What Changes Have Taken Place In Beijing SKP?

From Beijing Xinguang heaven and earth to Beijing SKP, this

The company's change is not just about name and decoration.

Beijing SKP.

From Beijing Xinguang heaven to Beijing SKP, Wang Bin has been a frequent visitor to the shopping mall on Tai Wang Road.

In the past two years, he felt that there has been a great change: "I remember that by the end of 2014, I had caught up with activities. Sales said that consumption of more than one thousand yuan would be able to change 200 bills of consumption, which can be used for cash, but to renew the membership card.

I went to change, and the girl at the desk gave me a pink card, which says "Beijing SKP."

In November 2014, accompanied by the so-called "Asia's largest" boutique.

The reopening of the special area, the name of "Beijing SKP shinguang world" appeared in the official publicity of the mall.

By April 2015, coincided with the establishment of the 8th Anniversary shopping mall, Beijing Hualian formally announced that the original shinguang world will be renamed Beijing SKP in May of the same year. However, Taiwan's new light three Yue, which held 50% of its shares, withdrew from the project and was run by 50% other shareholders, Beijing Hualian.

At the same time, this reputation as China's luxury sales of the most popular king shopping malls, one after another began the pformation of the interior floors - in August this year, re layout, the 2 main areas of men's boutique officially open business.

Re layout of the Beijing SKP two tier, the main attacking men's Boutique

"Go to new light" is the most commonly used term used by the media to describe the renaming and pformation of Beijing SKP, but the real change is actually "direct" and "general merchandise".

A veteran who has been engaged in retailing for many years told us that from the opening of her 4 floor women's shoe area, he realized that Beijing SKP had to pform from the original role of rental shops and joint venture developers to imaging traditional BergdorfGoodman boutique stores such as BergdorfGoodman and SaksFifthAvenue in the United States. "Now China is mainly a shopping center, and almost all of them are retail space projects. Apart from individual commodity categories, profits are mainly collected by rents, management fees or joint venture, which is generally the role of a landlord.

Prior to SKP in Beijing, only Xidan's old Buddha was operated in the form of traditional departmentstore (department store). Apart from the investment pool, there was still part of it.

It's directbuy mode. "

Located in Beijing SKP four level, known as "Asia's largest" women's shoes area.

"A little bit of a visit to SKP in the past is a bit strange, for example, the four and two layers of the middle corridor, and now there are shelves. Is it not a large area before? Then there is a shop next to a shop.

It's a bit like Xidan's old Buddha, and it's kind of like Lafayette, or the shopping malls I visited in Bangkok. "

Wang Bin said.

At present, the change of SKP in Beijing is mainly pformed from the real estate shopping center to the boutique department store which has direct procurement (DirectBuy) mode, and the Franchising is strengthened, and more exclusive brands are actively introduced.

According to a SKP employee in Beijing, at present, most of the floors in the store have SKP and other brands in the franchise mode. In the atrium location of men's and women's floors, marked "SKPSelect" shelves are selected products purchased by their buyer team, including J.W.Anderson, MaisonMargiela, MM6, WhiteMountaineering, RickOwens, Marni, AMI, AlexanderWang, and dozens of contemporary designer's clothing, accessories and part of the products.

For this reason, Beijing SKP has set up a complete retail and procurement team in 2014, and recruited relevant positions including buyers, visual merchandising, retail operations and other related positions.

And the whole market's internal pformation, floor layout and emphasis on the display of commodity display (for example, the four floor of women's shoes area) are born out of the change of operation mode, and also create a sense of freshness or similarity in Wang Bin's eyes.

As we all know, Beijing SKP brings together a large number of luxury brands, but with the popularity of relatively small brands in the country, SKP's merchant configuration is luxurious but slightly single.

Prior to that, JoyceBoutique had settled in the new Beijing world which had not been renamed by the tenant, thereby adding to the shortage of the shopping mall in the contemporary designer fashion brand.

After the withdrawal of the former, 10CorsoComo, a Milan buyer's shop, opened a branch store in Beijing. Due to its relatively small scale, the fashion section of the store did not have a rich Shanghai store.

