Department Store Industry Will Face Huge Inventory Pressure.

　　 Self running perplexity

Not to operate commodities, just as the role of the two landlord, limited brand control, department store traditional joint mode of deduction has been criticized for many years. Promoting self-management and deep joint venture is the direction of many department stores in recent years, and there are many successful cases. For example, Andrew department store in Anhui has developed into a regional leading commercial company with 3 department stores, 1 shopping centers and more than 30 supermarket stores and annual sales volume of over 1 billion 300 million yuan from the original county department store. The core driving force lies in its insistence and selection of self operated roads.

The listed prospectus disclosed by Andrew recently showed that in 2013, the sales revenue of Andre Department reached 1 billion 300 million yuan, and its net profit reached 53 million 283 thousand and 400 yuan, with an average profit rate of over 4%, reaching the advanced level of the industry. Chen Xuegao, chairman of the Andre department store, said that compared with the joint mode, the proprietary mode has six advantages: Taking the initiative to control the quality; having independent pricing power, reducing intermediate links, allowing commodity prices to return to reasonable and ensuring profits; meeting the needs of consumers quickly; avoiding homogenization competition; exercising procurement teams; enabling enterprises to replicate quickly.

But department stores Self-support Easier said than done. The director and vice president of Liqun group, di Tong Wei, recently spoke at the Symposium on innovation and development of department stores organized by the Department of circulation development of the Ministry of Commerce. At present, domestic brand self-management almost started from buyout business and agency brand management, and studied and studied various aspects such as brand and brand culture, brand promotion, customer awareness and terminal follow-up in the market, and then started the second step, through the OEM, OEM and other ways to operate its own brand. At present, most brands in China are faced with three factors: purchasing buyer team, brand operation team and terminal salesperson team.

　　 Department store In addition to the need for professional human resources, the self run mode will also face enormous operational risks such as inventory pressure. According to Chen Liping, director of marketing department, School of business administration, Capital University of Economics and Business, the slogan of letting department stores return to self employment has been shouting for many years in China, but the transformation is faced with multiple obstacles and slow progress. Because of long-term inertia, it is difficult for Chinese department stores to abandon the business philosophy of "sales first". Moreover, the long-term joint operation has led to the loss of skills in department stores, making it difficult for them to get rid of their dependence on suppliers.

In addition, the types of products such as household appliances, furniture, household bedding, clothing and so on are increasing day by day, which puts forward higher requirements for self transformation of department stores.

　　 O2O It's not a panacea.

It is an indisputable fact that e-commerce has caused a great impact on traditional department stores, and its sales records are constantly refreshing. The transformation of "OCS" has become a common choice for the development of department stores in recent years. But the brutal reality is that many department stores have built up online shopping centers and pushed them slowly. Some even built them, and their operation results are also poor. The case of "touch net" failed in the department store.

In recent years, O2O has become an active exploration mode in department stores. Tmall, suning.com, Jingdong, Yintai and other enterprises are the forerunners of the O2O model. Driven by their efforts, consumers can try out clothes and try out 3C products in the physical store, and only need to scan the two-dimensional code of the products to get different amount of online shopping vouchers or promotional coupons. The Internet has become the front desk for offline transactions, and physical stores can also become the experience space for online shopping. O2O seems to have found a good transformation mode for the troubled department store industry. But the fact is that O2O is not a panacea.

Insiders believe that O2O has not yet seen the synergy effect of 1+1>2. After all, from the offline trial to the online order chain, the electricity supplier is selling functions, and for traditional brands, it is not enough to sell products on the electronic business platform at low prices. Because the online market is still a low price market, brand online price war, it is difficult to implement the same price under the line. Under the channel conflict, O2O is impossible.

Under heavy pressure, department stores have embarked on the road of transformation. O2O has tried it, and some department stores have even opened WeChat stores. New technology, new marketing mode, department store industry is constantly trying, but success depends on performance. Under the background of the economic downturn, the difficult transformation department stores must have a long road ahead if they want to see the dawn.