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The Genuine Discount Store Has Developed Vigorously.

2010/2/10 15:08:00 67

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The concept of traditional department stores has grown weak, and a new form of retailing has been developed. That is, when the "genuine discount" shop has become a synonym for high priced goods in some department stores, this discount store attracts more and more people to buy with brand quality and discount price.

Beijing's top quality discount and the development of Shanghai outlets are all among them.

Top grade discount is a genuine discount store rooted in Beijing.

Top quality discount is a genuine discount shop rooted in Beijing. It has been established for ten years and its annual compound growth rate has reached 40%-50%.

Top grade discounts include NIKE, Lining, Adidas, Pathfinder (300005, stock bar) and a series of brand names for young people. On the basis of genuine products, a discount of 5-6 per cent has been made. The concept of parity related to clothing, food and housing is also considered to be more resistant to risks in a period of economic downturn.

Entrepreneurial process

Li Yan's upstream from 1993.

clothing

Manufacturing went to a Hongkong.

clothing

The sales company is responsible for a shoe called PATTY, which is sold in the major department stores in Beijing.

"Before 1996, some brands did not have any problems, such as expansion, and so on. As long as they were bold enough, many brands did not sell well after the Asian financial crisis in 1997," Li Yan described the market at that time.

The PATTY also began to worry about inventory, because when the season changes, new products should continue to push, and inventory will be converted into cash to support the operation of new products. So he began to try to do some discount stores, and conduct a centralized discount sale in a district of a department store. "At that time, it felt that the way of discount sales promotion had great impact on consumers," Li Yan said.

All brand discount is the main selling place.

So he sprouted the idea of opening up a store with brand discount as the main selling place, which sells discounted products all the year round.

Later, he began to seek resources and help from all sides, but no one liked this format. Many people would ask, "can this model work in China?"

Finally, after two years of waiting, he met an opportunity to rent Wangfujing (600859, stock bar) five layers of Arts and crafts, when the start-up capital was almost one million.

"The situation was very difficult at that time, because in the five tier is not a good location, how to let consumers go shopping is a problem, then thought a lot of ways," Li Yan said.

Later, after half a year's hard work, he realized that if the commodity category could not keep increasing, consumers would not come twice after coming twice, because a lower discount, if there were no fresh products to attract people, consumers would lose enthusiasm, because there were not many options.

So he came up with a way to make a brand regular covering thirty to fifty square meters, but expand it to three hundred to five hundred square meters on a large scale, and expand this brand at a particular stage in order to meet the needs of consumers.

"We summed it up as theme marketing, such as the theme of down jacket in winter, the theme of spring clothes in spring, and lots of other small themes," recalls Li Yan.

Sales of top grade discounts have increased several times.

At that time, there was a program on Beijing TV station that just introduced the contents of department stores and so on. Li Yan signed a contract with him for a year, and let him introduce the theme marketing content of the current time every Thursday night.

What follows is the increase in sales several times.

After the first store set its feet firmly, it began to prepare second stores, and the business area expanded from more than 1000 square meters to seven thousand or eight thousand square meters. At that time, difficulties appeared. On the one hand, the original brand resources were not enough, and on the other hand, they encountered SARS.

The retail industry was hit hard by SARS. Many stores did not sell anything for several months, while the top quality discount team also had different voices.

While Li Yan contacted the post office to help him deliver his advertisement to the household, he kept his teeth on his teeth. Although the advertisement did not achieve any effect, the top grade discount appeared explosive growth after the SARS.

Up to now, top grade discounts amounted to 800 million yuan in 2008, and this figure has increased fairly well in 2009.

Parity concept

The top brands are some brands like Adidas.

The top grade discounts are all brands like NIKE, Adidas, Lining, Pathfinder (300005, stock bar) and CONVERSE. The general discount is about 5-6 fold, which is more attractive to young people who are more interested in brand. Because of the advantage of parity, the same brand is almost sold at the original price in department stores or stores.

"A key link is that the brand will have to clean up inventory after the season, and we need to cooperate with our channel, which is the foundation; then we are zero admission fees, no charge, only to collect the final sales rebate," Li Yan said.

There is a OFFPRICE mode overseas, but it is different from the top grade discount, which is that operators buy goods directly from the brand dealers and sell them themselves.

