Online Shopping Pushes The Transformation And Upgrading Of Offline Entities To The Forefront

"Continuous Optimize shopping Experience or life experience is the ultimate goal of brand adjustment. First, it is necessary to optimize the space function and enhance the brand appeal at the same time. Shopping malls should not blindly attract some anchor stores or shopping centers with appeal; Secondly, the functional space is deeply integrated with the brand space. For example, some representative shopping malls constantly upgrade and adjust their consumption experience satisfaction through the space, so that customers can find new feelings in the shopping place and achieve the effect of stimulating consumption. "

Seeing "Double 12" coming, another wave at the end of the year Online shopping craze Coming soon. This year's "Double 11" Taobao's amazing sales have really made offline department stores and shopping centers "painful", and once again pushed the transformation and upgrading of offline entities to the forefront of the storm. However, it is obvious that today's online and offline have moved from confrontation to integration. Many shopping malls use offline advantages to get through online, such as Chaoyang Joy City, which is willing to be a fitting room on the "Double 11" day to support customers to copy numbers.

Under the daily impact of online sales, offline entities continue to seek upgrading strategies. How can traditional department stores and shopping centers cope with this fission? With the completion of Wangfujing Department Store's acquisition of China Spring Department Store this year, Spring Department Store, which has nearly 50% of its self owned properties, has reduced its survival risk in the face of the current environment of continuous and rapid rise in store rents. For China Spring Department Store, which has always had rich high-quality brand resources and self owned properties, improving the positioning planning and management ability of the store has become the top priority to enhance the core competitiveness.

Li Henan, chief operating officer of China Spring Department Store Group, concluded that the urgent period when offline entities will be eliminated without adjustment, and continuous optimization of shopping experience is the end of brand adjustment. Department stores must give up traditional investment attraction and filling in the gap experience, and seek a way out by taking deep pooling as the direction and idea of the department store industry.

　 Why adjust

After nearly 20 years of rapid development, China's retail industry has expanded from the initial small size and small range to today's large size and full range saturation state, but at the same time, it is facing excessive competition in the same industry in the form of saturation, leading to the reduction of market share of each mall. According to the data released by the China Department Store Association, the total sales of 81 large and medium-sized department store retail enterprises in 2012 were 228.27 billion yuan, up only 8.92% year on year. Compared with the annual average growth rate of 16.5% of the sales revenue of the department store industry from 2006 to 2011, the growth rate of the national department store retail industry declined significantly in 2012. Traditional department stores are facing internal and external difficulties. On the one hand, under the background of high housing prices and high labor force, operating costs are rising constantly; On the other hand, e-commerce online shopping is squeezing traditional department stores. At present, the average net profit of the department store industry is only 2%~3%. From the external environment, the domestic department store industry has entered the era of meager profits.

For consumers' rapidly changing consumption patterns and demands, various stores are emerging one after another. Shopping is no longer a simple shopping, but a kind of experience and enjoyment. "Things" are no longer the focus. How to "buy" happily and easily is the goal of customers. However, the single consumption mode of single department stores, together with the impact of homogenization of goods and "online stores", has been difficult to gain the recognition of mass consumers. Gradually, the "one-stop consumption" integrating shopping, catering and entertainment has been accepted by more and more customers, which is exactly the "short board" of traditional department stores.

Since the development of department store retail industry, both the external environment and the enterprise itself have reached an important period that needs adjustment. The trend of the traditional department store industry has become a subject that needs common attention and research in the national department store industry.

　 What are the key points of adjustment

Whether it is the domestic department store industry or the gradually improving Spring Department Store in China, we must strive for success in stability and control the enterprise to adjust its direction. Li Henan believes that brand is the key factor to enhance the vitality of department stores or shopping centers. "Therefore, brand adjustment is very necessary for the future growth of shopping centers and department stores, but to complete this adjustment, three things should be done, especially for new developers and retailers, to improve the business system, strengthen professional investment promotion teams, and strengthen strategic vision."

"Moreover, we should clearly realize that the purpose of the continuous brand optimization and commodity structure adjustment of shopping centers and department stores is to meet the increasing shopping experience of customers. We should gradually abandon the limited idea that department stores rely on cash flow and expand their status to develop themselves. Therefore, the customized structural space determines the future development of department stores, and department stores must constantly improve themselves to cope with the increasingly fierce market competition. " Li Henan said.

The external market competition starts with the continuous competition from all shopping malls in the same city. Li Henan pointed out that the homogenization phenomenon of shopping malls in the same city is particularly obvious nowadays. It is not an exaggeration to say that consumers who have visited one shopping mall are equivalent to shopping malls in the whole city. "Therefore, in order to form their own differentiated competition, the business planning of the mall should be carried out from the perspective of service, commodity planning differences, the combination of deep brand association and self support; A department store with a volume of more than 80000 square meters should provide customers with a full range of life experience from brand planning, category planning, services and other aspects. Small department stores must have a distinct main body, not compete with large malls, and grasp specific customer groups and specific themes for refined services. "

What adjustments should be made

It is the common goal of department stores and shopping centers to get rid of operating difficulties and achieve a substantial increase in the operating income and profit of mall enterprises. The key lies in the change and improvement of the business model and the realization of multi-channel and multi format sales. In the process of transformation and upgrading, the transformation of the old model and the derivation of the new model have enabled the department stores and shopping centers to constantly improve their business capabilities in their exploration.

In terms of department store business model, Li Henan proposed: "We should combine deep cooperation with self operation. Under the operation mode of department stores dominated by cooperation, we should actively explore the deep cooperation mode with brand names, participate in the commodity management of some brands, improve the control over commodity resources, explore the self operation mode in line with the future development trend of department stores, and try to develop our own commodity brands to better support enterprises The healthy development of future business. Moreover, by developing its own brand, it can form its own business characteristics, reduce costs, and supplement the shortage of some kinds of goods in the joint venture. "

With regard to the development mode of deep cooperation, under the background of strong cooperation between China Spring Department Store and Wangfujing Department Store, it will increase cooperation with suppliers at the commodity level in the future, and it is possible to choose key brands with high market impact and popular with consumers. The company will buy out some styles and become unique. In terms of management and operation, through brand adjustment, the position of the brand becomes more reasonable, providing more convenience for customers to shop. Through this location change or floor adjustment, on the one hand, it can be more consistent with consumers' shopping habits, on the other hand, it can also bring consumers a fresh feeling. By adjusting and introducing some unique brands, certain differentiation can be formed to attract more consumers. In this way, the brand adjustment, through the survival of the fittest and the optimization of the brand, also creates certain pressure on existing suppliers to promote their continuous improvement. Through adjustment, the positioning of the mall is more clear, which is convenient for the mall to manage the brand price.

In the long run, the brand adjustment of shopping malls is imperative. Through adjustment and continuous improvement of the brand portfolio, we can achieve performance improvement and enterprise development. At the same time, we also create greater development space for the brand and bring more benefits.

In addition to these, Li Henan proposed that the continuous optimization of shopping experience or life experience is Brand adjustment The ultimate goal of "First of all, we should optimize the space function and enhance the brand appeal at the same time. Shopping malls should not blindly attract some anchor stores or shopping centers with appeal;"; Secondly, the functional space is deeply integrated with the brand space. For example, some representative shopping malls constantly upgrade and adjust their consumption experience satisfaction through the space, so that customers can find new feelings in the shopping place and achieve the effect of stimulating consumption. "