Is The Spring Of Department Stores Really Coming?

- Department store Is spring really coming?

For some well-known department stores, there are many bright spots after the transformation. But after careful investigation, there are still some problems in these transformation modes.

1/ not all department stores have the strength and boldness to expand the network layout through large-scale mergers and acquisitions, and develop second or even third main businesses besides department stores. These two main businesses or multi main business areas require extensive resources support.

2/ expands its proprietary business and develops its own business. brand It has become a consensus among department stores, but it is still in the exploratory stage. Direct acquisition or strategic cooperation is a fast and effective way. Some department stores began to research and develop their own brands independently. This is a good start and an attempt. It is also one of the secrets of some overseas department stores.

3/ Shopping Mall Chemistry is another consensus of department stores. Consumers' attention to social and experiential new normal has made shopping centers the most easy way to think about the transformation of department stores, and shopping centers themselves have been caught up in homogenization and many other problems. It is hard to imagine such an excessive supply of shopping centers. How should they continue to attract customers?

4/ establishing online sales platform is the third consensus of department stores. We can no longer ignore the current value of the Internet. We have been building or seeking strategic cooperation on the agenda. However, not every family has been successful. Even if there is performance, it is far behind the line. How to better integrate online and offline rather than blindly follow suit requires more thinking and practice.

5/ brings better experiences and services to consumers. It is also a good direction for department stores. After all, stores wanted to sell every square meter for sale. Their sense of experience was very low, and there was not much detail and humanized service. The emphasis on consumers was a good start. The application of big data has also been fully recognized, arousing its value of sleeping for many years, and has better evidence for consumer behavior and preferences. The transformation from extensive to meticulous management is the embodiment of the evolution of department stores.

The business model of the department store industry to survive and promote its prosperity has been too old to keep pace with the development of the times.

Since 2012, the department stores began to explore the road of sustainable development, shopping centers, Oteri J, layout of electricity providers...... It's all a hot trend of transformation, but is it satisfactory after a series of changes? Is the spring of department stores really coming?

Traditional department stores collectively go to winter

Trapped in poor performance

1, poor performance, slow growth or even negative growth.

The era of continuous rapid growth of department stores has gone for ever. In 2015, the total TOP15 of domestic department stores showed 9 negative growth year-on-year, the proportion was more than half, and the largest negative growth rate reached -15.2%.

Parkson began its sales growth to a single digit level since 2012, and the first negative growth occurred in 2015.

Parkson's net profit trend will also make people look embarrassed. Since 2012, the negative growth rate has reached -174.3%'s "trough" in 2015.

2, the speed of closing stores is faster than the speed of opening stores.

At present, the department stores tend to be cautious, and the speed of closing stores is much faster than that of opening stores. According to unofficial statistics, Parkson has closed 10 stores, including Baoding and Zhengzhou the Mixc stores in 2015.

In 2015, there were 56 stores in Wanda Department store, 1 in Wangfujing, 4 in Jinying Guan, 5 in Martha's department store, and so on in Fushun.

Under such a big environment and business conditions, what kind of transcripts have been delivered by department stores?

Transformation of department stores

Parkson's transformation vision is to transform from traditional department stores to fashion life concept retailers. It is not only a change in the concept of retail, but a comprehensive renovation of the whole line business, shopping center and department store with fashionable lifestyle elements, which caters to the different needs of the market.

In January 2016, Parkson and the Shanghai Yisheng group cooperated to build the city plaza of Yok, which was a successful attempt to transform the city ole.

Wangfujing's transformation strategy also includes self built electricity providers, layout of Oteri J, shopping centers and other new formats, and gradually try to buy hands, independent brands and other self-help measures, and increase the proportion of self-sustaining property.

In the Internet era, Yintai business still insists on being a deep retail operator, working with Ali to become a big data driven consumer solution provider, and Yintai itself plans to develop light asset management strategy.

To sum up the transformation of department stores is the following seven ways:

1, large-scale mergers and acquisitions, expand business scope, promote transformation and development

The scale of domestic department stores is generally small. Mergers and acquisitions have expanded the department stores in order to resist the slump of the industry and avoid dealing with the highly capitalized market alone.

