Shops Increase Their Own Brands To Fight Against E-Commerce Impact

In the United States, Japan and European countries, department stores are mainly self operated, and the comprehensive gross margin is more than 40%. In contrast, the gross profit rate of department stores in China relying on the joint operation mode is only half of that. Xiao Ying, general manager of Beijing Huaguan Trading Co., Ltd., said that last year, after the company set up a business division that separated the department store from the supermarket, the company increased the self support of goods to become a module that Huaguan Department Store focuses on. At present, Huaguan has launched a number of self operated brands, including Qiyuanduo Coffee Shop, Mimianlian Catering, Enji Jewelry, AI Luggage, etc., covering clothing , jewelry shoes Clothing, luggage, catering and many other categories.

"Huaguan adopts the dual mode of self operation and exclusive agency to avoid middlemen and gain more profit space. At the same time, self operation makes the mall more competitive in terms of price and reduces the false fire of price." Xiao Ying introduced that the first counter of the self operated gold brand "Enji Jewelry" launched by Huaguan can achieve an annual sales of 40 million yuan.

Under the homogenization dilemma of "one thousand stores and one side", since last year, department store leader Wangfujing and Dashang have also embarked on the road of private brand research and development. At that time, Liu Bing, the chairman of Wangfujing Department Store, introduced that Wangfujing Department Store would cooperate with associated brand merchants, participate in the in-depth management of goods, and strengthen the department store's voice on prices.

At the initial stage, the private brand of Wangfujing Department Store will focus on basic clothing, and will gradually expand its categories in the future, and eventually launch a private brand concept store. In fact, with the explosive growth of experiential formats in shopping centers, the self operated category of shopping malls will touch more areas. It is understood that last year, Huaguan also cooperated with local catering enterprises in Fangshan, and planned to invest 3 million yuan to launch the "rice and noodles love" catering brand. Xiao Ying said that "rice and noodles love" has been recognized by almost all customers, especially the middle-aged and elderly customers. This year, the company plans to gradually extend "rice and noodles love" to all stores except small convenience stores.

It is not only the department stores that have tasted the benefits of self support, but also the landlords Shopping Mall It also gained "substantial benefits" through self support. It is also different from its peers. China Resources Colorful City, which uses its own colorful ice house and Snoopy Paradise, also maintained a 20% increase in sales.

Although it has been only one year since its opening, China Resources Colorful City has rapidly entered a growth period compared with many malls that appeared at the same time. Zhu Lin, general manager of China Resources Colorful City, said that the colorful ice house and Snoopy Park owned by the mall have greatly driven sales and passenger flow. It is understood that the ticket sales of Wucai Ice House reached 15 million yuan last year, and Snoopy exchanged about 2000 tickets every day.

Zhu Lin said that shopping centers have more flexibility in manipulating some of their own brands, which has a significant impact on customer flow and brand building. Snoopy Theme Park does not use the form of ticket sales. Instead, consumers can get a "peanut card" to enter the park when they spend 100 yuan, which not only improves the shopping mall's ability to attract tourists, but also boosts the overall turnover of the fourth floor in the eastern area.

However, although the self-supporting model can enable enterprises to compensate for the circulation costs in the process of purchasing and selling goods, and gain higher profits, the operating costs and risks of enterprises will also increase. According to an insider, when Lotte South Korea was operating Lotte Intime Department Store project, the mall bought a large number of Korean goods by itself, but because the operation team did not know enough about Beijing consumers, a large number of goods fell into their hands, causing huge losses.

At present, only a few malls from Hong Kong, such as Lane Crawford and NOVO Department Store, have distinctive self-supporting elements. However, Lane Crawford has not yet entered the mainstream of the Beijing department store industry, and NOVO Department Store has sadly exited.