Swing Business: Department Store Flags Fall

　　 Department store Flag fall

It's hard to find the brilliance of entering the shopping mall. After more than 20 years, the shopping center from hardware facilities to brand merchandise shows "old style". The 1 floor still keeps the most popular supermarket, with 2-5 layers of jewelry, boutiques, men's wear, cashmere and bedclothes. The mall also has a "department store + supermarket" business model and main category at the beginning of its establishment.

In the early 90s of the last century, the shopping mall of the mall was the first department store in the region, with the aura of the "Asian Games facilities". In the early days of operation, the shopping mall drew up a 2 to 7: 1 high and low position for the consumer group. In 1996, in order to adapt to market changes and upgrade, the following year was reopened in September. After the expansion, the business area of the shopping mall expanded to 18 thousand square meters, and the sales volume and profit volume of the unit were the highest in the same industry. After adjusting the upgraded shopping center, the high-end shopping malls are located, attracting a number of international famous brands to settle down.

Nowadays, the proportion of imported goods in supermarkets is greatly reduced, and clothing is mainly centered on middle-aged and elderly customers. This fallen old department store has been separated from the mainstream market of the commercial market, unable to compete with many of the latecomers, and can not catch up with the past itself.

However, business is not fully aware of its own problems. It is still determined to take the shortcut of shopping mall in 2008. In 2008, Beichen commerce and Hongkong imperial power group jointly opened the high-end boutique department stores. The shopping malls not only gathered many international luxury brands, but also arranged bars, SPA and other places of entertainment. In 2010, the shopping center north garden store opened, and the "water stone" building caused a great sensation in that year. At that time, under the influence of the international financial crisis, the international first-line brands had cancelled the opening shop plan or proposed harsh leasing conditions. With the "golden" brand and nearly 20 years of operation experience, eventually attracted a group of high-quality merchants stationed.

The market environment and business opportunities of the last century are gone forever. In today's era, Ming men's department stores have become a special store, and promotional slogans and sale activities are everywhere. There is no vacancy in the shopping mall for a year. In the shopping mall, Beiyuan shop, a large number of brands have been evacuated. A layer of area is not only occupied by a large number of sales, but also a large number of goods. The main brand of shopping mall is only ONLY, VERO MODA and so on. Not far away, it is the flagship store for the above brand discount products.

　　 channel For the king has passed away

A data graph shows that during the 2003-2006 years, the shopping mall and main shopping malls, the Department Store Branch, the Cui Wei building, the mall, the urban and rural trade center, the Yansha mall, the sate shopping center and the Shuang an mall are the main competitors. In 2003 and 2004, the total retail sales of the mall were 96 million 580 thousand yuan and 88 million 580 thousand yuan respectively, which were higher than the average 27.7% and 6.9% of the nine shopping malls in the same period.

After 2005, due to the adjustment of business strategy and transformation of the retail business with high gross margin, the performance of the shopping center began to decline. Comparing the nine shopping malls, the shopping mall is in a single store stage. According to an industry insider who does not want to be named, though there is no chain advantage, the mall is still a battleground for branding. At that time, in order to win suppliers' support and introduce famous brand goods, the shopping mall had to pay more than two times a month for manufacturers to speed up the withdrawal of funds. Brand operators also put quality resources such as the latest and marketable goods to the shopping mall, and at the same time, give price support to the mall's large scale merchandising activities.

However, over time, these people admitted that today's business team has no previous drive. In the face of institutional constraints and past achievements, business is still immersed in the age of "channel is king". The reality is that the supply and demand market has changed dramatically, and there are more and more platforms for brands to choose. In a sluggish market, the speed of brand opening is far behind.

The conservative development strategy requires developers and business teams to lower their status and even offer preferential conditions to invite brands to enter.

