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The Department Store Industry Is Facing A Huge Crisis.

2013/9/25 20:20:00 55

Department Stores Star Stores Channel Costs

there is no doubt that the department store industry is facing a huge crisis.

Since 2012, the history of China's department stores has been the largest in the past. The cold wave that has not ended so far is reflecting the decline of the department store industry.

some people think that commercial real estate has brought pressure on department stores, but others believe that shopping centers and e-commerce are squeezing the living space of department stores.

These are all reasons, but more importantly, the self loss of department stores: when the scale effect of e-commerce wins, offline retail is doomed to get rid of low prices, but department stores still want to emphasize the same price on line and offline.

Below P online, compared with the shopping center, the biggest disadvantage of traditional department stores is its inherent defects in the completeness of the category and supporting facilities. In addition, with the innate lack of commodity management ability, will there be any opportunity for the lost department stores?

commercial real estate is a word without any emotion, but in the department store, people love it and hate it.

Hate it, because sales points at two or thirty points are heavy burdens for most brands.

Love it, or even envy and envy. As a two landlord, department stores earn money every year.

< a > href= > //www.sjfzxm.com/news/index_c.asp > channel cost < /a > high > /strong > /p >

The channel cost of P stores is very high.

We have dismantled the tag price of < a href= "//www.sjfzxm.com/news/index_c.asp > lady house" /a "in detail. Taking the average price of 522 yuan as an example, the actual retail price after discount is only 304 yuan.

The department stores will receive a commission on a certain scale based on the actual retail price.

For lady house, the deduction rate is 30.6%.

That is to say, only one Commission, the mall will take 93 yuan.

besides the direct commission deduction, there will be daily expenses for advertising and management fees in the shopping mall.

The average cost per garment for ladies' houses is 11 yuan.

So, the ladies house sold a dress of 304 yuan for the paction price, the actual repayment was only 200 yuan, and the total shopping mall had to charge a toll of up to 104 yuan.

It can understand why so many brands complain about department stores.

brand companies have to raise the rate of increase in order to cover design and research costs, production costs and daily operating expenses.

These costs and expenses are ultimately paid by consumers.

As a result, mass brands are discouraged from department stores and pferred to exclusive stores and other channels.

Department stores have basically become exclusive channels for high-end brands.

in fact, the brand that needs to bear 30% points is only a few.

The average spike rate of high-end women's dress brand is only 25%, and the percentage of Baodian's deduction is even as low as 21%.

BELLE, a leading retailer in the field of women's shoes and sports goods, has many brands and shopping malls packed to negotiate, which can reduce the rate of deduction to 20%.

Less than P, the total spike rate of department stores is usually lower than that of 20%.

The sales rate of intime department stores in 2012 was only 17.45%.

This is because the department stores, in order to establish their own image, will introduce a number of first-line brands with excellent conditions.

These brands can not only get the best location, but also enjoy lower buckles.

Less than P, department stores deduct rent, labor costs and daily operating expenses from commission.

We can give an example of the "profiteering" of the industry.

Hangzhou's Wuhan City Yintai has more than 2 billion yuan of water in one year, and more than 400 million Commission revenue for Yintai department store. Wangfujing owns a department store and a shopping center in Chengdu. The two shops contribute more than 400 million yuan a year to Wangfujing.

over reliance on Star Shopping Mall /p >

but good days in the department store are going away.

In China, the chain effect of traditional department stores is far from full play, and each store is independent investment and operation, which leads consumers to see different goods and even the same goods at different prices in the same brand store of different department stores. P

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< --EndFragment-- > this allows the same brand department stores to harvest completely different performances in different regions and different time periods, and also let department stores rely too much on their star stores.

taking Yintai department store, the income of two stores in Hangzhou, West Lake, Yintai and Yinlin is more than 20%.

The income of a store in Yinlin and Yintai can even reach ten mature stores in other regions.

Wangfujing has contributed more than half of its profits to Wangfujing stores by relying on two stores in Chengdu.

But at the same time, many stores in other parts of Wangfujing are losing money for years.

reliance on a single store increases the operational risk of department stores.

Those who stare at the star store's jealous people should know that this is the only place in Chengdu, Wangfujing.

The birth of star department store is a small probability event.

"P" and the weakness in recent years has begun to alarm the industry.

Even during the financial crisis, the comparable growth of intime department stores can still reach two digits.

But in 2012, the comparable growth of intime department stores was only 9.1%, down 14 percentage points from the previous year.

Wangfujing department store grew by 8.73% in the same year.

As a two landlord, P stores are facing the trend of rising rigidity of rent and manpower costs. The growth of comparable stores will directly affect the profitability of enterprises.

new business format /p >

More importantly, apart from macroeconomic fluctuations, rising operating costs and intensified market competition, the diversion of other emerging businesses is also impeding the development of traditional department stores. P

In the current situation, at least two new formats are likely to impact traditional department stores: e-commerce and shopping centers.

compared with shopping centers, the biggest disadvantage of traditional department stores is that there are inherent defects in the completeness of the category and supporting facilities. Moreover, it is not as convenient and cheap as e-commerce. With the innate lack of commodity management ability, the department store industry is facing great pressure in 2013.

China's department store industry is not strong.

The department stores in the local market are very small, and most of them are separated from each other and have not formed a nationwide network.

Intime department store in 2012 only 13 billion 600 million yuan, and last year Tmall double eleven turnover.

The revenue of Wangfujing department store is 18 billion 300 million yuan, which is not as good as that of Taobao + Tmall last year's double eleven sales.

< a href= "//www.sjfzxm.com/news/index_c.asp > > garment industry < /a >, from last year's data, the scale of e-commerce has been comparable to that of department stores.

Although department stores mainly focus on high-end brands, e-commerce is dominated by low-end brands, but the indirect impact of e-commerce on department stores is inevitable.

Moreover, in the long run, the high-end clothing brand on-line is also a probability event.

under such circumstances, department stores have to be prepared for danger and prepare for rainy days.

Many department stores now focus on shopping centers and e-commerce.

Strictly speaking, this is regarded as a sublation of the format of department stores.

but to some extent, traditional department stores do not conform to the law of manufacturing industry, and this is incompatible with the characteristics of e-commerce at this stage. So far, e-commerce still opens up territory in the form of price war and achieves scale effect. However, for those who advocate brand, they need to raise their sense of value through the scarcity of limited edition, while the traditional department store industry that emphasizes online and offline parity has no advantage here.

From the perspective of P, the traditional department stores need a team that understands commodity management to manage flagship stores, and they need to re explore the distribution of goods and marketing, which is even more difficult.

however, some challenges still exist in the department store industry.

For example, intime department store is trying to open up online and offline data and lay WiFi in physical stores to identify and track as many customers into the store as possible, thereby accumulating user's preference for brands and discounts, so as to explore online and offline integration and achieve real-time matching of people, goods and fields.