Wangfujing department Store seeks change: Farewell "Landlord" and then Chong Electric dealer

Is it more feasible for a department store to lure online people into offline shopping malls or to get more revenue from the line?

Here are two completely different strategies, now we do more seems to be the latter, in the last six months, Beijing's large department stores have been online upgraded E-commerce platform, such as New World Department store online mall, Xidan shopping mall I-go5 shopping mall, Beijing Urban and rural Online mall, Yintai Department store group chain online shopping malls.

Wangfujing department Store (600859. SH) was the first batch of established retail enterprises that began to try E-commerce, and began to dabble in the online mall since 2007, when it was also known as the "national team". However, in the existing business model, the mall more to act as the actual "landlord" role, relying on rent and sales to survive. Compared with the network, most department stores rely on physical store resources for merchandise sales, its logistics business supporting links exist short boards.

But now they are planning a new round of sprints. Wangfujing Department store group information director Liu Changxin said that the next five years, Wangfujing department stores expect in the E-commerce part of the revenue to achieve an average annual growth rate of 70%.

Internal conflict

Wangfujing department store plans to invest more than 100 million yuan to build a complete network shopping operation platform. After several setbacks, May, Wangfujing department store electric quotient platform of the latest cooperation object was confirmed IBM. According to the plan IBM will help Wangfujing department store to build the Webspherecommerce as the core E-commerce platform.

Around September 2011, Wangfujing Department store group headquarters set up a dedicated E-commerce center, and funded the establishment of a subsidiary of Beijing Network still E-commerce Limited liability company, is currently in preparation for the preliminary operation. October 2011, Wangfujing Department store electronic Commerce Project contracted settled in Beijing Tongzhou New Town Business Park, is expected from 2012 to 2016 total tax revenue not less than 97.47 million yuan.

Liu Changxin said that with IBM Smart Business Solutions, the establishment of a new shopping platform and the system of E-commerce operating system. In the next 5 years, Wangfujing department stores expect to achieve an average annual growth rate of 70% in the E-commerce sector.

Since 2007, the Wangfujing electric business is very small, and its network shopping service covers the double-Ann shopping mall, the wangfujing of Guangzhou, and the Wangfujing in Changsha. Now login Wangfujing Department store online mall can be seen, is still the "double on the online mall", "Changsha Wangfujing", "Guangzhou wangfujing" three for their separate separate projects.

In the meantime, the owner of the shopping mall, the Chief of Logistics, technical support, warehousing in charge, and information director Liu Changxin together, often meet to study how to do their best to support the development of the website.

But the website needs the coordination between the departments of the mall is not so smooth, the work on both sides often need to coordinate, sometimes the result of coordination is not too ideal. For example, the most common, the top of the promised down things to below can not necessarily be implemented. Some need to be coordinated by the Department of Shopping malls to carry out the work, such as the procurement of Web sites, warehousing and so on, the implementation of the process of resistance is very large.

A senior electrical business practitioner was also in that period of time from the IT company to the Wangfujing department store group's double Ann Mall, but after a year after the two-Ann left. He laments that it and department stores are two completely different industries, first, the salary gap is very big, the former department store veteran staff is very dissatisfied, think a young programmer just go to take more than 10 200,000 of the annual salary is very unfair, and some of them have been in the double Ann has been doing for decades not yet a young man to take high.

In fact, he said, the traditional retail enterprises to do electricity, at least at the time, most of them are in a passive state, and not as a strategic layout. Compared with other mature departments, the electric business sector is small, operating autonomy is very low.

He recalls that there was a lot of resistance during that time. Wangfujing department Store also invited a few senior electrical business talent, and each brought their own team to go in, but not long before, these people have gone with the team.

Early attempts to e-commerce enterprises have not been successful, the relevant matching has not been formed, the cost is very high. One example is that 2001 Xidan Mall and known as "China's first e-commerce person" of the original 8848 President Wang Juntao (Micro-BO) cooperation, at that time only EMS, send a foreign courier fee to 70 yuan, the leadership meeting is often specially proposed to sell a pen, light courier will have to compensate how much. Later successors mainly do is to reduce the company's operating costs, each link to the accounting.

For this lesson, Liu Changxin said, do online business can not be enthusiasm, should be healthy, profitable business model to achieve development. He said that some electric dealers do a lot of things, boils down to a sentence, not in order to really operate the profits of the commodity itself to feed the company, but through additional or sideline income support. This is more taboo for the traditional industry, because the traditional industry is focused on the main development of the future of the potential.

New World Department of Commerce Department Head also believes that the opening of online channels, most of the department stores have a higher visibility and strong capital strength, generally will not be in the market to hit the level of heavy money, but to take a stable profit path.

The road of Informatization

As with many CIO (CIO) experiences, Liu Changxin also went to the Ministry of Information in Wangfujing department stores, human resources, offices, markets and other departments. Therefore, he thinks that a good CIO should combine the innovation of information technology with the development of enterprise itself, and put the starting point of enterprise informatization into practical application.

In the next few years, Wangfujing department stores part of the use of fund-raising plans include e-commerce projects and information systems upgrades. In the next 2-3 years, Wangfujing department store will continue to promote data center construction, Business Intelligence Center construction, member management system construction, customer service system construction, hardware system upgrade, disaster preparedness system upgrade, and finally realize the overall upgrade of the company information System.

At present, Wangfujing department stores SCM (supply chain Management) system has been on-line, CRM (Customer relationship Management) system has been implemented. Among them, the implementation of CRM system makes Wangfujing department stores all the membership card to achieve the national general.

The late 1980s the early 90, large department stores fell into the plight of sales, profit growth slowed down. In the face of the competition of foreign retailing and the restriction of enterprise expansion, department stores have to readjust their positioning, and Wangfujing department store has put forward the strategy of retailing chain in this background. Group took the idea of intensive management, the earliest store-level into the distribution of the separation form into the group level of the separation of sales.

The change of the data center also affects the change of Wangfujing's strategy. The commercial intelligence system adopted by wangfujing makes it possible to know the state of information running in time from product to user. Including, each client is what the person is buying its products, what people are consuming his products, and what the price band is in the stage. All kinds of data information are summarized and summarized, then form the reference for senior decision-makers to make strategic decision.

May 17, at Wangfujing department store, a "traditional department store, shopping center, e-commerce" Outdoor seminar, more than 30 different levels, representatives of various departments and store leaders to discuss, summed up one of the key points is to "pay attention to micro-BO talent," carry out a variety of forms of online activities, Let them become store customers, and then through their original, forwarding and other promotional channels to create more new fans.