China's department stores enter the golden age

As the national strategy shifts to an era dominated by the expansion of domestic demand, the acceleration of the urbanization process has brought the Chinese department store industry into a golden period of both challenges and opportunities. To this end, our reporter interviewed Chu Xiuqi, president of the China Department Stores Commercial Association, and asked him to talk about the achievements of the department store during the “11th Five-Year Plan” period and the plans for the next five years.

"Eleventh Five-Year Plan" Basic Foundation Exercise According to statistics from the China Department Stores Business Association, 200 key shopping malls across the country were affected by the financial crisis in 2009. The year-on-year growth in turnover was slightly lower at 15.23%, of which 173 stores had turnover. A total of 414.3 billion yuan.

Chu Xiuqi, president of the China Department Stores Commercial Association, said that in 2005, the “Tenth Five-Year Plan” was at the end. At that time, Zhongbai Xie had tracked 214 key shopping malls. Its turnover totaled 282.1 billion yuan and its profit was 20.8 billion yuan. The year-on-year increase of 20%; in 2010, the end of the “Eleventh Five-Year Plan” period, since the data could not be accurately counted since the year was not reached, it can be seen from the current sales that the increase in sales will be around 18%, and the profit It also showed a doubling growth trend.

To give a few typical cases, such as Wangfujing Department Store, in 2005 sales of 5.7 billion yuan, profits of 80.45 million yuan; 2009 turnover of 13.2 billion yuan, profits jumped to more than 500 million yuan.

Wushang Group's turnover in 2005 was 8 billion yuan, and its profit was 101.8 million yuan. In 2009, its turnover was 13.5 billion yuan, and its profit was 427.5 million yuan. It is expected that this year's turnover will reach 17 billion yuan.

There are also Dashang Group, which had a turnover of 30.10 billion yuan in 2005, and 70.5 billion in 2009, and is expected to reach 83 billion yuan this year.

The Hefei department store building in the central area of ​​Anhui Province has seen a significant increase during the five-year period. In 2005, its turnover was 10.5 billion yuan, and its profit was 643.2 million yuan. In 2009, its turnover reached 20.9 billion yuan, and its profit soared to 3.975. 100 million yuan.

From the above data, it can be seen that the turnover and profits of the department stores across the country are basically doubled. In particular, the profit growth of Wangfujing Department Store is most significant. It has made rapid progress in terms of scale of development, expansion speed, management services, personnel training, etc., and has become a model unit for the national department store industry. This is very large in comparison with market judgments and business concepts. relationship.

Chu Xiuqi believes that after China entered the WTO, the department store retail industry was the industry with the most foreign investment. Although competition has become increasingly intense, Chu Xiuqi believes that it is precisely the challenges brought about by competition that cause the Chinese department store industry to change their thinking, change the model, and adjust the structure. , Turn stress into power. It can be said that the “Eleventh Five-Year Plan” period is a five-year period in which China’s department stores have solidly laid the foundation and conscientiously exercised their strengths.

The 12th Five-Year Plan for Innovation Expansion and Upgrading For the coming five years, with the country’s strategy to expand domestic demand, Chu Xiuqi believes that it will be an era in which China’s department store industry is accumulating and will be more profound in the following six aspects. development of:

The first is that consumer brand awareness will be further enhanced. With the continuous development of the macro economy, the residents' income, consumption philosophy and brand awareness will all be greatly improved. The market environment is good and the market is large. The consumer community will split into multiple levels of differentiation, and thus the demand will be more diversified. These changes will be reflected in consumers' recognition and pursuit of high-end brands. For example, in Beijing Shin Kong Place, the concentration of international brands is very high, and more than 900 international brands are brought together. From January to October this year, the turnover reached 3.7 billion yuan.

The second is the self-transformation and upgrading of department stores, which will be diversified and chained. At the same time, the department store industry will be more subdivided and the positioning will be more accurate. There will be a variety of commercial formats such as community department stores, fashion department stores, theme department stores, and shopping centers.

Dashang Group had only one shopping mall in the 1980s and had an annual turnover of only RMB 60 million. Today, Dashang Group expands its stores nationwide and realizes a turnover of RMB 80 billion. It is practicing its strategic purpose: based in the Northeast, Radiation North China, to the country. If the national chain has not been implemented and regional spending power is limited, how can we achieve a turnover of several billions?

Wushang Group has only one shop in the past, but now it has World Trade Plaza, Wuhan Plaza, and International Plaza. The three squares have a total area of ​​270,000 square meters. At present, Hankou is building a largest shopping mall in Central China and is expected to open in 2011. The area can reach 500,000 square meters.

The third is that department stores will pay more attention to the development of e-commerce. According to the statistics of the Internet Information Center, the nation’s online transaction volume in 2005 was 8 billion yuan, and in 2009 it jumped to more than 280 billion yuan. Among them, sales of low-end products on the Internet have a great impact on traditional department stores, while high-end products have little impact. Consumers still tend to come to the mall to experience and purchase high-end products. This is not possible on the Internet.

For example, Beijing Set Mall has a business area of ​​only 13,000 square meters. In 2009, it achieved a turnover of 1.37 billion yuan and a profit of 215.9 million yuan. The amazing performance of generating 100,000 yuan per square meter has become a national department store flat. Effective first place. In addition, Beijing Cuiwei Department Store is also positioning high-end, business area of ​​38,000 square meters, in 2009 the turnover reached 3.5 billion yuan, the efficiency of 92,000 yuan per square meter.

The fourth is that the market concentration will increase. During the “12th Five-Year Plan” period, the mergers, acquisitions, mergers and reorganizations of department stores will intensify, that is, big fish eat small fish and fast fish eat slow fish. Large retail groups will gradually acquire regional department stores, especially in third and fourth-tier cities.

The fifth is the transformation of the business model to increase the proportion of self-employed. The joint venture model is like a “theatre”. It can only rent venues and seriously degrade business functions. It is necessary to gradually increase the proportion of self-employed, start “buyers” to become “theatrical troupes,” enhance the right to speak and control of brands, and implement differentiated operations. To further increase profitability.

The last is to improve management capabilities and service awareness. Since 2006, it has been assessed by the Department of Commerce’s leading Jinding and Daban Department Stores that are organized specifically by China Merchants Association, and is a pioneering pilot work for retail enterprises in the department store industry. Under the direct leadership of the Ministry of Commerce, China Baipian Association has spent four years in provincial capital cities and five cities under separate planning in 31 provinces, autonomous regions and autonomous regions nationwide. It has been divided into two batches according to the standardized standards for department store grading. jobs. So far, 438 department stores and 109 Jinding department stores have been evaluated.

The National Standards Commission will soon issue the “Classification and Evaluation of Department Stores,” which will fill the gaps in the lack of comprehensive standards for the development of department stores and provide a reliable basis for the standardization and standardization of department stores.

Through four years of assessment work, Zhongbai Xie found that this move effectively standardized and improved the management level and operating ability of department store industry companies. As a result, the department’s hardware and software standardization, service awareness, and the green environmental protection index were rapidly increased. The core competitiveness of the enterprise has been greatly supported by colleagues in the department store industry.