Department store retailers are cautiously optimistic about 2024, according to a joint survey by the China Department Store Commercial Association and Fung Group Li & Fung Research Centre. 66.3 per cent of surveyed companies expect sales growth in 2024, but this is a significant drop from the previous year's survey result of 85.7 per cent. Less than half of the companies expecting sales growth believe the growth rate will be higher than 5 per cent. About 30% of the companies surveyed believe sales will remain the same as in 2023, while only 3.8% expect sales to decline.
Under such expectations, the industry's transformation and development will show the following six trends.
1.continue to increase the adjustment and upgrading
The survey shows that most enterprises have increased their efforts to adjust and remodel their shops in 2023. Sixty-two per cent of the surveyed enterprises increased investment in shop adjustment and transformation, and 67.5 per cent of the surveyed enterprises believe that the adjustment and transformation and upgrading will be the focus of the future operation of the department store retail industry.
2.Competition of core business capacity
In the era of stock business, the market does not have too many dividends, no external factors to promote the rapid growth of enterprises, the competition is down-to-earth internal business capacity. According to retail trade fair, during the epidemic and since the recovery of consumption, the retail industry has carried out a lot of innovation, especially the rapid development of online business. 2024, the retail industry will continue to maintain the momentum of innovation, but the focus of the operation should be to return to the root of the competition for operational capacity. The growth mode of enterprises has also changed from extended growth to connotative growth.
3.strengthen the level of commodity management
As the consumer market becomes more and more mature, consumers are becoming more rational in their consumption concepts and more concerned about the goods themselves. Having good merchandising power plays a crucial role in the sales of retail enterprises. According to the survey, 73.8% of the surveyed companies believe that improving commodity power will be the future focus of department store retailing.
4. create excellent experience value
According to retail trade fair, a good experience is an important means to increase customer stickiness, and is the main reason for customers to come to the shop and repurchase. Conversely, if a consumer has a bad experience in a shop, the probability is that he will not repeat the visit. Bad experience may be ignored, no shopping guide timely service; may be cheated, such as goods or services prices are significantly higher than the price of other channels; may also despise the shop furnishings, or dissatisfaction with the after-sales service.
5. Enhancing efficiency with digitalisation
The retail industry, especially the department store industry, with rich consumption scenarios and diversified customer touchpoints, has always been the most active industry in digital application, with various application modes and various digital products and tools emerging, coupled with the continuous enhancement of the enterprise's digital team, as well as the strengthening of its application and operation capabilities, a lot of which have been evidenced by the market.
6.practice green and low-carbon development
According to retail trade fair, in response to the national green transformation and development strategy, the policy requirement of achieving the "dual-carbon" goal, and the background of consumers' increasing environmental awareness, many department store retailers are actively transforming to green and low-carbon development through innovative means.
Source: 职业零售网