Regional department store giant's different frequency: Test hydro-Power supplier's effectiveness is unknown

Note

As a curse, in the region, the success of the Department of General merchandise is difficult to replicate successfully in different places, Seibu Department store exit Shenzhen, Guangzhou Hundred shares (002187, shares bar) closed Chengdu Shop become the latest department stores in different places to expand the case.

"Acclimatized" is the industry at the time of failure to give the most reasons, but the simpler it can not be simple truth is often easily overlooked, department stores in the off-site expansion of the habit of replicating existing successful mode, and this in the Chinese market, http://www.aliyun.com/zixun/ aggregation/7699.html "> Consumer habits, Local department stores, the diversity of the situation can only end with a wall, it also shows that for the department store, success is only one place, and to carry out a different expansion, it is necessary to re-examine the local market, and to take" as the Romans do " Business model, the local department store industry leader, more important is to occupy the local Golden circle position, only in this way, the success of the expansion in different places half.

"Strong dragon" hard to Pressure "bully" regional department store giant different frequency

Le King

Lao Wang is a bit annoyed these days, after working in Shenzhen Seibu Department store for several years, he faces unemployment. My age is not small, the education is not high, in the mall also do a front-line security work, now Shenzhen last a West Wu department store closed, and I have no other shopping malls can adjust, the future of everything again from scratch. Lao Wang told the first financial daily.

"11" Golden Week Eve, well-known West Wu department store quietly ending, even gold week this nuggets business opportunities are abandoned. At the same time, Canton Bai goods Chengdu Store also declared business.

However, the industry is not surprised by these two news, because this is not the regional leading department stores in the region for the first time the embarrassment of evacuation. Many businesses in the local business, a place to open a shop, have encountered various difficulties, so that have to close or transfer to "stop Bleeding", which has "acclimatized" the superficial reasons, but also with "bully" dark War pain.

A succession of foreign expansion defeats

"For the department stores, especially the listed companies, they need scale, when a model in the local business success, if it can be replicated in the country and bring profits, not only can enhance corporate revenue, but also to shareholders and investors account." Since most of China's general merchandise industry using centralized cash register of joint-point mode, so the money is basically first into the department store pocket, to be paid after the period to give the various brands, so this interest-free loan also to the department stores to provide a foreign expansion of the "ammunition." "To do the national chain stores enterprise", and even now are many operators of the slogan. "Zhou, a professor at Shanghai Business School who studied retailing for years, said.

Many years ago, hundred contact with the company as the main body, with Beijing Xidan Shopping Company Limited, Beijing Supermarket Chain Co., Ltd. set up a joint venture to enter the northern market; the Pacific Ocean (601099, share bar), which runs smoothly in Shanghai market, is also an ambitious store in Beijing and Chengdu. and Zhejiang department store giant Yintai department store was selected a few years ago, Shanghai South Railway station, declared "kill" on the beach, South China commercial giant crocodile Bai goods to the bustling city of Chengdu March.

But dreams are always unreachable.

2 years ago, the company closed its 3 loss-making stores in the north-east and then simply shut down more than 20 convenience stores in Beijing. After a variety of off-site expansion failures, the group once adjusted the strategy to "focus on the Yangtze River Delta market" development.

Pacific stores, for reasons such as the expiry of leases, announced the closure of Beijing surplus branch and five pine stores in the second half of last year, to adjust the financial structure, which also marked the exit of the Pacific department stores in Beijing, and Yintai department store in Shanghai, the first shop has not yet opened in Shanghai has been sold, Yintai only brand output management mode operation, And compared with the department stores in Zhejiang, Shanghai South Railway station store business is not good; this year "11" Golden Week, Canton department stores and Seibu department stores respectively fail Chengdu and Shenzhen market.

Various "acclimatized"

Regional leading department stores in different places to evacuate, "acclimatized" is the most common explanation.

"This is a problem that makes the industry very headache, a model in the local test water success, but not in the other places." First, the key factor in business is location. To open a shop in different places, the operators of the local network, business district, such as the understanding of the level is not as familiar as their own site. And the time to enter the market is relatively late to the local operators, in the scramble for properties, regional retailers will often encounter either not get a good position, or the local owners to raise prices of the dilemma. "He Weiping, a foreign-owned department store, who had been in a different store, told reporters, for example, Canton Bai goods Chengdu Store location is difficult to concentrate people, and Yintai department store in Shanghai South Railway station is located in the transport hub, but the passenger flow and will not stop for a long time, these poor business position in the beginning of the future of the operation of the hidden dangers.

The second is embodied in consumer terminals, including goods, pricing and consumption habits.