In 2013, the Wangfujing Group acquired the spring department store of Seth shopping center and Seth ole. On the one hand, it increased the number of stores. On the other hand, it also pave the way for diversified development and accelerated transformation.

Cui Wei Department store has also become the third main force in Beijing market through the acquisition of the contemporary mall and the Gan Jia Kou building, which has improved the market share.

Some department stores have not only focused on retail, but also expanded to a wider field.

Guangzhou friendship acquired the shareholding of Yuexiu financial holding group and transformed it into the double main industry of "department store + finance", giving play to the synergy effect of retail and finance.

Chongqing department store has invested hundreds of small loan companies to handle all kinds of financial services for the main business of department stores. Hangzhou has also expanded to health care, sports, cultural media, education and so on.

Nanjing Xin Bai not only acquired the first tier of A shares department through acquiring British department store HouseofFrasers, but also acquired the assets of China's umbilical cord blood bank enterprise group and Sanzhou medical pension assets, and transformed into "double department and health pension" double main business mode.

　 2, we should break the mainstream mode of operation of this department store, increase brand agents through acquisitions, expand proprietary business, and achieve differential competition.

At present, self owned brands and private brands have become one of the most active ways for all department stores to explore. Compared with self owned brands and private brands of over 90% of foreign department stores, there is still room for domestic department stores.

In 2015, the New World Department acquired the agency rights of clothing brands MOSCHINO, LOVEMOSCHINO and REDValentino through the acquisition of WellMetroGroupLimited.

The new world department store's own brand LOL shop has been promoted throughout the country. In order to improve market penetration and brand awareness, the new world department store also intends to expand its LOL brand store in the form of franchising.

New world department store own brand LOL life hall

Parkson and AUMHospitalitySdn.Bhd. set up a joint venture to win the exclusive agency rights of 4 catering brands, which can not only attract customers in stores, but also effectively avoid homogenization. We will work with a number of European shoe brands to build a multi brand shoe shoe comprehensive store focusing on Parkson stores.

DQ shares vigorously promotes the "direct selling direct" business mode, and through the unified procurement and development of its own brand, greatly reduces the intermediate links and improves gross commodity rate.

3, strong and strong combination, give full play to their respective advantages, and explore new products and new modes together.

Parkson and the Korean clothing and love group cooperative development project, Shanghai Baisheng Oushi City Plaza, Chibe Michen and the details are very attentive, and as the largest fashion circulation company in Korea, the clothing and love group has many brand resources, and also introduces many brands entering the Shanghai for the first time.

The brands are SPAO, MIXXO and Shoopen, as well as Korean variety show RunningMan popular members Gary fashion trend HALYANG, Korean Internet super brand NANING9, TWEE fashion brand store, inthegray, REDEYE and so on.

Wangfujing and Shanghai Bailian Group and Hongkong Li Feng group co founded the company to combine the first two sales outlets in the north and south of the country with the latter hundred years of transnational business history and global supply chain management capabilities, and explore the innovation and transformation mode.

Shanghai new world big pill department store is a high-end Japanese department store jointly built by the new world and J.Front group of Japan (with the two hundred year department store brand of big pill and song Ban house), and won the popularity of Japanese theme IP activities in the Japanese high value shopping mall environment and original flavor.

However, the new world big ball department store, which has a good location and occupies a high proportion of retail business, is also facing the reality of poor business performance.

　 4, shopping centers, reduce retail formats, increase the proportion of catering, entertainment, children and other formats

The most basic transformation of existing department stores is shopping centralization, and its most important performance is to reduce retail formats and appropriately increase the popularity of catering, entertainment and children.

New world department stores mentioned in its annual report that it will increase the proportion of leisure and entertainment formats, expand the catering area, and adjust operations, management and investment. From the above case, we can see the trend of gradual reduction of retail formats.

At the end of April this year, Parkson opened a new shopping center in Jinshi square in Qingdao. Its differentiated brand accounted for 70.5% of the total number of brands, while retail brands accounted for only 38%, while catering and entertainment experience brands accounted for 50%.

