What Does A Department Store Do?

What does a shop do? There are many answers to this question.

Some people say that department stores are for sale.

On the offline platform, it is also said that department stores are places to satisfy customers' diverse needs for goods and experiences, and others say that department stores are "two landlords" of "regular collection of rents".

There are many misunderstandings in the department store industry. People engaged in the department store have many puzzles. This industry needs someone to sort out and summarize.

Well, today, I am a member of a department store, a person who is still thinking about it.

It is better for the department store to understand and let the people outside the industry understand what the department store is doing.

Department stores are actually selling commodities.

It is a retail format with a counter as the unit and a brand with good management and operation capability.

Now I will elaborate from five aspects.

First, choice.

Business brand first choose brand, there are many department store merchants, the mature store brand copy, ideas try to introduce, think this will be successful.

And a good department store, will be sure to review the situation, accurately grasp the changes in consumer demand, in the right time, choose to introduce the brand which is in line with the specific consumer group.

A good department store must also be able to manage mature brands that have already run well, and can dig out emerging brands that can be well managed in the future.

For mature brands, the core of brand selection strategy is to get the most needed brand at the lowest cost.

The choice of new brands will test the vision, courage and foresight of the Department Store practitioners.

If chosen properly, this brand will become a new growth point for future department store performance.

People who invest in department stores should have a clear understanding of the sales and market share of the target brand in the national market, as well as the future trend of the brand in department stores.

Among thousands of brands, which are 50% mature brands, which belong to 30% of growth brands, and which belong to 20% of potential brands?

Second, match

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Matching is more important than selection.

What is the location of the brand? How large is it? Which brand is adjacent to? Which brands have a driving effect on other brands? Which brands need to rely on other brands?

Why do some brands put 200 thousand in this position and put 400 thousand in that position? Why do they have the same brand, but some department stores can't produce performance?

This is the match, the department store will set up the brand benchmarking, but it does not depend on a brand or some brands. The department store is to make all brands reach the expectation, optimize the allocation of brand resources and maximize the potential energy.

The brand should match the brand, match the category and the category, match the floor with the floor, and match the main camp with the auxiliary camp.

Third, management

Do you think that the above two points are perfect? To give you a Yintai, you will still lose, and here is the importance of management.

What is management?

Department stores can achieve rapid growth in brand performance through management.

How to manage it?

The most common way of brand management in department stores is to look at reports and see the year-on-year growth of brand performance.

For example, if there are 10 brands on the floor, the sales rank of A brand is in the first place every month. Does this brand need to be managed? Of course, B brand is ranked second, but sales increase is higher than that of A brand.

A brand, first and the same store brand ratio, and then with the city rivals and even the national store counters.

The Department Store practitioners should master the performance and status of the brand in Hangzhou, Zhejiang and even the whole country, so that we can have a further comparison and enhance our performance through comparison.

Take Yintai department as an example, in cosmetics category, we prefer Lancome, which has strong management ability and good brand image, as the key management brand. We have been selling holiday products such as day sales, monthly sales and even festivals.

When we raised Lancome's performance to a high level, it would be much easier to introduce Estee Lauder brands.

The Department Store hopes that every single brand management in the department store has a high standard, but there are differences among brands.

At this time, it is necessary for the department store employees to urge some bad brands to enhance management.

Is the new product fast and unpleasant? Is the product broken seriously? Is replenishment timely enough? Through on-site management, the quality and efficiency of brand single product management can be improved.

Fourth, communication.

Communication is a very deep knowledge.

When I was in a department store, I seldom criticized suppliers, but more encouraged suppliers and learned from them.

Through communication, the supplier trusts and admires us and thinks that the store that we follow is worth.

At that time, we had a very good interaction with suppliers.

We will set up all kinds of brand sales benchmarks, suppliers will immediately tell the information to other store counters, Chengdu Wangfujing, Chun Xi Pacific, Nanjing Golden Eagle......

We want them to exceed our performance.

While we share data, we compare each other, learn from each other, and then improve ourselves.

Finity (Finidi) is a very potential women's clothing brand, but its performance has not erupted.

My team and I frequently communicate with their owners and join them in finding new products, services and similar brands (baozi, OTT).

As a result, Finity produced beautiful results in that year.

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Fifth, help.

Communication is very important, and the result of communication is to help them achieve their goals.

I remember one year when BELLE was going to do an activity. We both had high expectations for our performance.

As we all know, the demand for shoes is very large.

At that time, the warehouse was seriously inadequate, and the suppliers came to coordinate with me.

I immediately declared that I would give up my office and the entire corridor for stacking goods.

Finally, the problem was solved and the performance was over fulfilled.

OTT is a women's clothing brand with good operation and management. In those days, Yintai excavated and introduced OTT. With the support of Yintai and OTT, the brand started in Yintai and started to go all over the country.

Because our help enables the brand to achieve unexpected results, and their enthusiasm will increase.

After doing all this work, our influence on other brands, the influence of other department stores, and even the influence of the whole industry will slowly depart, making us become a good department store in the eyes of people.

To achieve these five points, it is very challenging.

Everyone chooses to do the brand.

Less than 30% will be matched, less than 10% of the management is done, and less communication and help can be done.

Department stores operate brand and brand management products. This is the operation mode of Asian model department store.

This mode originated in Japan. At present, the department stores in Japan, Korea, Singapore, Taiwan and Hongkong adopt this pattern, so do we.

Facts have proved that from early 90s to now, the Asian mode of light assets, good cash flow and low management cost has made China's department store industry develop rapidly.

In recent years, department stores in Korea and Japan are trying to expand their own businesses and explore the buying system.

What about the future?