So the walls are gone and the buyers now have great power within the store. These makes one look at department stores now and think, “this is just a larger version of a select shop!”
Then the million dollar question: why would you go through 10 floors of a department store when you can find your age level, your style, and your favorite brands in just 1 or 2 floors as they have in select shops?
Now that department stores have found a way to compete with each other, they have to find a way to compete with select shops. And in this case, the majority would say that the smaller the better. Will department stores decrease store spaces?
Another significant issue for department stores will be to figure out a way to capture younger segments as their clients. Most of the younger generation prefers shopping at fashion buildings and other specialty stores than going to a department store.
The only department store that has succeeded in gathering as much younger generation clients as fashion buildings do is Marui.
Their membership cards entitles great services and discounts such as birthday discount, new graduates discount, and best friend discount. All these services are popular amongst the younger generation and as they are opening a mega store in Osaka, them climbing up the ladder is not too far ahead.
For foreign brands to understand each retailer and their strengths and interests becomes significant. Sales by far are important, but whether their products are reaching the hands of the clients they aim is a different issue to consider when deciding where to distribute their products.
marketing@alchempro.com
