The Garment Industry's Return To The Buying System Is Bumpy.

While Lane Crawford accelerates the expansion of the mainland, NOVO fashion department stores, famous brands I.T and CPU, and Thailand Retail ZEN, etc. Buying system Retailers have also accelerated the pace of opening in Beijing, Shanghai, Hangzhou and other cities. Some experts said that although the buying and selling of shopping malls one after another may bring an impact on the current mode of buying and selling joint stock in mainland businesses, there is still a long way to go before we want to become a mainstream market.

After 6 years of withdrawal from Shanghai, it has reopened the mainland's expanding territory because of the popularity of the "buying system" in Hongkong. From the beginning of this year, it will open three new chain stores in Shanghai, Beijing and Chengdu.

Recently, it has been reported that Shanghai Huaihailu Road times square has begun to redecorate. It is reported that this dressing is to greet a distinguished guest, and this guest is Lian Cai Fu. Reporters learned that, once again back to Huaihailu Road Times Square, Lian Carver's business area will expand from 6 square meters to nearly 20000 square meters 2000 years ago. Meanwhile, the Shanghai Times Square store will become the flagship store in the mainland.

　 Lane Crawford's retreat and advance

As a "fashion godmother", lac Crawford's position in Hongkong should not be underestimated. This is also closely related to its "buying system". Lian Carver's business model is that every year, professional buyers buy designer products around the world, sort them out and store them in stores. Lane Crawford set up a central shopping center to provide services for various stores. At the same time, each store supervisor will participate in the purchase process of the central purchasing mobile phone. In this mode, the display in department stores is not based on brand, but in different styles.

In 2000, there was a 160 year old Hongkong high-end luxury department store in Shanghai. In 2002, it went up to Harbin, and went down to Hangzhou to build a store in 2004. However, around 2006, he continued to close the three stores.

In 2007, after a round of doubts about the "buyer mode" in mainland China, LC finally failed to abandon the huge market in the mainland and chose to settle in Financial Street shopping center in Beijing. Lian Crawford insiders revealed that the annual performance of Financial Street shopping center in Beijing exceeded expectations. This store is a wholly owned direct camp of lac. Although the scale of its stores is huge, there is no thin profit, which is very rare in the mainland.

It is reported that the background of lconford department store is the Bao Yugang family of the Hongkong ship king. The Kowloon warehouse group of the family has provided strong support for Lian Kai Fu to launch the mainland market. The property of Shanghai Huaihailu Road Times Square belongs to the Kowloon warehouse group. "The potential for consumption in the mainland market will not make it easy for him to give up." The Department Store reporters told reporters that "mainland China's expansion is more about giving investors an account."

For the withdrawal of Lac Crawford in the past, insiders believed that the 3 shops that were closed in the mainland were franchised, rather than wholly owned by lac. Therefore, the ultimate reason for its closure is the poor performance of the franchise mode. The controversial issue of the buyer system in the industry should not be the main reason for its closure.

In addition, the experts analyzed that the biggest problem that lac Crawford lost in the mainland was that the commodities he bought were too advanced. "Lian Kai Fu's main brand is the European two or three line brand, this kind of brand belongs to the minority brand, in the inland knowledge rate is very low." The above department stores pointed out that the price of such brands is similar to luxury goods. "At present, the mainland consumer market is still in the LOGO stage. Too low-key European two or three line brand is not in line with the trend of mass consumption in the mainland." In addition, it will buy the two or three line brand consumer group, which is often sold in Europe and Hongkong, and the two or three line brands in Hongkong and Europe are far lower than those in the mainland.

The popularity of "buying system"

It is worth mentioning that, while Lane Crawford accelerates the expansion of the mainland, NOVO fashion department stores, well-known brands I.T and CPU, Thailand retail giant Shang Tai's boutique department store ZEN and other buyers have also speeded up shop in Beijing, Shanghai, Hangzhou and other cities.

In fact, in the United States and Japan, where the retail industry is relatively developed, the main business mode of department stores is the buyer system, which makes the pre tax profits of the shopping malls mostly exceed 35%, and the lowest is around 25%. At present, the department stores in China mainly adopt joint business models, which are managed by agents and charged by shopping malls.

