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    Feasibility Study On High End Positioning Of Department Stores: Luxury Goods Still Sell Well

    2020/5/29 12:19:00 3

    Department Stores

    After more than a month, some people still feel some regret for Beijing SKP: the well planned spring birthday celebration in 2020 failed to come true due to the impact of the epidemic.

    Beijing SKP birthday celebration is almost an annual event in Beijing. During this period, SKP will hold unprecedented preferential returns to its members. The classic scene of open time consumer race was born here.

    Although SKP said that the birthday celebration was not cancelled, but postponed, in the view of many people, this also means a certain loss of business performance. At the end of last year, SKP, a luxury store in the mainland, continued to open. However, it did not hinder the successful opening of SKP and SKP in mainland China.

    Lianshang.com and commercial real estate chronicle conducted a survey and statistics on the performance of 217 domestic shopping malls in 2019. Beijing SKP topped the list with 15.3 billion yuan, with a year-on-year growth of 13.5 billion yuan. Among the four members of the 10 billion performance club, Hangzhou building, another representative of high-end 100 goods, achieved more than 10 billion yuan for the first time, with a year-on-year increase of 22%.

    As it turns out, luxury is still the number one flow king. At the skp2019 celebration of Beijing skp2019, consumers in front of Gucci discharged nearly 100 meters long, and there was a dense flow of people in front of Hermes. According to insiders' statistics on the revenue of POS card swiping and cash entering the company, the daily sales of SKP single store reached 1.01 billion yuan during the event, which was the highest record of 790 million yuan in the past, and this data even exceeded the sales volume of many single department stores in a year.

    Hangzhou's high-end department store has been popular for decades, and Hangzhou's retail business has been booming for decades.

    "High end luxury is our ability to look after our family," said Tong Minqiang, former chairman of Jiebai group. In order to make the brand more tidy, Hangzhou building expanded the luxury floor from two floors to three floors, and the number of brands increased from 40 to more than 50. Dior and Gucci were upgraded to the latest image stores in the world.

    By 2019, Hangzhou tower has gathered more than 1000 brands, including more than 60 international super luxury brands, accounting for 90% of the global luxury brands.

    Ice and fire

    What is the overall development trend of the department store industry while the high-end department stores are making great progress all the way? According to the statistics of lianshang.com, the trend of store closures in the department store industry for several consecutive years has not been curbed in 2019, but the number of store closures has decreased. In 2019, a total of 19 department stores will be closed in China. Although there are a few new department stores entering the market, the number of opening and closing stores of department stores will continue to hang upside down.

    On the other hand, the gap between the performance of department stores with different positioning has been widened, and the development situation can be described as two hot and cold days.

    In recent years, in order to survive and develop, department stores have raised the banner of transformation and reform. Taking the 19 department stores closed as an example, the transformation of shopping centers or "business rewriting" has become the main end plan. However, limited by the volume and spatial pattern, it is difficult for the old department stores to transform into shopping centers. Therefore, "business rewriting" has become the first choice of many old department stores.

    Communitization is also the direction of many department stores' transformation recently. By turning the commercial space into a high-quality community life support, it can meet the living needs of the surrounding residents. The industry believes that at present, China's community commerce is still in its infancy. Although the future development will have greater potential and imagination space, the industry is still "feeling the stone across the river" in the short term. There are still many hard bones to chew in the breakthrough of the department store industry. How to achieve small and fine, small and beautiful needs continuous exploration and summary.

    New direction of adjustment and Reform

    Is it necessary to change the economic situation of the whole world into a new situation in 2020?

    Li Ling, a senior retailer and consultant of lianshang.com, said that the current domestic and foreign economy is relatively difficult, especially for small and medium-sized enterprises. The consumption of the middle class is declining, and the "m" type society is coming rapidly. Both the supply side and the demand side of department stores are declining, so adjustment is inevitable.

    Department store adjustment is a cliche. How to adjust it? Li Ling gave five suggestions, including 1. Subtracting in quantity, not opening new stores unless absolutely good conditions are met; and closing unprofitable stores without hesitation. 2. The larger the control area, the better. 3. We should be the most high-end department store in the region and operate supermarkets and other basic necessities of life. 4. Do a good job in the environment and services, for consumers, but also for suppliers to provide the best local services. 5. Cut off all unnecessary costs.

    Why can the adjustment of department stores be a high positioning? Li Ling pointed out that about 5-10% of the richest people's consumption is not affected by the epidemic and economic downturn, and high-end department stores can or must meet the consumption of these people. She stressed that department stores are an indicator of urban fashion, while high-end department stores are the face of the city.

    Mary marksman has always expressed her opinions on the bankruptcy of American luxury goods companies, especially in the field of luxury goods protection.

    There are still high-end businesses to be done, otherwise Beijing SKP will not expand its capacity. This logic is obviously tenable. In fact, in addition to department stores, high-end shopping centers are also actively expanding luxury business. Taking Shanghai Henglong Plaza, a luxury landmark, as an example, "home to luxury" positioning, the project is committed to building brand flagship stores in Shanghai and even China, introducing many unique high-end brands, such as Dior and Bottega The flagship stores of high-end brands, such as the flagship store of high-end chocolates, such as the flagship store of vinovici, and the flagship store of China's high-end chocolate shoes, such as the flagship store of vinocollini, China's flagship store of chocolate shoes, and the flagship store of China.

    In addition to the high-end brands such as Gucci, we will continue to explore the new trends and trends of luxury brands in Shanghai, and at the same time, we will continue to explore the new trends and trends of luxury brands in Shanghai, such as balccia.

    According to the data, the rental income of Hang Lung Plaza in Shanghai will increase by 14% and the sales volume will increase by 21% in 2019, accounting for more than 90% of the total sales of all Hong Kong retail tenants of Hang Lung real estate.

    Guo Xinye, a member of Lianshang senior advisory group, said that department stores and shopping centers with high-end positioning are absolute beneficiaries of the epidemic. Affected by the global epidemic situation, luxury goods purchasing agents and duty-free shops have both suffered setbacks, and their outbound travel has been hindered, which greatly promotes the return of consumption, and the luxury business of domestic high-end department stores has been greatly boosted. Under the rule of 28, 20% of the stores make 80% of the profits. Therefore, the business of high-end shopping malls will still be good in the future. Of course, it is crucial to continuously improve the consumption experience and pay attention to customer value

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