The Fifteenth China'S Department Store Summit: Fusion And Great Changes

The fifteenth China department store summit opened in Beijing as the most important forum in the department store industry. The theme of this year is "fusion and great changes". Chinese and foreign industry leaders have discussed how to grasp the future trend of the industry from the perspective of consumption upgrading and how to adapt to the upgrading and pformation of consumer demand.

The forum also released the "2016 China department store industry development report" (short for "report").

The report shows that although the physical retail industry in the second half of 2016 showed a steady trend of recovery, the new normal and market competition factors under the influence of the market situation is still grim, consumer behavior change has also brought a certain impact on the store.

Traditional department stores try to integrate and pform all channels through trying to integrate channels and offline sales channels. From the past pure department store business mode, they move towards a steady and pragmatic pformation and upgrading, and enter the pformation deep water area.

In the era of "new retail", expanding the new vision of department store pformation and seeking new business models has become the consensus of the industry.

Last year, the Chinese department store industry continued to slow down.

In 2016, the annual operation statistics of the 85 member enterprises of the Chinese Department Store Association showed that the total sales volume of the department stores was 656 billion 690 million yuan, an increase of 5.45% over the 622 billion 761 million yuan in 2015. The total profit was 4 billion 4 million yuan, an increase of 12% over the 3 billion 575 million yuan in 2015, and the main business profit was 15 billion 400 million yuan, down by 0.69% over the 15 billion 500 million yuan in 2015.

The total assets reached 150 billion 427 million yuan at the end of the year, up by 25.62% over the same period last year.

In 2016, the operating area of member enterprises increased, to 15 million 140 thousand square meters, an increase of 1.76% over the same period last year.

The average number of employees is 200 thousand, which is 5.06% lower than that of 210 thousand in 2015.

Sample analysis found that in 2016, sales increased by more than 20% in the year to year, and there were 5 enterprises; 12 enterprises grew faster than 10%; in 2016, only 44.7% of the enterprises grew year by year, and nearly half of the sales decreased by nearly 55.3%, of which more than 10% of the enterprises were 15, accounting for nearly 1/4 of the whole sample enterprises.

Report survey shows that from the retail market competition environment, the impact of electricity supplier on department stores has not stopped eating; shopping centres shunting more and more heavy, department store popularity "interception" in accordance with the continuation.

Previously, shopping centers sprang up in a second tier city, and department stores closed mainly in the second tier cities. However, under the strategy of "channel sinking", the three or four line cities became the home of shopping centers, while the three or four line cities had weaker market capacity and less impact resistance of Department stores. They also faced difficulties in reducing passenger traffic and decreasing sales.

Compared with the closure of 31 department stores in 2015, the number of stores has increased in 2016, such as the closing of 2 stores in the Pacific department store. Martha, the old British department store, closed 10 stores. The stores mainly concentrated in the first and second tier cities, and there was a trend of spreading to three or four cities.

President Chu Xiuqi pointed out that the mismatch and dislocation of supply and demand is the primary problem facing China's department stores.

At present, the problems facing department stores are mostly on the supply side. The middle and high income consumers are not satisfied with the popular consumption, and the low-end goods and services are difficult to meet the upgrading of consumption structure.

Business status is identical, function is identical, thousands of stores are on the same side, the phenomenon of thousand stores red goods still exists, manifested in the commodity structure, brand collection, marketing methods, competition means and so on, the market brand repeat rate is high, the commodity structure is identical, lacks the personalized commodity resources introduction, the sales way is mainly based on the discount sale, lacks the more characteristic passenger gathering method and has the higher purposeful marketing activity, the storehouse pformation mostly manifests in enlarging the area, upgrading and decorating, ignoring its own characteristics, presenting the big and complete pattern, leading to the retail store "low level overcapacity".

Improving business efficiency is the basic goal of the pformation and future development of retail industry. Department stores still need to change their product thinking, pay great attention to improving user experience, optimize operation mode, improve service efficiency, reduce operating costs, effectively aggregate customer flow, take the consumption data as the core basis, and promote the upgrading of the entire retail industry system, and strengthen the ability of "managing passenger flow".

