Research On Hong Mei Department Store Buying Mode

With the reform and opening-up in China, department store industry grew rapidly. As a member of the department store industry, Hongmei department store has experienced a era of rapid development. Recently the average net profit rate of Hongmei department store is at a low level because of the impact of e-commerce business industry, while that of foreign department stores is still high, remained two times of that of Hongmei department store. The reason of this phenomenon is due to the serious homogeneity of merchandises in Hongmei department store. Under this condition, Hongmei department store is facing the challenge of further development. So the difficulty that Hongmei department store is facing now is how to construct the buying mode of Hongmei department store in order to get out of the difficulty of management.First of all, combing the theory associated with the Buyer Mode: department store business model concept and its classification, buying model definition and its classification, the department store buyer mode, the meaning of the value chain and analysis methods, paving the way in theory for the further research of existing business model analysis and the problems appeared in the Hongmei commercial operation.Secondly, this paper analyzes Hongmei department store's existing commercial associated management mode and its problems and reasons from the point of view of investment, operation, profit, financial management and information management. It is concluded that commercial associated management mode has not adapted to the development of Hongmei department store. So the existing commercial associated management mode should be replaced by the buyer mode in Hongmei department store.Thirdly, based on the apparel commodity circulation chain, domestic department store value chain, this paper put forward a value model for buying mode in domestic department store.Finally, this paper specific to domestic department stores under different market conditions and put forward a series of construction strategies such as Brand differentiation and Commodity characteristic as well as a series of constructional strategies such as buyerorganizing, buyer team building and concept improving.Giving practical suggestions to domestic department stores to up integrate commodity chain, help them to turn their role from retailers to Franchisees, distributors even Brand Owners.