Abstract In recent years, our country department store business model is turning into a joint venture model which makes the department store’s purchase, sales, inventory management weakening, department store profit model followed fundamental changed, a kind of "channel fee profit model" has taking place. This kind profit model has many problems, and cause variations in our department fomart, which is not conducive to the sustainable development of China's department stores. By analyzing the changes on business structure, the source of profits, profitability and earnings potential, this article discussed the changes on department stores’s core technology, services, features, profit spaces and patterns of earnings that indicate the department stores in China industry profit model to the "value profit chain model" needed to change the conditions and the path, put forward corresponding countermeasures change.
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Received: 09 August 2010
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Corresponding Authors:
SHENG Chao-Xun
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