Department Stores In The Impact Of The Electricity Supplier Under The Scenery No Longer

At present, the retail industry is in an awkward predicament. Under the impact of new industries such as intensified competition and new channels such as electricity suppliers, the market space has been compressed repeatedly, and once a prominent department store retailer is no longer in sight. Many domestic department stores are trying to seek pformation.

A hundred years ago, the Russians opened "Autumn Woods" in Harbin and opened the first page of Chinese department stores.

Here, the department store, as a mature format, is everywhere in China, and everywhere it goes, it has caused a sensation.

But in recent years,

The scenery is no longer, and the frenzied shops and crowds are surging. Now it seems that there are only a few customers and sleepy salesmen.

Strong e-commerce entities into "fitting room"

In the first half of this year, department stores ushered in a wave of "closing the tide".

According to statistics, in the first half of 2015, the main retail enterprises closed 120 stores in the domestic market, of which 25 were department stores, and poor performance and strategic structural adjustment were the main reasons for the closure.

Terminal consumer demand is weak, coupled with the diversified competition of consumer channels and the impact of closing stores and changing stores, sales revenue has declined year by year. At the same time, fixed costs such as human costs and rents continue to grow and revenue is squeezed, and department stores are getting more and more difficult.

Compared with the weak traditional department stores, the performance of the major electricity suppliers is strong.

In August this year, Ali released the latest financial results up to June 30, 2015. The results showed that Ali had a total revenue of 20 billion 245 million yuan in the first six months, of which 15 billion 712 million yuan came from China's retail platform.

Jingdong's second quarter results show that Jingdong's total paction volume in the second quarter (GMV) reached 114 billion 500 million yuan, an increase of 82% over the same period last year.

At the same time, the major electricity providers actively seek cooperation. Following the August "Ali and Suning cloud business" to achieve "marriage", announced the completion of comprehensive strategic cooperation, Liu Qiangdong immediately joined hands with Ma Huateng to make the "Beijing Teng plan".

And on the second day of the "Beijing Teng plan", Ali held the second conference of "double 11" in Beijing under the joint operation of sunning, Yintai and other 18 stores, to realize the interconnection and interoperability of all channels.

The major electricity suppliers or cooperation or fight, or even hundreds of millions of dollars in advertising, behind it is China's huge market support and increasingly strong purchasing power, the industry is developing rapidly, no one wants to lose territory.

In the first half of September this year, China's online retail sales reached 25914 billion yuan, an increase of 36.2% over the same period last year, while the total retail sales of social consumer goods grew by only 10.9% over the same period last year.

"So far, although the market is getting bigger, the electricity supplier has changed people's consumption habits. More and more people choose online shopping, but the store has unfortunately become" fitting room ".

A department store operator told reporters.

This reflects the embarrassing predicament of the retail industry from the opposite side.

Under the impact of new industries such as intensified competition and new channels such as electricity providers, the market space has been compressed repeatedly.

Strive to be conservative or radical?

The industry environment is not good, and can not wait for death, the department stores take various measures, or "break the arm to save themselves", or comprehensive strategic pformation, test the water electricity supplier.

Experiential consumption, small format and other related concepts frequently appear in the super department store's super plan.

In this booming industry, there are two representative factions. One is the conservative group that sticks to the physical store, strives to win the scale effect. One is the radical faction who actively seeks strategic pformation and breaks the old and new system.

As a representative of the "conservative" group, since April this year, the chengshang group has launched a prelude to counter merger and acquisition of physical stores. So far, the total amount of mergers and acquisitions has exceeded 11 billion yuan, which has attracted much attention from the market.

In June of this year, chengshang group disclosed the related reorganization plan. The company intends to issue 1 billion 161 million shares with the price of 7.37 yuan / share, and purchase 100% stake in the peace Maoming industry, Shennan Maoming industry, the eastern era Maoming industry, Zhuhai Maoming industry and Huaqiang North Maoming industry to the controlling shareholder, Maoming industrial estate and so on. This time the assets will be priced at 8 billion 600 million yuan.

In October 16th, chengshang group once again disclosed the details of the new round of asset mergers and acquisitions. It intends to buy Chengdu's old high-end department store "Renhe Spring" at a price of 2 billion 500 million yuan by holding a wholly owned subsidiary into a business holding company.

In fact, this is just the beginning.