Ding in Shanghai's Hong Kong Square is responsible for management, she went to Zhejiang, Jiangsu and other areas of the project found that different regions of the consumption habits are huge. In Shanghai, more consumers use cash or credit cards to pay, however, in some cities in Zhejiang, consumers are very interested in membership card payments, and sometimes even a one-time deposit of tens of thousands of yuan guests. But this large membership card consumption mode also means that, if it to the local open shop, it is necessary to set up in line with local custom card business and refinement management.

The third problem that bothers the operators is the model. "Many successful local operators make the same mistake by copying their models intact, and the results are completely unworkable," he said. After the failure, the industry will find that this is a simple and can not be simple, but in the early stages of expansion, it seems that we do not recognize this problem. "Zhou said.

The famous Hong Kong Carver is known for buying hands and is making a huge profit. So even carver confidently copied the pattern to Shanghai, but most of the hand-buying system involves small, personalized designer apparel or international products, for the year's Shanghai consumers, spend a lot of money to buy a non-mainstream clothing is not worth, the lack of tourists led to the poor performance of the carver, and eventually the Shanghai market.

Compared with the international model of the Carver, some local "soil models" are more lethal. In an interview, the reporter learned that Liaoning Xinglong family in the local business model is very interesting, each floor of the mall with open shops and even some close to the "booth" way to sell, and encourage the salesperson to master a skill, such as the scene of lace laces, teaching scarves and ties to attract customers, It also included skills sales in the employee's promotion review. These seemingly "earthy" methods have been highly praised locally, making it difficult for foreign retailers to break through. Because some large chain stores have their own model of regulation and staff evaluation, simply can not do like Xinglong "flexible" skills sales model.

"Strong dragon" Dark war "bully"

"Strong dragon pressure but bully" this proverb has some truth. Regional leading department stores in the development of other than acclimatized, but also to deal with the competition of local department stores, from the surface is to compete for business location, source, etc., but the most "strong dragon" pain is with the "bully" behind the Dark War.

"The most embodies the core strength of the department store is the investment, consumers will consume, and the store brand has a direct link." However, in a different place, our investment becomes the biggest difficulty. "He Weiping told reporters that China's general merchandise industry is the basic use of joint-point mode, by the department store merchants all apparel, cosmetics, home appliances and other brands, but in the Chinese market, almost all the well-known brands are using Agent system, agents are divided into regions, different regions of the agents are completely different. Sometimes the agent also divided the product line, than as a brand in the same region because the goods are different and by several agents agent, which means that the department store to open a shop in different places must be negotiated with a complete, in order to obtain a complete product line, but also to handle several with the brand agents.

"Local operators will be very familiar with the various agents, and we do not have the advantage." The trouble is that local department rivals will also be secretly pressuring these agents not to let some hot brands into our stores. He Weiping reluctantly said.

Wu in a shoe brand shop for several years, its Chen, there is a real phenomenon. "Sometimes a shop asks us not to enter a competitor B, otherwise we will be driven out of a shop, then we can only measure the pros and cons, if a is a local giant and B is a foreign department store brand, then most of us will choose a, so that B shop can not see our brand. ”

Wu also showed reporters another "bully" advantage pricing. As local department stores are more familiar with the status of agents and wholesalers than outsiders, while the same brand of goods in the classification and distribution of the regional wholesale will increase the price, the middleman also has a certain pricing power, local operators can be higher from the level of intermediaries to obtain the lowest cost price, and low price sales. The foreign department stores are not the lowest price, so even if the Foreign department stores recruit several good brands, but it also has no advantage in price.

Under the Dark War, many off-site department stores rarely see hot brands, and prices are not low, which makes local customers hard to spend. For example, the Bai goods in Chengdu, the store is not a good investment, the flow of scarce.

"In overseas markets, many department stores have their own brands, such as Japan Yong-Wang, Britain, Martha's department store, and so on, with its own brand merchandise, you can avoid the investment problems mentioned above, even in the off-site open shop, the exclusivity of their own goods and low-cost advantages remain." And its own products also evade the agent problem. Unfortunately, most of the Chinese department stores lack the ability to develop their own commodities, even if some of the test water, its own commodity brand name is not high visibility, sales are not ideal. "The first retail network founder Dingli analysis, in addition, the overseas retail business development capacity is also very strong, even if not in a different place to open a shop, can also be door-to-door through the electrical business." But China is too big, to layout the whole country is not easy, the development of electrical business must be supporting logistics, the department store profit is difficult to support the hundreds of millions of yuan of the electric business platform and logistics development costs, and online shopping goods and physical store goods have obvious differences, prices and product lines to reposition, All these causes the Entity department stores in the Chinese market has not successfully operated the electric business case, instead is the electricity merchant to hit the department store profit.

At present, the Hundred Union, Yintai department stores and so on are testing the hydro-electric, but the huge investment whether can see the effect is still unknown.