Traditional Department Stores Were Encircled By Electricity Providers To Seek Survival In Shanghai Old Trading Circle.

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The department store of "P" is facing unprecedented challenges.

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"P", "economic reference daily" reporter recently interviewed Nanjing West Road, Shanghai, "a" href= "http://sjfzxm.com/news/index_s.asp" > business circle < /a > and so on, and realized that the growth of the traditional department store industry slowed down obviously even negative growth, such as the blowout of electric business, the rise of cross border shopping, the increase of rents and the diversion of regions.

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Under the pressure of P, the favorable factors and effective ideas of entity business pformation are becoming clearer. New formats and new models of O2O (online to offline), business travel and text linkage are gradually taking shape.

The "turn around" of the old business circle has also put forward a new proposition for the government's own reform.

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< p > < strong > downtown commercial flagship deceleration < /strong > < /p >

< p > in recent years, the commercial growth rate of Shanghai central urban area has slowed down obviously, and the traditional department store industry, which takes the display and sale of goods as its main business mode, has been greatly affected.

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< p > statistical data provided by Shanghai Jingan District Business Council show that in 2013, the total sales volume of the region reached 162 billion 126 million yuan, up 5.26% from the same period last year, an increase of 4.75 percentage points from the previous year.

From the perspective of enterprises, sales of convenience stores increased by 7.8% over the past 40 years, while department stores grew by 0.1%. Professional stores and shopping centers declined to varying degrees.

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< p > from the monthly performance, total sales volume showed a gradual weakening trend last year. The highest growth rate reached 19.6% in the year 1 to February, and dropped rapidly to -3.1% in March. The growth rate fluctuated from August to December, down to -8.7% in December.

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Nanjing West Road commercial street in Jingan District, P, is 1.8 kilometers long and has become an important commercial street in Shanghai since the 40s of last century.

Since the reform and opening up, the commercial facilities in Nanjing West Road, Jingan have been continuously expanded through land leasing, commercial facilities renovation and expansion, and new construction, so as to enhance the commercial level and form a number of landmark buildings and high-grade commercial business buildings such as Jiu Guang Department store, Mei Long Town Square, CITIC Plaza, Hang Lung Plaza and Vietnam Plaza.

At present, Nanjing West Road is Shanghai's most international brand gathering area, and also an important entity platform for Shanghai to build an international trade center.

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< p > but statistics show that sales of Nanjing West Road business circle decreased by 3.3% year-on-year, and the sales of the core businesses such as mealong town square, < a href= "http://sjfzxm.com/news/index_s.asp" > Yi Dan Dan department store "/a", CITIC Plaza, Jinying international shopping center and so on, all showed varying degrees of sales decline.

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Lu Hongqing, deputy general manager of Nanjing West Road Mekong Town Plaza Limited and vice president of the Federation of Commerce in Nanjing West Road, said that the sales volume of shopping malls increased from 20% to 30% every year, but dropped to 10% from 2006. The growth rate dropped to 2% in 2012, down 15% last year, and the Spring Festival fell by 20% this year. P

He believes that 2014 is a big challenge.

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< p > a statistical data from Huangpu District statistical bureau shows that from 1 to October last year, the sales revenue of two commercial streets and department stores in Nanjing East Road and Huaihai middle road decreased by 4.7% compared with the same period last year.

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< p > the popularity of many shopping malls has dropped significantly.

Jinying International Shopping Center, a well-known women's clothing salesperson told the economic reference Daily reporter, the original sales of about 350 thousand yuan a month, now dropped to about 250 thousand yuan, mainly rely on V IP customers to maintain sales.

In the same time, sales volume declined and passenger source also changed greatly.

The sales staff said that the proportion of foreign customers and local customers in 2012 was about 3:7, and now it is 6:4, and local customers have become the mainstream.

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< p > < strong > the traditional department store industry is faced with four major divergages < /strong > < /p >

< p > behind the slowdown or even negative growth of the traditional department stores in the old business district is the obvious pressure of many factors on the traditional format business.

