Study On The Management Mode Of The Impact Of Electronic Commerce On Harbin Chulin Group

As the largest department store and the representative of traditional business models in Harbin,Heilongjiang,Harbin Churin Group Jointstock Co.,Ltd.(Churin Group)occupies a pivotal position in the economic development of city of Harbin as well as Heilongjiang province.Due to the rapid change of social environment,the department stores in Chin a have experienced significant decreases on sales volumes as well as profits.Facing the rapid developments of information technology and the competition from Electronical Commerce companies,the traditional department stores,such as Churin Group,have no choice but to revolutionize their business models by incorporating the new information technology into their own developments,in order to make a break through.Currently,the operating problems Churin Group is facing are: marketing channels are single,Churin is still using the traditional department store-based channel;profits of Churin Group come primarily from renting counters as well as associating with other brands;there are too few own brands,which makes Churin Group difficult to transit from joint venture mode to self-operating mode.In this paper,I have reviewed the related issues of both China and major developed countries.Using Churin Group as example,I have studied its operating conditions,and pointed out the problems Churin Group is faci ng during its development,including the high costs,uneconomical scale,and the backward management philosophy,etc.Moreover,I have analyzed the industry structure,operating conditions,brand effects,and business philosophies by comparing between pre-electric commerce era and post-electric commerce era.Researchers have found that in western countries the department stores have been competing with E-commerce companies for decades,and have summarized useful experiences.I referred the experience from t hese foreign and domestic companies who have made their transitions successfully.Therefore,I propose recommendations for the future development of Churin Group.Above all,I believe Churin Group should adopt and concentrate on the strategies such as utilizing innovation on marketing,initiating cost control management and implementing differentiation strategy on products.By providing a more comfortable environment for the customers to experience and socialize,the company will be able to attract more consumers,and that will give Churin Group an opportunity to build its market niche in the highly competitive environment,and eventually improve its operating profits.