In The First Half Of The Year, Yintai Had A Bad Time.

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.

China's Department Store Association released in March 31st, "China in 2015".

The development report 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 profit decreased by 12.05% and the profit margin decreased 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, Yintai has 45 stores in China, and more than half of the 43 stores that have opened for more than one year exist.

The decline.

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,

This is not the case.

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.

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.

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

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.