How to choose the survival and development of China's department store industry?

You are in the business world, you may feel inconvenient to say something. But I hope that today we can talk freely without worries. Tong Minqiang: Well, but you don't make it too difficult for me. Sima Yimin: Now there is a common view that the department store industry will gradually decline with the rapid rise of other businesses in the retail industry. What do you think? Tong Minqiang: I don't think the department store industry will decline. After the rise of hypermarkets and specialty stores abroad, the department store industry has indeed declined. But this does not mean that the Chinese department store industry will also decline. Sima Yimin: Can you tell me the reason? Tong Minqiang: China is different from foreign countries. China has gone through decades of planned economy, in the planned economy of the formation of the department store industry domination situation has been broken, but people's trust and recognition of the department store psychology still exists, and will continue. This is the universal consumer psychology. In addition, from the point of view of living conditions, urban population density, inconvenient transportation and other reasons, so that a very rich variety of goods department stores are still popular with consumers. Therefore, the department store industry has a reason for existence and development. Sima Yimin: You mean, living conditions, consumer psychology determines the prospects of the department store industry is not as bleak as some people fear? Tong Minqiang: Yes. However, if the department store is still as "big and comprehensive" as before, including all commodities, is not feasible. At present, the three main modes of retailing are supermarket chains, specialized stores, department stores, supermarkets mainly provide living goods, specialized stores to provide a certain type of goods (such as computers, home appliances), these commodities used to be operated by department stores, and now if the department stores have to continue to operate these commodities will be difficult. Sima Yimin: Supermarkets and specialty stores to take the road of scale, department stores do not take the road of scale, what kind of road to take? Tong Minqiang: I think department stores should take the road of fashion personalization. Consumers in the above two types of business can only meet the needs of shopping, while in the department store can appreciate the fashion and leisure, which is one of the important reasons for the continued existence of department stores. Department stores should also be mismatched between the business, can no longer be like the planned economy, "a thousand stores". Department stores only to make personality, the development of space will be more and more. Sima Yimin: In this regard, you have the right to speak, Hangzhou Mansion shopping center more than 10 years of rapid development performance there. Can you take your business practice as an example and talk about the fashionable and personalized management of department stores. Tong Minqiang: The fashionable and personalized management of department stores is difficult, and Hangzhou Mansion is still exploring it today. In my opinion, a successful department store should have two characteristics: firstly, appropriate positioning; secondly, the ability to operate a corporate brand. Sima Yimin: Does Hangzhou Mansion Shopping Center have these two characteristics? Tong Minqiang: The first characteristic has been formed for many years, and the second one is just beginning to be formed. Sima Yimin: Can you tell the readers of Hangzhou Daily specifically? Tong Minqiang: I can say. After more than 10 years of operation, our positioning has long been accepted by consumers. We take the high end of the brand goods, to create a boutique; at the same time, because we are a department store, we take into full account the factors of the wide range of goods. We combine the two better, so that they interact with each other, amplifying the business effect, so the economic benefits of more than 10 years of sustained growth. Sima Yimin: Can you say something more about running a corporate brand. Tong Minqiang: We have a process of recognizing and practicing the management of enterprise brand. Hangzhou Mansion Shopping Center was first known for operating branded goods, and at that time, the main consideration was to operate in a mismatch with other shopping malls to form their own commodity characteristics. After several years of practice, the operation of branded goods is more mature. On this basis, we felt that we had to improve the level of service and create an elegant environment, and spent several more years on these two aspects. In the process of commodities and services to continuously meet the needs of target customers and beautify the shopping environment, we have established a good corporate image and gradually formed a corporate brand, which we are operating. Sima Yimin: Can you tell readers about this with specific examples? Tong Minqiang: We set out to introduce top international brand goods five years ago. To be honest, it was very difficult. Until last year, there was no "light". Recently, the international first fashion brand France's LV Louis Vuitton's four brands of goods are proceeding to enter the Hangzhou Tower shopping center, and two other brands also want to come in, currently in the queue and so on the site. LV also said that it is willing to join hands with us to develop the market outside of Hangzhou. Sima Yimin: What does this mean? Tong Minqiang: Previously, it was difficult for us to introduce big international brands, but now big international brands are willing to line up to come in. This shows that they value our business, that is to say, our corporate brand has attracted them, our corporate brand has a fairly high business value, corporate brand can win us a higher level of benefits. Sima Yimin: You have established and operated your corporate brand. Tong Minqiang: Target customers are willing to come to department stores to shop is to trust department stores, target suppliers are willing to put their goods on sale in department stores, the same is to trust department stores. This is the goal we are pursuing, can also be said to be the survival and development of Hangzhou Tower choice.