The "Two Landlords" Of The Joint Venture System In Department Stores

The rise in land prices has led to a rise in the cost of real estate development and construction, which has brought rent pressure to department stores.

However, department stores do not seem to mind too much, and hand over the cost of labor and Hydropower to the branding business.

The joint system adopted by the department stores, while pferring the risk to the brand merchants, also gives the right to the management and pricing of the goods, and eventually becomes the "two landlord" of the rent.

This laid the foreshadowing for the department store industry to encounter difficulties later.

Unlike in the west, Chinese department stores usually refer to purchasing managers who are not buying proprietary products, but more like investment managers. The main commercial activities are focused on negotiating with the stationed brands for the rate of deduction and the terms of cooperation.

Generally speaking, the brand associations take into account their sales situation, inventory backlog and sales returns, taking into account the style and quantity of the goods on the counter.

In this mode, department stores can not fully grasp the information of customers, nor are they able to grasp changes in consumer demand and make category adjustment in time.

Of course, as the "two landlord",

There is no pricing power for goods, and they are also limited in after-sales service, marketing strategy, and business layout.

For consumers, the brands in department stores are very similar. Store display and window design are not unique. The competition or marketing means among department stores are nothing more than old practices such as promotional coupons and so on.

By contrast, the advantage of self owned mode of foreign old department stores possessing commodity ownership is obvious.

For example, Messi stores in the United States have subsidiaries specializing in the design, development and marketing of self owned brands and licensed brands, which guarantees that the goods of Messi's department are different from those of their competitors.

Messi stores will also look for potential young designers all over the world to buy their unique products.

"People tend to look for the cheapest when choosing electronics or appliances, but in Messi stores, 46% of the goods are not available elsewhere."

Messi, Terry Landgren, chairman of the department store, told the media.

His pride is also due to this.

While taking

Messi department store, which is mainly engaged in its own brand operation, avoids the problem of poor communication with different brands when conducting e-commerce layout. Therefore, the "full channel" strategy can be promoted in the United States.

"Now the domestic fry is hot.

The US Department store industry has been doing it 15 years ago.

Wang Wei said.

There are also self run cases in China's department stores.

In 2002, Liaoning Xing long large family business group hit the middle street of Shenyang, which is known as the first commercial pedestrian street in China.

"Brand dealers have been told that if they want to enter a thriving family, they have to withdraw from my store."

Wang Wei said, "finally, Li Weilong, the founder of the thriving family, made his own clothes, opened his own restaurant, and introduced the entertainment and leisure facilities from the foreign market to the shopping mall.

Because the supply chain is short, the commodity price has advantages, and it is popular with the people. "

Then the story was that the department store that had originally pushed the thriving family had to give up the site.

Xing long family in Shenyang, the commercial real estate surplus, became the first successful department store shopping center.