At the same time, the project has also created many interactive scenes, such as "laser music wall", "tropical aquarium wall", "ecological green wall" and so on, to enhance the sense of experience, attract customers and increase customer retention time.

5, embrace the Internet, build online sales platform, and create full channel sales.

The whole channel has been put into the strategic level by the majority of department stores, and Wangfujing department stores and Yintai business have embraced the Internet actively and gradually completed the online layout.

Wangfujing built its own online shopping mall and opened up new channels. Although the result is very small (online sales of 50 million yuan, compared with 30 billion below the line, the contribution is very low), but it is also a new attempt to provide consumers with more shopping channels.

The cooperation between Wangfujing and Tencent in the field of mobile payment has made some breakthroughs. (WeChat department store WeChat payment pilot, mobile Taobao will also be moved into the shopping mall). In the future, the two sides will continue to promote the whole channel construction in the business mode of integration and linkage, and carry out more in-depth cooperation in data sharing and analysis, business development and other fields.

Yintai and Ali reached a strategic cooperation and reached a cooperation with Tmall on the eve of double 11 to open the O2O mode.

Parkson also connects online and offline businesses and introduces more online payment schemes, such as Alipay and WeChat. And cooperate with the brand to enhance the management system of the minimum inventory unit, and also serve the online shopping platform.

But the effect of this strategic layout is still limited, and domestic department stores have yet to find out a clear profit model. Compared with foreign Messi department store online platform revenue accounted for about 20% of the total, Messi department store intensive store layout, self run and its own accounted for more than half, so that it has a strong supply chain foundation, but also to the online more powerful support.

6, enhance service awareness and ability to bring more meticulous and humanized service to our customers.

Last year, Parkson plans to upgrade its membership services, including exclusive stores, VIP lounges, participating members' exclusive promotional activities and discount points.

Overseas Parkson can enjoy the same treatment. Beijing SKP has also made substantial improvements in its business format, introducing more brand and experiential small brands that provide private customized services to provide customers with more high-end services and experience.

Many department stores carry out rectification in their format combinations and upgrade their membership services. They also work hard in details such as inside and outside buildings, public spaces in shopping malls, and so on, which is a benign attempt to transform from "managing products" to "managing customers".

　 7, create smart sites, focus on information management, dig up consumer behavior and preferences.

From the establishment of WeChat public number, self built mobile phone app, store WiFi laying, two-dimensional code setting, interactive indicator screen, passenger flow analysis, virtual fitting mirror, intelligent garage, etc., are all the actions of the Department's intelligent exploration.

After establishing the full channel and intelligent shopping malls, department stores also have more channels to get customers' consumption behavior trajectory and consumption preferences.

In 2013, Wangfujing, Yintai, new world, Tianhong and other department stores laid Wi-Fi in succession. At the end of 2014, Tianhong launched the "Rainbow micro product", which is a full sales APP, sent to the mobile phone terminal through selected products.

In this APP, Tianhong mainly provides goods and support services through the platform, and can also make big data analysis for staff to use; on the basis of this, Tianhong employees adjust quickly according to their customers, and realize the interaction of big data application; for consumers, there is a more convenient way to find the target goods, and achieve easy shopping through communication with the staff.

Is the spring of department stores really coming?

1/ not all department stores have the strength and courage to expand the network layout through large-scale mergers and acquisitions.

2/ has become a consensus in the department store to expand its proprietary business and develop its own brand. Although it is still in the exploratory stage, this is a good start and an attempt.

3/ shopping center is another consensus of department stores, but the shopping center itself has been homogenized. How should the Department continue to attract customers?

The establishment of online sales platform by 4/ is the third consensus of department stores. However, even if there is performance, it is far behind the line, which requires more thinking and practice.

5/ is also a good direction for consumers to bring better experience and service. This is also the transformation of department stores from extensive to meticulous management, which is the embodiment of the evolution of department stores.

Putting aside the problems that still remain, it has already taken a useful step in the process of multi transformation. I believe that in the process of continuous trial and error and innovation, department stores will gradually find "feeling", presenting better products, exploring a more suitable mode for themselves, and truly welcome their own spring.