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NOVO Stores Accelerate The Enclosure Of &Nbsp; Department Stores Want To Restart The Buying System.

2011/3/7 10:06:00 146

Fashion trends in NOVO department store

With the development of the department stores in China, the malpractice of the joint mode commonly used in the industry is gradually emerging. Because of competing for brands, the profit margins of the department stores are seriously affected by the constant squeezing of their profit margins.

Faced with this dilemma, the industry generally believes that the gradual shift from the joint point to the self purchase and sale is the most important problem facing the retail industry.

Traditional department stores are worrying.

It is understood that since the 90s of last century, more and more department stores in China have shifted from the traditional proprietary mode to the "brand joint operation" mode, which is controlled by brand operators. The brands enter the mall without paying rent, but by extracting the discount points from the brand sales as the gross profit of department stores.

However, with the increasing number of department stores in China, this mode is gradually affecting the profitability of shopping malls.

One side,

Property

Rental and labor costs are getting higher and higher, and brand suppliers' ability to bid for department stores is also increasing. On the other hand, in order to attract more customers, many shopping centers take promotional activities which were formerly regarded as trump cards. Although these ultra low price promotion methods have increased passenger flow, promoted sales and accelerated the withdrawal of funds in the short term, the gross margin space of businesses has been seriously squeezed because the cost has not correspondingly decreased accordingly.

It is reported that the net profit of department stores is less than 5%.

In addition, industry experts also pointed out that the mode of joint deduction would cause serious brand and merchandise in department stores.

Homogenization

Phenomenon.

"In order to expand its popularity and market share, brands will choose as many shopping malls as possible to enhance their exposure to consumers.

Department stores will spare no effort to pursue high popularity and harmony.

Word of mouth

Brand. "

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"Buying system" Jedi counterattack

Faced with this situation, the "buyer" shopping malls that have been stuck in the cracks have ushered in the development of "spring".

The so-called "buying system", that is, the mall does not introduce the existing brand, but through the buyer team regularly composed and purchased products that are in line with their own positioning.

The industry said that in the relatively developed retail industry in the United States and Japan, the main business mode of department stores is the buyer system, which makes the pre tax profits of the shopping mall mostly exceed 35%, and the lowest is around 25%.

The reporter understands that the "buyer's" shopping malls usually exist in the format of "small theme department stores". They take the form of store in store, ranging from 1000 to 5000 square meters, and bring together the trend brands, including clothing, footwear, accessories, Bao Bao, cosmetics and many other kinds of products, and even furnishings for home furnishings.

In addition, the well-known brands I.T and CPU, Thailand retail giant Shang Tai banner, boutique department store ZEN and other buyer's retailers have also opened up shop in Beijing, Shanghai, Hangzhou and other cities.

Win by multiple brands

"In the next 5 to 10 years or even less time, the influx of international fashion brands will change the business model of domestic department stores. At that time, every department store will have distinctive brands different from other brands, and multi brand integration stores will also emerge."

Fang Renjie, President of NOVO department store, said in an interview with reporters, especially seeing the one-stop shopping space created by many brand stores. In these integrated stores, the time of guests to stay is obviously 3 times higher than that of single brand stores.

Reporters learned that in order to attract more powerful international brands, NOVO also created the "NOVO MANIA 2011 Shanghai international brand clothing exhibition". It is reported that in from March 9th to 11th this year, the exhibition will hold second sessions, and more than 150 international fashion trend brands from the world including Europe, the United States and Asia will show the freshest, most dynamic and IN display.