Turning to this difference, Li Yan believes that "if there is good cash flow abroad, we can borrow money from banks, so that we have enough funds to get goods, and we can not borrow money now because there is no fixed assets to mortgage."

Top grade discounts are different from general department stores.

A distinctive feature of top grade discounts and department stores in actual operation is that department stores are a brand with a fixed pavement, while the top grade discount does not stipulate the size of the shop at the beginning of the contract with the brand, but is adjusted according to the actual sales situation. For example, if a theme marketing is to be conducted, the sales area of the theme can be expanded to a large extent overnight, while in general department stores, the restrictions imposed by the shops are limited, and the same operation can not be carried out.

In addition, there are not many factory fees, holiday fees, promotion fees and so on in the top grade discount. Its unified stores and uniform shelves make the suppliers save the decoration fees and reduce the pressure of brand suppliers. In addition, after the general pressure of the shopping malls, the discount for the upper products will be paid on Jan. 1 or two Monday, so that the turnover of the suppliers will also be greatly accelerated.

At present, there are 1500 brands with top quality discount, and 1000 long-term cooperation. In the meantime, in order to attract more customers, top grade discounts are used to eliminate the brand when thematic marketing is done. If a brand does not receive the recognition of consumers for a period of time, it will no longer renew the contract with the brand. Only long term and influential brands will sign a longer contract.

"We have a scoring system that will evaluate each brand every week and will ultimately decide according to the cumulative results," Li Yan said.

At present, some forward-looking Brand Company have begun to carry out channel management. Some seasonal products will only be sold on top grade discounts. There are some differences between their design elements and those in the exclusive stores. At the beginning, they offer better discount prices to promote sales.

For long-term development, "if you really want the consumer to agree that you are a good brand plus a discount, you will attract more consumers, because some businessmen who want to imitate this pattern may have a high price of the initial price, and then make a discount, so that it is not worthy of the name, but it really meets the requirements of" 1 "," top grade discount "can be long-term development, Li Yan thought.

As a retail format, a key problem is the location problem. Many good brands will result in poor performance if they are not properly located.

The key to location is to see the consumer's demand environment.

Li Yan's point of view is: "the key to location is to see the environment of consumer demand. What we do is the mass consumer goods market. As we all know, shopping in shopping malls more than ten years ago may think of going to Xidan, Wangfujing (600859, stock bar), and then it may go to urban and rural areas; and China's future new business center is to satisfy the consumption problems of two hundred thousand or five hundred thousand people in the city after the establishment of satellite towns.

Our store is also supported by more and more brands. In the regional business center, we match large supermarkets to meet the basic structure of community consumption and play a big main store concept.

If the top grade discount is located at the shop of white stone bridge, it is next to Carrefour and upstairs of Gome.

In addition, as one of the main costs of this format is the problem of rents. "In addition to the first store, our shops are basically signed ten to fifteen years long, and some newly opened stores are talking about cooperation with developers.

Because we can bring a lot of passenger flow to the surrounding consumption, such as opening a department store, it takes three to four years to form a better passenger flow, and we can form one to two years, which makes developers willing to cooperate with us and not have too high requirements on rent, "Li Yan said.

At present, top grade discount has set up its own e-commerce website. Last year, its growth in eleven and December was around 60%.

"We have invested a lot of money to connect online and offline, pay online, and the PDA under our guide will be displayed, then we will wait for the goods to be delivered," Li Yan said.

In the future, "last year, we have laid down a plan to open 3-4 stores a year, and finally want to open to 25-30 stores in Beijing," Li Yan finally said.

Fu's: localization of Oteri J

To Taobao in auris

Want to wear famous brand

clothes

And not willing to "cut meat"?

This is indeed a painful contradiction.

In addition to waiting for the discount, you might be able to try another way: to Taobao in orlies.

Orlet is a Chinese literal plation of Outlets in English. It originally means "export, outlet and export". In retail business, it refers specifically to the shopping center consisting of stores that sell over the season, lower shelves and break famous brand goods.

Otles is born in the United States and has a history of more than 100 years, but as a commercial form, it has not been in China for 10 years.

Lu Qiang was one of the people who introduced Oteri J to China earlier.

