Where Is The Way To Pform The Comprehensive Department Store Mode?

Recently, wing Wan (Hongkong) Investment Co., Ltd. announced its 2013 performance report. The company's annual income in 2013 was HK $8 billion 488 million, an increase of 15.1% over the same period last year, with a net profit of HK $107 million, down 55.23% from the same period last year.

This performance is concerned by the industry. Some people in the industry even think that this is a manifestation of the decline of the comprehensive department store supermarket mode.

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< p > < strong > a variety of internal and external factors, resulting in a decline in net profit margin < /strong > /p >

< p > recently, wing Wan (Hongkong) Investment Co., Ltd. announced its 2013 performance report. The company's annual income in 2013 was HK $8 billion 488 million, an increase of 15.1% over the same period last year, with a net profit of HK $107 million, down 55.23% from the same period last year.

The report shows that Southern China's main business in China is still in a state of deficit, with a total loss of HK $158 million last year.

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< p >, the company explained that the increase in revenue stems from the group's expansion of the retail network in the mainland China and Hongkong market during the reporting period. However, the net profit in 2012 was significantly lower than that in 2012 due to the unsatisfactory sales performance in mainland China, and the recognition of impairment losses in property, plant and equipment and increased operating expenses during the year.

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< p > according to the report, the business of China's mainland business in 2013 lost HK $158 million, even if it did not account for the impairment loss of property, plant and equipment in 2013, the loss also reached HK $56 million 900 thousand.

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< p > "in fact, not making money or even losing money for a long time is the normal form of the whole retail business."

The director of the enterprise and Market Research Center of the Comprehensive Development Research Institute and the vice president and chief consultant of the Shenzhen Chain Economic Association, Liu Lu Yu, said that not only is the Yong Wang Department store supermarket, but the retail industry in Shenzhen is facing a huge crisis, which is also a problem encountered by the whole entity shop.

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< p > expenditure is also one of the reasons for the declining performance of the department store in the mainland.

"The reason for the decline in net profit is mainly due to the increase in expenditure and the growth rate of turnover is not particularly satisfactory."

Xu Feng, director of the National Research Center of the United States Property Alliance, said that the rise in rent costs had a significant impact on the entire business cost, which is also a problem for shops, office buildings and other formats.

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< p > according to Xu Feng, the rent of shops in Shenzhen now rises by 10% to 15% per year, exceeding the turnover of retail businesses. It is easy to cause losses if there are no better sales channels and strategies.

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< p > the rise of Internet merchants also affects the development of retail industry.

Xu Feng said that the store's stock is small, the capital turnover speed is fast, the publishing channel has almost no boundaries, aiming at the global market, these advantages have obvious impact on the retail industry.

Retail products can be bought on the Internet, fast and cheap, and can be customized privately and delivered directly to the home. "This has led to a decline in the performance of the entire retail industry."

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< p > in Xu Feng's view, various industries are frequently testing the Internet at present, and they are also helpless to face the slowdown of economic growth.

But it still takes time to demonstrate whether it is a good growth mode to stimulate economic growth through "touches".

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< p > Liu Lu Yu also believes that online shopping has a great impact on the fast moving consumer goods oriented supermarket.

At the same time, the overall cost of labor costs and rents has also led to a drop in profits in the retail sector.

In addition, some department stores also try to compensate for losses by expanding their scale, but the effect of expansion is not good.

"The decline in net profit of more than 50% is not too big."

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< p > apart from external reasons, many people in the industry believe that the decline of performance lies in the positioning and development of the supermarket.

In Xu Feng's view, there are obvious differences between Hongkong and the mainland market.

The tariff of imported products in Hongkong market is very low, which can achieve low price of famous brand. The promotion of specific brand is very attractive to consumers.

In the mainland market, to maintain profitability, it is difficult to engage in a large number of promotional activities to attract consumers.

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< p > this means that the core of Hongkong's a href= "//www.sjfzxm.com/news/index_c.asp" competition mode < /a > can not be copied to the mainland market, resulting in slow turnover growth.

Xu Feng thinks that the culture of every city in the mainland is different, and the consumption culture is different.

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< p > < strong > way out < /strong > < /p >

< p > < strong > combination of various formats enhanced < a href= "//www.sjfzxm.com/news/index_c.asp" > consumer experience < /a > /strong > /p >

< p > "comprehensive department store is a favorite form of business. Its shopping environment is beautiful, and its sales category is rich. It is a kind of business that you love to see."

But Liu Lu Yu said that unlike the general supermarkets in the neighbouring communities, the location of the mid sized supermarkets is in the bustling business district in order to gather the high-end passenger flow. The rental cost is very high.

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< p > in the view of Liu Lu Yu, the medium-sized supermarket must first work hard in category management.

It is understood that category management originated in the United States in the 90s of last century. After a long period of economic prosperity, the consumer market in the ushered in a recession, resulting in many commodities being unsalable.

Large supermarkets begin to take consumers as the guide and improve the sales volume through various ways such as arrangement and pricing of goods.

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"P", however, category management is not easy. Many retailers have increased sales performance of key products, accelerated inventory turnover and improved shelf utilization, but after a while, they are facing increased inventory, lower shelf utilization and slippery sales performance.

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< p > < < a href= > //www.sjfzxm.com/news/index_c.asp > > retail > /a > depends on category. This involves the problem of efficiency, that is, turnover rate of goods. The management difficulty of twenty thousand categories and fifty thousand categories is different.

Liu Lu Yu said that how to do well in category management is still a difficult problem for mid sized supermarkets.

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< p > and under the impact of online merchants, the comprehensive department store's format also needs to be adjusted.

Liu Lu Yu said that the supermarket was compressed by the combination of electronic screen and network.

At the same time, through promotional activities, customers have great attraction.

For example, consumers can make advance orders and pick up goods for second days, so they can enjoy the corresponding discount.

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< p > "supermarket to the community closer to become a new trend, community lots will become more and more valuable in the future."

Liu Lu Yu also said that in foreign countries, the Yong Wang supermarket and the community convenience store are advancing simultaneously, and two of the four convenience stores in Japan are under the wing Wang banner.

The profitability of large supermarkets is low but the strength of gathering is strong. The profitability of convenience stores is strong but the strength of customers is weak. "The combination of the two, plus the integration of electronic business, is a new way for the development of department stores."

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< p > Liu Lu Yu said that SF EXPRESS, for example, is working with convenience stores to solve the problem of the last mile.

"The last mile problem in foreign online shopping is solved in convenience stores. People take delivery instead of delivering them, but they pick them up at convenience stores."

Similarly, supermarkets can also land in the community through convenience stores to enhance their profitability and gathering power.

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< p > providing better consumption experience is also the way for comprehensive department stores to attack online merchants.

Experiential consumption is a universal pformation mode in the retail terminal market.

Xu Feng said that online shopping has the convenience of information screening, which can save costs, but can not give consumers experience.

Therefore, the middle end market can adopt a variety of formats to enhance the consumer experience.

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P, for example, many department stores have started children's amusement parks or movie theaters, and clothing retailers have started working with coffee shops to keep customers in stores.

Xu Feng said that through this combination of formats, the two can share rent and share customer resources, and the direction of operation is not conflict. It is a win-win cooperation.

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< p > in Xu Feng's view, the pformation of comprehensive department stores is inevitable, but the pformation mode is not the only one.

"The key lies in how to better adjust according to customer needs".

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