The Profit Model Of Department Stores Is Proportional To The Scale.

The debate and Discussion on the self operation mode and the joint operation mode of the Department Store P have been going on. At present, the vast majority of department stores in China are mainly based on the joint venture mode. The main reason is that the scale of the enterprises is small, and the profit of the self operated mode is positively proportional to the scale.

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At present, in the United States, Japan and Europe, department stores have a higher proportion of self employment, and the self rating rate of some of the most famous department stores in the United States is even as high as 60% to 70%.

According to statistics, in the United States, Europe and other parts of the department store, the gross profit margin of the department stores can reach more than 40%, while the gross profit margin of department stores in the cities such as Beijing, Shanghai and Shenzhen has dropped to about 20%, which is not enough to maintain the continuous normal development of enterprises.

"Secondly, with the continuous M & A and expansion of the department stores, the scale of enterprises will also grow larger and larger, and the self run mode will eventually replace the existing joint mode.

Therefore, the emergence of self run mode is only a matter of time.

Insiders said.

In the fierce competition between the department store industry and the whole retail industry, the department store industry can no longer rely on differential competitive strategy to survive and develop. It should adopt the overall cost leadership, differentiated competition and private brand strategy. This competitive strategy takes into account not only the differentiated demand of customers, but also the attraction and retention of customers at lower cost.

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< p > the focus of self run mode is private brand.

Department stores can accurately grasp the psychological characteristics of customers and design products that sell well, which means that commercial enterprises control the production, control prices and grasp the initiative of commodity production and operation.

At the same time, the development of private brand can reduce the intermediary costs and increase the added value of goods, and obtain excess profits.

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< p > industry analysis shows that China's department stores will grow stronger and stronger along with the acceleration of urbanization. This is not only reflected in the substantial increase in the number of retail stores, but also in the simultaneous growth of sales and profits. It is necessary to identify their competitive advantages and adopt corresponding strategies and Strategies to enlarge and enhance their core competitiveness, which is the key to the growth of China's department stores.

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