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Statistics show that overall transaction scale of e-commerce market in 2011 in China reached 7
trillion yuan, with year-on-year growth of 46.4%. The achievements attained by e-commerce
marketing pose a
great challenge to traditional department store. For an increasing number of people shop online,
when the demand in short term change substantially means that the loss of customers in
relevant traditional department store. Some Industry insiders indicated that in recent years,
certain goods in a large decline of sales in department store are just that certain goods
convenient to shop online, such as appliances, IT and textile products, even if luxury goods.
Besides the invasion of e-commerce, the situation that fierce competition in the industry is not
reckoned with. Serious homogenization between traditional department store results in intense
competition. Recently many cities are devoted to constructing vigorously big shopping centers.
The situation makes management of department store even harder. When walking through
commercial zone, you can find that selling goods, store designs, product mix existing slight
differences almost in all traditional department stores. A Doctor said from Beijing to Fuzhou
there is little differences in department stores in various cities.
So, what action should be taken in response? The traditional department store
Should seize the opportunity to transform it operation model by development of shopping
centers. Retail business is known to have certain laws with the level of per capita GDP. When per
capita GDP is in $3000 to $5000, the form of retail business is mainly hypermarket, while in
$5000 to $10, 000, shopping center, specialty stores, pro-shop, and CVS. In 2011,the per capita
GDP of China has been over $5000,the traditional department store can grasp the opportunity in
converting business constitute, such as shopping center and so on.