Chu Xiuqi: China'S Department Stores Enter The Golden Age

Chu Xiuqi, President of China Department Store Association

With the shift of the national strategy to the era of expanding domestic demand, the acceleration of urbanization has made China

"11th Five-Year" lay the foundation for practicing internal strength

According to the statistics of China's general merchandise business association, there are 200 key points in China.

Chu Xiuqi, President of the Chinese Department Store Association, said that in 2005, at the end of "fifteen", at that time, the China 100 Association followed 214 key shopping malls, with a total turnover of 282 billion 100 million yuan, a profit of 20 billion 800 million yuan, and a 20% increase in profits. In 2010, that is, at the end of 11th Five-Year, data could not be accurately counted because it was not yet in the year, but from the current sales situation, we can see that sales will increase by about 18%, and profits will also show a trend of double growth.

For several typical cases, such as Wangfujing department store, the turnover was 5 billion 700 million yuan in 2005, and the profit was 84 million 500 thousand yuan. In 2009, the turnover was 13 billion 200 million yuan, and the profit jumped to 500 million yuan.

Wu Shang Group's turnover in 2005 was 8 billion yuan, the profit was 101 million 800 thousand yuan; in 2009, the turnover was 13 billion 500 million yuan, the profit was 427 million 500 thousand yuan, and the turnover is expected to reach 17 billion yuan this year.

There are also big business groups, with a turnover of 30 billion 100 million yuan in 2005 and 70 billion 500 million yuan in 2009, which is expected to reach 83 billion yuan this year.

The Anhui Hefei department store in the central region increased greatly during the five years. In 2005, its turnover was 10 billion 500 million yuan, and its profit was 63 million 200 thousand yuan. In 2009, the turnover reached 20 billion 900 million yuan, and its profit increased to 397 million 500 thousand yuan.

From the above data, we can see that the turnover and profit of department stores during the "eleven" period are basically doubled.

In particular, Wangfujing department store's profit growth is the most significant. It has made rapid progress in the scale of development, expansion speed, management services, personnel training and so on. It has become a model unit of the national department store industry, which has a great relationship with the judgement of the market and the improvement of the management concept.

Chu Xiuqi believes that after China's entry into WTO, the department store industry is the most foreign capital industry. Although competition is becoming increasingly fierce, Chu Xiuqi believes that the challenge brought by competition is that the Chinese department store industry will change its thinking, change its mode, adjust its structure, and turn pressure into a dynamic force.

It can be said that the "11th Five-Year" period is the five year that the Chinese department store industry has laid a solid foundation and conscientiously practiced the internal strength.

"12th Five-Year" innovation and expansion

For the coming five years, with the strategy of expanding domestic demand, Chu Xiuqi believes that China's department store industry will become more and more prosperous in the following six aspects:

First, consumer brand awareness will be further enhanced.

With the continuous development of macro economy, residents' income, consumption concept and brand awareness will be greatly improved.

The market environment is good and the market is large.

Consumer groups will split into multiple levels, and the demand will become more diversified. These changes will be particularly reflected in the recognition and pursuit of high-end brands by consumers.

For example, Beijing Xinguang Tiandi, the international brand concentration degree is very high. It brings together more than 900 international brands. This year 1~10 month, the turnover reached 3 billion 700 million yuan.

Second, self pformation and upgrading of department stores will be diversified and linked.

At the same time, the department stores will be more subdivided, and the location will be more precise. There will be various commercial forms such as community department stores, fashion department stores, theme stores, shopping centers and so on.

In 80s of last century, there was only one shopping mall in big business group, with an annual turnover of only about 60000000 yuan. Today, the big business group expands its business in the whole country and achieves 80 billion turnover.

If there are no national chains and limited regional consumption capacity, how can we achieve tens of billions of turnover?

Wu Shang Group has only one shop in the past, but now there are World Trade Plaza, Wuhan square and International Plaza. The three squares have a total area of 270 thousand square meters. At present, Hankou is building the largest shopping mall in Central China, and its business area is expected to reach 500 thousand square meters in 2011.

Third, department stores will pay more attention to the development of e-commerce.

According to statistics from the Internet Information Center, the total volume of online pactions in 2005 was 8 billion yuan, and in 2009 it jumped to about 280000000000 yuan.

Among them, the sale of low-end products on the Internet has a great impact on traditional department stores, while the high-end products have little impact.

Consumers still prefer to buy or sell high-end goods, which is impossible to achieve on the Internet.

For example, the Beijing sate shopping center has a business area of 13 thousand square meters. In 2009, its sales volume reached 1 billion 370 million yuan, with a profit of 215 million 900 thousand yuan, and an astonishing performance of 100 thousand yuan per square meter.

And Beijing Cui Wei Department Store is also positioned in the high-end, with a business area of 38 thousand square meters, with a turnover of 3 billion 500 million yuan in 2009 and a flat effect of 92 thousand yuan per square meter.

Fourth, the market concentration will increase. During the "12th Five-Year" period, the department stores' Mergers and acquisitions, mergers and reorganization will intensify, that is, big fish eat small fish, fast fish eat slow fish.

Large retail groups will gradually acquire regional department stores, especially in the three or four tier cities.

The fifth is the pformation of business mode to enhance the proportion of "self run".

The mode of joint operation is just like "theater". It can only rent premises, and the business function is seriously degraded. We should gradually increase the proportion of self run, start the "buying system" into a "Theatrical Troupe", enhance the right to speak and control the brand, carry out differentiated operation, and further improve the profit margin.

Finally, we should enhance management ability and service consciousness.

Since 2006, the Department of Commerce, led by the Ministry of Commerce, and the Jinding and the department store of the China Association for the first time have assessed the retail industry as a pilot project in the department store industry.

Under the direct leadership of the Ministry of Commerce, China Association for 100 years carried out four years in 31 provinces, autonomous regions and 5 cities in the country. According to the classification standard of department stores, two batches were graded for grading.

So far, a total of 438 department stores and 109 Jinding department stores have been identified.

The national standard committee will issue the classification and assessment of the department stores. This standard will fill the blank of the general merchandise industry, and provide a reliable basis for the standardization and standardization development of the department stores.

Through four years of evaluation, the Sino 100 association found that it effectively standardized and improved the management level and operation ability of the department store enterprises, so that the standardization of the hardware and software of the department stores, the enhancement of service consciousness and the rapid improvement of the green environmental index were strengthened, thus strengthening the core competitiveness of the enterprises and getting the strong support from the Department Store colleagues.