The Collapse Of Traditional Department Stores Will Intensify In The Second Half Of This Year? Where Is The Way Out?

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With the rapid development of the market, the days of traditional department stores are becoming more and more difficult.

The industry generally believes that the second half of this year, many traditional department stores will usher in more brutal tests and challenges, the market forced department stores for in-depth adjustment and pformation.

The China business development report (2016 - 2017) published by the Academy of Social Sciences yesterday (September 5th) shows that department stores are in the closures and the trend of closure has intensified.

This directly exposes the predicament faced by commercial real estate.

It is learned that the statistics of China's general merchandise business association show that the total sales volume of 80 larger department stores increased by 9.3% over the same period in 2015, but the total profit decreased by 12.05%, and the sales profit margin dropped by 19.53%.

Such a collapse began in 2014.

Jing Linbo, the author of the blue book of circulation and the director of the Chinese social science evaluation center of the Chinese Academy of Social Sciences, said that, since 2014, Chinese department stores began to collapse from large and medium-sized cities, especially in the north.

Especially last year, the collapse tide reached a relatively high level.

According to incomplete statistics, the number of failures in large and medium-sized cities (department stores) last year was three digits, or about 100.

And there are several characteristics of the closure: first, from the central tier cities and second tier cities to the three or four tier cities; two, it is not only Chinese department stores but also foreign major department stores, and third, the trend of bankruptcy is still increasing; fourth, what is even more frightening is not only the large department stores, but also small and medium-sized ones.

The closure of department stores directly exposes the predicament faced by commercial real estate.

In fact, this year, the real estate market's heat has not diminished, but this is confined to the residential market. Commercial real estate is another scene.

Jing Linbo believes that the main trend of commercial real estate is that the department store's "1000 stores side" and the current trend of online shopping are booming.

Jing Linbo said that the current commercial real estate dilemma is reflected in the overall development volume is too large.

For shopping centers, there are about 4000 shopping centers in the whole country, and about 7000 are being developed. By the year 2025, there will be more than 10000 more.

It has far exceeded the per capita business acreage and the shopping center's capacity.

Even more frightening is the commercial real estate "1000 cities and one store", "thousand shops side", has not differentiated, has brought many puzzles to the customer's experience and the shopping.

There is another big environmental change that can not be underestimated, that is, the Internet.

China has become the largest online retail market in the world. The total number of online shopping and the proportion of the population are relatively high. This has also brought a fatal blow to the development of commercial real estate.

Faced with such difficulties, the blue book suggests that local governments should fully understand the potential risks of over exploitation of commercial real estate.

With the launch of the new five year plan, it is suggested that local governments at all levels should make scientific plans and develop commercial real estate carefully so as to prevent the development of shopping centers, Oteri J, urban complexes and even e-commerce industrial parks.

At present, where is the way out for commercial real estate? Jinglin Bo reveals that the future of commercial real estate is three points.

1/3 the existing commercial real estate must be pformed and upgraded; 1/3, the changes in the format must be carried out; and 1/3 may be heading for death because of poor management.

This is the first.

Second, the development of commercial real estate should ultimately be aimed at the ultimate consumer.

After 80, 90 is already the main consumer, for these customers, how many commercial real estate research, attention.

Third, we must innovate in the mode.

We must bid farewell to the traditional way of eating the differential rent, resale the counter profit model, and return to the essence of business.

Add value from product design and customer experience enhancement.

Finally, commercial real estate is currently the most complex type of talent, we must understand the operation of goods.

Means, customer psychology, and even understand.

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Knowledge.

The new generation of business changes must have corresponding knowledge reserves.