In 2003, Lu Qiang, who had just returned to China, found that the department store industry in China had already flourished. If he went to be a shopping center again, compared with the existing department stores, such as the Pacific (601099, stock bar) department store and Parkson, the strength was obviously not enough, so "we must take the differentiated route".

After investigation, Lu Qiang found that "Chinese people like famous brands, but many people can hardly afford to buy famous brands". This has led to the idea of "bringing ism" to those who once worked abroad.

In 2003, Lu Qiang established Foxtown, Shanghai, and opened the first store of more than 2000 square meters in Shanghai World Trade Center. In the following years, Shanghai flew out of the international stores, Nanhui stores and Suzhou stores.

The first year's performance made Lu strong confident, although there was only one store, "in the first year, it sold 1 billion sales."

But today, Lu Qiang's business is not smooth sailing. In this process, he is constantly groping and adjusting.

Localization exploration

Compared with the overseas outlets, Fu's is a bit out of shape.

"Compared with the overseas outlets, Fu's is a bit out of shape," an industry source believes. Unlike some overseas outlets in the remote suburbs, some of the shops are located on the edge of the city center, and in the brand mix, there are also low-end brands.

Most of the overseas outlets are located in the suburbs, and there are two parallel ways to locate the site: one is the location of the relative center, each is not very large, the area is about 2000 square meters, and the other is about 100 thousand square meters in the outskirts.

At present, there are 3 shops in Shanghai, which are flying island international stores, Nanhui stores and Suzhou stores.

Among them, Fei Zhou International store is not far from downtown Xujiahui, and the other two are located in the suburbs.

Lu Qiang said he was carrying out the "localization" operation.

The lack of per capita car ownership in China makes driving to tens of kilometers away from the suburbs as a minority activity.

In addition, take a Armani pants with a price of more than 3000 yuan, for example, the discount price may be 1000-2000 yuan. "This is a consideration for an ordinary white-collar worker whose income is only a few thousand dollars," Lu Qiang said.

This is also why in the brand mix, the location of Fu Chai's flying island international store.

fashion

Sports, open, the most low-end brands, and Nanhui stores and Suzhou stores are more emphasis on front-line brands, because flying island international is located in the subway exit, most of the passengers are white-collar workers, and the majority of people who drive to the suburbs are high consumption groups.

In fact, Lu Qiang did not fully realize this at the beginning.

In the first year or two, we can see the luxury brand Cartire and Italy famous in Fei Zhou International store.

Men's wear

Zegna (Zegna) and so on.

2 years later, these high-end brands were removed, and all of them were replaced by younger brands. Today, at the flying island international store, most of the brands are common in traditional department stores, such as Nike, ADI, women's shoes brand BELLE, Teenmix, etc., and even Baleno and other low end brands.

clothing

Brand.

At present, shops are being built in Guangxi, Nanning, Beijing and Changzhou, and 5 shops have been signed.

For the layout of Fu's in the whole country, Lu Qiang said he had to regard China as a Europe. "Girls and girls in Shanghai and Harbin like the same color, style and size as the German people are different from the French people." therefore, the combination of products should be "in Rome as the Romans do".

But the layout of the city is faster.

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It has been an expansion path for Lu Qiang.

Since its establishment, the city has opened 5 homes in Ji'nan, Shenzhen, Guangzhou and Xuzhou.

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Shop.

Since 2007, investment institutions such as Sai Fu, IDG, Morgan and Credit Suisse have come into contact with the city of Fu.

But in the process of communication, Lu Qiang found that investors agreed to buy or close.

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Shop.

They believe that if the listing standards go abroad, according to the

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The way of business cooperation can not be merged into the statement. "Although it is profitable, it has no meaning for listing".

Besides, they are worried.

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The difficulty of store management also makes the brand face potential risks.

Since the end of 2007, the company has closed all its franchises in the past two years.

What is "cheap"?

The rare discount rate of luxury goods may be an unexpected "surprise" brought to people by the financial crisis.

In 2009, the rare discount rate of high-end brands, including luxury goods, may be a surprise "surprise" brought to people by the financial crisis.

From the beginning of last June, new brands such as Ferragamo, Gucci, Fendi, Dior and Celine have been reduced to varying degrees.