The purchasing method of brand (Multibrands) buyers and department stores is based on their own positioning and sales plan, according to their own positioning and sales plan, through the wholesale channels of brands and sales agents to purchase goods, plan and sell their own profits and losses, and Franchising (franchising) is a similar franchise mode. The franchisee (Franchisee) sends a request to the brand headquarters (Franchisor). After examining the qualification of the former, the franchisee provides intellectual property rights to the franchisee, as well as the training and operation specifications for commodities, display, retail and market, and the other stores operate their stores in the name of the brand in the signing area of the contract. DirectBuy (direct procurement), such as Lafayette, I.T, JoyceBoutique, BergdorfGoodman, 10CorsoComo, old Buddha's department store and so on, mostly at home and abroad.

"For example, I.T and JoyceBoutique, in addition to buying goods from Lanvin, AcneStudios and other brands in the form of directbuy in their own shops, will also use franchising and CommedesGarcons (in the shop windows opened by I.T franchise, usually with the word" I.Tisinspiration "), and Sacai will open stores in parts of the Asia Pacific region and the mainland of China.

In addition, like ImagineX and Jung group, they also do franchising and distribution (distribution). In general, this is somewhat similar to the franchised mode of McDonald's, 711 and Apple Authoriser in China.

Fanny, a purchasing manager at many boutique boutiques and fashion brands at home and abroad, said.

Franchising is a win win business if it works well.

For brand headquarters, especially those with some initial brands, it can expand overseas market without huge financial input. For franchisees, besides gaining profits from sales, they can expand their influence in the region and industry through this way, so as to attract more business opportunities.

If we have some potential franchised franchises, then franchisees will have the chance to become the sole partner of the brand in the region. Beijing SKP is not the first time to get involved in the franchise mode, but now its efforts are focused on attracting more exclusive brands. From a member of 10CorsoComo's workshop, we know that the founder of the buyer shop is CarlaSozzani of AzzedineAla a brand consultant, and strongly suggests that the franchisee cooperate with Beijing SKP to set up its first Asian specialized shop.

In addition to AzzedineAla? A, NicholasKirkwood in women's shoes is also the exclusive brand that SKP has attracted by franchising.

{page_break}

It should be noted that franchising and agency, JointVenture, distribution (Distribution), Licensing are different.

In short, the latter rely on their strengths in management, channels, manufacturing and production, providing directional services, developing business sources, or joint ventures operating at a profit or loss basis.

As a franchisee of Party B, it is necessary to strictly abide by the core operation plan formulated by the brand side, and pay the related expenses of the personnel, product training, marketing and other related expenses to the brand side, and complete the prescribed purchase quota (OTB) at the same time.

Therefore, for department stores, multi brand buyer shops, the flexibility of franchising is less than that of direct purchase: "directbuy, if the sales situation is not good, the buyer can drop drop at any time, but franchising can not do it. Just buying the quota will make many people gasp for breath -- no matter whether you sell it or not, you have to purchase the product according to that regulation.

But even if we fail to achieve the expected results, we can only grind our teeth to the expiration of the contract and not accept it in advance, "Fanny said.

She pointed out that MasionMargiela recently closed shops in Beijing's Taigu North District and Hongkong snow Factory Street, both of which were franchised by I.T.

After verification of relevant personnel in the I.T mainland, it was learned that the franchise cooperation between the two sides has indeed ended, but the specific reasons are unknown.

Beijing SKP two level men's accessories area

"There are different requirements for every brand in terms of franchising cooperation rules.

But in general, the investment in franchising is very large. Besides purchasing goods according to the purchase quota, it is necessary to pay the corresponding market and training costs, which means that you have to purchase goods, pay tuition fees, and arrange manpower for yourself. You also have to shoulder your own profits and losses. Of course, if you sell well, Li run is also very high. You can even make the sole agent slowly.

But brands don't sell from sales, they earn the so-called FranchiseFee.

Patrick, who has served a brand consultancy for a long time, said.

"Compared to renting, now directbuy, Franchising's risk estimation is higher than profit. Moreover, with the status of SKP, it can bring no small profit only by joint ventures and renting". Fanny's words are not without reason.

Beijing is still the most important luxury sale place in China under the general environment of SKP.

