O2O and promote the integration of online and offline retail businesses.

Yintai also thought of some other ways.

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In the face of the growing electricity supplier, Yintai has been working with Alibaba since 2012. They have cooperated with Tmall and Alipay wallet. In March 2014, Ali invested in Yintai business with 5 billion 370 million Hong Kong dollar strategy, and Yintai founder Shen Guojun pferred major shareholders to Alibaba group.

In May of that year, Shen Guojun, founder of Yintai, announced that he would no longer be the executive director of Yintai business. He also resigned as chairman of the board and chairman of the strategic development committee, which meant that Shen Guojun had withdrawn from the executive level of the group.

In June 30th of this year, after the Alibaba changed its shareholdings, Ali's shareholdings increased from 10.2% to 27.9%, and Shen Guojun's shareholdings further declined, from 21.87% to 17.56%.

Subsequently, Yintai and Ali jointly launched the first virtual membership card, "Yintai Bao", to achieve the membership and payment system to get through.

But is cooperation really able to revive Yintai's department stores? Or can it really help Ali find an offline entry? It seems that the answer is doubtful.

Alibaba and Yintai cooperation in the past few years, they jointly developed a series of Internet products, including meow street, meow goods, West election, Italian election and meow guest and other applications.

Yintai supports Alibaba's online brand in the Yintai entity store, while Yintai's offline brand will be sold on Alibaba platform.

By the end of last year, 46 online Amoy brands appeared in Yintai's physical stores. About 580 Yintai line brands have achieved online sales, and Yintai has invested HK $15 million in O2O projects.

This series of cooperation has been seen as an attempt to integrate online and offline businesses.

But for last year's double eleven of our field experience, the popularity of these APP is not high.

Last year, double eleven, we saw the publicity sign of "meow Street app" in Hangzhou Yintai West Lake Cultural Plaza store. This APP is trying to provide map users index, WiFi service and catering Queuing service for shopping people.

But a column showing 20 thousand subscribers read only more than 50 people, and only 2-3 pages. In Hangzhou Yintai, there are not many consumers who have heard of this application.

Physical stores and the Internet have not yet been effectively integrated, and the ideal effect of "online gathering and offline experience" is far from being realized.

Meow Street app interface

Daniel Chan CEO of Yintai business group once said: "any enterprise will eventually be upset, the difference is whether it is being knocked over by others, or is it self upset?"

It seems that if you want to be photographed on the beach, Yintai will have more breakthroughs.