In July, LV, which always advertised "no discount, no increase or no drop", also started its first price cut after entering the mainland of China. In 2009, discount sales activities in various department stores were also in waves.

Discount is the survival code of outlets, and the discount of department stores has a direct impact on Oteri J.

Lu Qiang said that in 2009, the growth of the city was less than 30%, while the growth rate in the previous years was 40% - 50%.

On the other hand, they were discounted by the discount department stores and the price advantage was reduced.

Statistics show that the number of outlets in China has exceeded 200.

How can we take into account "cheap" and "profit" in such a market?

Buyers are greedy. They always want to have enough brand choices and low discount, especially for outlets.

"Compared to the regular department stores, we are on sale all year round," Lu Qiang said. Compared with other outlets, brand integration capability is his advantage.

According to his statement, there are more than 200 brands in the city at present, 98% of which are directly co operated with the brands in China or in the Asia Pacific region or even in Europe and the United States, and 2% are provided by the distributors. In the 98% brands, some of them are direct selling outlets which are set up by the brand manufacturers in the rich shops. Among them, 9 brands include the top fashion Escada, and the Diesel is the exclusive agent in the Chinese region or even the Asia Pacific region, with a duration of 10 years and 15 years.

"Other orlies want to import these brands in China, only look for me."

Lu Qiang said.

In addition, the shareholders' background also brought him some chips.

At the beginning of 2008, he announced that he had won about $40 million in investment in Softbank. Lu Qiang looked at the LP behind Sai Fu's investment fund.

According to him, these LP include the Li Jiacheng fund, the well-known brand Esprit's Si Jie Global Holdings, Yongxin group, LVMH and so on, they can bring Esprit and international to the rich guest.

fashion

clothing

Brand Michael Kors, Tommy Hilfiger, luxury brand Coach cooperation.

Lu Qiang believes that these not only enrich the brand of the brand, especially the number of front-line brands, but also have more room for discount than the direct orders from brand manufacturers.

In the downtown area, the discount rate is generally around 50 percent off, the highest can be sold to 30 percent off; in the suburbs, the discount rate is not less than 50 percent off, or even 1-2.

About 30% of the goods sold in the city are some brands that are specially produced for the outlets, "all full color full code new products, and are not sold in the regular department stores," Lu Qiang said.

40% of the goods in the city are the brand's over season inventory, which may be broken or broken, and the remaining 30% are the end products of the brand.

Online + offline retail kingdom?

Fu is a native of orlies.

In 2009, the turnover of the company was close to 3 billion yuan. Lu Qiang hoped that the Internet could bring him more performance than the entity store.

In February this year, the company launched B2C business, "the network does not require rent, it is an infinitely great thing".

At the beginning of its establishment, Lu said that it would introduce more famous brands abroad to create a top brand discount, home appliances discount,

Children's wear

Discount, cosmetics discount, brand agent, coffee chain and many other formats of retail super kingdom.

In June 2007, Babyone established a strategic alliance with the German first baby supermarket brand, introducing the baby brand to its outlets.

"We will introduce cosmetics brand soon," Lu Qiang said. "The brand is not enough and the category is not complete. It is the weakness of the domestic outlets, and it is also the place where we need to constantly improve.

At present, in addition to Lu Qiang, such as the otter operators, the department stores and even clothing groups across the country are ready for Oteri J.

In 2002, Yansha general store launched the Beijing outlets shopping center, and built another one in Harbin in 2006. In 2006, Bailian Group and Hongkong dragon warehouse group jointly invested in Shanghai outlets in Shanghai. In July 2009, spring stores opened Seth outlets in Beijing.

In July 2009, the Ningbo orter project, which was jointly developed by Shanshan Group, Japan Mitsui realty and Itochu commerce, was officially launched.

Just after the listing in the HKEx, spring department stores said that after listing, some of the funds will be used to vigorously develop the outlets. This business is also considered to be an important source of profits for future department stores in spring.

According to statistics, there are more than four hundred outlets in the United States and more than 100 in Europe.

Lu Qiang feels that China's huge market can accommodate more Oteri J.

But it is worth being warned by orlis that the surge in volume may also lead to homogenization.