Parkson Store accelerates e-commerce transformation

　　Only more than six months have passed since the Beijing Sun Palace store was closed, and Parkson has been rumored to have closed its store in China. On May 31, Parkson will close its store in Zhengzhou’s Parkson East Taikang Road. Marks & Spencer has long announced its withdrawal from the Chinese market and is gradually closure. Huatang Mall has only left its only seedling in Beijing and has retreated to the second-tier market. Parkson, once known as the first foreign department store, has repeatedly expressed optimism about the Chinese market, but has not slowed down the pace of closures. In the industry's sluggish environment, foreign department stores are at a competitive disadvantage.

　　According to local media in Henan, Zhengzhou Parkson East Taikang Road store will be closed on May 31. Although the mall is still in business, there have been withdrawn on multiple floors, and most of the brands that are still in business are promoting. Regarding the above-mentioned store closure news, Parkson stated that the closure of Zhengzhou stores was due to the expiration of property leasing and the changes in Zhengzhou's retail market. In the future, it will re-examine the business environment of Zhengzhou and develop brand new commercial projects under appropriate conditions. Although the official reply said it was an overall layout adjustment, Parkson Group has closed stores very frequently in recent years. Parkson closed its Chongqing Wealth Center store in March this year, and at the end of October last year, Parkson closed its Beijing Sun Palace store. According to incomplete statistics from Beijing Business Daily reporters, since 2013, Parkson has closed more than 11 stores in the country.

　　Parkson was previously known as the number one foreign department store in the country. According to the official website, Parkson Commercial Group is a retail business branch of Malaysia Jinshi Group. It officially entered the Chinese market in 1994 and opened a mid-to-high-end department store in Fuxingmen. As stores are closed one after another, Parkson is also seeking change. In August 2015, Parkson announced a joint venture with South Korea Yilian Group to jointly launch the China Market Urban Life Plaza. In June 2016, Parkson opened a shopping mall Golden Lion Plaza in Qingdao. In the second half of 2016, Parkson opened an independent supermarket in Shanghai and a baking brand Hakenpu introduced from Taiwan. Without considering the competitive environment faced by Parkson's new retail format and the cultivation period of new stores and new brands, judging from Parkson's overall layout in the domestic market, the above transformation is only an attempt within a very small range. Excluding the soon-to-be-closed stores, Parkson currently has 48 stores across the country.

　　E-commerce is also one of the directions of Parkson's transformation. However, a Beijing Business Daily reporter tried to place an order on the official website of Parkson. After completing user registration, product purchase, and information filling, he could not submit an order. When the reporter experienced Parkson's related e-commerce channels in September last year, he also noticed that the only brand of women's luggage sold online is Bonia, and the only brands of women's clothing are Mango and Zie Zac. In addition, the online discount for Zie Zac is 30% off for sale in the mall. Parkson's mobile beauty makeup has become the main force, but when the reporter tried to buy a variety of lipsticks, blush and sneakers from different brands, he was told that the stock was insufficient and he could not trade.

　　In the view of Zhao Ping, director of the International Trade Research Department of the China Council for the Promotion of International Trade, the foreign-funded department store market is not sensitive and most foreign-funded enterprises need to wait for the headquarters’ opinions. However, under different backgrounds such as culture, life, and consumption, the headquarters’ lack of understanding of China’s business culture and consumption psychology has led to the failure of the final strategy decision to match 100%.

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