What Is The Essential Difference Between Department Stores And Shopping Centers?

According to the world clothing shoes and hats net, with the boom of commercial real estate development, we are in the ascendant.

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It has also become a popular vocabulary, often found in newspapers and media.

But I find that when people talk about these words, they are very vague. If you are an ordinary consumer, there is no need to find out what a shopping center or department store is, but if you are a retailer and a real estate industry, if you can't tell them clearly, it will cause a lot of confusion, misleading and even loss of investment and operation.

So, first, in my understanding and try to illustrate the essence of the two definitions in the simplest way:

1. What is a shopping mall?

Answer: carry out unified management and decentralization of business aggregates.

2, what is department store?

Answer: implement self managed business integrator.

I put the two questions together to make it easier to clarify these two questions.

The shopping center is a business aggregation that I (developers and owners' representatives) manage and disperse by you (retailers).

The key is that I manage your business. As a developer and a landlord, I am not involved in retail business.

Or the "field" that I offer is made by your retailer.

A shopping center is a "field".

The profit model is to get rent and asset appreciation through this field.

The department store is usually a self managed, self managed business integrator, which I manage and operate.

Department stores are "businessmen".

The profit mode is to obtain business profits through the operation of self owned and controllable commodities.

The essential difference between shopping centers and department stores is the separation of place management and retail business. Shopping centers do not intervene in the final retail of consumers, and the direct customers of shopping centers are retailers, while consumers are indirect customers of shopping centers.

Shopping centres are therefore unlikely to issue invoices to end users.

This is also the simplest and direct way to distinguish shopping centers from department stores.

In the process of pforming department stores into shopping malls, we must consider that the difference between accurate shopping centers and department stores is the basis for successful development and operation of shopping centers. What is the essential difference between department stores and shopping centers?

First, customer orientation is different.

Traditional department stores have clear customer orientation, while the basis of division is mainly revenue and class. Therefore, the positioning of high-end department stores, high-end department stores and low-end department stores is basically the same as the price category of goods in department stores. Therefore, customer unit price and bag rate are one of the important indicators for evaluating department store performance, while shopping centers have different dependence on these indicators.

Shopping center location is based on age, preferences, consumer psychology, consumer behavior and even more social development trends and other factors. To capture a specific or potential consumer psychology of a certain degree of consumption group, these same location and attributes of brand tenants will be gathered together. This is a shopping center needs to consider. Simply relying on income and a certain class is not enough to successfully operate a shopping center. Therefore, the primary difference between department stores and shopping centers is the different positioning of customers.

Two. Retail functions are different.

Retail function is the inevitable trend of the development of traditional retail industry, and the retail functions of different retail formats are different. Traditional department stores always focus on clothing, clothing, shoes, hats, bags, cosmetics, skin care products and so on.

Obviously, the shopping center operates shops and shops are consumers. Therefore, shopping centres are more concerned about what brands their stores are running and what brand merchandise they are. The shopping centers can organically combine shopping, dining, entertainment and other different formats to maximize scale benefits. Therefore, the classification of shopping centers is totally different from that of department stores. The fundamental difference is that the department stores are classified according to the commodity categories provided by the brands, and the shopping centers are divided according to the needs of consumers. In short, the department stores are divided according to the supply side functions, and the shopping centers are divided according to the demand side functions. IMall CEO CEO believes that the retail function determined by the demand market is one of the key factors for the development of shopping centers in China. Shopping centres are also available on tenants' portfolios.

Three, the role of commercial space is different.

Whether it is department stores or shopping centers, offline businesses constitute a space, and what is the role of this commercial space? From the beginning of human trading behavior, the place of trading will be generated. From the ancient market to the current Shopping Mall, the retail space has been changing.

Department stores, as an important retail space in traditional industries, have built up a space that can satisfy consumers' shopping needs and desires and provide various kinds of goods. Here, consumers can choose to bring home the merchandise they need and take the appropriate products, so the department store space is more for the commodity to create, the display space for goods, and also the space for consumers to buy.

What is the space role of shopping centers? The shopping center's creation of space is the primary problem of shopping center development. Why should shopping centres attach importance to space design? First, shopping centers are running a place, which requires consumers to enter the space and stay in this space for a long time. The long-term stopover of consumers is based on the need for better spatial experience. Therefore, shopping centers attach more importance to space design than department stores. The starting point of shopping center space design is to make efforts to manage their own space from consumers, in order to attract and retain consumers.

Four, different ways of operation

The mode of operation is the essential difference between department stores and shopping centers. Unified management and unified operation are the summing up and self operation modes of department stores. Unified management and decentralized operation are the summarization of the shopping center leasing mode.

In fact, in management, department stores and shopping centers need unified management, but the object of management and the degree of management are different in the process of operation because of different roles.

The core difference between the two lies in the way of operation. The joint operation points of department stores allow department stores to have some autonomy in pricing and cash flow, while the rental form of shopping centers gives brand stores more room to operate.

Therefore, iMall is more willing to see the shopping center as a result of social division of labor. Retail brands pay more attention to their own brand value and consumers, while shopping centers operate brand shops and consumers of all brand shops, and the responsibility of shopping centers is even greater.

Different modes of operation determine the primary problem facing department stores. Only by making a shopping center on the basis of real understanding can we manage a successful shopping space.

Five, the role of channels is different.

For retail brand, whether it is international or domestic brand, the choice of channel is the most important strategic issue of brand development. Then how to choose channels suitable for brand positioning? What are the effects and added value of different channels for brands?

As the main channel for offline retailing, department stores and shopping centers are the only way to develop domestic brands.