Inside the curtain of horizontal integration, large department stores have bought single department stores with declining performance to occupy the core business circle of the second tier cities as early as possible and get potential consumption resources for urban development.

Based on factors such as competition, chengshang group will become the sole retail platform for integration of Maopai industry.

In fact, Huang Maoru, the controlling shareholder of Maoming industrial estate and real controller, has made a commitment to integrate the assets of his department stores in stages and take the opportunity to inject into the business group. At that time, its revenue is expected to expand from the current 2 billion yuan to more than 10 billion yuan.

Chengshang Group believes that the traditional department stores are in the throes of the present stage and have yet to find an effective nugget path in the Internet field.

Blindly burning the money to become an electronic business, abandoning the traditional department store business will put the cart before the horse.

At present, the chengshang group will continue to dig its own store strengths and identify market positioning.

Transformation of "radical" Friends of the Arab League shares cloud business strategy, and early layout.

As early as October 2013, friends of the Arab Israeli joint venture with Tencent Tencent, the largest shareholder of the company, built the WeChat public platform and became the first commercial retail enterprise to realize WeChat payment.

Since then, a series of combination punches, such as APP application and "special purchase network" launched by friends and shares, have taken an important step in the pformation of traditional department stores to digitalization.

In 2014, Youya joint stock department stores jointly launched the O2O integrated platform, which initially realized the three major features of Aot, Leicester commodities exchange, friendship store and other department store boutique remittance, and friends League integration.

This year, the friends of the Arab Israeli shares to fully start the O2O full channel project construction, with the help of SAP technology, to achieve a comprehensive online shopping online and offline, and actively promote the pformation of the company Xiang Yun business.

"In the first half of next year, all stores under the company will implement the O2O full channel mode, and we expect to complete the pformation of cloud business in 3 years."

Hu Zijing, chairman of the company said.

The company's net profit in the first two quarters of this year was 250 million yuan, down 7.37% from the same period last year.

Friends of the company said that one of the reasons for the decline in the company's performance is that last year's subsidiary, friend gold and friend cloud, is still in its infancy, and the reporting period has not yet been realized.

The three quarterly report of friends and shares is expected to turn around a profit, up 10% over the same period last year.

Transformation is not easy for department stores.

It is not a fact that retail enterprises are facing pressure of small pformation and their own profitability decline.

At present, many department stores in China are trying to seek pformation, looking for new business growth points, and showing all the people.

In 2015, the department store Wangfujing set up a new business mode under the Internet conditions around the "one mode and four tasks". It separated the supermarket from the department store and increased the experience type.

Maoye department store has changed its name to Maoye industry, has introduced many new brands, has introduced many new brands, and has added brand names to the shopping center. The first business share began to test the new business format in 2012, and actively developed the Internet business, signed the JUMP project cooperation agreement with Alibaba, opened the shopping center APP and business marketing platform, tried to realize the integration of online and offline; Tianhong shopping center and convenience store format; Tianhong micro convenience store and WAN Dian Tong convenience store number has reached 158; and Nanjing Xinbai has been involved in the medical pension business, and the development of "department store + medical pension" mode, it can be done all in all. In June, Wangfujing joined hands with Bailian and Li Feng to sign an agreement.

In fact, during the pformation of the department store industry, we have tried out O2O mode, experiential shopping mode, pformation shopping center, or cross domain operation.

However, the pformation results are not satisfactory.

Statistics, as of yesterday, has announced three quarterly or three quarterly bulletin of 30 department stores listed companies, 15 of the first three quarters of this year net profit fell, accounting for 50%.

Among them, the three quarter net profit of Tianhong shopping mall is expected to decrease by 40% compared with the same period last year. Wangfujing's reliance on the good operation of the outlets has narrowed the decline in revenue, but it has not stopped yet. It is expected that net digit profit growth will be achieved in the three quarter.

What is the correct "posture" of the pformation of the department store industry? Is the gloomy performance indicative of the "end of the road" of the department store mode? The professionals in the industry hold a negative attitude.

He said that department stores still have their unique advantages, with a wide range of operations, a large number of commodities, and brand advantages.

"The reason for the downturn of department stores is that the integration of commodity management and supply chain is not done well."

Transformation requires a tacit understanding between the two sides. The department stores need to have a clear understanding of the needs of customers, and consumers can have a clear concept of their needs.