Currently, China’s high-end department stores most of the implementation of “the brand associated” cooperation system, the interests of a department store sales commission from the various brands, although this model reduces the risk of high-end department store business, but also to make the department store industry profit level significantly decreased , the enterprise’s operational control capability has been greatly weakened, it is difficult to establish unique brand of service.

High-end department stores and suppliers sharing of benefits depends largely on the status of their respective brands. Brands often hold high-status co-right to speak, less risk to get more revenue, and vice versa. At present domestic high-end department store’s Affliction  own brand is also very limited, first-line brand of international dependence is very high, as a point of sale terminals, the access is very low margins. At present, the department store industry average gross margin at 17% net profit margin is only 3-5%.

Many high-end department stores department stores in order to increase profitability, while changing the department stores and various international top luxury brands disadvantage, Affliction  both have agents operating a number of international brands, such as Chengdu, the United States and the United States Li Cheng department store business DAKS, SERGIOROSSI, CHLOE brands, Xiamen Cinda duty-free shopping malls line agents of international women’s brand MaxMara, Xiamen, Paris Spring Department Store operating PORTS, ARMANICOLLEZIONI, VIVIANTAM. Department stores, train their own professional team, have their own buyers and brand managers, their own luxury brand directly to Affliction  the various direct purchase.