Wear The Same Thing: The Way Of The Low Price Of The Odd.

As the financial crisis invaded the global real economy, people began to cling to their pockets for the winter.

Judging from the trend of buying goods now, under the influence of the economic crisis, the first thing to be dealt with should be fashion. Clothing and clothing are such a kind of goods that are closely combined with fashion. When consumers choose to buy them, they will also have rational thinking: is this dress necessary for me now?

Do I have enough money to spare?

Therefore, low price is the most important factor for Chinese people to shop at present. A group of cheap brands advocating consumers' rational consumption are very popular.

Among them, a group of garment retailers headed by the regional group has become the leading brand in China.

Over the past few years, the chain's coverage has rapidly expanded from Fujian to more than 80 cities in 12 provinces and cities, with more than 150 chain stores. It is expected to reach 1200 in 2011 and 3200 stores in 2016.

The rapid development of enterprises such as North Qi has also become the driving force for the domestic garment market to "stabilize and upgrade".

In the current period of Japan's economic downturn and low consumption desire, the enterprises that can still develop rapidly mainly use information technology to establish a perfect production and supply training and fast logistics system, so as to reduce the cost to attract consumers.

With the characteristics of "parity chain" and "direct selling fashion", the company has completed the business model innovation from "direct chain store" to "whole process information management", and completed the pformation from a garment manufacturer to a professional clothing retail business brand in the 3 years.

The inspiration from the growth of John north is that parity has never been a simple price, but a "value for money". After identifying the market entry point, the innovation of business mode will bring a qualitative leap to the development of enterprises.

It seems as if overnight, the one who advocated rational choice of clothing consumption has entered the public view, especially for the clothing industry under the shadow of the economic crisis.

In the past 10 years, the development of a Limited by Share Ltd from hundreds of ordinary clothing stores to hundreds of chain stores has attracted much attention.

In this model, the distinctive "parity" strategy is particularly noticeable.

In recent years, most clothing brands have launched a larger promotional activity.

Although the sales promotion means are not new, will the effect of this discount on stimulating consumption demand be more obvious than that of the stable economy or the growth period under the economic crisis?

"That's not necessarily the case."

Ding Hui said.

He believes that today's people are "experts", they have their own consumption orientation and demand.

Demand is always the first. "Meet the demand, even if there is no discount, the ordinary people will pay for it. If they do not meet the demand, the discount will be too low to shake the purse of the ordinary people."

Therefore, enterprises should adjust their market strategy from their own point of view and fundamentally guarantee the value of goods.

In the framework of the development of "odd price", the meaning of parity is never simply low price, but "value for money".

"Many people think that the clothing industry is a profiteering industry, but we think that in the domestic market, we must have a popular price for retail.

But we can not reduce the quality, otherwise the enterprises will not survive.

So we put forward "to provide customers with value for money goods."

Ding Hui said.

In 1997, Ding Hui opened his first store at the door of his own house, "the odd price coupons". He sold all the selected products from the shoes and clothing brands, all of them clearly marked the price, and openly offered only eight percent of the profits.

As a result, the sales volume of the more than 100 square meter store reached 3 million yuan.

Ding Hui did not deny that his "small profits" were linked with "multi sales" from the beginning.

From this perspective, it can be said that "parity" determines the positioning of the chain.

But the situation in 1997 did not allow Ding Hui to go too far: "China's chain industry has also developed for more than ten years, and at that time there was no experience to learn from.

In addition, when the Internet was not developed at that time, the development of chain stores had to use information technology.

Until 2001, after contacting many industries, Ding Hui, who was thinking about maturity, came back to his hometown with two books related to chain enterprises.

This year, the regional chain of clothing has taken a crucial step: Based on the successful experience of international chain enterprises such as McDonald's and WAL-MART, Ding Hui has written a series of copywriters to promote standardized operation.

Not long after, second stores opened, and the standardized scheme and the three new five year plan launched immediately began to run in practice.

