Beijing Department Store: Retail Enterprises Seek Development Through Change?

Though not as good as the e-commerce field in 2011, it is the backbone of the retail sector.

Outlook 1

Urban complex force community

2011 is a year of rapid development of community commerce in Beijing. No matter market or policy, there has been unprecedented progress.

This year, many commercial complexes will soon be completed. Daxing, Fangshan and Changping will usher in many large commercial facilities.

The rapid development and improvement of suburban community commerce will also greatly relieve the heavy load of Beijing's central urban area while benefiting the surrounding residents.

Outlook 2

E-commerce has become a new growth point

Wangfujing, Xidan shopping arcade, intime department store, new world, Zhongyou, Seth...

Last year, a strong number of traditional department stores in Beijing were building up online channels.

The annual sales volume of online retail is far less than that of real businesses, but the average annual growth rate is nearly doubled, which makes traditional business operators realize that the traditional department store net will be the trend of the times.

Although touches the net one after another, but the traditional department store did not take the electronic commerce as the enterprise development important matter.

At present, most of the B2C websites of traditional enterprises only account for less than 10% of their total sales.

There are e-commerce insiders believe that the lack of understanding of the field of electricity supplier is an important reason for the traditional department store's self built online shopping mall.

Once the bottleneck is broken, e-commerce will become a new growth point of traditional department stores.

Outlook 3

Substantial increase in property ownership

The Pacific department store lost the capital, so that more department store operators can see the terrible nature of the lease.

The soaring rent after the expiration of the lease is likely to bring a stable department store to a disadvantage.

At present, commercial real estate prices and rental levels are rising rapidly, and their own property can not only lock operating costs, but also enjoy the benefits of real estate appreciation.

New world department store, Zhuang Shengchongguang department store and other department stores rely on their own property and occupy a place in the highly competitive department store market.

Real estate appreciation also brings unexpected huge profits.

However, there are voices in the industry that the self sustained property represents cross-border businesses that have previously concentrated on retail operations, which may affect its focus in the retail sector.

Analysts believe that the form of its own property is only suitable for a small number of capital adequacy, expansion department stores, rather than the mainstream.

Outlook 4

Are there any mixed feelings?

Following the great development in 2011, the scale of Oteri J format will continue to expand in Beijing this year.

The first "ballet rain" is about to take Asia's largest ole to appear at CSD, Changyang, Fangshan.

At present, Yansha Ole, Seth Ole, sspris Ole, and vigor Oriole are the 4 largest Oteri J in Beijing.

According to the insiders, the 4 brands of Oteri Sneh have basically consumed the supply of goods to Beijing in the market of Beijing, and the scale of the market has increased or investment difficulty has been increasing.

Last year, Oteri J encountered a "cold winter" in China. The opening of the two major businesses in Beijing, South and North, was postponed. Ningbo's Jiangbei District has been declared bankrupt.

This "name + discount" business model in China "rushing headlong into the crowd" is facing an awkward situation of empty scale but no business can be recruited.

Outlook 5

Prepaid card "new rules" welcome test

The new business prepaid card rules, launched in May 2011, also test the competitiveness of retailers in all aspects while standardizing the prepaid card market.

For enterprises, the "new regulation" involves 6 aspects: the registration of prepaid cards, the pfer of bank cards, the issuing of prepaid cards, the strict invoice and financial management, the issuance of licences and the payment of prepaid cards, and the validity of prepaid cards.

Recently, the opinions on the management of single purpose commercial prepaid cards (Draft) have been closed.

After revision, the official version of "single use commercial prepaid card management" is coming soon. This is also the first management method for prepaid cards in China.

According to the analysis, a series of "new rules for prepaid cards" can be regarded as a "big test" to the core competitiveness of shopping malls.

Through the "big exam", a strong and strong retail enterprise with large scale and standardized management will strengthen the stronger, but the relatively weak funds and the lack of standardized management will accelerate the elimination of the market.