Where Is The Pformation Of Traditional Department Stores?

Since 2013, the contribution of Beichen shopping center to the profits of the group parent company has been declining year by year, and even has been unable to make ends meet.

In 2018, the 27 year old Asian Sports Village store in Beichen, Beijing, announced that it was officially shut down, causing an uproar in the industry.

Looking back in 2017, events such as Hua Tang, Parkson shop, Zhuang Sheng Guang, "dismantling tide" were still vivid.

According to incomplete statistics from market research institutions, there were at least 45 department stores closed in 2017.

The market pressure is still pressing. The Internet mode is pressing hard, facing new crises and opportunities. Some people choose to stop directly, but some people choose to approach the community. Some people cater to the consumers and overweight experience. The exploration layout and practice method of the industry are different.

Reincarnation

Ten years of ups and downs "touch the net is an inevitable choice."

Wang Zheng (a pseudonym) was a tenant of Beichen shopping center in Beijing. In 2007, she founded a nail shop near the University of foreign trade and economics, and gradually moved to Beichen shopping center after second years of business.

According to her review, in the early years, as an "Olympic" upstart gathering place, Beichen shopping center has become the preferred choice for many citizens to shop and relax.

And her manicure shop has gained a golden period of development.

"When the business is best, there are 8 employees in the store, and the annual profit of the shop is nearly 200 thousand.

But the good momentum did not last long. It was probably three or four years ago. There were more and more shopping malls. The shops and decorating in Beichen became more and more obsolete and less and less.

Finally, I was forced to disband the staff, leaving only two apprentice to live with me.

This situation has not been improved until the last two or three years, after the Internet subscription mode.

In the recollection, Wang Zheng showed reporters the 58 Internet access tools on her cell phone, beaver and other Internet users. She laughs, "more than 40 year old herself has to embrace the Internet, sometimes it is also helpless, but this is an inevitable choice."

Wang Zheng's experience is not an example. Mr. Zhang used to be a dealer in Beijing, a famous woman shoes brand in China. It was also ups and downs in Beichen shopping center.

In the early years, he also saw this Olympic treasure land, and his partner ran the risk of running debts, and opened nearly 30 square meters of storefront here.

Sure enough, in the four or five years before and after the Olympic Games, he quickly returned to Ben and expanded the storefront to three.

But after that, the profits of these three stores are getting thinner.

"Especially in the Beichen shopping center, after three years of continuous losses, I managed to turn it off.

And shoes and clothing stores like me, in the past few years, have the same situation at least ten of six or seven, which means that the mall is not a big trend, not our one or two brands.

Looking at the data disclosed in the "Beichen industry" of the parent company of Beichen shopping center, we can see that since 2013, the contribution of this store to the parent company of the group has been declining year by year, and even it has been unable to make ends meet.

After its closure, the Beichen group has pformed it into a we work space, or a commercial office building, which integrates Wen Chuang, education and training.

Cramped

2018 is the last year of traditional department stores?

As early as 2014, there were market participants who asserted that in the next 5 years, traditional department stores would be faced with "life and death robbery" and may disappear completely before and after 2018.

Up to now, although the theory of "complete disappearance" has not been completely prophecy, the cold winter trend of traditional department stores has become more and more powerful.

According to the joint research website of the Retail Research Institute, the department store brand has been running across the country in all foreign, state owned and private sector stores in the past two or three years. In terms of department stores, the largest number of businesses that shut down last year were Baisheng 5, in addition to 3 new world in Hongkong, 2 in Taiwan Far East and friendly group.

From the geographical point of view, in the year 2017, East China closed down 15, 11 in the southwest, 7 in North China, 2 in the northeast, 3 in Central China, and 2 in the northwest.

From the perspective of urban distribution, there are 8 shops in Chengdu, 7 in Beijing, 5 in Shanghai, 3 in Chongqing and 2 in Suzhou.

It can be seen that the economically developed regions and cities are fiercely competitive, business pformation and upgrading are relatively fast, shopping centers are also more developed, and the number of outlets is more, while the market space of the three or four tier cities is still in existence. Especially in Henan, Hebei, Shandong and other places, the number and speed of new store opening is still higher than the average level of the industry.

In addition, in the first tier cities, most of the rest of the department stores live well. For example, the Beijing SKP, which has recently pformed into a "buyer's shop", has achieved a turnover of 12 billion 500 million in 2017, becoming China's first single store with over 10 billion stores.

Transformation

Changes in consumption scenarios and ecological patterns

In the past two years, traditional department stores

The pace of layout pformation is more and more bolder and finer, and it seems that some people are happy and worried at the same time.

Yang Dayun, President of yupa international brand Cci Capital Ltd, believes that the traditional department stores are now running on thin ice. The factors that affect them are complex and multiple. There is a decline in traditional formats, there is also a poor retail environment in the world, and the demand changes caused by the upgrading of residents' consumption, so the change also needs to be comprehensive and comprehensive.

In this context, many department stores will build "experience shopping" as a "life-saving straw".

This mode, because of the successful cases such as joy city and Sanlitun, is a relatively major adjustment method within the scope of Beijing rim.

For example, the new world department store and Tianhong Department stores have increased investment in shopping centers, Oteri J and new self-employed formats.

On the other hand, some shopping malls, which are not particularly good at department stores, are committed to "going to department stores". For example, SKP and Yintai belong to this case, and the two of them are big brands of pformation, designer brand buyers.

Lifestyle, and so on, gathered in the high-end lifestyle community, and the latter focused on pforming into a deep life style of citizens, a new Internet Ecosystem, and providing them with a one-stop integrated retail business.

Of course, there are a large number of department stores, in order to stop losses, and directly choose to "shut shop".

In this regard, Roland Begg global partners and vice president of Greater China, Chen Ke analysis pointed out that for a long time, traditional department stores mainly rely on investment brands to attract consumers, relying on the "two landlord" profit, this mode can be effective on the premise that the early retail market is good, consumer demand growth is fast.

But in recent years, these dividends have been fading away.

Nowadays, the generation of "online shoppers" has become the main force of market consumption. The traditional department stores are seeking innovation. They need to relocate the consumer group and their shopping needs, re optimize their experience, and cultivate new and exclusive competitiveness so as to win the next ten years.

As for the gradual integration of traditional department stores and the Internet, CEO Daniel Chan, which has been branded in the "new retail" area of Yintai Department of Yintai department, held in 2017, pointed out that in the traditional retail scene, although there are people in the traditional retail scene, there are still the cost and understanding of communication between brands and consumers, and the cost of the middle consumption is still a lot.

"New retail" is more of the initiative from the supplier to demand side, so that "goods find people", rather than "people to find goods", such a new shopping experience, now it seems that no matter in terms of consumer habits, or the supply of brand supply chain, logistics layout, are great challenges, whether it can ultimately work and extend to the whole.

It remains to be tested by market practice and time.