The Knockout Stage Will Come To &Nbsp; The Department Store Is Planning Innovation.

New World

In order to get rid of the dilemma of homogenization competition that will be coming 35 years, China's most new chain store chain has been on the road of store innovation after 17 years of operation.

The whole store renovation project is led by Zheng Zhigang, the third generation head of new world department store and executive director of new world department store.

According to Zheng Zhigang's plan, 33 new world department store chains covering the whole country will complete the renovation of stores in three years or so, and the total cost will be around 60 million ~1 billion yuan.

The innovation of the new world department store is a comprehensive renovation of the department store industry.

A few days ago, when Zheng Zhigang attended the national general election of the new world department store spokesperson, he said that the innovation of the new world department store was a comprehensive "adjustment" from the concept of format to the design decoration, the commodity structure, the form layout and the innovative personality.

If a year ago,

One of them is no longer a high, medium and low price class.

However, the most explosive department stores this year are women's department stores and K11 art shopping centers.

Zheng Zhigang also regards it as "his son and daughter".

Recently, the first female department store in the new world department store and the first K11 Shopping Center opened in Beijing and Wuhan respectively.

For the former, the theme stores in China, which had many N businesses but failed in practice, seemed to be no longer rare. However, Zheng Zhigang made the concept of market segmentation "real" from "gimmick".

The first is the combination of commodities based entirely on female consumers: in the usual department store, the main attraction of cosmetics and shoes of the major brands is no exception. But Zheng Zhigang's new world women's Department has arranged up to 350 brands of thematic shop in a prominent position, selling 9 yuan, 21 yuan Earrings, earrings, ornaments, headwear, hats, bracelets, necklaces, stockings...

Most of these ornaments appear in the current Korean dramas and American dramas. The popularity index and cost performance are all very high.

It is the love of a 18~25 year old girl who usually feels "Taobao" in a small shop. The proportion of Zheng Zhigang's bags, accessories and groceries in the whole women's department store is 30% of the whole store.

Even the brand goods of other department stores will be different in the new world women's department store: for example, BELLE women's shoes can only buy 43 kinds of shoes of different styles and prices in the fashion shop of Chongwen store, but BELLE shoes in women's department stores will be the most popular and flagship stores in 47 categories.

Another example is Esprit. In other department stores, you can only buy clothes, or you can only buy sheets. But in the new world department store, you can buy underwear from all kinds of sheets and clothes, all of which are Esprit.

And the brand of the same company and group is displayed in a piece of sale, rather than the general shopping mall scattered according to the type of merchandise display.

Zheng Zhigang said, this is the new world department store composite commodity strategy, the message is: if female consumers like a brand, the women's department store must be the most complete.

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At the same time, the supermarkets of the new world department store accounted for half of the 8000 commodity self supermarket imports, and the care and food products were the main ones. This is also a life concept that is suitable for the female customers in terms of health and beauty.

In the dining area, Zheng Zhigang also caters to the interest of female consumers in snacks, and introduces 18 small snack counters for department stores.

On the other hand, Zheng Zhigang also made the first female book store in China, the first pet store in the country, and the women's brand shop, such as HOLA, Lavera, and grand Frank Fran.

Even worth mentioning is that from the shopping mall decoration style, toilet layout, color and music, VIP services, and even the details of music and facial features, Zheng Zhigang is also choosing the "style" of female consumers. For example, "the little prince of the Zodiac" live lectures, "GAGA coloured drawing activities", "restaurant star chef Professor cooking" and other personalized services are all suitable for women's love of gossip topics, and of course, the controversial "all male shopping guide" is also a favorite way for female consumers.

In the two years of the new world survey, female consumers generally indicated that the service of male shopping guide can better reflect their charm.

It is precisely because Zheng Zhigang from the inside to the outside to female department stores and consumers to communicate, Beijing Chongwen store women's department stores only after one month of opening, the single day traffic has exceeded 30 thousand.

And because women's department stores are out of line with the life hall and Fashion Museum of the new world Chongwenmen District, Zheng Zhigang said that the latter's passenger traffic also increased by 20% after the pformation of the store, while the operating cost saved 30 percentage points.

Japanese and Korean department stores are mainstream

"A department store is the same," Fan Yanru, Deputy Secretary General of the Chinese Department Store Association, said in an interview with the China Commercial Daily reporter. In fact, in the department stores in Japan, Korea and even Taiwan, the market segmentation of characteristic department stores and personalized department stores are the mainstream in the industry.

There are different positions such as San Yue Department store and Yi Shi Dan department store. The former is positioned as a luxury department store for the wealthy, while the latter is highly praised by young people in the field of fashion apparel.

In Fan Yanru's view, with the increasing self-awareness and individualized demand of domestic consumers, the acceptance of homogeneous commercial establishments is getting lower and lower.

The positioning of domestic department stores and the homogenization of commodities will surely change. The new world department store has opened the curtain.

Zheng Zhigang told the China Commercial Daily reporter that the innovation of women's department stores came from the two years' research and reference of Japan and South Korea's department stores.

Under the trend of homogeneity, the competition of department stores often turns into price war.

The excessive price war has caused the gross profit of the department stores to shrink significantly, and the profitability has declined year by year.

