Wen | White dove
Undoubtedly, "transformation" is a long-standing problem faced by traditional department stores. At the 17th China Retail Industry Annual Conference and Business Innovation Summit, executives from well-known domestic department stores such as Hanguang, Xinjiekou, Xinbai, Dongbai, Yintai and Guorainbow all mentioned the important role of cosmetics in its transformation, and at the same time combed the "pits" encountered in the transformation of department stores with their own experiences.
Cosmetics are a barometer of the performance of department stores.
According to the relevant person in charge of Beijing Hanguang Department Store, the turnover of Hanguang Department Store in 20 18 was about 3 billion yuan, of which cosmetics revenue accounted for one third of the total turnover, which was about 65,438 billion yuan. The person in charge of Joy City in Xidan, Beijing also revealed that because the consumer groups are mainly young people, cosmetics in Joy City sell better than skin care products, especially Dior's monthly performance is about 2 million yuan, followed by Estee Lauder's average monthly sales of about 1.70- 1.8 million yuan. Joy City also has a Sephora with an area of 90 square meters, with a monthly sales of about 2 million yuan.
Dior counter, second floor, Xidan Joy City, Beijing
The sales performance of cosmetics reflects the ability of department stores and shopping centers to communicate effectively with consumers, especially young consumers. Nanjing xinjiekou Department Store (hereinafter referred to as Nanjing Xinbai) is located in the southeast of Xinjiekou Square, the most prosperous section in the center of Nanjing. Since the establishment of 1952 in August, it has a development history of nearly 67 years. "Passenger flow is the lifeline of department stores." Su Jie, executive vice president of nanjing xinjiekou Department Store Co., Ltd. said that Xinbai Nanjing, the largest in Xinjiekou, achieved a revenue of 4.5 billion yuan last year, among which cosmetics and sporting goods performed very well. After changing the dynamic design, scene and brand image of the cosmetics area, the income of cosmetics increased by 70%. At the same time, the average age of Nanjing Xinbai passenger flow increased by 5.5 years, and the purchasing power increased by 1.7 times.
Su Jie.
Xinbai Square in Shijiazhuang was originally a traditional old shopping mall. Its predecessor was Shijiazhuang People's Shopping Mall, which was established in 1947. It will celebrate its 72nd birthday this year. Shijiazhuang Xinbai Plaza is located in Zhongshan Road, the core business district of Shijiazhuang, but it is the epitome of the old department stores in the third-and fourth-tier cities of China, with small size, old property structure, many floors and many gaps. Under the leadership of the new leadership, in the second half of 20 17, Shijiazhuang Xinbai Plaza began to seek transformation, from floor effect thinking to consumer thinking. On the basis of optimizing and upgrading the original strong categories, we also strive to have better dialogue and communication with the new generation of consumers in cosmetics, sports and children's categories. According to Liu Juan, general manager of Northland Xinbai Plaza, there are currently 45 cosmetic brands in Shijiazhuang Xinbai Plaza, and Chanel has also opened a third store in Shijiazhuang. Cosmetics sales increased by 50%-60%, which played an important role in strongly stimulating passenger flow and driving consumption.
In 20 17, the total retail sales of cosmetics in Fujian province is not as good as that of a shopping center in Wuhan International Plaza. Dongbai Center in Fuzhou, Fujian Province also began to transform from a traditional old department store to a commercial complex of "department store+shopping center+block" in the middle of 20 17. Aful, CEO of Dongbai Commercial Company, defined cosmetics as the first core competitive category of Dongbai Center. In 20 18, the sales volume of cosmetics in Dongbai Center was 250 million, up by 276% year-on-year. In terms of new product recruitment, in 20 18, the number of cosmetic recruitment members of Dongbai Center exceeded 80,000. According to Aful, the cosmetics sales of Dongbai Center in 20 19 are expected to reach 450 million yuan.
Aful.
