Xujiahui Oriental Department Store sales 2013 shrinkage 20%

Summary: Xujiahui Oriental Department store sales in 2013 shrank 20%, Nanjing Road, Golden Eagle department store due to poor performance exit, the line department store really to face the embarrassment of no one into the shop. According to a line of retail sales practitioners revealed that Shanghai offline department stores under the impact of the electricity industry is obvious

"Xujiahui Oriental Department store sales in 2013 shrank 20%, Nanjing Road, Golden Eagle department store due to poor performance exit, the line department store really to face the embarrassment of no one into the shop." "According to a line of retail sales practitioners, the Shanghai offline department stores under the impact of the electricity industry is obvious, and even some regional governments are also promoting the transformation of local business circle."

The traditional department stores are anxious to maintain double-digit growth in retail sales every year: Ali Investment Yintai, Yintai and in turn invest in Ali; Wangfujing High-profile and micro-letter cooperation, marketing gimmick more than practical application; The three cell group set up the Business Circle network to buy half dead Macaulay-missed the last round of the O2O, everyone is afraid to miss again.

Xujiahui Group is a well-known commercial real estate company in Shanghai, its Xujiahui mall in the O2O on the road jogging for more than two years, the purpose is to find the real business district of Xujiahui lost customers. "We did not do marketing, app also only in a small range of trial, online mall sales do not seek rapid improvement, all the action is in the groping improvement." "Xujiahui Mall operations director Shenyong told billion Power network, their current state is small step run."

Why not?

Although O2O is hot, it stays on the lively level. The traditional department store is not short of money, why O2O landing difficult? Xujiahui Mall E-commerce Deputy General manager Zong Peng Analysis, there are three main reasons.

Photo: Zong Peng Introduction Company culture

First, the professional manager's mechanism determines the O2O difficult to have the breakthrough. "Traditional department store bosses are aware of the importance of the electric business, they hectic to do O2O, but the following people are not anxious, they only think of their own KPIs." Moreover, the O2O tens of millions of in the performance is slow, which professional managers willing to take risks? ”

Second, O2O due to the wide range of lines under the line, involved in the brand and physical stores more, many ideas difficult to implement. "Some department stores said that with the micro-letter cooperation, the store can support mobile payment, but in some places shop salespersons do not know this, most of the brand's backend system is not ready." ”

Thirdly, once the O2O is up to the strategic level, a decision needs to be discussed repeatedly between the traditional department store senior and the electric business departments, and the efficiency is not high. "Traditional department stores do O2O, do not get high-level support must not, need to communicate repeatedly." ”

It is precisely because of this, Zong Peng that the traditional retail March O2O, the difficulty is not technology. "Technical problems to solve, difficult to be difficult to online under the brand business, service personnel must actively participate in, so we test water O2O still in very elementary stage, beg fast very difficult." ”

Why not ask for a big

Combined with offline resources, Xujiahui O2O also do not draw the pie.

The department store is afraid of electricity dealers because of the sharp drop in buying things. The commercial real estate is afraid, the department store business is not good, own rent cannot collect. So for Xujiahui mall behind the real estate companies, O2O the most core value is to help the physical department stores to retain high-end customers.

Billion power network to understand, Xujiahui electric business is currently divided into three: Xujiahui Mall, app and prepaid card. Xujiahui Mall at present some similar to the Xujiahui area "Day Cat" platform: department stores to the merchandise information uploaded to the back-Office system, from Xujiahui Mall pushed to the front, the delivery and sale by the department store completed, the sales performance is fully counted to the line, positioning more like a group of internal service companies.

Photo: You can see the three main business of Xujiahui Electric Company from the gate: Xujiahui Mall, prepaid card and app "Vgo"

In addition, Xujiahui online shopping mall will also be part of the procurement of goods. "Under the line women's sales have more than 16,000 brands, there is no independent style of more than 500, which is why we want to introduce designer brand from abroad." "Zong Peng introduced, the future Xujiahui online mall features more and more brand, and also to add information channels and user interaction."

And app is Xujiahui Business Circle social tools, users can phone reservations, choose seats, carpool, flash shopping. "Early opening and active degree is not high, or in the trial operation stage." "The current installed capacity of 100,000, the function is still in perfect, is about to add the function is to find parking spaces and driving." The purpose is to facilitate users in the Xujiahui consumption, such as in the Xujiahui area, with VGO reservation than the public comments more convenient. Shenyong told billion power network.

Photo: APP "Vgo" screenshot

and prepaid card is to attract users to recharge in advance, line online can be used. In addition, the offline department store will also issue the use of special coupons to the Xujiahui Mall drainage.

"Our small companies do O2O and must rely on and use good resources." Zong Peng said, the number of merchants in Xujiahui is limited, make a region of O2O more easily landing.

Must be changed.

There are no successful cases in the traditional retail business. Former Dangdang COO Huang Jo once to billion power network said that the traditional enterprises to do electricity, each enterprise will have its own DNA, to change this DNA is very difficult. This kind of difficulty is no less than the Air Force and the army in the combat mentality of the difficult to reverse, it does not take 10 years eight years is difficult to change. Although the product is essentially sold to consumers, but a lot of online sales of the dimensions of traditional enterprises can not be considered.

In order not to be affected by traditional thinking, can Zong Peng tell billion power network, Xujiahui online mall team mostly from the Internet company, in addition to technology and finance, the rest of the people in an open big office.

Office of e-commerce company Xujiahui

In addition, Zong Peng also revealed that Xujiahui Mall is currently operating independently, the future intends to introduce external funds. "Our company is very open and courageous, although we do not know what is right, but we can do it first." Xujiahui only a radius of one kilometer, I just have to find out the radius of a kilometer of the line. ”

However, the change is facing challenges, Xujiahui E-commerce company launched more than two years, the characteristics of localization O2O has not been revealed: The entity department stores and online cooperation only stay at the supply level, substantive interaction has not yet. At the same time, app functionality is easy to replace and not attractive to localized users.

"Wangfujing, Yintai department stores, Wanda and the network of business circles, such as O2O implementation progress is very slow, everyone is in the north-looking stage." "A clothing company O2O told billion Power network, now expect O2O can quickly raise sales is impossible, but this batch of Pioneer Change department store is affecting other peers towards the Internet, department store change era is in sight."