Institutional mechanism is also an important factor restricting the development of department stores.

The report points out that at present, Chinese department stores still show strong color in state-owned enterprises, and large state-owned retail enterprises in big cities such as Beijing, Shanghai and Wuhan occupy the main force and dominant position.

The lack of incentive and redundant staff in the management of state-owned enterprises has been hampering the introduction and strategic pformation of outstanding talents in the market. The cost control has also made some state-owned enterprises net interest rates at a relatively low level. The factors such as system and mechanism have affected the efficiency of decision-making and the vitality of enterprises, weakening the rapid reaction of enterprises to market changes. Under fierce market competition, retail state-owned enterprises urgently need to promote the reform of mixed ownership and improve their own operation and pformation.

Facing the industry predicament, the department store industry is actively seeking pformation and upgrading, accelerating the pformation of business mode.

In addition to further strengthening its proprietary business, many department stores have turned to deep ploughing supply chain, seeking cross-border pformation, and expanding the whole channel development through online and offline integration.

The report shows that the deep cooperation with the high quality brand supply chain and the vertical extension to the industrial chain has also become a common measure for the pformation and upgrading of the general merchandise industry.

According to a survey conducted by the Chinese general merchandise business association and the Li Feng Research Center, 73.4% of department stores have been actively cooperating with suppliers and brands in recent years.

In the way of cooperation, 59.6% of department stores take part in the terminal sales management and sales data sharing of suppliers and brands, and 48.9% of department stores participate in inventory management and stock data sharing. 46.8% of department stores adopt single product management.

In addition, 69.8% of the visiting department stores have already set foot in.

Other retail formats.

Among them, the most common supermarkets / hypermarkets and shopping centers were 70.5% and 47.7% respectively.

Among the surveyed enterprises that have not yet entered other retail formats, 40.4% of the surveyed department stores indicated that they had plans to get involved in other retail formats, among which shopping centers and outlets were most concerned, and 43.5% and 30.4% department stores planned to get involved in these two formats.

The report shows that the O2O mode is the mainstream of the current department store market.

Many traditional department stores are speeding up their own e-commerce platform construction, promoting the Internet of stores, and developing full channel sales to meet consumers' needs for commodities, life and services.

Among them, the main channel strategy is digital, ubiquitous, platform, scene and entertainment.

According to a survey conducted by the Chinese general merchandise business association and the Li Feng Research Center, 46.9% of the surveyed enterprises have launched e-commerce business.

Among them, 75.9% of the enterprises have self built network sales platform, 20.7% of them have self built network sales platform and third party network sales platform, only 3.4% of the enterprises who only enter third party network sales platform.

In addition, 27% of the surveyed department stores own APP mobile phones.

They mainly promote information push and sales through mobile phone APP, and provide additional services such as indoor shopping guide and restaurant reservation for consumers.

When the pformation and upgrading of the entity store is becoming mature, some leading department stores have already moved towards the department store.

Integration and pformation.

The focus of the all channel retail strategy is to take customer demand as the starting point, and to integrate all kinds of entities, including online stores, online websites, mobile websites, mobile payment and social media, and the integration of product systems through comprehensive and multi-channel integration, so as to provide customers with more intimate shopping experience in the whole process of consumption.

Throughout the department store, some department stores focused on pattern innovation have taken the initiative to grasp the opportunities brought by the "new retail" era, and have joined hands with the e-commerce giant to explore new business models and realize the integration of businesses under the online and offline businesses.

According to a survey conducted by the Chinese general merchandise business association and the Li Feng Research Center, 50% of the surveyed enterprises have already cooperated with the Internet companies in developing O2O; 32.1% of the surveyed enterprises indicated that they were planning to cooperate with the Internet companies in developing O2O.

For more information, please pay attention to the world clothing shoes and hats net report.