Transformation Of The Department Store Industry Is Speeding Up.

In the past two years, department store revenue has declined collectively, and the department store industry has been in a state of contraction.

In order to adapt to the new changes in consumer demand, department stores strive to innovate their formats and promote the coordinated development of multiple formats.

"In a new era of great reversal of consumer demand and supply, we will face the same depth."

The problem.

How to better return to the essence of retail, create a new business mode, find a way out in pformation, and get a new lease of life in innovation.

Liu Bing, chairman of the Wangfujing group, said recently at the 2015 annual business meeting of Wangfujing Group partners.

Format pformation

Fewer stores, lower sales, slower profit growth, and continuous decline in department stores have become an indisputable fact.

Especially last year, domestic department stores closed 23 stores all year round, the highest peak since 2012.

Integration and pformation become an urgent problem to be solved in department stores.

The industry believes that from the competitive environment, the emergence of supersaturated market, emerging retail formats, the mainstream of e-commerce.

It is the root cause of the recession in the department store.

Unlike the contraction of department stores, shopping centres are still expanding, and in the past two years, orter has been booming.

The industry said that compared to the huge volume and rich format of the shopping center, compared with the tall brand and low price of otter, compared with the convenience and convenience of professional stores and convenience stores, the old department store has lost its appeal.

Public data show that in the past 10 years, the number of shopping centers in China has increased by more than 10 times, reaching 4000 by the end of 2014.

China shopping center industry consulting center predicts that there will be 7000 shopping centers open from now to 2025, when there will be more than 1 shopping centers in China.

Apart from shopping centers, nearly 300 outlets are operating in the country.

Commercial real estate veteran analysis said that Oteri J's massive growth reflects the current consumption characteristics of Chinese consumers.

With the continuous improvement of the per capita disposable income level in China, the number of middle class consumer groups continues to grow, and the quality of life and product demand is very high, which promotes consumer spending and brand recognition, and provides good opportunities and prospects for the development of the outlets.

Shi Jincheng, chief analyst of RET, China commercial real estate research center, said: "in 2014, the revenue of the top ten shopping centers in the country increased by 0.5% over the same period last year, while the top ten outlets in the same period increased by 21.3% over the same period."

_ueditor_page_break_tag_

Wangfujing locks Oteri J and shopping center

In view of the current development trend of retail formats, Wangfujing group has locked the Oteri J and shopping mall plates as the focus of future development.

According to our reporter, after the overall reform of the organizational system and mechanism, Wangfujing department store is trying to expand the outlets and shopping centers in a more market-oriented mode of operation.

Wangfujing plans to develop 8-10 shopping centers in the next 2-3 years, compared with the traditional development and operation mode in the past, the future Wangfujing shopping center members are more marketable.

The pformation strategy of department stores in Wangfujing group is to innovate and adjust the existing department stores based on the change of the needs of the target customers.

To adjust and pform the different conditions of different stores, large general department stores are pformed into shopping centers, small department stores are pformed into theme department stores, and some stores are changing to urban ole.

In view of the current state of the loss shop, we choose part of the way to rectify the rent and close the shop together.

At the same time, we should adjust some of the relatively low loss stores, and adjust the commodity structure and introduce functional areas to gradually control the losses of the stores.

Wang Yu, vice president of Wangfujing group, said Wangfujing shopping center will subdivide the two product lines of the city type and the regional type. The new project will no longer be restricted to a second tier city, but will continue to sink.

"Orlies is an important form of retailing development for a long time to come."

Yu Bin, general manager of the outlets, said that since the purchase of spring department stores in Wangfujing department store,

The growth rate has exceeded two digits. In the future, it will seize the window period for the development of domestic outlets, and develop this format mode as soon as possible.

Yu Bin believes that the current domestic outlets shopping center, although in the ole Lai format based on enriching more business elements, but did not solve the actual pain point, Wangfujing department stores need to find the core pain points, ahead of the layout of the "pformation" after the ole format, rather than stick to the existing mode.

According to the insiders, through the advantages of Wangfujing department store resources and famous brands, Wangfujing can solve the problem of the importance of brand resources, investment difficulty and professional operation.