However, while the joint venture mode is reducing the risk of business, the profit margin of the market is further diluted due to the increasing power of the agent's discourse and the increasing price war. Jin Yuhua, a senior industry expert, believes that the decline in the level of profit has led to the development of many department stores that have taken joint mode.

If the buyer team and supplier channel have a good grasp, the difference will be well reflected in the goods, consumers will feel more characteristic. But the buying system needs the market itself to be responsible for the sale of goods, and the goods that are not well sold can not be returned to the incoming manufacturers. The risk of operation is bigger, so that we can not hesitate to go forward.

Some experts also say that although the buying and selling of shopping malls can open up a revolution in the domestic business mode, there is still a long way to go for buyers to become the mainstream of the market. Not only that, the buying system needs to be responsible for the sale of goods, but the goods that are not sold well can not be returned to the manufacturers. This requires the market to have a group of buyers who are right in sight and understand the market and consumers. Compared with other management talents, "buyers" are still scarce jobs in the mainland's retail industry.

Of course, in addition to demanding harsh talents, shopping malls also need strong financial strength and chain size. According to a senior manager of a shopping malls, the mall spent a lot of money on the production line of large sports brands, providing them with special products, but the huge source of goods needed more stores to digest. This is probably an important reason why Lun Crawford, who lost the mainland market a few years ago, is now planning for a massive expansion.

As a matter of fact, "for China's department stores, over the past 20 years, more than 80% of the industry has taken the joint buying and selling mode. Beijing Wangfujing department store group Limited by Share Ltd chairman Zheng Wanhe said.

"In the past two years, with the continuous increase of all kinds of costs, shopping malls have to raise the entry fee and the deduction point to guarantee gross margins, and the higher cost is transferred to consumers, pushing up the prices of commodities." Li Guoding, general manager of Shanghai Bailian Group Limited by Share Ltd, said: "taking clothing as an example, there is a" 1 * 8 "rule, and the cost of 1 yuan is 8 yuan at the retail end. High retail prices also affect consumers' desire to buy. The negative effects are transmitted to each other until they are hurt by department stores themselves.

It is understood that in addition to the joint point deduction mode, the department store industry still has two modes of purchase and sale. The first is the buyout system. The department stores own the ownership of goods and make money by buying and selling the difference. The second is selling goods on behalf of the department stores.

Some people in the industry believe that "joint point deduction" not only reduces the business capacity of the business, but also squeezes profit margins. Therefore, the department store industry in the future will transform to the self distribution system, improve the intensive management and purchase of enterprises, and train buyers.

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Restoring the "buying system" is not easy.

When talking about the future development of the domestic department store, Ding Liguo, a senior retail expert, said, "the establishment of a through train integrated store with international top brands will become a boutique or experiential shopping center with a buyer's hand, and a well-known brand will be driven by the big brands that consumers are familiar with. This is a new way for Chinese department stores to explore in the future." It seems that experts in buying system seem to have high hopes. In the view of journalists, the return of the "buyer system" may be closely related to the homogenization of the development of the mainland department stores.

It is understood that in the early days of reform and opening up, because of the scarcity of commodities, department stores adopted the buying system, namely, independently purchasing various commodities. However, with the rise of hypermarkets, the department stores began to brand, and the buying system declined.

"It has been suggested that we are going to cancel the entry fee and we need to restore the buying system." Beijing Technology and Business University professor Hong Tao believes that this is not understanding the basic situation of the department store industry at this stage. In the past, there were only a few thousand kinds of commodities, few brands could be selected, and consumers' awareness of brands was not high. The function of department stores was only the role of group goods, and the problem of buying hands was not big. But now there are tens of thousands of commodities, hundreds of thousands of commodities, which are good to sell, and which will be unsalable? It is hard to judge that the risk of buying is much larger.

Many shopping malls in Beijing also say that buyers need special buyers and large amounts of money, because they will generate inventories. Based on talent, capital and other factors, it is difficult to buy a hand to become a trend.

In fact, when the buying system was replaced, there was almost no risk in the department store because of the "joint deduction" mode. Chen Liping, a professor at Capital University of Economics and Business, thinks that the "joint deduction point" is a kind of profit oriented mode, which in fact means the loss of self-supporting ability of the retail industry. In this mode, the most fundamental differentiation of retail industry is the loss of commodity differentiation.

