Yintai Daniel Chan: The Survival Choice Of Department Stores Is The Basic Reconstruction Of "Hydropower Coal" Level.

According to the world clothing shoes and hats net, department stores Downturn, department stores recovery, entity regression... The concept of department stores has been ups and downs. stay Yintai business CEO Daniel Chan's view is that the industry's current downturn is not due to the imbalance between supply and demand, but the impact of major changes in social production relations. Fluctuations do not represent the trend of recovery and can not be thought in terms of economic cycles. For department stores, the choice of survival is the reconstruction of the "hydropower and coal" level.

The "water and electricity coal" in department stores has changed.

Under the background of a downturn in department stores, intime has made many attempts. In this exclusive interview, Daniel Chan first shared the current situation of the department store industry. I do not agree with "entity regression" or "entity spring". In Daniel Chan's view, the downturn in department stores is now the result of a major change in social production relations. Under the background of the changing era, we can not see the changes in the industry in a cyclical way. When it comes to this point, Daniel Chan gives an example: when the car starts to come out and put into use, the supply of horses needed by the horse drawn carriage will be worse, or there may be a slight fluctuation, but the trend of this production relationship is irreversible.

In sharing, Daniel Chan is also very popular today. Online retailers Retail sales are not acceptable. "As the saying goes, stealing the donkey and pulling the peg, in the overall development of the department store industry downturn, the electricity supplier is at the back of the best." The other two data in Daniel Chan's view, is the embodiment of the role of stealing the donkey. According to the statistics, there are 460 shopping centers in the whole country in 2016, and 60% of the large and super large shopping centers in the world are in China. These incremental supply of the fast growing market is the first one to steal the donkey. The original retail system is a tree structure, which plays a significant role from the initial shortage of supply to oversupply. But now it has become inefficient or even ineffective in the context of the Internet and mobile Internet. This is the second one who stole donkeys. In a long, inefficient or inefficient supply chain, many goods in China are cheaper than the United States.

Whether the change of production relationship or the impact of the electricity supplier is actually equivalent to the "hydropower coal" that supports the urban construction, this level of element has changed, and the basic production relationship of the society has changed. At this time, it is too hard to think about the problems of other sectors through the thinking of the business cycle. The key to change or transformation is to adapt to the new "hydropower coal" and build the enterprise on the basis of new hydropower and coal.

Supply chain transformation to eliminate inefficient production capacity

Talking about the changes in Yintai, Daniel Chan focused on the relationship between suppliers and suppliers. In the traditional department store operation, the relationship between department stores and suppliers is more complicated. Intime department stores are trying to simplify relations with suppliers, such as reducing fees, and turning the original way of deduction into a plus plus mode. All the data are sent to the system to do away with complicated procedures such as manual calculation, add and draw, and so on. Besides, it is not necessarily consistent with the electricity supplier, but in this regard, Yintai continues to explore and practice.

"We hope to reach a state of relationship with suppliers. The effort of Yintai department will be added to the sale of goods, which is equivalent to the products produced by intime department stores and suppliers. They will bear the cost and sell the goods to consumers. Intime general merchandise department has a certain premium as a link in the circulation, and the whole is a plus plus process. Daniel Chan told reporters.

Looking at the status quo of department stores, Daniel Chan admits, "many consumers think that things in department stores are sold at a high price. Many times such a situation does exist, and the reason is too long supply chain, some of which are still inefficient." One figure also supports this consumption experience. In China's retail industry, 25%-35% is wasted on inventory, inventory is invalid or inefficient, and if buying a suit is 10 thousand yuan, then it will pay 3000 yuan for the supply chain's invalid inventory. Many brands are agents and the shopping malls around the market, from the brand to the mall, agents at the intermediate level have cost and profit, and if the store directly cooperate with the brand, to a large extent avoid the cost of the redundant agent system, for the brand and shopping malls, can be retained on the basis of the original profits to provide consumers with lower prices of goods. This ineffectiveness is also reflected in the excess supply of commercial real estate in the domestic market. Some shopping malls are inefficient or inefficient in the whole social retail supply chain system, and the business cost of these stores eventually spread to consumers. What intime is doing is to shorten the supply chain and reduce the ineffective links in social retail. Consumption will also slowly focus on the efficient operation of the scene, eliminate backward and inefficient capacity, and consumers will get tangible benefits after the whole chain is optimized.

The overall change also includes the management and internal organizational structure of Yintai department, which further affects the national development strategy of intime department store. It is reported that Yintai's internal organizational structure is flat from the original tree structure with the help of the Internet, and it is promoting the reduction of combat units and the implementation of institutional autonomy. This makes Yintai Department skip the management radius in the process of expansion. It is reported that Yintai's original tactical logic is to gain regional advantages in one city and then continue to develop the next region, but in the context of O2O, it is easier to break through the original regional growth and make a nationwide layout according to market characteristics.

Reconstruction of new retail elements

The new retail test field, which is regarded as Ali, has been tagged in many topics between intime department stores and new retail outlets. Daniel Chan also shared his views on new retail with reporters. The new retail is a trinity structure. Under the new retail mode, the Internet, retailers and branding are competing relations. The brand associations will sell the goods to the stores, they will open flagship stores, and will enter the entity retail channel while landing the electronic business platform. In the future, the relationship is Trinity, and the symbol of this relationship is everyone's interest and direction. At present, the interest of the three is zero sum, which is a problem to be solved in the new retail business.

In Daniel Chan's view, the ultimate goal of big data is that "good products are infinitely close to demand consumers before they are sold at the right price and the most convenient way." This will also be the direction of consumers' pursuit, which decides that new retail should be digitalized first in concrete practice, second is networking, and the third is intelligence. Each former is the premise of the latter.

"We hope to be able to run the new retail products on the platform of Yintai department, and export products to our peers in the future." From a practical point of view, this direction is also being implemented. The concerns of intime department store, such as the identity of the listed company, or the unwillingness to undertake the optimization of supply chain, customer digitalization and digitalization of goods and so on, will cost a lot of energy and energy, which may bring greater pressure to short-term performance.

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