Four Avoidances in the Transformation of Department Stores
Liu Changxin, chief consultant of Beijing Yibaifen Technology Co., Ltd. and former vice president and chief information officer of Wangfujing Group, believes that the three factors that affect the change in the retail era are mainly the change of customer demand, the operation of technology and the change of available resources, which are all factors that need to be considered in the transformation of department stores. In addition, all the transformations will focus on three goals, namely, efficiency, effectiveness and experience.
▍ Liu Changxing
Liu Changxin believes that the core problem that needs to be solved in the process of department store transformation is digitalization, but it is worth noting that "digitalization is only a tool, not a goal". The transformation of the department store industry is ultimately to achieve digital core operational capabilities. In product selection, we need to consider which products to choose in order to achieve a certain goal, rather than taking the products first and then considering why.
For the transformation of traditional department stores, Liu Changxin proposed four "Avoidances". First, avoid strategic and tactical problems, because top-level design is the enterprise's own resource system; Second, avoid superficial understanding of the core issues. The industry is talking about big data and labels, but its core is actually accuracy. Real accuracy depends on technical strength, and real technical strength refers to operational ability; Third, avoid technical popularization of operational problems; Fourth, avoid functional problems rather than solutions. Function is not a solution, nor is it the core of enterprise's digital management ability. "Experience may not necessarily bring increment to department stores, but no experience will definitely bring decrement."
Liu Changxin suggested that traditional retail department stores should retain their advantages in the process of transformation, and at the same time, they should intensify their exploration in three aspects: customer reach, data operation ability and operation system. "Traditional industries will definitely do a lot, because more than 80% of retail sales are generated offline, and e-commerce is also actively deploying offline." Transformation is something that the traditional department store industry must do, but one aspect that needs to be considered in the process of transformation is what will never change in the next decade, which requires strong investment. On the other hand, what can be used for technical research is endowed with technical level.
Self-management is the general trend of the department store industry
In fact, many attempts have been made in the transformation of traditional department stores, which can be classified into four categories. First of all, the department store industry intends to expand and strengthen its business sector. Take Beijing Hanguang Department Store as an example. According to the person in charge, Hanguang Department Store began to operate its own coffee shop as early as three years ago, from raw materials to procurement to store operation. At present, the store's monthly sales are18-190,000 yuan. At present, Hanguang Department Store is also laying out children's stationery and home self-operated business. The relevant person in charge of Hanguang Department Store said that "it is a trend to be self-operated now", but at present, most department stores are still in the trial stage, and the key problem lies in the lack of relevant talents and professional self-operated teams.
Hanguang department store self-operated children's stationery series
The department store industry is also interested in grafting the Internet and making good use of digitalization. The monthly sales of WeChat shopping launched by Hanguang Department Store exceeds1100,000 yuan. In addition, most department stores also set up scanning code multi-point payment. Yintai Department Store can pay more than 400,000 orders per second by using cloud POS, which not only improves the efficiency of infrastructure, but also improves the transaction throughput per minute by three times under the same equipment budget, according to Chen Xiaodong, executive director and CEO of Yintai Commercial (Group) Co., Ltd.
Chen Xiaodong.
Most shopping centers are interested in attracting tourists by improving the shopping experience, and luxury department stores in Europe and America are no exception. Helen Lambert, CEO of Lambert Lambert International Retail Consulting Company in France, believes that in terms of consumer experience, the key concepts connecting retail are lifestyle experience, emotional experience and tourism. A typical case of providing customized services is Le Bon Marché Le Ponmarché department store in Paris, which combines digital methods to customize products of related brands, and combines shopping experience with personalized fashion to provide consumers with rich experiences and personalized services.
In addition, the layout of low-tier cities and community businesses is also a good choice. According to Hou Yi, deputy general manager of Crossing Rainbow Shopping Center Co., Ltd., Liuyang Crossing Rainbow Shopping Center has shown great vitality in a fourth-tier city. In addition, the transformation of Shenzhen community department store was completed on 20 16 12, and the people managed the rainbow. With garden-like shopping space, it integrates creative market, parent-child space and garden elements, and changes the limitation that community businesses can't give full play to their advantages because of limited business area. However, Hou Yi admits that a good designer is very important to do this well.
Different perspectives