According to industry sources, the net profit of department stores is only 5%.

As a result, enterprises like the new world department store began to seek increasing Maori growth and profitability from thematic market segmentation.

However, Fan Yanru pointed out that the creation of gender theme stores not only requires huge investment, but also needs the clustering of high-end female consumer groups, which is not suitable for duplication of two or three line cities.

At the same time, it takes a long period of cultivation.

In this regard, Zheng Zhigang admitted that the early renovation of the store will have a certain impact on passenger flow and performance, but the overall effect is better than his prediction.

As of 2009, the revenue of new world department store was 15 billion yuan, an increase of 1.4% over the same period, and 34 stores, an increase of 3% over the same period last year.

Zheng Zhigang revealed that the launch of the second women's stores must be based on the specific conditions of the appropriate regional and store locations.

In addition, in the face of the strategic problem of the dislocation of their products, the new world department store has also set up the personalized shopping format of K11 art shopping center, which is misplaced with its department stores.

Zheng Zhigang said that in December last year, K11 opened in downtown Hongkong's Tsim Sha Tsui, and its internal installation art allegedly spent HK $20 million.

Fan Yanru believes that the feasibility of the new world women's department store is that the department stores have always been "women in charge" and are truly consumer leaders.

For example, the gentry hall in Beijing's SOGO Department has been reacted mediocre, and the breakdown of women's department stores that had failed before did not reach the designated position.

At present, the new world department store has a membership of 200 thousand and a female membership of 150 thousand.

The industry believes that the new world and its close customer service relationship and club marketing mode ensure the concentration of women's department stores.

Brand self-reliance and community layout are equally important.

Apart from innovative theme stores, increasing the proportion of proprietary brands is becoming a consensus among many department stores. The process of improving the proportion of proprietary brands is gradually evolving.

According to the China Commercial Daily reporter, most of the large department stores in China have begun to consider buying and selling themselves, such as Beijing contemporary shopping mall, Lotte Department store, halls shopping mall, and thousands of general merchandise stores have begun to increase the proportion of self operated department stores.

In this regard, the new world department store's practice is the unique brand strategy of N-only, that is, the introduction of new world department store exclusive brand products or designer brand in a certain business district.

Zheng Zhigang told the China Commercial Daily reporter that at present, the proportion of N-only exclusive brands can account for 30% of the new world department stores.

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Hong Di, manager of the new world department store in East China, told the China Daily News reporter that "the traditional department store operation mode, which depends on the acquisition of proceeds from the counters, must be pformed into an operation mode of increasing self sales, and the gross profit and added value of the products sold by itself will be even higher."

Statistics from New World Department Store show that in the first half year of 2009~2010, rental revenue accounted for 58.2% of total revenue, management revenue accounted for 8.4% of total revenue, self sales revenue accounted for 27.5%, rental income accounted for 5.9%.

In the same way, lac Crawford department stores in China are also carrying out the "buying system". According to the demand of shopping malls and the consumption groups, shopping malls purchasing personnel go directly to the manufacturers to purchase goods.

Fan Yanru pointed out that the operation mode of joint operation of modern department stores is the fundamental reason leading to the serious homogenization of brands and varieties in department stores. The fundamental way out for homogenization is the return of self run mode.

It is an inevitable trend to increase the proportion of self operation in department stores, but at present, because of the lack of buyers and independent brands, the proportion of self employment is not high at present, with an average of 10% being not reached.

Fan Yanru believes that the test of improving the proportion of proprietary brands to department stores is how to cater for the positioning and attractiveness of consumer demand.

In addition, in order to avoid the fierce competition in the core business circle, many department stores began to turn their sights on the next level business district and choose to shop in some neighborhoods where communities are densely packed.

A few days ago, intime department store entered the Dahongmen area of Beijing South Fourth Ring Road as a "advance force". In 2011, Yintai department store will be the banner of the community department store along the Beijing Metro community.

Shen Guojun, chairman of Yintai department store, also publicly stated that he would strive to open 10 community shopping centers along the Beijing Metro in the past 5 years.

Earlier, Yintai has been on the high-end fashion line, and its first store in Beijing is Lotte Yintai.

In fact, not only the development of community department stores has been unveiled on the north side of Yintai department store, but most of the stores in the halls have already taken root in the community, and all the shops have arranged the community.

As the location of community department stores, the brand positioning and commodity combination of Hua Tang are mainly to satisfy consumers' convenience and community consumption.

In addition, Guangzhou modern department stores and Wuhan new world are all vigorously developing community type department stores.

However, according to Wang Yao, Deputy Secretary General of the China Federation of Commerce, the market incubation period of the emerging business circles generally takes 3 to 5 years.

This is obviously a challenge for department stores wishing to layout the community market.

"In the face of the training of new community business district, the first thing for a department store to do is to satisfy consumers' needs through clear positioning, attract consumers in a new and unique way of operation, and also need a strong brand advantage."

According to the insiders, the location innovation of department stores can avoid fierce competition in the general merchandise industry, and it is easy to find a blank spot in the market, but the test also exists.

In the view of the industry, though the development of community commerce is still slow, it is possible to form a stable consumer group for some consuming communities.

The consumption demand of each community is personalized, because it can also avoid the homogenization of community department stores.