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"P" "economic reference daily" reporter learned that the old business district traditional department store industry is facing four share diversion pressure.

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< p > one is the diversion of electric business.

Nanjing West Road business district is mainly located in high-end consumption such as luxury goods, international brands and domestic first-line brands. The impact of electricity providers is less than that of general merchandise stores and hypermarkets. However, some of the shopping center's "a href=" http://sjfzxm.com/news/index_s.asp "clothing shoes and hats" /a, cosmetics and other merchandise sales are inevitably shunted by e-commerce.

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< p > Li Shanghua, Secretary General of the Jingan District Federation of Commerce, said that the annual "6. 18", "11. 11", "12 12" and several other e-commerce marketing banquet will greatly touch the mainstream business nerves, and the physical retail market share is obviously divided.

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< p > two is the diversion of overseas shopping.

According to the data released by the Institute of wealth and quality research, China Luxury Market Research Institute, in 2013, the total consumption of luxury goods in China amounted to US $102 billion, of which domestic consumption was US $28 billion, an increase of 3%, while overseas consumption increased further to US $74 billion.

Some people in the industry believe that the operation of cross-border e-commerce platform in Shanghai free trade area has also had a significant impact on some high-end brand counter sales.

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< p > three is the division of homogeneous competition area.

Over the past year, a number of business circles in Shanghai have entered a new round of opening shops. The large shopping centers such as moon star port, K 11, LAC, iapm, and the national gold center have been opened in succession, with similar layout. Some luxury brands such as LV have basically been laid out in various business circles, forming direct competition for some old business circles.

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The entry into the market of "P > high-end commercial projects is making the city business" Pan centric ".

For example, statistics from DTZ showed that from 2000 to the first half of 2013, the total supply of Shanghai's retail real estate was 10 million 912 thousand square meters, but the supply in the second half of 2013 was close to 1/4 of Shanghai's 13 and a half years of accumulated supply.

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< p > Li Shanghua, Secretary General of Jingan District commercial Confederation, analyzed that the layout and brand of these commercial facilities are highly similar. The basic layout is jewelry, cosmetics and footwear on the first floor. Women's clothing on the two or three floor, men's clothing on the four or five floor, catering, film and television, entertainment facilities on the five floor, and so on, homogenization competition is inevitable.

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< p > four is the diversion of regional purchasing power.

For example, the two or three tier cities in Yangtze River Delta have been upgrading in recent years, leaving part of the high-end shopping demand in the local area.

Lu Hongqing said that before the weekend, customers from mealong Town Square shopping in Zhejiang and Jiangsu accounted for two or three of the total.

At the luxury shopping mall Zegna, Zhejiang customers once bought 12 suits, so Zegna had to pfer the goods in Shanghai. "Now, the source of tourists from Jiangsu and Zhejiang has been reduced, or even hardly seen."

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While P sales were low, the rent of shops remained high for many years.

The Shanghai retail market report released last year by the high latitude world shows that the rents in Nanjing West Road business circle reached 2350 yuan per square meter per month, up 7.3% over the same period last year.

The annual rigid rise of rents has made business pressure on businesses continue to increase, and the profit margins of operators such as catering, leisure and other formats continue to be squeezed.

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< p > < strong > "growth and release period" implies Transformation Opportunity < /strong > /p >

< p > in the industry view, the slowdown is not equal to the slowdown of development. Business circle upgrading, shopping malls adjustment, mode innovation, brand introduction and so on are all bright spots and opportunities.

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< p > Li Shanghua believes that in recent years, the growth of Commerce and circulation and consumption in Shanghai has slowed down, which has both the external impact of macroeconomic environment and the adjustment and pformation of urban business.

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< p > the director of Jingan District business affairs committee, Zhu Yai, said that the problems such as the weakening of location advantage, the weakening of radiation capability and the homogenization of competition in the central city business district are both challenges and opportunities. The promotion of the commercial industry from the "factor driven" extension to the "innovation driven" connotation is to develop new formats, new highlights and new features in combination with its own advantages, so as to create the unique advantages that can not be duplicated and irreplaceable.

