Traditional department stores have a clear customer group positioning, and the basis for dividing positioning is mainly income and class. Therefore, the positioning of high-end department stores, high-end department stores and low-end department stores is basically consistent with the price positioning of commodity categories in department stores. Therefore, the unit price of customers and the occupancy rate of bags are one of the important indicators to measure the performance of department stores, and shopping centers depend on these indicators to different degrees.

The customer group positioning of shopping centers is measured by many factors, such as age, preferences, consumer psychology, consumer behavior and even social development trends. Grasping the unique or potential consumption psychology of a consumer group and gathering brand tenants with the same positioning and attributes are things that shopping centers need to consider, but relying solely on income and a certain class is not enough to successfully operate a shopping center. Therefore, the primary difference between department stores and shopping centers is the different positioning of customer groups.

Second, the retail function is different.

Functionalization of retail is the inevitable trend of the development of traditional retail industry, and different retail formats have different retail functions. Traditional department stores have always been dominated by high-margin categories such as clothing, shoes, hats, bags, cosmetics and skin care products, and it has always been the practice of traditional department stores to collect goods of the same category for related sales. Shopping centers are obviously different from department stores in terms of tenant composition. Shopping centers operate shops and shops operate consumers, so shopping centers pay more attention to what brands of shops and goods they operate. Shopping centers can organically combine shopping, catering, leisure, entertainment and other different formats to maximize economies of scale, so the classification of shops in shopping centers is completely different from that of department stores.

The fundamental difference is that department stores are divided according to the categories of goods provided by brands, while shopping centers are divided according to the needs of consumers. In short, department stores are divided according to the supply side, and shopping centers are divided according to the demand side. The retail function determined according to the demand market is one of the key factors for the greater development of shopping centers in China.

Third, the role of commercial space is different.

Whether it is a department store or a shopping center, offline physical commerce constitutes a space. What is the function of this commercial space? Trading places have appeared since the beginning of human trading behavior. From ancient markets to today's shopping malls, retail space has been changing. As an important retail space in traditional industries, department stores have established a space that can meet the shopping needs and desires of mass consumers and provide various commodities. Here, consumers can choose the right goods they need and take them home. Therefore, the space of department stores is more for goods, the display space of goods and the shopping space of consumers.

The creation of shopping center space is the primary problem of shopping center development. First of all, shopping centers are business premises. What it needs is that consumers walk into this space and can stay in this space for a long time. The basis for consumers to stay for a long time is to have a better space experience. So shopping centers should pay more attention to space design than department stores. The starting point of shopping center space design is to operate their own space from the perspective of consumers. In order to attract and retain consumers, shopping centers should strive to manage their own space.

Fourth, the operation mode is different.

The mode of operation is the essential difference between department stores and shopping centers. Unified management and unified management are the summary of the joint venture and self-operated mode of department stores, while unified management and decentralized management are the summary of the rental mode of shopping centers. In fact, in terms of management, both department stores and shopping centers need unified management, but in the process of operation, due to different roles, the objects and degrees of management are also different. The core difference between the two is the mode of operation. The joint deduction of department stores gives them some autonomy in pricing and cash flow, while the rental form of shopping centers gives brand stores more room to operate.

Therefore, as a result of social division of labor, retail brands pay more attention to managing their own brand values and consumers, while shopping centers operate consumer groups radiated by brand stores and all brand stores, and the responsibility of shopping centers is even more important. Different operation modes determine the primary problem faced by the department store transformation shopping center. Only by building a shopping center on the basis of real understanding can we operate a successful shopping space.

Fifth, channels have different functions.

For retail brands, whether international or domestic, the choice of channels is the primary strategic issue of brand development. As the main channels of offline retail, department stores and shopping centers are the only way for the development of domestic local brands. By the end of 20 13, the number of shopping centers in China has reached 1729, which is undoubtedly an important channel for retail brands to choose in the future. In the past ten years, the number of shopping centers has been increasing, and the number is one of the criteria for measuring channels, so more and more domestic retail brands have begun to pay attention to shopping center channels.

All along, department stores are the key channels for the expansion of domestic retail brands. The channel function of department stores is embodied in their own brand value, sales promotion, joint venture deduction to resist risks, and expansion with chain department stores. However, the channel function of shopping centers is different from that of department stores, which provides more passengers, larger brand design space, more added value of similar brand tenants, better experience environment and freer management mode. The added value of these brands will get more with the more mature operation of shopping centers, which is also the reason why successful shopping centers will attract more brands to settle in. In addition, with the development of the shopping center's own brand chain, brand tenants will have more expansion opportunities.

References:

Baidu encyclopedia? shopping center

References:

Baidu encyclopedia? Department store market