The Electricity Supplier Is In Danger, But Messi'S Department Has Survived The Crisis.

Recently, "Pacific Ocean"

The news of the expiration of the lease on the Huaihai store was triggered off by the Internet.

As the lease expires on 2017, the issue of the departure and retention of the Huaihai store in the Pacific Department is still in the discussion stage.

But how does the traditional department store face?

Impact is also a long-term topic.

In the face of the rise of the electricity supplier, the traditional retailers in the United States also felt threatened, but Messi's Department passed the storm.

Over the past few years, the market value and sales scale of Messi's department store has been increasing continuously.

With the help of localization strategy, Messi stores, which once focused only on the East and west coast of the United States, have opened stores all over the country.

Messi's department store CEO Lund Glen said: "no matter what kind of shopping channel customers use, Messi wants to enter."

Let's first meet Messi store in the United States.

Messi's Macy (s) is a famous chain corporation in the United States and the most senior department store in New York.

Messi's department store has experienced several stages, including growth (1858-1991), bankruptcy (1992), merger (1993-1994), re growth (1995-2007), pformation and development (2008 to date), and so on. Currently, it operates with Messi's department store and Bloomingdale s brand.

By the end of 2014, Messi stores had covered 45 states and more than 800 stores.

Over the past few years, the market value and sales scale of Messi's department store has been increasing continuously, and its profit growth rate is second in the same industry, which is only slightly lower than that of Simon real estate.

Messi CEO, Glen, attributed these to the M.O.M development strategy, namely MYMACY S (Messi) and OMNICHANNEL (all channel retail), which represent localization, integration of online and offline resources and high quality of service.

"My Messi" strategy

From 2008 onwards,

The rise of such electricity providers has made the US retail industry feel the impact of the electricity supplier.

Messi's department store also began a difficult pformation in the economic downturn from 2008 to 2009, and promoted the implementation of "my Messi" strategy in 2009, that is, to configure commodity types according to the regional characteristics of the customers around the stores: for example, the cold northern Portland and San Francisco stores, even in summer, sweaters and other commodities; while in the southern hot stores, more white jeans were distributed; more professional uniforms were sold in the civil service concentrated Washington, D.C.

In addition, size and color will also be allocated according to the different regional characteristics.

To this end, Messi department stores adjust the process of internal procurement and commodity allocation, such as the implementation of unification and regionalization, centralization and decentralization.

This reform enables Messi department store to respond to customers' needs and decisions more quickly, improve operational efficiency and execution, reduce redundancy costs, and at the same time enable consumers to choose the goods closest to their own and reduce the pressure of logistics.

Stores can also meet customer needs, reduce discounts, and introduce more products with high profit characteristics.

In the 3 years of implementing the strategy, Messi's profits doubled, and the share price rose nearly 6 times from its 2008 low.

"All channel" strategy

Behind the localization pformation is Messi's strategy of full channel integration.

Since 1996, the Messi department store website (macys.com) has started to focus on how to make use of the latest technology to leverage the advantages of online, offline, physical stores and mobile channels.

The so-called "full channel retail" refers to taking consumers as the center, making use of all sales channels, seamlessly linking consumers' shopping experience in different channels, and maximizing the pleasure of the consumption process.

Customers can use all channels at the same time, such as physical stores, catalogues, call centers, Internet and mobile phones.

Under this strategy, Messi stores and DELL have launched a series of pilot projects to launch a number of interactive self-service technologies to speed up the shopping settlement process and pplant online shopping experience.

Specifically, the measures and services implemented by Messi department store include:

Search and delivery services: integrate Messi's backstage inventory system into the retail cashier system at the front end of the store. If the customer sees a product in a store or on the Internet in nearly 1000 stores in Messi's department store and DELL, the salesperson can not search for the right commodity or order directly, and deliver the goods directly to the customer's home.

Beauty shop: This is a self-service machine installed in a physical store. Customers can search cosmetics inventory on this machine, understand and study product functions and purchase.

A full time concierge assistant at the beauty shop provides help to customers at the scene and assists in dealing with credit card pactions.

