New Direction Of Change In Department Stores

The pformation of department stores has been going on for a period of time. There is a pformation from department stores to Oteri J and shopping centers from offline connected lines, which have been through savings and expenditure, but the joint venture is still rare.

"The new company is an independent party, and many aspects are different from the previous ones."

Said the head of Wangfujing department store.

The retail network of Wangfujing covers seven major economic regions of Southern China, southwest, central China, Northwest China, North China, Northeast China and East China. There are 47 large department stores in 28 cities.

Bailian joint stock store, chain supermarket, shopping center, Oteri J as the core business, holding Hongkong listed Lianhua Supermarket Limited by Share Ltd, Hao Mei home decoration materials Co., Ltd.

The two listed companies belong to the "leading sheep" in the traditional department store industry. When the tide of "Internet +" hits, it is inevitable that people will worry about "ship is difficult to turn around".

The joint venture between the two sides will help to avoid this trouble.

According to statistics, Li Fung Trading is a wholly owned Affiliated Companies of Li Fung Limited, which is responsible for investing in China.

As a multinational group of consumer product design, development, procurement and logistics, Lifeng Limited provides global supply for companies with world-renowned retailers and brands with a large number of brands with a specific time limit.

Its strongholds are in 40 countries: America, Europe, Africa and Asia.

Du Yanhong believes that the joint venture will give full play to the resource advantages of the three party.

We can make use of the online retail resources of Bailian and Wangfujing stores throughout the country, and we can also play the advantage of Li Feng's global sourcing and supply chain management.

The three cooperate with enterprises.

And domestic and overseas sourcing and developing private brands will help to enhance market competitiveness and promote the pformation of traditional retail businesses in China.

Liu Zhangming, an analyst at Anxin securities, holds the same view.

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We will make use of the strong background and global vision of Li Feng Group in the four fields of product design, development, procurement and logistics, and combine the localization advantages of Bailian and Wangfujing to develop differentiated business models.

Lin Haoran, an analyst with Guotai Junan, said that the concentration of China's department stores is relatively low, and cooperation through supply chain ends can effectively improve the bargaining power of department stores to brand dealers.

The cooperation of Bailian, Wangfujing and Li Feng will also play an exemplary role in the department store industry while promoting its own business efficiency. The three party cooperation will make full use of each other.

From the two aspects of scale effect and differentiation, we have a direct attack on the supply chain dilemma that troubled the department store industry for many years.

It is worth mentioning that the three party will set up a joint venture company in the Shanghai free trade area, presumably also on the policy dividend.

Chen Xiaohong, chairman of Bailian Group, said that the joint venture chose to settle in the Shanghai free trade area on the one hand for the sake of relevant policies and demonstration effects, and on the other hand hoped that the domestic department store industry could open up two markets inside and outside the country.

In Du Yanhong's view, the joint venture is located in Shanghai to play the policy bonus effect of the FTA in boosting the development of the new joint venture, and it can maintain policy advantages in all aspects of production, circulation and retailing in the future.

He believes that the policy advantages of the free trade area are mainly reflected in: "first, strengthening the financial system innovation within the free trade area, including expanding cross-border use of RMB in the free trade area, etc. this policy will support enterprises to go out and enhance their international competitiveness. Secondly, the free trade area will enhance the level of international shipping service, which will promote the development of joint venture's overseas procurement business. Finally, the tax preferential policy of the free trade zone can alleviate the financial pressure of the company."