"Two Landlords" Are Hard To Do &Nbsp; The "Buying System" Of The Department Stores Reappears.

"We have tried for several years, and this year we need to expand the buying system."

Last week, at the 15th anniversary celebration ceremony of Wangfujing department store in Guangzhou, Du Baoxiang, vice president of Limited by Share Ltd of Beijing Wangfujing department store (Group) told reporters that the current self collection amount of Wangfujing department store has reached 200 million yuan, and the number will gradually expand.

Reporters found that with the growing homogenization of department stores, restarting the buying system is becoming a new way for Chinese department stores to seek breakthroughs.

"Two landlord" profit reduction

"A lot of department stores have similar brands. They are inferior to the Internet, and the prices are not cheap."

Miss Lee, a shopping Mademoiselle, represents to some extent the views of post-80s and post-90s on the current department stores.

And reporters in Tianhe business circle of a survey data to see, Guang Bai Zhongyi store, Tianhe City, Zheng Jia clothing brand repetition rate as high as 50%-70%.

In the early days of reform and opening up, department stores took a buying system, namely, purchasing various kinds of goods independently.

However, with the rise of hypermarkets, the department stores began to brand, and the buying system was on the decline. At present, most department stores only have their own purchasing parts in supermarkets, while most department stores adopt the profit mode of "joint point deduction", commonly known as the "two landlord".

That is to say, department stores do not charge suppliers rent. After the sale is completed, the Commission will be collected according to the agreed rate of deduction in advance. Some department stores will also agree with the suppliers to guarantee the sales volume, so as to ensure that the commission they receive has a lower limit.

The department store has no substitute for property rights because of its strong substitutability, and its profits have begun to decline.

Sun Xiong, President of Guangdong chain operation association, said that in the US, Europe and other regions, the total gross profit margin of department stores such as Martha's department store can reach more than 40%, while the gross profit margin of department stores in the first tier cities has dropped to about 20% in China.

The dilemma of "buying system"

Competition in the same industry

Du Baoxiang admitted that in order to increase profitability, as the largest chain store in China, Wangfujing department store began to buy the system from a few years ago. Now it is mainly in the main stores, such as 6 stores in Beijing.

"The commodities we purchase mainly include food, ornaments, etc.

However, due to the lack of long-term operation, it is still a bottleneck for the general merchandise industry to find buyers. At the same time, the size of the buying department is very high for the department store industry, and there are not many companies that have large-scale development in China's department stores.

At present, we can only break through products such as home products, small appliances, sporting goods and so on.

Xie Shiping, chairman of the US East department store, said that a comprehensive restart of the buying system in China's department stores is a direction and may not go too fast.