Reporters Visited Parkson Stores: Clothing Brands As Low As 90 Percent Off Of Consumers Do Not Buy.

Part of the Parksun Sun Palace store has been left empty. Only the model man stands alone in the aisle.

Frequent closed shop, performance even fall, huge cash... Parkson, Malaysia's largest department store, has been on the cusp of waves in recent years. From the mainland's "first department store of foreign capital stores" to the sale of property today, Parkson's China has been bumpy. Facing the enormous pressure brought by e-commerce and shopping centers, Parkson is still confident of China in the face of the escalation of China's consumer market, and will strive to strengthen the retail format and continue to promote the spanformation strategy. However, in the view of industry experts, Parkson's spanition time is too late, and the pressure is enormous. Parkson Chinese Market Faced with the test of "life" and "death".

Sale of property

Parkson recently announced a sudden announcement that it will sell all the shares of China's Affiliated Companies and the claims of its shareholders. For a time, "Parkson will withdraw from the Chinese market" has been heard. Parkson, China's relevant person in charge, subsequently responded that it was misunderstood by China that Parkson did not sell Chinese business, but only sold Beijing Sun Palace Parkson and all related properties.

Reporter survey found that the sale is Parkson group indirect wholly-owned Affiliated Companies - Beijing Hua Desheng Property Management Co., Ltd. The company's property is located at Baisheng Taiyang palace store in Chaoyang District, Beijing. It has been in a state of deficit since its opening in 2010. As of July 31, 2016, the Sun Palace's Baisheng unaudited net book value was 1 billion 32 million yuan. Parkson said that the group estimated that the net proceeds from the sale of the store would be about 1 billion 900 million yuan, and it would be Shenzhen Qianhai blue investment company. The property delivery will be completed by the end of this year.

Obviously, Parkson hopes to sell the sun palace property to improve the company's financial position and become the capital accumulation of the company's new business. Sun Palace Baisheng is only a microcosm of Baisheng group. In 2013, 2014 and 2015, Parkson's net profit decreased by 58.4%, 34%, 174%, and 183 million yuan in 2015. This year's report shows that in the first 6 months of this year, Parkson achieved a turnover of 2 billion 101 million yuan, down 5.63% compared to the same period last year, and a loss of 124 million yuan, far exceeding the 15 million 845 thousand yuan in the same period last year.

Parkson said that the sale of Parksun Sun Palace store will create value for the company. Parkson can no longer invest resources in the continuous loss of business, so that resources can be applied to other businesses. In addition, the proceeds from the sale of property will also improve the financial situation of Parkson group and invest in the group. Fashion brand Provide resources for new business of catering brand.

Compared with other business income, this sudden increase of a large income is slightly embarrassing. The official also said that the proceeds will be used to enhance the performance of existing department stores and develop new retail formats, tailor spanformation plans for each store.

Location ambiguity

After announces the sale of property in Parkson, it is reported that Sun Palace Parkson will be closed in October 31st. However, Beijing Business Daily reporter survey found that for this "bottle", Parkson has long been unable to return to the sky. In addition, the Parkson, which is known for its high-end positioning, is now hard to take up the reputation of "high-end fashion department stores".

As early as in 2014, Sun Palace Baisheng had encountered the problem of rent. At that time, after the withdrawal of special stores such as Ou Shi Li and Miao Li, there was no new brand supplement. Many vacant areas appeared in the stores. Due to poor performance and scarce passenger flow, the sun palace Parkson product renewal rate is slow, resulting in a vicious circle.

And at the end of August, the Beijing Commercial Daily reporter interviewed found that the sun palace Baisheng nearly 1/4 of the vacancy. In the shopping malls, cosmetics brand sales promotion, Clarks and other brands 3-5 discount promotions, discount strength is not small, but the consumer bag rate is very low. On the other floor, the situation is even worse. The berths have been occupied by a large number of brands of scarves and umbrellas. There are few women's brands. Many of them are doing 90 percent off clears. Men's wear and men's trousers are sold as low as 199 yuan, and high-end ones are not guaranteed. During the Beijing Commercial Daily reporter's investigation, consumers were hard to see in the mall.

Coincidentally, the business situation of Yisheng Fuxing Baisheng is not very ideal, and it has already been disregarded. The Beijing Business Daily reporter yesterday found that the brand of the two floors of the revitalization of Baisheng, North and south, is aging. Lane Bryant It is still a main store, and a domestic cotton wool shirt with a price of up to 5000 yuan is shocking. Armani and Dunhill are doing 50 percent off clearing on the first floor, while private brand Zie Zac is selling 75% off, and there are only a few consumers. ECCO and other brand stores are discounted on many floors. For this reason, ECCO salesmen say stores are temporarily open and do not want to talk much.

