Unconventional First Tier City Of Po Da Shoe Industry

If you want to buy a NOKIA phone, what will you think of first? You can grab a large number of mobile phone shops with your hand, and you will soon get into your mind. It is true that people who buy NOKIA phones do not necessarily have to find NOKIA stores. Those outlets seem to be a good choice, which does not affect the status of NOKIA brands in the minds of consumers.

"Since selling mobile phones can be sold like this, shoes can also be sold like this!" Chun Da, deputy general manager of Bao Da shoes industry Co., Ltd. Recently, Bao DA has launched a major action of "City King" to find partners in big cities. It will find partners in cross-border business outlets in important business circles such as Shanghai, Hangzhou, Nanjing, Hefei and Wuhan.
    
Choosing first tier cities to enhance brand awareness

As a rising star, why does it do not have the best choice of "two or three line cities" as most small and medium-sized brands? And in the expansion of channels, we choose the first tier cities with high cost, high threshold and big brands.

Big cities are often the battleground of high-end brand strategy. Big cities have also become the first-line market for gold rush. Big brands are usually concentrated in big cities because of their high brand strategy and the target consumer groups. They often spend large sums of money on laying sales terminals in large cities, and virtually raise the threshold of front-line market. Some small and medium-sized brands tend to be cautious when they enter the first-line market.

In recent years, many small and medium-sized brands, especially the new brands, have chosen the strategy of breaking through the curve. First, they should avoid the edge, not directly enter the first tier market, and turn to the two or three line cities.

However, for the rising star Bao Da, he did not see such a breakthrough strategy. He used Chun Chun's words to say, "we don't have much time to wait." Always advocated that "vulcanized shoes + jeans = trend matching" route, the target group targeted young people, especially the college students, and the big city is the place to collect this group.

"Big cities are often the places where fashion elements converge. They are the accumulation areas of many colleges and universities. A large number of students are our consumption groups. At the same time, the third industries in the big cities have been developed, which has attracted the attention of young people in the surrounding areas. The trend shops and foreign trade shops all over the streets are just a big consumer destination.

It is precisely because of its own positioning and various factors of big cities that Bao Da did not avoid the edge of the first tier market, but caught up and marched forward.

"Laying a terminal in a big city can not only directly expose our products to consumer groups, but also effectively enhance brand awareness."

The chain of affiliate outlets in major cities can "ship to sea".

Since the first chain model store unveiled the mysterious veil in Qingyang, Jinjiang, Boda fashion has broken the monopoly terminal form of traditional shoes and clothing industry for the first time in accordance with the "jeans + vulcanized shoes" and the terminal mode of selling, which undoubtedly brings some inspiration to the emerging brands who are building the terminal.

As a matter of fact, the first idea of the fashion chain is to ally with jeans, not to grab shoes, or to grab shoes. Through the infiltration of each other's channels, not only can it bring about the fission of the terminal network, accelerate the penetration of the network, but also can transfer the "jeans + vulcanized shoes" to the fashionable lifestyle.

Today, a large number of first tier cities, Rio Tinto consignment point, in a sense, is the "treasure" fashion chain terminal mode of a "evolution", and more reasonable.

The so-called selling point, the definition of the scope of the definition given by Bao Da: the first tier city business circle of all kinds of cowboy trend shop, foreign trade shop. With the help of these consignment points, it is necessary to extend sales antennae to all streets and alleys in all directions.

The first task of the business managers assigned to all the first tier cities is to expand the scope of the definition of the chain of consignment, and launch a network of affiliate outlets.

"A warehouse distribution warehouse, a van. This is the sword that Bao Da gives to business managers. They need to use these two weapons to split up the terminal structure of this city.

According to the introduction, at a suitable selling point, the company will provide 1 sets of shelves and 200 pairs of shoes. A consignment point of 1 pairs of shoes is sold, and a certain proportion of cash rebates can be drawn from it. If necessary, you can place the order at any time, and the warehouse will be distributed throughout the city. That is to say, in the city, with the storage warehouse of Bao DA as a center, those consignment points will form a number of "point to point" sales terminals.

However, in this "point to point" sales terminal, the Poda fashion chain consignment point in the shoe and clothing wholesale market of major cities is of strategic significance. By selecting some high-quality shoes and clothing wholesalers, they can often "ship to sea". The reason is very simple. The wholesale market of shoes and clothing located in provincial capital cities usually radiates around the two or three line cities, including some towns.

Once in the wholesale market of shoes and clothing, it will become a consignment point of the Costa fashion chain, especially the selling point of the supporting clothing city. It can make the shoes of the BDA become a complete set of all kinds of clothing, and distribute outlets with wholesalers' own distribution channels, so as to realize the overall sales network sink and infiltrate into cities, counties or townships below the first tier cities.

The rule of capital dispersion

In fact, insisting on the "king of the city" of the chain's chain of fashion, and using the terminal expansion mode of selling points is undoubtedly a rule of "capital dispersion" without putting eggs in a basket.
 
As we all know, at present, the famous brand of shoes and clothing brands in the first tier cities have already reached the level of white hot, and the high cost of developing terminals in these cities often makes many growing brands look at it.

Chun Chun has counted such an account for reporters: assuming that a direct store with 20 square meters will cost a lot of money. Initially, it is estimated that a store needs 100 thousand yuan of store rent, 100 thousand yuan transfer fee and 100 thousand Yuan decoration and layout costs, amounting to a total cost of 300 thousand yuan. However, the total cost of a consignment point is about 8000 yuan, which means that the cost of 300 thousand yuan in a direct store can be sold at about 40 outlets.

In this way, 1 stores = 40 consignment points. Just imagine, if the terminal mode of consignment point is fully rolled out, it will not only save a lot of capital costs, but also save valuable time and cost, help brands quickly open their sales in a short time, and enhance branding's brand impression in the first tier urban groups.

In addition, the best advantage of the selling point mode is that in the course of business cooperation, the brand and terminal outlets are in an ideal state of zero inventory and zero debt.

For consignment point, it does not increase the cash burden and does not generate inventory. Every day, according to the sales volume, it will replenish the company's local warehousing and logistics center at any time, and get a certain proportion of cash rebates. If you can cooperate with the brand, you can save the complexity of re finding the channels, and add a new profit growth point to the store.

However, for Bao Da, setting up the terms of daily checkout and rebate per consignment point not only guarantees timely withdrawal of cash, but also collects market feedback information at the first time according to the sales status of each consignment point, which is conducive to the unified scheduling of goods and subsequent development of the market.

Of course, Chun Chun also made clear that not all sales outlets could survive. The practice of expanding the selling point of first tier cities in fact is also a process of spreading nets first and then releasing. "In line with the principle of upgrading a batch and eliminating a batch, we will gradually upgrade some high-quality selling points to a cooperative business mode, so that we can further stabilize the sales outlets that have already been built."