True fitting: This is an application tool on Messi's online shopping mall macys.com. By adding typical shop features, it helps women customers choose their clothes accurately.

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Various checkout methods: Messi department stores remake the payment equipment of the store so that it can support new payment technologies like Google wallet.

In addition, Messi department store's "full channel" project also includes opening WiFi in the store, equipped with electronic receipts and other facilities.

"Store location" service

Messi department store's multi-channel strategy has a very clear theme - making shopping experience simple and thoughtful.

Compared with the shop operators, the biggest advantage of the electricity supplier is that they can analyze the preferences and characteristics of individual customers based on information such as clicks, browsing and other information. However, the traditional shop operators are powerless in this regard. Besides the annual traffic volume and annual profit, it is difficult to provide more detailed data.

With the popularity of smart devices, especially mobile phones, shop operators can make articles on mobile phones by means of technology.

The most basic idea is to know who the customers are through free Wi Fi, but this is only the first step.

The core idea of Messi's department store is to determine the location of a customer in the store by mobile phone, and then let the relevant advertisements and exchange tickets "miraculously" appear in the customer's mobile phone, and stimulate the unplanned purchase by stimulating the customers' "cheap" mentality.

Since September 2014, Messi has installed 4000 positioning devices in more than 800 stores in the United States in a few weeks. The device named iBeacons was developed by Apple Corp.

IBeacons operates like this: when a customer stands at a counter of a brand product, he receives a video on his cell phone, telling him how the quality of the product is and how the relevant accessories can find information.

That is to say, the information provided by Messi's department stores to provide customers with traditional electricity providers through mobile phones also makes the whole service more valuable.

Of course, if the product is being promoted, Messi stores will send this message to customers through mobile phones.

At the same time, iBeacons technology will connect with Messi's Department's e-commerce website and backstage data. According to the historical consumption records and browsing records of customers online and offline, it will be recommended in the spring.

It can be found that the core of iBeacons is not to allow customers to compare prices (though they can), but to tell customers where the goods are good, how to use them and match them, thereby enhancing the service attributes and value of the goods themselves, and also skillfully let consumers ignore the price factors.

Finally, when retailers collect large amounts of consumer data through iBeacons, they form three-dimensional data.

After that, retailers can analyze big data, label consumers, and then recommend personalized products through various channels.

At present, iBeacons technology will become an important means to combat e-commerce, and at present, there are few retailers that really start using this technology. Messi became the first retail entity to use the technology on a large scale, once again leading the technology trend of the entity store.

"Independent brand" counterbalance

In the face of the menacing impact of the electricity giant and Amazon, Messi's department store has pformed the store into a distribution center, relying on its more than 800 stores in the United States to compete with Amazon's logistics network.

Using the physical storehouse's stock storehouse as the distribution center of the online order, the biggest advantage is better management of stock.

Even if the online storage is out of stock, the customer ordered products can be quickly allocated and sent to customers whenever any entity store has Messi.

In addition, Messi department stores, using its nationwide coverage, brand awareness and excellent customer resources, strengthen its cooperation with top designers and celebrities to sign exclusive cooperation agreements, and strengthen the strength of self brand to fight against e-commerce.

CEO Lund Glen said that Messi's exclusive cooperation with designers and celebrities of popular culture is to ensure that their products better satisfy the typical customer groups of retailers - they are high-end customers whose families earn between $75 thousand and $200 thousand a year.

Take designer RachelRoy as an example, she has always won the compliments of her customers, but her top coat, which sells for up to $800, is not affordable for everyone.

So Messi worked with Roy to make the tops with less expensive fabrics, so that the retail price was about $70, and the result was "these tops were too hot."

Social media may be the most potential market in virtual channels. Many department stores are trying to promote their full channel pformation with social media.

Seeing that social networks are surging, Messi's Department has opened accounts on Twitter and Facebook, attracting a large number of fans.

For the rapid growth of online retailers such as Amazon, the entity department store has its own advantages. With the help of expanding the full channel strategy, it can share the growth of e-commerce and high technology with online retailers.

Of course, no matter how the department stores change, everything should be centered on customers, so as to achieve seamless links in shopping experience.