According to statistics, in the United States, Europe and other regions, department stores such as Martha's self-employed department stores, its gross gross profit margin can reach more than 40%. In China, the gross profit margin of department stores in Beijing and other tier cities has dropped to around 20%.

At present, a group of well funded international and foreign retail enterprises are implementing centralized procurement, and some have even achieved global joint procurement.

People in the industry believe that the exploration of centralized purchasing mode in department stores and the improvement of the proportion of self operated commodities are the general trend. If local retailers want to compete with international retail giants at home, or even seek globalization, they must take this step.

Although more and more department stores are aware of the many advantages of proprietary business, they have begun their own business expansion plans, but in fact, when enterprises are ready to launch their own business, they do not know where to start. After a preliminary analysis, a lot of enterprises began to select projects in a hurry. Most of the operations were not ideal and even faced with the bottleneck of development.

In this regard, insiders said that the brand alliance mode has long occupied the mainstream profit mode of our department stores, and the general proportion accounted for more than 80% of the total sales of department stores. Because of the long-term existence of the joint operation mode, department stores have been degraded in the operation capacity of self operated commodities, and lack of corresponding talents and mechanism preparations.

"Although it's very difficult from the joint mode to the self run mode, it has to go." Li Guoding believes that the return to self run mode is a call for the reality of department stores.

In fact, at present, several big tycoons in China's department store, such as Bailian, Wangfujing, Yintai and Jin Ying, have begun to seek new self exploration. "For the Bailian shares, our eastern boutique leather goods museum is its own general agent and distributor, as well as the annual French commodity week and Italy commodity week. These holiday marketing products are purchased by the Bailian Group of their own buyers to the origin, and they are differentiated from other shopping malls." Li Guoding said that the proportion of proprietary commodities will continue to increase in the future.

The confusion of related "buying system"

Slower than department stores. Garment industry The introduction of the "buying system" is much faster. Reporters learned in the interview that the current clothing brands are mainly divided into two categories, one is the designer brand, that is, its product style and characteristics have strong designer elements and connotations, and will generally become fashion leaders. Another category is the brand of "buying hands", that is, to launch its own style with the trend of fashion and market demand, such as ZARA, H&M, GAP, MANGO and women's wear brand ONLY and agher, which have been popular in the domestic market in recent years.

Over the past two years, many ZARA, H&M and other buying systems have appeared on the streets of Beijing. Clothing brand Most of the franchised stores are around thousands of square meters. A head of the Chinese Department Store Association said that the size of the shopping malls of buyers is generally small. "Because if you sell yourself, the manpower is limited, and it is impossible to buy the scale of the goods in the shopping mall like the current joint point system. Otherwise, the increase of manpower will lead to an excessive increase in management costs." In fact, in foreign countries, department stores may not be large in scale, but they are unique in their contents, either private brands or buyout businesses, or from the corners of the world.

However, expert analysis shows that the reason why foreign buyers are hard to develop rapidly in China is that China's market is too big. The scale of the Chinese market is huge, so cross regional procurement is easy to fail, especially to understand the climate and consumption characteristics of various regions. This is a very lengthy process. At the same time, the life cycle of commodities is short. The flow of capital in the domestic retail industry is easy to concentrate on some profitable commodities in a short time, making few good products life cycle more than 3 years without being affected by cottage products. Therefore, apart from specific goods protected by intellectual property, public goods are easily counterfeited and subjected to impact.

Besides, the retail business itself has defects in its commodity management system. Experts say that the domestic retail industry likes to adopt the joint venture system, so there are very few management systems like Japanese commodities, and this kind of commodity management system is the foundation of self purchase. Without such a mechanism, it is impossible to have a good buyer system. Lastly, the most important reason is the lack of qualified personnel. Experts believe that, as previously mentioned, the training of buyers can not be cultivated overnight, but the problem faced by enterprises is to train a good buyer, and soon they will be picked up. Enterprises will enter a strange cycle of constantly cultivating talents and continuously losing talents. This is an important reason why the domestic buyer system can not progress.