Hidden Problems: The Three Major Suspense Of China'S Department Store Industry

"China is right.

Suspense 1: will online stores replace department stores?

In recent years, Jingdong, Taobao, new egg, Yi Xun and other online stores have risen rapidly, and Suning, Gome, Bailian and other retail giants have also accelerated the establishment of their own city, which is hidden in the heat wave of electronic mall.

Yesterday, Lining (column) sporting goods company president Zhang Zhiyong "blow the bullet": now all the electronic mall is a loss, such burning money "buy traffic" approach can not be sustained.

Instead, traditional commercial enterprises can not only keep the advantages of physical stores, but also bring the characteristics of e-commerce into full play.

As China's largest retail group, in recent years, Bailian Group has also increased its investment in electronic mall, but they are also at a loss.

Hu Jian, Minister of operations management department of Bailian Group, said that at present, except for capital operation and IPO, electronic mall can not get rid of the loss situation.

He believes that online sales need to have a high degree of professionalism, brand awareness is a prerequisite.

Therefore, the entity stores with abundant and personalized characteristics are still hard to be replaced by online stores at the present stage, but the sale of standardized products such as electronic consumer goods and parts such as shirts and T-shirts may be expanded online.

Bruno, chief executive of German luxury goods giant ESCADA, disclosed that 1/3 of their sales now come from the Internet, but he thinks that in the next 3-4 years, it will probably double.

Suspense two: Lewis turning point forced business model innovation?

The cost of labor has risen sharply, and the "Lewis turning point" has come to the end.

Zhang Zhiyong disclosed that over the past two years, the compound cost of the brand distribution enterprises has risen by more than 25%, and the labor cost of the upstream suppliers has also risen by 10%-15%. Under such circumstances, the existing business mode is bound to change.

One is to maintain the status quo and to compress the value chain; the other is the innovation of business mode and commodity itself.

These will undoubtedly lead to a new round of "shuffle" in department stores, and the change of manufacturing cost will make the innovation of business mode inevitable.

Whether the rapid rise of labor costs in China will lead manufacturers to search for cheap labor around them? Zhang Zhiyong thinks, partly, but overall, the supply of labor in China is still very large, especially in the central and western regions. Manufacturing enterprises are moving to these areas. In addition, the efficiency of Chinese labor force is still high, so the basic pattern of manufacturing industry will remain unchanged, but the cost of international procurement will inevitably rise.

The innovation of business mode will also accelerate.

Suspense three: luxury market keeps growing at a high speed?

Now, in the major retail enterprises, luxury stores and monopoly cabinets are huge "increments". Many large department stores offer the "golden treasure" to the luxury "big guys". Louis Weedon, Gucci, Hermes, Cartire and so on are all "signs" attracting high-end customers and upgrading grades.

It is no wonder that last year, as the world's largest luxury consumer country, its luxury sales increased by only 6%, while China achieved a stunning 30%, so the world's luxury magnates used 1/3 of the new investment in the Chinese market.

Bruno, chief executive of ESCADA, believes that in 2015, China will become the second largest luxury market in the world.

He expects Asian luxury sales to grow by 15% this year, while China will reach 25%.

It is understood that the luxury market has become a huge "cake" worth 1 trillion euros. Jewelry, watches, perfume, clothing, leather goods and so on are the main contents of luxury goods.

Bruno said that the important "gene" of luxury goods is the rich history, culture and fine manufacturing techniques. Neither of them is lacking in China. Therefore, after the cultivation, luxury goods will also rise in the future.