International luxury brands, which used to be the “heart tonic” of shopping centers, are now quietly withdrawing from some old department stores. On March 9, a reporter from Beijing business daily visited Gongzhufen business district and found that the Burberry store on the first floor of Cuiwei had been removed and replaced by a collection store called in space. From the single luxury store which was once regarded as the “apple of the eye” to the collection store now, with many old department stores gradually separated from the mainstream consumer groups, it is inevitable that the operating efficiency will decline and the single luxury store will leave the market.
Luxury stores leave in dismay
As the largest store in the west of Beijing and the first store in Haidian District, burberry attracted a lot of attention when it entered Cuiwei Gongzhufen. Its presence not only brings a lot of passenger flow to Cuiwei, but also adds fashion and high-end atmosphere to Gongzhufen business district. A reporter from Beijing Business Daily found that Burberry, located on the first floor of block B of the mall, has changed its brand and become a luxury collection store in space.
Beijing Business Daily reporter saw in the store that the collection store includes more than ten international brands such as Fendi, Prada, Valentino, Kenzo, Burberry, etc.
In space staff told Beijing Business Daily that after the store opened, the passenger flow in the store was relatively stable, and brands like Burberry were more popular in the region, so the store would add some Burberry products when distributing goods. Compared with in space of Cuiwei store, Gucci, Prada and other brands of the other two stores in Jingmen store are more outstanding. It can be seen that stores in different regions have made certain adjustments in category and brand.
It is reported that the BURBERRY shop has an area of about 500 square meters, including brand clothing, accessories, leather goods, watches, perfume series and so on.
For the withdrawal of Burberry store, the relevant person in charge of the mall said that the reason for the withdrawal of Burberry store was due to the expiration of the contract. Due to the shutdown of foreign factories during the epidemic period, some goods in Burberry store were out of stock and normal operation could not be guaranteed.
A reporter from Beijing business daily saw at the scene that the first floor of block B of the mall is dominated by international famous products. In addition to Armani and others within the scope of public awareness, the rest are mostly small international brands, such as gieves & amp; Hawkes, d’urban, and KFC. At the same time, retail accounts for a large proportion of the mall, and catering accounts for a small proportion. In addition to the international famous products and tea shops on the first floor of block B, the second floor is mostly for women’s clothing; the third floor is mainly for clothing, supplemented by beauty salons; the fourth floor is mainly for sports brands.
In fact, with the increasingly strong business atmosphere in the east of Beijing, international brands are more inclined to place flags in Beijing SKP, international trade, Sanlitun and other regions, which highlights the relatively slow development of business in the West. In addition to the withdrawal of Burberry from Gongzhufen business district this time, there are few gate stores and single brand luxury goods in this area.
Wu Daiqi, CEO of Shenzhen siqisheng company, a business information company, pointed out that although a single brand store can establish a high-end image and target customers accurately, it can be different from other middle and low-end brands. In the past, the “counters” in department stores or shopping malls, that is, independent franchised stores and brand stores, were generally rented by the brand side or its dealers and agents. The main disadvantages are as follows Because of the high cost, “based on this, becoming a collection store may be an effective way to keep the brand and reduce the cost.”.
Perhaps, independent luxury franchised stores and brand stores have not found fertile ground in Cuiwei Princess cemetery, and the introduction of collection stores in shopping malls has become a solution to the problem of not only brand but also customer demands.
As a result, the buyer’s shop and collection shop have come into the public’s sight, become the favored investment objects of shopping centers, and also become one of the ideas to test the transformation of department stores. As for the original intention of introducing Luxury Collection stores, the relevant person in charge of Cuiwei Gongzhufen store disclosed that the introduction of Luxury Collection stores is in line with the characteristics of high-end, high-quality and moderately advanced shopping malls. Luxury Collection stores can meet the needs of customers in the business district. Therefore, in order to meet the needs of customers in the Western business district of Beijing, stabilize and improve member services, Cuiwei Plaza has introduced Luxury Collection stores.
At the same time, the above-mentioned person in charge pointed out that on the basis of meeting the original consumption of middle and high-end customers, Luxury Collection stores also have the ability to operate other middle and high-end luxury brands, and can provide more brand choices and commodity choices for high-end customers. The introduction of Luxury Collection stores can make up for the brand demand and commodity demand of high-end consumers.
The richness of brand collection stores is also one of the important advantages of traditional department stores in the transformation. The person in charge said that the collection store can give consumers more choices. When the “customer gathering power” of single brand stores gradually weakens, different brands can be gathered together to reflect more brands and goods in the same area, so that the “customer gathering power” of the collection store can not be underestimated.
In addition, the collection store can select products according to the needs of surrounding customers, provide consumers with a number of high-end luxury brands of best-selling and hot-selling products, and select relatively suitable products for consumers, so as to meet the needs of different customers in terms of commodity selection. In the view of the above person in charge, the introduction of Luxury Collection stores can improve the vacancy of high-end luxury brands in Cuiwei Plaza, and also provide convenient choices for high-end consumers.
Relieve the pain of passenger flow loss
The number of luxury single stores is decreasing day by day, and new formats and collection stores seem to be the last weight for shopping malls to drain. Wu Daiqi pointed out that the operation of old department stores is on the decline. Young consumers don’t like to go shopping in department stores, which leads to a decline in the number of middle-aged and elderly people in department stores. In this case, luxury brands will gradually withdraw from the shelves of department stores without good business benefits.
Compared with a single store, the collection store seems to have become a lifesaver for the transformation of shopping malls. Wu Daiqi said that the collection store has obvious advantages compared with a single brand, but there are still some disadvantages that are hard to avoid. Nowadays, the loyalty of consumers is very low, and no brand has a large number of loyal consumers. Therefore, the collection store provides more choices for consumers, and is expected to get more business income and improve the store efficiency.
Wu Daiqi continued to emphasize that in a collection store, a single consumer is also easy to buy more products in the store. Different brands have more advantageous products. Consumers can buy different products of different brands, so the customer price is higher. On the other hand, multi brand means more investment, because there are different brands and different varieties of products, which require higher efficiency of supply chain and sales system, category operation, otherwise it is easy to cause inventory backlog and capital turnover problems.
At the same time, collection stores are easier to get closer to consumers than single brands. Wang Bei, an analyst with deep research on luxury goods, points out that buyers and store managers of collection stores know more about the needs of their customers, who may be the residents and friends in the surrounding communities. Therefore, when assembling goods in the store, the goods in the collection store will be more targeted, even with the purpose of ordering.
In addition, Wang Bei pointed out that the discount strength of collection stores is often more advantageous than that of brand stores, which will also drive some customers. However, the collection store may not only have bags and clothes, but also home furnishings and even high-end boutique food and drinks, which belong to lifestyle consumption, so it has higher requirements for sales and stores to master customer needs.
Inequality investigation group of Beijing Business Daily
[the above content is transferred from “Beijing Business Daily website”, which does not represent the view of this website. If you need to reprint it, please get permission from the website of Beijing business daily. If there is any infringement, please contact to delete it. 】