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Loss of Department Stores’ Dominant Status in China’s Apparel Retail Industry

Published online by Cambridge University Press:  17 March 2020

RUI SHI
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Abstract

This study analyzes why and how department stores lost their dominant status in China’s apparel retail industry. It examines the history of the apparel distribution mechanism. The analysis finds that this loss is due to irrationalities in the distribution mechanism that developed to support apparel enterprises’ marketing efforts. Furthermore, the loss also resulted from the strategic changes among apparel enterprises and department stores to cope with these irrationalities. Apparel firms developed diversified channels and weakened the stores’ buying power by introducing multiple brands and getting involved in stores’ capital. Although department stores sought to change their disadvantaged status by reforming their purchasing patterns, they could not expand their scale to address their difficulties. Eventually, department stores ceased to be the main retail channel for apparel, and the value chain changed from being driven by department stores to being driven by apparel enterprises.

Type
Article
Information
Enterprise & Society , Volume 22 , Issue 1 , March 2021 , pp. 117 - 155
Copyright
© The Author 2020. Published by Cambridge University Press on behalf of the Business History Conference. All rights reserved.

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References

Bibliography of Works Cited

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Hu, Baoming. “Xiaodailiye nengzuochu dashiye” [Small agents can do big business]. Franchise Magazine, 3(2004): 28–29.Google Scholar
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Li, Jihai, and Xiao, Yang. “Zhongguofuzhuangpifa mairuxinshidai” [Chinese apparel wholesale enters a new era]. China Garment, 9 (2004): 91.Google Scholar
Li, Wenzhu. “Zhuanxing gaoduandailimingpai zhuandaqian” [Turn to high end, be an agent for brands]. Marketing Management Review, 9 (2005): 36.Google Scholar
Li, Yuan. “Baihuoshangde xingongyinglian” [Department stores’ new supply chain]. Logistics Infor Monthly, 22 (2005): 78–80.Google Scholar
Liu, Haifei. “Woguochangshangzhudaode quyufenxiaozhidu chanshengdebeijing jiqiguojiyuanyuan” [China’s leading manufacturers of regional background system and international origin]. Journal of Beijing Vocational College of Finance and Commerce, 4 (2013): 10–15, 22.Google Scholar
Liu, Weifeng, Xiaofang, Cao, Shijie, Du, and Xiaofan, Xu. “Baihuoyefuzhuangshangpin jiagegouchengfenxi jidiaochayanjiu” [Analysis and investigation of price structure of apparel sector in department stores]. Economic& Trade Update, 17 (2016): 72–76.Google Scholar
Liu, Zhichun. “Toushizhongguo fangzhifuzhuanghangye lingshouqudaoqianguize” [Unspoken rule of retail channel in Chinese apparel industry]. China Fiber Inspection, 2 (2010): 68–71.Google Scholar
Niu, B.Z., Chen, L., and Zhang, J.. “Sustainability Analysis of Supply Chains with Fashion Products under Alternative Power Structures and Loss-Averse Supplier.” Sustainability, 9, no.6 (2017): 995–1014.CrossRefGoogle Scholar
Peng, Youxuan. “Dayoufazhanqiantude changzhoushi shangyepifashichang” [The promising Changzhou wholesale market]. Study of Finance and Economics, 4 (1984):28–31.Google Scholar
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Qi, Tingyong. “Shilundangqiande shangyetizhi gaige” [Discussion on current commercial reforms]. Journal of Beijing Technology and Business University, 1(1981): 37–40.Google Scholar
Ren, Jian. “Zhongguoshangyejingjixuehui shoujienianhui taolunshangyetizhi gaigewenti” [Discussion on commerce reforms on the first annual conference of the commerce economy association of China]. Reform of Economic System, 2 (1983): 11–15.Google Scholar
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Stobart, Jon. “Cathedrals of Consumption? Provincial Department Stores in England, c.1880–1930.” Enterprise & Society, 18, no. 4 (2017): 810–845.CrossRefGoogle Scholar
Su, Zhiping. “Jianguoyilai gongyepin gouxiaoxingshide yanbian” [The change in modes of purchasing and selling of industrial products after China was founded]. Journal of Beijing Technology and Business University, 4(1983): 15, 44–48.Google Scholar
Sugino, Hitoshi. “Buyer Supplier Channel Networks in China Retail Market.” Journal of International Business, 1, no.2 (2009): 117–132.Google Scholar
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Yuan, Jingying. “Kuaijin de laxiabeier” [Fast-forward La Chapelle]. 21st Century Business Review, 7 (2016): 78–80.Google Scholar
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