The Market Situation And Pformation Of Wangfujing Department Store Is A Microcosm Of The Department Store Industry.

along with

The changes in the situation and the upgrading of the consumption demand have made it difficult for the traditional department stores to adapt to the market.

However,

The industry is still in the process of pformation and exploration, and there are few cases of successful pformation.

The Department Store removed the two word "department store" in its company name to show the firm determination of pformation.

Its funds are invested and staffed, and all of them are moving towards the direction of "going to department stores".

No matter whether the pformation of Wangfujing department stores is successful, the efforts made by the famous department store in the process of pformation are very representative. The market situation and pformation are the epitome of the department store industry.

In the field of layout, we should build our own brands, merge and reorganize and diversify our businesses, and realize the pformation of shopping centers, department stores and outlets. The pformation of Wangfujing department store, the leading department of domestic department stores, almost covers the mode of pformation of department stores.

Solid foundation

The predecessor of the Wangfujing group was the Beijing department store, known as "the first shop in New China", which was founded in 1955.

In 1984, Wangfujing implemented a series of reforms such as "separation of government from enterprises, decentralization" and so on. In 1993, the shareholding system was reformed to establish the Beijing Wangfujing department store (Group) Limited by Share Ltd. In 2007, Wangfujing put forward the goal of building "China's 100th goods".

In 2008, 17 stores in Wangfujing realized sales revenue of 10 billion 800 million yuan and continued to lead the domestic department store industry.

So far, Wangfujing has solved the problem of cross regional development and chain store operation of department stores. It has developed from a department store in Beijing to a national department store magnate.

At present, the Wangfujing Group operates 34 chain stores nationwide, forming a store at different stages of development. The business covers a variety of retail formats including department stores, shopping centers, Oteri J and supermarkets, covering six major economic regions of the country, with a total operating area of 1 million 682 thousand square meters.

It is because of its strong strength that Wangfujing can make many attempts in the process of M & a pformation and upgrading, which is very representative in the pformation of department stores.

Road to pformation

The real strategic pformation of Wangfujing began in 2013.

In January 2013, Wangfujing online shopping mall was launched; in October, Wangfujing department store system APP was put into operation; in 2014, WeChat paid formally through micro life platform.

In January 2014, the first independent brand FIRSTWERT of Wangfujing opened in the same time in Beijing department store and Beijing Shuang an shopping mall.

In 2013, Wangfujing's controlling shareholder, Wangfujing international, acquired 39.53% equity interest in spring department stores through wholly foreign owned subsidiaries.

Spring department stores have 18 department stores and 3 Oteri J in the whole country.

In August 2014, Wangfujing announced that it would no longer open shop with traditional department stores, focusing on developing shopping centers and otter Les formats.

In 2015, Wangfujing pformed Wangfujing of Hohhot and Wangfujing of Chongqing Wangfujing into urban ole.

At the same time, he obtained 100% stake in Qingdao North Austrian and acquired 51% stake in Xi Ding Tai Company.

In July 2015, Wangfujing joint Jingdong group launched the financial services "Wangfujing white strip".

At present, the project is running in Beijing's department store.

In 2016, Wangfujing changed the name of the company from "Beijing Wangfujing department store (Group) Limited by Share Ltd" to "Wangfujing group Limited by Share Ltd".

The first Oteri J, jointly built by Wangfujing department store and spring department store, will be unveiled in Xi'an.

At the same time, Wangfujing ole unit has also implemented the partnership system, and changed the Department headquarters of the former spring to the Wangfujing business department.

In June 20, 2016, the Wangfujing announced that it would raise funds of 2 billion 970 million yuan, which was used for the layout of shopping centers in six places nationwide, such as Harbin, Zhengzhou, Xi'an, Foshan, Nanchang and Yinchuan, and the construction of Wangfujing O2O.

Unspeakable success or failure

On line online shopping mall, developing independent brands, mergers and acquisitions, changing business models, launching financial services...

As we can see, the means of pformation and upgrading of department stores have almost all been tried by Wangfujing.

But the above series of pformation measures are not obvious for the overall performance.

The 2016 half year report of Wangfujing showed that in the first half of the year, the company achieved operating income of 8 billion 687 million 858 thousand and 200 yuan, down 4.07% from the same period last year, and the total profit was 486 million 136 thousand and 800 yuan, down 21.39% compared with the same period last year. The net profit attributable to shareholders of listed companies was 339 million 681 thousand and 800 yuan, down 26.74% compared to the same period last year.

In fiscal year 2015, Wangfujing's operating income dropped by 5.19% compared to the same period last year, and its operating profit dropped 10% compared to the same period last year.

Evaluation by investment institutions: consumption has continued to decline sharply, and the reform process is lower than expected.

It is difficult to judge the success or failure of every stage of Wangfujing pformation, but Wangfujing always keeps pace with the times, and makes efforts for pformation and upgrading, maintaining its valuable vitality.

On the other hand, it shows the difficulty of the pformation of department stores.