Department stores ruthless recruit power buyers: profits to profit "yell"

After the electric dealers in the "Singles Day" to make a bowl full of pot, the department store entity shop no longer sit still.

Parkson, the Pacific, 200 Yongxin, Zhengda Plaza, Hong Kong, Huijin department stores and other recently launched a major winter promotions, and even the industry to take the sacrifice of Maori "new discount Law" showmanship. The most astounding thing to count on the past weekend, http://www.aliyun.com/zixun/aggregation/30006.html "> Paris Spring to use the full amount of spending on the iphone 5 to send the" ruthless recruit.

However, the seemingly enthusiastic behind, but the department store operators of the unspeakable pain. Many operators reflect that, due to the impact of electricity companies, consumption and other reasons, leading to the current general merchandise industry, the overall passenger flow, profit margins are falling, too much discount to the pricing, cost, deduction, profit, passenger flows and other factors between the grasp of the balance is very difficult.

Profit, make a yell

Pacific Department Store Anniversary "full 198 minus 100", New World City "100 yuan for 300", Place square Anniversary "full 99 minus 60" discount strength is nothing, the weekend just staged in Paris Spring "single cabinet buy clothes full 11880 yuan to send the iphone 5", "Jewelry mosaic, Home bed full 14880 yuan to send the iphone 5 "so that the morning before the early spring in Paris," the crowd "blowout."

"Big promotions will have a short-term effect, but this ' blowout ' cannot last. Department stores make ' ruthless recruit ' is helpless, because the face of the electric shock must be audible, so send the iphone 5 or new discounts have become this year's move, but these tricks behind the operators need to sacrifice profits. "A brand apparel sales staff Miss Liu to the reporter showed a simple form, the new product at the top, and then in turn is the last quarter of new products, general products ... Inventory, the more down the discount degree, the lower the gross margin is also low, at the top of the high margin of new products are usually not discounted, in the past some brands even before the promotion of the inventory of second-hand goods shelves.

"But this year in the electric business impact, for the showmanship, we have made an unprecedented ' new discount law ', the new product price is relatively high, even if the discount can also guarantee a certain customer unit price, since the entity shop can not be in the price with the electricity quotient competition, that should be in the commodity outstanding advantage In fact, the new product discounts, is tantamount to their own loss of profit, but this year with the electric business, we spell. "said Miss Liu.

In order to stimulate consumption, the department stores are also in retreat. "For the brand, the new product discount is definitely not cost-effective, then we will be the department store operators to the brand ' let Buckle ', that is to reduce the discount points to support new product discounts. "Pacific Department Stores promotion department related head Zhu Limin revealed.

Reporter interviewed learned that department store to the brand counters a certain proportion of deduction point, that is, "discount-shopping Center deduction = Rate", if the deduction point 25%, the full price when the rate of 1-25%=75%,9.5 discount rate for 95%-25%=70%, if the participation in 80 percent activities, shopping malls are willing to "let buckle" 7%, The actual deduction point is 25%-7%=18%, at this time the rate of return is 80%-18%=62%. Brand Chamber of Commerce according to the formula calculates whether to accept the market discount activity, because the new product discounts will sacrifice more gross profit, therefore the department store should give more "the deduction" to this.

In a recent weekend sale, the Pacific department store Shanghai Xuhui store turnover of about 13 million yuan a day, has been counted, the goal is the Shanghai Region 3 stores in the year anniversary of the annual sales of the total turnover of 232 million yuan. But it does not seem easy to achieve this goal.

According to the industry is not complete statistics, send mobile phones, such as "profit-making yell" promotion law to let the general merchandise industry's overall profit decline, the former majority of the industry's gross margin of 20%~25% above, and now up to 20% of the industry has been a good, many of the industry's gross margin has slipped to

Falling stream of people and the price of a dark rise

In the past weekend, Zhu Limin in Huaihai Road Patrol shop, "Huai Hai lu Business circle to my feeling is colder than usual, the flow of people significantly reduced." ”

Many industry people have the same feeling that the "blowout" caused by the ruthless strokes is hard to reach the trend of long-term decline. This winter, according to some shopping malls of the camera, artificial estimates, such as incomplete statistics, with the Hong Kong Exchange Plaza, Pacific department stores, Parkson, Oriental shopping malls and other well-known retailers of Shanghai Xujiahui business district, Huai Hai Lu business district, such as the overall flow of traffic down the 10%~30% range.

"More than a 10% drop in passenger traffic is very serious, because not all guests consume, multiplied by the proportion of consumption, the decline in turnover is even more severe." In the past, the proportion of guest consumption was about 60%~70%, but now the proportion is basically less than 50%, sometimes only 30% guests have consumption. Miss Liu revealed that a lot of guests are "copy code Clan", in the past only try 2~3 pieces of clothing, now turned into a test 7~8 sleeve, because the smartphone has software can be merchandise bar code photographed online after the same paragraph, the results of the entity shop sometimes a single business also do not.

"Of course, from the major business circles to reduce the flow of data can be seen, the overall decline in passenger traffic is not only by the impact of the electricity, but also the overall lower consumption." Limpo, an analyst with rich financial consumption, said.

After the decline in passenger traffic, in order to protect turnover, the entity shop operators only to improve the unit price to balance, which requires the introduction of high-end brands to raise prices. Shanghai Pacific Department Store Co., Ltd. deputy general Manager and Huai Hai shop Yeng Chengda Frankly, the store has been located on the first floor of the women's area all transferred to the ground floor, vacated areas into jewelry, watches and Swarovski counters. Hong Kong Exchange Plaza has also been placed into luxury brand Bottega Veneta, Gucci and so on.

Although the increase in positioning can be to a certain extent, the customer unit price, but may further loss of customers. Consumer Miss Zhong said that in the past in Shanghai Long Light department store more than 1000 yuan can also buy a few items, but now some goods folded after the 2000-yuan, which led to the original 1-month patronage once the frequency dropped to 2 months.

What is the crux of the problem?

Reporter in the interview learned that the impact of the European and American retail market power market is not so big, the most fundamental difference is that overseas online shopping and physical stores are not too big difference.

Mr. Shen, a large retail business manager who has travelled overseas, said some European countries, a small number of local department stores accounted for the main market share, for the brand, the real store is the largest distribution channels, the network is only a supplement, so the brand is unwilling to offend the entity shop, even if they do network sales, Then the network pricing will not be much lower than the real store. But the Chinese market is too big, it is impossible to have a department store enterprises to monopolize the national market, so the brand distributor diversified channels, Low-cost network platform is increasingly favored by sellers, online shopping and physical stores have huge spreads, consumers naturally tend to low-cost online shopping.

"In addition, private brand is the advantage of overseas retailers, Japan Yong-Wang, France's Lafayette department store, the British Martha department store, the United States and other Macy's have a large number of private-label products, which means that the department stores to grasp the pricing power, even if the goods on the network sales, the department store operators can also control the price, will not let the net price and the real shop But in the Chinese market, almost none of the department stores have their own branded products, most of the goods are introduced through agents, pricing power in the hands of agents, because the middleman layer price increases, so that the entity shop prices are often the cost of 6~10 times, and reduce the middleman's network to buy a platform to sell at a low price, which gave the entity shop a heavy blow. Mr. Shen admits.

"The general merchandise industry must solve the fundamental problems of the electrical business shocks, such as mastering the pricing power, changing the business model, research and development of private-label products, but this is like ' scraping the bone healing ', not overnight." "Limpo analysis.