How To Seek Pformation Under The Temptation Of Electric Business

Under the impact of the tide of Internet shopping, China's traditional department stores are at the crossroads of forced pformation and development in the face of many unfavorable factors such as rent, labor costs and the backward management system.

Among many factors leading to the decline of department stores, the impact of e-commerce on traditional department stores is the first to bear the brunt.

According to the data released by the China Electronic Commerce Research Center, the scale of China's online retail market in 2013 amounted to 18851 billion yuan, accounting for 8.04% of the total retail sales of consumer goods in the whole society.

"The department store sales decline is larger than the category that is the fastest growing category of online shopping, such as household appliances, IT products, clothing and so on." Wang Yuanyuan, an analyst at letter securities business department store, said that with the rise of consumption patterns such as e-commerce, the market share of traditional department stores is being gradually eroded.

The all-weather, low cost and full coverage advantage of the electricity supplier business has been developing rapidly with the solution of the problem of offline distribution and online payment, which has brought a strong challenge to the department store industry.

Industry experts pointed out that for now, China's traditional department stores to adapt to the electricity supplier competition is the effective law is its own electricity supplier.

According to NetEase finance, almost all large department stores have chosen to embrace the Internet and explore the O2O mode.

Take Yintai department as an example, this is currently the largest business group in China. It began to try the mode of online store integration a few years ago. This year, it is linked to the Alibaba group.

Another big department store in China, Wangfujing department store, announced O2O strategic cooperation with WeChat in February this year.

CB Richard Ellis told NetEase finance that if a department store's O2O strategy is successful, department stores can build online shopping platforms while satisfying consumers' online browsing, offline experience and online ordering of "package" purchases, locking consumers into a seamless sales closed loop.

But the reality is also brutal. The attempt of electronic commerce is at least for the time being, and can not quickly rescue the department store industry.

According to the report of China chain operation association, in 2012, 62 of the top 100 chain enterprises launched online retail business, with total sales less than 35 billion yuan, and 60% of the enterprises had less than 5 million yuan of network sales.

From the daily average orders and operating single products, 79% of the enterprises average daily orders less than 500, the number of single products is also less, 71% of the enterprises in the number of single products is less than 3000, of which 42% of the single enterprise number is less than 1000.

Small scale and low visit directly result in

The volume is also low, which makes the department store online store operation situation is not optimistic.

Liu Jianxiu, senior adviser to CIC consultants, said

In China, Tmall, Jingdong and other places have been relatively stable, and the number of visits is relatively large. While the e-commerce websites such as Wangfujing have little influence and short time, the amount of visits is small. For the electricity providers, the small amount of visits is a difficult problem to break through.

For many

Lu Zhenwang, a well-known business observer, believes that at present, there is no real mature department store O2O benchmarking company, and there is no mature case in foreign countries to learn from it. The O2O pformation of traditional department stores is still in the exploratory stage.