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< p > some industry insiders believe that the growth period is also a new round of optimization and adjustment period of the central city business circle.

For example, the Kerry Center of the Nanjing West Road business circle opened last year, besides shopping malls, has also gathered various kinds of quality life experience experiential services, including interactive lifestyle boutiques, Ole boutique supermarkets, Broadway New Concept cinemas, and so on.

Huang Ning, assistant general manager of Kerry Center, said that Kerry is no longer a single shop but a mature commercial complex.

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< p > in addition, the new business mode based on new technology has been running.

At present, Jingan District has launched the first mobile payment demonstration block in China, and several joint units have launched the mobile phone mobile payment version of the "Jingan white collar card". The cardholders can pay for the "white-collar lunch" and the convenience and privilege of shopping and consumption through mobile phones.

Jingan District has also launched diversified mobile Internet services such as O2O application under the "online ordering line" to expand more shopping malls, business units and other special application environments.

In the future, the white-collar workers in Jingan District can also finish the convenient functions of fast shopping, access control and attendance.

Finally, the Nanjing West Road business circle will be completely moved to the mobile Internet through 3D reality technology, so as to effectively integrate business information and user needs.

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P > the same, according to the introduction, before the end of this year, consumers walk on the "two street" of Nanjing East Road and Huaihai middle road. As long as through the smart phone, we can connect the commercial block w IFI to understand the "two street" parking, catering, entertainment, leisure, shopping, marketing and other information anytime and anywhere, without obstacles to realize the interactive experience service between the stores and the stores.

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In the near future, the "two streets" will share a WiFi signal. The P Street will be integrated into the commercial street, the shop and the external Internet.

Within the coverage area of W IFI, consumers can only swim once outside the "two street" store to achieve seamless connection only once.

Businesses can also use big data and other analytical tools to collect consumer information, adjust and improve online and offline services.

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< p > Zhuyi said that leveraging O2O to package the entire business circle can effectively expand the radiation area and development platform of the business circle, facilitate the implementation of precision marketing, and also reduce the impact of online shopping and achieve smooth pfer and reasonable distribution from offline to online.

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< p > Huangpu District's latest plan to comply with the trend of e-commerce development and speed up the three year plan of "two street" business structure adjustment put forward that there will be three new directions in the adjustment of Nanjing East Road and Huaihai West Road: from "meeting demand" to "creating demand"; pforming from "brand oriented" to "mode oriented"; and from "static positioning" to "dynamic guidance".

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< p > according to the plan, the pformation of the "two street" will be aimed at the world-class commercial streets such as New York Fifth Avenue, London Oxford street, Paris Champs Elysees and Tokyo Ginza.

According to the current "two street" business structure adjustment key projects, the new "mode" includes buying department stores, comprehensive experience shopping centers, free trade area business, full channel marketing, special department stores, integrated commercial blocks, flagship concept stores, top flagship stores, etc.

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< p > < strong > "business travel" linkage to explore breakout path < /strong > < /p >

< p > in the exploration of many business circles in the central city of Shanghai, the mode of "business (industry) tourism (Tourism)" (linkage) has attracted considerable attention.

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< p > on the linkage of "commerce and tourism", successful cases of some famous commercial streets in the world can be used for reference.

For example, the Fifth Avenue in New York, USA, has super large department stores and the world's top jewelry, clothing and cosmetics brand shops, while many museums along the road create a profound cultural and historical heritage for the commercial street. Fifth Avenue also has the name of "Museum Street".

In addition, the Champs Elysees street in Paris is crowded with businesses, including more than 50 cinemas and movie distribution companies and more than 30 magazines.

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< p > take the exploration of Nanjing West Road business circle as an example.

In terms of its own conditions, in addition to high-end department stores and shopping centers, in the tourism resources, the business circle has gathered many high star Gaestgiveriet Hotel; in terms of cultural resources, including the excellent historical buildings such as Jingan Temple, cultural units represented by Shanghai media, Wen Xin press, lexicographic publishing house and Translation Publishing House, and the "modern drama Valley" composed of classical theatres such as Meggie, Yihai and baemen.