In addition, two Parkson "Shanzhai" big and fake big cards are rare. Boss Sunwen, Frognie Zila and other high-end brands seem to be Chinese clothing companies. A consumer told the Beijing Commercial Daily reporter that the big brand of Shanzhai is very misleading.

Electricity supplier chicken rib

While mass shopping centers and e-commerce continue to nibble on market share, department stores are also seeking to change.

Li Mingtao, vice president of the research center of the China International Electronic Commerce Center, Ministry of Commerce, said that the traditional department stores are more involved in the whole commodity supply chain. At the same time, department stores and e-commerce can also satisfy consumers' offline consumption experience.

In fact, since 2014, Baisheng group has been planning an electronic business plan. Parkson founder and executive director of Malaysia Golden Lion Group Zhong Tingsen said two years ago that Parkson has been planning the electricity supplier channel. According to the introduction, hundreds of private brands owned by Parkson will give the group a strong competitive advantage this year to next year. Parkson will directly enter the source, with both price and unique brand advantages.

Two years later, although Parkson has launched online shopping mall, WeChat public address and mobile phone App, the electricity business plan has its own way. Beijing Business Daily reporter experience found that in Parkson's official website, online sales of ladies bags category only Bonia brand, women's clothing category also only Mango and Zie Zac two brands. In addition, the online discount of Zie Zac sold on line 75% off is 70 percent off.

Parkson mobile App has become "empty shelf". Parkson mobile phone is the main force of beauty, but when Beijing Commercial Daily tried to buy different brands of lipstick, blush and sports shoes, it was told that stock shortage was not enough to trade.

In Beijing Baisheng WeChat public number, consumers can only view store activities, micro shopping and query member information, can not view the Parkson brand information. In the Parkson micro store, although the product category includes cosmetics, household appliances, boutique supermarkets, household goods, snapping up goods and luggage accessories, only household appliances and household electrical appliances are available for purchase, and the rest have no commodities. Consumers also need to go to stores to pick up goods after purchase, and can not enjoy points.

Life and death

Sun Palace Parkson reflects the current status of Parkson in the Chinese market, and even to a certain extent, reflects the global department store industry that is now struggling.

Parkson's performance is closely related to the flow of foreign capital. Zhao Ping, deputy director of the Department of consumer economics, Research Institute of the Ministry of Commerce, does not seem to be very responsive to foreign ministry stores. Most foreign companies need to wait for headquarters' opinions. However, in the context of culture, life and consumption, the headquarters' ignorance of Chinese business culture and consumer psychology leads to a final strategy decision that can not match 100%.

Insiders told reporters that the department stores are facing the disadvantages of too small volume, single format, isolated stores, and parking inconvenience. In the increasingly fierce competition, it is more difficult to build up their own business circle. And the location of high-end department stores, by the rapid decline of luxury goods and high-end consumption, has a larger decline. Parkson in the context of the market downturn, business adjustment is not in place, and ultimately can only rely on a large number of closed shop "broken arm" self-protection.

In addition to closing stores, Parkson accelerated the pace of spanformation this year. In January this year, Parkson and South Korea's clothing and love group opened Shanghai Baisheng City Plaza. In June, Qingdao's Golden Lion Plaza opened, and Parkson went into the Chinese shopping center. This month, the first independent supermarket of Baisheng will open in Xingguang square of Shanghai trust and optimize group retail format. In October, Baicheng brand, Baicheng brand introduced from Taiwan, will also open in Shanghai Xintiandi.

Parkson business group official said that the Parkson business spanformation will integrate the whole line business, shopping center, department store and fashionable fashion elements and other new changes. Parkson group will adjust its business to tailor the spanformation plan to each store.

Lai Yang, a special researcher of the Beijing Institute of Commerce and the Secretary General of the Institute of business economics, told reporters that there was no future in the traditional department stores. Compared with Sun Palace Parkson and Aegean Sea shopping center, the development trend of different business models can be found. "Many brands are coming back from the Renaissance, and Parkson's investment is just a facade. If Parkson wants to resuscitation, it must change. It is only a dead end to develop in the past. But it is not easy to spanform into a shopping mall. "

Some analysts believe that the spanformation from department stores to shopping centers is like crossing the Red Sea to another red sea. Data show that domestic shopping centers are growing at a rate of 300 per year, reaching 4000 by the end of 2015. After Parkson spanformation, how to break through the shopping center is the key. Guo Yi, director of marketing department of Asia Ho, believes that differentiated positioning will expand the absorbability of customers and help to stand out.

Guo Zengli, director of China shopping center industry information center, told reporters that department stores increased their proportion of proprietary brands and unique goods, and adjusted according to the changes in consumer behavior, would also attract consumers in a certain category or a certain area and cultivate core competitiveness.