IMall data show that as of the end of 2013, the number of shopping centers in China has reached 1729. Undoubtedly, shopping centers have become an important channel for future selection of retail brands.

Over the past ten years, the number of shopping centers has been increasing. Quantity is one of the channel standards. Therefore, more and more domestic retail brands are paying attention to shopping mall channels.

All along, department stores are the key channels for the development of domestic retail brands. The role of department stores is reflected in their brand value, sales promotion in the form of sales promotion, risk resistance of joint venture points, and expansion of chain stores.

The channels of shopping centers are different from those of general merchandise stores. They provide more customers for retail brands, larger brand design space, more added value of brand tenants, better experience environment, and more free way of operation. The added value of these brands is more and more mature with the maturity of shopping centers. This is also the reason why successful shopping centers will attract more brands to enter.

In addition, as the brand development of shopping centers themselves, brand tenants will have more opportunities to expand.

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Six, brand effect is different.

For both department stores and shopping centers, they have a certain brand effect. The effects of these brands are cumulative effects of retail brand counters and shopping center brand tenants in the department stores, so different brands will have different brand effects on department stores and shopping centers.

The brand effect of department stores is concentrated on satisfying the daily needs of consumers, while the brand effect of shopping centers is concentrated on the retail formats that satisfy the consumers' lifestyle.

With the improvement of people's living standard, more and more consumers do not want to spend a lot of time and energy to choose a piece of goods that they need, and more willing to spend time on food and entertainment. In this process, random, potential, impulse consumption will become the growth point of retail.

In the development of shopping centers in China, the promotion role of foreign clothing brands to shopping centers can not be ignored. The shopping center channels chosen by fast fashion brands such as UNIQLO, ZARA and H&M have promoted the rapid development of Chinese shopping centers to a certain extent.

This has created a certain impact, and has also created a fast fashion positioning veil for shopping centers, attracting more and more fashionable young consumers into shopping centers, while the attraction of traditional department stores to young people is gradually decreasing. Meanwhile, the chain development of retail brands weakens the competitiveness and differentiation of department stores to a certain extent, and the independent outlets with larger, better environment and better experience attract consumers to the shopping centers where these stores are located.

Seven. Team thinking is different.

Regardless of department stores or shopping centers, the essence is doing retail, although different forms of performance, but in the end are doing a continuous retail business.

The core of business is people and teams.

Therefore, the thinking of team executors in different formats is different. The thinking of department stores always takes price sensitivity as the core, promoting sales as an essential tool to increase sales volume, and the business thinking of shopping centers is how to attract people into this place. Therefore, marketing activities are the necessary operation tools for purchasing centers.

The difference between the two lies in the difference between promotion and marketing. The purpose of promotion is to sell goods, and the purpose of marketing is to attract customers to join. This is also the difference in the thinking of the operation team. Therefore, iMall thinks that the pformation of department stores into shopping centers should be deepened in marketing activities.

In addition, the development of shopping centers in China is relatively backward. More developers focus their attention on the early development of investment promotion, while ignoring the result of operation, although there are nearly 2000 shopping centers in China, there are less than 500 shopping centers running well.

Eight, value orientation is different.

The sales growth trend of the traditional department stores is more obviously influenced by the macroeconomic cycle, and the sales of the shopping center comes from various retail functions. When the economy falls, the proportion of leisure and entertainment is increasing. This has become an economic theory. For example, when the American economic crisis, the business of cinema is getting better and better, more people need to use leisure to relieve the pressure. Similarly, under the growing pressure of Chinese young people, coffee, book bar, cinemas, characteristic stores, cultural stores and other thematic features are welcomed by more young people.

These emerging, small and characteristic positioning brands can find suitable locations for survival and development in shopping centers, but these shops with low gross profit margins but need large numbers of continuous passenger shops are not suitable for survival in department stores, and the leasing form of shopping centers becomes their first choice.

IMall believes that the value orientation of shopping centers tends to be more innovative and win-win, while the value orientation of department stores tends to be more traditional and sales oriented.

Nine, consumption experience is different.

With the rapid development of e-commerce, the impact of offline retailing is becoming more and more obvious. More and more people believe that the competition between offline retailing and e-commerce is not an advantage, and even think that offline retail will replace e-commerce.

Offline retailing will not only be replaced by e-commerce, but more likely offline retailers will make better use of Internet tools.

The core competitiveness of offline retailing is experience, and experience is not entirely responsible, and it can not quantify all the perceptual power.

And the source of experience is the subjective indicators of consumer's consumption psychology, consumption behavior and consumption demand. These indicators can not be IT all over the Internet.

At present, in the tide of Internet development, the impact of department stores is more serious than that of shopping centers. One of the reasons is that there are a certain proportion of catering, entertainment and other experience formats in shopping centers. These formats are unable to get out of home and experience only on the Internet. Therefore, iMall believes that human sociality is also the inevitable development of offline retail, especially shopping centers.

Experience is not only reflected in the different formats, but also in the details of space, environment, service, marketing and so on. These are important factors for the sense of difference between department stores and shopping malls.

Ten, the social value is different.

Department stores and shopping malls are commercial activities spaces, places and business participants, so the essence of commercial bodies will bring social value to department stores and shopping malls.

Increasing fiscal revenue, increasing employment and increasing GDP are all social values.

But the department stores and shopping centers also have different social values. To some extent, shopping centers are developed, integrated and rich brand resources platform. It can make China's more local brands and international brands form a beneficial competition pattern, and help local brands to provide more learning opportunities and reference standards on brand value shaping.

At the same time, the shopping center has spawned more and more innovative brands. No matter in terms of catering or retail, the young people's entrepreneurial thinking can be realized on this platform, sharing the passenger flow resources and brand value of the platform.

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