Analysis Of The Status Quo Of China'S Department Stores: Breaking Through Or Sticking To

Following the Pacific Ocean Department store After announcing the closure of Beijing's PCCW, the operation mode of the department store has become the focus of discussion. Today's department stores, from previous department stores to later chain operations, to today's large shopping centers, whether they are theme stores, professional department stores, traditional department stores, or comprehensive supermarkets, are relying on the route of large scale, centralization, or SHOPPING MALL, in order to produce scale effect.

In the entanglement of cost and profit, in today's competition between the same industry and different industries, today's department stores are facing an unprecedented situation, or is it a decision to decide whether to survive or die?

Embarrassment due to lease

It is understood that Department store industry The lease period of property rents is generally between 10 years ~15 years. Back to more than 10 years ago, it was the early stage of the development of China's department stores, and the market economy was far from perfect. In order to get profits as soon as possible, many commercial real estate projects are leased at low prices.

But in recent years, when the first batch of department stores and the property exchange contract, when many commercial enterprises face leasing re sign, they will encounter the situation of commercial real estate rents increasing sharply, and the cost will rise sharply. Some experts predict that in the next few years more stores will be closed because they can not afford to rent.

Pacific department store is facing a "10 year contract" problem. Data show that 10 years ago, in order to be able to attract large businesses to enter, Ying Ke Center at low cost. However, the operation of this Taiwanese department store is opposite to expectation. With the expiration of the 10 year lease, the Pacific Century Department objected to the proposed increase in the rent.

In fact, there were many times in the Pacific department store, and the same problem was encountered in the most prosperous Chunxi Road store in Chengdu. Unlike this closed shop decision, the Pacific Department Store retained the Chunxi Road store for the owner's high rent.

Coincidentally, there is news that Parkson is also likely to close its stores in Zunyi Road, Shanghai next year. The main reason for the closing of Parkson Hongqiao Shanghai City store next year is due to lease with the owners, which is difficult to accept high rent. {page_break}

Internet press

To transform e-commerce, the dilemma faced by traditional department stores can be described as "internal and external troubles". Amazon, Dangdang and Taobao, which have already started, have begun to invade online department stores. These e-commerce websites, whether in popularity or in technology, have the advantage of first mover.

Reporters have learned that many young people are accustomed to buying clothes on websites like Taobao and van gall. What is more interesting is that these young people often go for a stroll around the mall, see the clothes and shoes that they like, try to wear them, find the right size and buy them online.

"Shopping centres seldom offer discounts, even if they are very expensive. Online clothes Shoes often have a discount of about 50 percent off, and the same thing is less expensive. " She often tries on the shopping mall, and then Miss Yang, who goes shopping online, tells a lot of consumers' thoughts.

Indeed, traditional shopping malls are facing the threat of Internet consumption. The department stores themselves are constantly seeking changes. Many traditional shopping centers have opened their own e-commerce platforms, but the effect seems to be unsatisfactory.

As early as 2008, Wang Jinle, Deputy Minister of Information Department of SOGO Department, discovered the contradiction between starting a business and keeping his business. She found that the current network customers are mainly composed of young people in their teens and thirties who have grown up in the Internet age. These people are very willing to accept online marketing. However, customers of this age group consume relatively less goods in high-end fashion department stores. They may not pay attention to e-commerce platforms in department stores.

Targeting integrated consumption

In the face of more and more problems and difficulties, how can the department store industry develop in order to defend its position?

In the view of Liu Bing, President of Wangfujing department store in Beijing, consumers' demand for shopping malls is no longer limited to shopping, but as a "third living space" besides home and work units. In this case, a shopping center that allows consumers to achieve one-stop shopping will usher in a good opportunity in the future.

Now, what is often compared with Pacific department store is the joy city of COFCO, which has been recognized by many people, including shopping, dining, leisure and entertainment, and has won many fixed consumption groups. In such a comprehensive shopping mall, the single department stores alone appear powerless.

Although the integrated shopping mall seems to be the trend of the department store industry, it is hard to change the direction for the traditional shopping malls with their own management system and operation experience.

In this regard, the advice given by experts is to stick to their own characteristics. Not all the traditional shopping malls are facing the threat of closing down. The old Beijing shopping mall represented by Wangfujing department store has become a banner of Beijing's department store with its unique positioning and many years of business philosophy.

Some younger shopping malls can consider taking a comprehensive route, which can make up for the shortage of profit models of simple department stores and make up short boards. E-commerce platform is also one of the development models that department stores can consider. While keeping the physical department stores, it also uses its brand advantage and after-sales reputation protection to open up the way for online sales.

In any case, the development of department stores seems to be faced with a situation that has to be changed. But where to go depends on their strengths and weaknesses.