The "Golden Past" And "Immediate Reflection" Of Department Stores Have Four Major Trends.

Ginza Group partners' meeting was held in Zibo, Shandong. Li Ling was invited to attend the meeting and shared the theme of "department store development trend and multi-channel operation".

On the day before the speech, Mr. Li Ling wrote a paragraph on micro-blog: "there is no iteration in retail, only superposition. With the improvement of technology, we can provide consumers with more commodities, richer formats, better services, and meet the ever-changing needs."

From Hangzhou Tower to intime department store and then to the Mixc, Li Ling has his own unique view on the development of department store shopping center.

During the meeting, Li Ling talked about the current situation of department stores, and drew the importance of the multi-channel operation of department stores and the development trend of department stores in the future, and put forward a new direction for the development of department stores.

At the same time, she pointed out that the direction of brand multi-channel operation, and hope that department stores and brands can achieve win-win situation together.

Looking at the development of China's department stores, Li Ling thinks that from 1996 to 2005, the rapid development of the department store industry, the rapid growth of quantity and the fast growth of sales are the main characteristics of this period.

From 2006 to 2015, it was the ten year of the department store industry development. The performance and business philosophy of the department store also entered a period of wandering development. During this period, the department store industry entered the "unscrupulous" period for development.

From 2016 to the present, it is the moment of reflection. Especially from 2018, the industry began to rethink that "new retail" can really help department stores take off?

The development of department stores gradually entered rational development from the blind pursuit of "new retail".

In fact, with the rise of shopping centers and electricity providers, the department store industry is facing great challenges. Li Ling pointed out that today's department stores are facing four main problems: the number of shops is becoming saturated, the performance of single stores is limited, the management services are facing bottlenecks and the attractiveness of consumers is declining.

However, the good news is that the development of the department store industry is gradually returning to rationality. According to the "2018-2019 China Department Store Development Report", the total sales volume of 90 department stores included in the Chinese general merchandise business association increased by 4.2%, the total profit increased by 6.4%, and the main business profit increased 5.7%.

The department store industry in pition has begun to rebound gradually. For example, Beijing SKP, London Harold department store, Japan's Yi Dan department store and New York New York department store are still examples of the industry.

Take SKP as an example. According to the public data, Beijing SKP in 2018 was a record high of 13 billion 500 million yuan, becoming a profitable department store in China.

2019, Beijing's SKP is expected to grow more than 10% over the past 13 billion 500 million years.

With the integration of online and offline, the development of China's department store industry is rational. Li Ling believes that high-end quality, specialization, multi-channel and private brand will be the inevitable trend of future department store development.

In fact, department stores only have their own brands to truly master the right to speak. This is also the main reason why the leaders of department stores such as Wangfujing, Jin Ying and Tianhong have vigorously developed their own brands in recent years.

Self owned brand has also become one of the sales channels for expansion of department stores. However, compared with the mature system of Messi's department store, most of the domestic brands are still at the stage of "small business" and have not yet formed a climate, but in the end, there will be more choices and more channels for the future development of the department store industry.

Wholesale, retail, department stores, franchised stores, shopping centers, electricity providers, telephone, television and mail order are all channels. Why do brands need to develop in multiple channels?

Li Ling thinks the answer is very simple, suppliers are unwilling to be tied up by one channel, and they can also contact different consumers in other channels. It is foreseeable that the future channels will continue to increase.

For brands, it is natural to expand every selling channel.

UNIQLO and Starbucks are the leading brands. UNIQLO, as the core brand of Japanese fast retailing companies, was founded in 1984. The founder Ryui Masa introduced and improved the SPA (private brand professional retailer) mode.

Through planning, manufacturing and retailing as a vertical integrated business model, we reduce intermediate links, control the cost of stores effectively, and let UNIQLO stand out from many fashion brands.

From that year, a small clothing store selling Western-style clothes became an internationally famous clothing brand.

UNIQLO ranked 168th in the 2018 World Top 500 list.

Wu Pinhui, CMO of UNIQLO, summed up five words in the discussion of channels: "follow customers."

"For us, the meaning of the line is the same as offline," she pointed out.

No matter which channel can convey the value and service of a good product, it is important to experience well. "

Starbucks's success is also inseparable from the development of channels. In August 2018, Starbucks and Ali strategic cooperation, began to expand the coffee delivery business, and cooperate with hungry, set up "dedicated star delivery" service, to the "Internet + coffee" road.

At the same time, we will continue to open stores and push new products to cater to the Chinese consumer market.

Li Ling pointed out that in the case of brands unwilling to give up any sales channel, this requires department stores to think about what platforms the suppliers need and what platforms the consumers need.