From 2001 to 2003, he developed only 6 stores.

In Ding Hui's words, these four years are the experience of settling operation management and running in team.

By 2004, the company had made great progress. In just three years, the store has expanded to nearly 100 stores and extended to Jiangxi, Guangdong and Jiangsu provinces.

The expansion of the scale and the opening of the field of vision also give new meaning to the "parity" of the "odd price".

Standardized production ensures that the customer is worth the quality of the product and standardized management ensures that the customer is worth the sales service.

But it is not enough. Feedback shows that in judging the cost performance, besides quality and service, whether the price is reasonable and whether the fashion is fashionable, it is also an important factor affecting the decision of customers.

After careful investigation and analysis, he changed his business slogan to "rational choice".

In Ding Hui's view, this is not an offset to the parity strategy, but an extension and upgrading of the concept of parity. It is also a cater for the public consumption concept under the current economic and market conditions.

Simply cutting profits from clothing products is obviously just a temporary plan.

How to find a long-term stable profit growth point on the basis of maintaining "parity"?

The answer is: maximizing the integration of resources, innovating operation management mode and striding forward to the upstream garment industry chain.

According to Ding Hui, the commodities of the local company are directly from the manufacturer to the retail store, and there is no intermediate agent, so the circulation cost is very low. Because of the implementation of membership system, fast and cheap short messages become the best way of advertising. It hardly ever advertises and saves a lot of money. Because it is mainly based on word of mouth publicity, customers usually choose not to open stores in gold lots, but also save a lot of rents.

The sales monitoring department of Monte Carlo is said to be "original". Other domestic garment enterprises have never had such a department.

This department is responsible for all work related to products, greatly reducing the consumption of internal information pmission, and accelerating the reaction speed to the market.

To this end, the company has independently developed a powerful information processing system for real-time communication with suppliers.

With such technical support, we can place orders in the two quarter of spring and autumn for seasonal orders, and adjust and deploy all kinds of stores at any time so as to minimize inventory and avoid possible excess production.

According to the introduction, the inventory accounts for less than half of the average inventory ratio of the industry.

In order to make reporters understand the efficiency of real-time communication more intuitively, the head of the regional Commodities Center gave an example: a customer reflected that a button of a garment was not good looking, and the store usually returned to his sales monitoring department on the same day, and then told the manufacturer to design the new style. After being confirmed by the monitoring department, the store was sent to the store immediately.

The whole process takes only about a week.

Ding Hui gave the reporter an account: circulation can save 40% to 50% of the cost, rent can save about 13%, inventory can be saved from 6% to 7%, which is not advertising.

With such a foundation, the line of parity is basically guaranteed.

Of course, this is also achieved step by step. With the increasing scale, the space for resource optimization is bigger and bigger.

In 2007, the company began to sell products from other brands to private brands, and solve the production problems by outsourcing the OEM. In this way, it not only increased profits, but also strengthened the control of product quality.

Next, with the expansion of the scale, he wants to further seek profits in the industry chain.

Since 2007, the company has started building industrial parks, and has invited some stable partners to run factories in the park to specializes in OEM.

"China's manufacturing industry, in the early years, was to build factories, create new brands, and promote brands.

Now this way of thinking is reversed. First, we need to build terminals to generate a large demand. Next, we must control the upstream industry chain and processing links.

Ding Hui said that he is preparing to build five to eight industrial parks throughout the country, which is expected to basically meet the sales demand, and this part will have a value of $4 billion to a billion yuan a year.

In the far future, he plans to expand to the front end of the chain and control the production of cloth and other materials.

"When we have enough power to influence the whole industry chain, even if the terminal does not make money, there is still a certain profit in the production process.

In this way, our competitiveness will be greatly improved, and the future competition will be the competition among the industrial chains.

Ding Hui said, of course, these are long-term plans, the most important task is to speed up the expansion of the scale, "the more the terminal, the more we have the right to speak."

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