In April of this year, Beijing SKP, on the occasion of 9th anniversary, launched an unprecedented heavy spending full cash return, and Fanny and her boss flew from Shanghai to Beijing for the annual sales climax: "the day before the start of the campaign, we saw almost all the big brands in the Chinese area, and that was a real battle."

Fanny also remembered that Hermes was also involved in the sales promotion, which surprised her.

According to people familiar with the matter, the profits generated by the event were all subsidized to the brand by SKP, while the tax refund service for foreigners with Chinese visa was also paid by the division.

Before this, there was a lot of noise from the investment department. Many luxury magnates even wanted to keep or adjust to the sales position.

The average customer can only see the traffic volume and bag rate from the store: Beijing SKP has no business.

Then why does this trump shopping mall, which has been mainly profitable by leasing and joint operation, also has to go all the way to join direct products and win more franchise?

According to data from the school of Finance and economics of the Chinese Academy of Social Sciences, there are about 4000 shopping centers in China.

According to a recent WWD report, 1/3 of domestic stores will be closed due to oversupply in the next 5 years.

Another problem that lies ahead is that because of the serious homogenization of brands, most shopping malls establish customer loyalty through promotional campaigns and pportation preferences.

Unless your hometown is too remote, the shopping malls are almost the same.

"For the northern market, whether it's the Shin Kong world or the current SKP, it is basically a landmark and scenic shopping mall, just like the old Buddha of Paris and the Macy 's of New York.

Some of its customers are tourists from all three or four cities in the north. Their cognition of brand is relatively limited, so their sensitivity to price is not high.

Maybe these guests will not go to China World Trade Center or Yintai. The distribution of luxury goods in Wangfujing is too scattered, so SKP is the new Wangfujing in their hearts.

In addition, for local customers, SKP's geographical superiority and brand name intensity have long been known.

Liu Kaiyun, who is engaged in retail market research, said.

The unique geographical location can only be applied to the single area of Beijing. If SKP is not satisfied with the mountains and rivers and rivers, it is necessary to expand the existing customer preferences and distribute the geographical distribution more widely. Even if Beijing is to open a branch store, Taiwan's new light and three Vietnam after independence, it is now actively returning to the market. Last June, the Department opened its doors to Suzhou's sole proprietorship, and Chongqing and Chengdu shops were also in the process of preparation.

"Suppose SKP goes abroad, and what is it going to spell with the local shopping malls? Especially in southern cities such as Shanghai and Guangzhou, if it still makes the existing brand by way of leasing and joint operation, it does not take any advantage. It is nothing more than a concession to reduce rent in the initial stage, but this approach has little attraction for the brand.

At the moment, there are a lot of limitations in shopping mall investment. It is the clothing and catering brands that come and go. It's not that no one talks about it. But a brand enters a country or city, even if it only opens a shop, the cost is not low, and the economic situation is uncertain. So few people are willing to take risks. SKP joins the buyer's goods and expands the brand scope of the franchise. It is nothing more than to make the future road go further. "

Liu Kaiyun added.

"SKP is likely to do 10 billion this year, so what do we want to do next year? 13 billion, whether it's franchising or directbuy brand buyers, and for long-term development, SKP has to take this risk, which is a reason for investing."

Christine, a buyer of a boutique brand, said.

It is one of the important weights of SKP to widen the business layout by introducing the direct purchase system and attracting new brands with the franchise mode.

But does this mean that the deep foundation of SKP is smooth and unimpeded in the process of buying goods and negotiating franchises? The answer is not necessarily.

"They probably didn't have the advantage of I.T, Joyce or even Crawford in their initial involvement. SKP was excellent as an emporium, but as a Stockist (retailer), SKP is still a novice and needs time and achievement to win the trust of the brand."

Fanny is quite concerned about the future of SKP. In her view, foreign trade department stores such as Xidan's old Buddha and Beijing SKP are not new, though they are not new in foreign countries.

Christine believes that the buyer team of Beijing SKP plays a key role in developing its direct sourcing brand: "it is very important for SKP not to understand the brand, the experience of buyers and the reputation of the industry.

The brand's confidence in SKP will be more stable through cooperation with buyers with good backgrounds. "