As a matter of fact, once the example of a business tycoon missing the market is not uncommon in business, but in the downturn of the retail industry and the Internet age, how to use the existing advantages to find new market positioning. Zhong Tingsen, the founder of Parkson, once again came out to lead the team to buy brands worldwide in order to reverse the declining trend in the Chinese market. Many of the big names in the rise of APM are also the result of the company's investment team wandering around.

It is understood that the business team has also had the experience of looking for brands everywhere, but it seems that it has not been able to persist. "No" is no longer the gold lettered sign of the commercial market. The scale and influence of the past companies have basically been exhausted.

　　 Become Business supporting role

Beichen business, developed by international sporting events, has been overthrown and overturned by Shanghai Bailian, Dalian big business, Beijing Hualian, Wuming, Wangfujing department store and so on.

A person familiar with the matter said that the business team did not have no strength to turn the tide. In the strong performance of other industries, the profitable commercial sector is not important for the company. At the same time, business is not in the business scope of this state-owned background giant. These people believe that the business team is actually in a contradiction: from the era of Ming to the North Yuan shop opened, indicating that it is not to abandon the commercial sector, but at the practical level, the Group executives are afraid that the new store robbed the old shop.

It is easy to find out that the profit of the company is composed of three parts: investment property, development property and commercial property. In the 2013 earnings report, the operating income of investment property and development property was 5 billion 43 million yuan. The profit margins of these two plates are 48.98% and 50.37% respectively. Although investment property (including hotels) and development properties are experiencing a downturn in the market environment and policy implications, they still have bright spots. Hotel prices and rental rates have declined, but still better than the average market level of five star and four star hotels. The National Conference Center and the two main reception centers of the conference center received 1603 conferences and 91 exhibitions last year, representing an increase of 182 and 5 over the previous year. Although the development of property declined by 7.74%, it contributed 2 billion 958 million yuan in business revenue last year.

In contrast, commercial property last year achieved operating income of 348 million yuan, down 8.33% compared to the same period last year, and the profit before tax was 8 million 757 thousand yuan, accounting for only 0.65% of the three sector profit. In this year's development strategy, there is only one sentence referring to commercial property. "Commercial property will focus on retail market changes, increase investment and marketing efforts, and strive to improve operational capacity, comprehensive service capabilities and asset management benefits through adjusting and optimizing categories."

　　 I also thought about going all the way.

The internal contradictions make the development of Commerce and Commerce in a precarious position. This is especially prominent in the era famous project. The era's famous department store was jointly invested by the industrial and the imperial power group, and each side accounted for 50% of the shares.

According to a person familiar with the matter, the two sides had a clear division of labor at the beginning, and the imperial power was responsible for more than one level of investment. The main area was B1 layer management. Before the opening, the two sides had a more harmonious relationship, but after the opening, they began to intervene in the operation of the imperial power, giving some suppression to the brand, resulting in contradictions eventually.

It is reported that the time honored gate is being sold by the side, and the emperor will receive the remaining shares. At present, the two sides are still in the handover stage. Although the relevant person in charge of the times did not respond specifically to the reporters, he said that the adjustment of shopping malls remains to be discussed and confirmed.

The business reporter learned from relevant channels that he wanted to get rid of the commercial sector, and the Department Store Group was a potential buyer. Due to the need to receive a large number of employees in the commercial sector, especially the old staff, the transaction was not reached due to the high staff costs and the unsatisfactory development of the commercial projects.

Depending on the location of the first tier cities and the advantages of property appreciation, if you want to get rid of the commercial sector, there will be a handful of them. However, most of those who want to return will consider long-term returns.

At the beginning of each year, the government's major meetings fixed hotels under the flag to relieve the pressure of business operation. But I am afraid this is not sustainable. After a long game, the state owned assets supervision and Administration Commission's state-owned enterprise reform has entered the stage of practical operation. COFCO, China building materials, Chinese medicine and other 6 central enterprises have pioneered the pilot project. When the new wave of great changes is coming, the bound should also consider a closer market future for themselves.