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< p > Jingan has already established some effective practices such as "shopping and sending tickets to play", "golden autumn City Tour" and "international shopping Carnival" in exploring the linkage mechanism of "business travel".

For example, in the fourth quarter of last year, the "shopping and sending tickets" covered the high-end shopping malls such as Mei Long Town Square, CITIC Pacific, Rui department store, and restaurant brands such as the hotels and merchants of Starbucks and Shanghai, and consumers could get two tickets for the drama tickets when they reached a certain standard. The play was "P.S I love you" on the mall theater.

Statistics show that this activity has significantly promoted the traffic volume of businesses and theaters.

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Under the guidance of the business department, Ruo department store held three weeks of French art performances in the outdoor plaza during the Shanghai Shopping Festival last year, and held a French food reception for consumers. P

"The linkage of business travel and literature not only brings more passenger flow to the mall, but also achieves the linkage with other businesses." physical effects "turn into" chemical effects ".

Li Jing, deputy director of the planning department of Rui department store, said.

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< p > < strong > promote the pformation of the "government examination" < /strong > /p >

< p > how to adapt to the new trend of the market and meet the new needs of enterprises need further thinking and exploration by the government departments.

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< p > the severe situation facing the traditional department stores and the positive trend of pformation and development have raised new subjects for the government's own reform and public services.

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< p > industry suggests that we should strategically strengthen the planning and policy formulation for the development of traditional commerce under the new situation, make overall consideration of the functions and formats of business circles, so as to avoid the traditional business being reduced to "real estate economy" or to form homogenization competition. Secondly, we should further strengthen the "soft environment" construction of business corridors, parking spaces, wireless networks, and social integrity.

Third, speed up our own reform, and untie the enterprises in a timely manner.

Some market leaders told the economic reference daily that the renovation of shopping malls and the opening of new businesses often involve the examination and approval of construction, health, food and drug administration, quality inspection and other departments. "The market situation is not waiting for others. I hope that the government departments can further simplify the process and speed up the examination and approval."

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The practice and deepening of the innovative thinking of "P >" business travel "linkage also depends on the realization of" role change "by the government departments through comprehensive deepening reform, so as to fully stimulate the market potential.

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The integration and sharing of resources still lack a long-term mechanism, and all government departments should develop and build in their respective areas without forming a system and scale. The overall development and management of resources are still restricted. Secondly, the promotion and dissemination of "business travel" is lack of a unified platform, which leads to the difficulty of showing the new characteristics of the commercial circle under the background of the homogenization development of the central city, and the lack of application in the new media. This is not conducive to the expansion of the brand influence and competitiveness of the regional commercial tourism brand. Thirdly, the sources of input in the construction of "commercial tourism" are relatively single, and the scale needs to be expanded. < p > for Nanjing West Road business circle's "business travel" linkage mechanism, Shanghai Shang Dao Management Consulting Co., Ltd. has done some research and found that there are three problems: first, many "business travel articles".

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< p > "in the face of the new situation faced by traditional businesses, what our government departments can do is really a question to consider."

According to Zhu Yi, facing the market pressure, enterprises themselves are more sensitive and more active than the government. The marginal benefits of government support such as tax support and capital subsidies are obviously weakened.

It is necessary to deal with the relationship between the government and the market and play the role of the government better. This is an important test of the new situation to the grass-roots business departments.

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< p > "I hope the government can build a fixed platform, organize more business linkage, carry out thematic packaging and promotion" in the future, and hope that there will be special social organizations or enterprises to undertake the implementation and operation of the linkage between business and tourism.

The leaders of many shopping malls in Nanjing West Road business circle are looking forward to the linkage of "business travel".

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< p > Xia Liuwei, general manager of Shang Dao management consulting, suggested that the operation mode of "business travel" linkage platform should be changed from the government leading to the enterprise leading, and the government should set up a multidisciplinary promotion mechanism and institution to undertake the work of coordination among departments, the support of policy funds and communication forces, and the evaluation and decision-making of project activities.

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