The Disadvantages Of General Merchandise Mode &Nbsp; Difficult To Cure Price Cheating.

In the past May 1 small golden week, mother's day and other holidays, it is

Of course, we have changed the past related reports for the relevant functional departments of the state, and the automatic inspection said to the induced consumption NO, to protect the legitimate rights and interests of consumers, we can not help but wonder, before the main price in the two or three tier cities and two or three market stores, why the price of the original price and the phenomenon of water filling and breaking will appear in the front-line shopping malls in the first tier cities. Similar price cheating incidents emerge in an endless stream, is it accidental or inevitable? How can the current business mode avoid such incidents from happening again?

First of all, from the surface of events, discount sales have become the norm in most shopping malls. In some shopping malls in Guangzhou, sales promotion methods have been upgraded and renovated.

It has already formed a vicious circle that can not be sold without discount.

However, the discount sale of shopping malls seems to be a shared loss of profits between the shopping centres and the brand associations. In fact, the loss of profits is also borne by the branding providers. In addition, shopping promotions, advertisements, gifts and raffle all need to be compensated from the profits. Therefore, brand suppliers are very angry about the strong sales promotion activities.

For shopping malls and brands, there are often two choices for poor handling: first, to collect the goods in season, only to sell the unsalable goods for the season. First, some brands will consider making an article on the original price, and then advance the price and then offer a discount.

Although the Ministry of Commerce issued the "management measures for retailers' promotional practices earlier", the "original price" refers to the lowest paction price that the operator has traded in the paction place within 7 days before the price reduction. If there is no paction price on the previous 7 days, the price of the last paction before the price is taken as the original price.

However, in order to avoid the easy touch of the original price "minefield", some shopping malls even let employees pay for their products at a high price from their own pockets, forming the actual paction price, and then making a discount to fool the price department.

We marvel at the fact that these shopping malls play a good role in upgrading the original price, and they also question the business ethics of these shopping malls.

From a deep perspective, the department stores in many parts of the country still follow the "joint mode", that is, the department stores lease the venues to the brand dealers, the brands will return 30% or higher sales to the department stores, or the brands will pay the fixed amount of rentals, and then pay some rebates to the department stores.

Due to the restriction of brand agency area, some of the better selling brands are in the hands of a few agents. This leads to the fact that there are many disadvantages in the general merchandise joint venture investment, such as the high brand overlap rate and the serious homogenization of the department stores, which leads to frequent price wars. At the same time, the department stores are too dependent on the brand suppliers and lose the bargaining power. This is also one of the reasons for repeated prohibition of price fraud in some shopping malls.

As experts say, department stores lack independent innovative business culture, and its operation mode can only be caught in repeated price competition.

At present, the fashion buyer model in Europe and the United States is that shopping malls send buyers to the world to collect new high-end designer brands, instead of directly introducing famous brand stores that consumers already know well, but this pattern has not yet formed a climate in China.

Some experts also admitted that the current business of buckles can get 30% of the buckles. If the "buyer" mode is well done, the mall will have more than 60% profit margins.

"Buyer" is a business model that pursues innovation in form. Letting department stores get out of homogeneous price competition will be one of the pformation directions of China's department stores in the future.