Li Yan Explores Discount Formats

Shopin

Founder Li Yan

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Yin Song, deputy general manager of top quality discount, said that in the form of retail stores, China is missing in the discount format, and the company acts as an explorer.

In addition, top quality discount.

Li Yan, the founder of top grade discount, was once the general manager of Hongkong PATTY (Ebadi) brand North China, and PATTY mainly made shoes.

Once the season is over, new products will be put on shelves and stock will be converted into cash as soon as possible.

In 1997, in order to clear up inventory, Li Yan tried to make a promotion at the store in China World Trade Center.

In those days, the discount of brand products had hardly been seen in China.

Yin Song said that at that time, only 20 percent off had been hit, and the degree of its popularity was beyond everyone's imagination.

Because too many people rush to buy, they have to pull up the shutter door half, and wait for a few people before they can put in a few more people.

Li Yan realized that discount is a big business. If you can combine more than ten brands, you will get better results.

So he sprouted an idea of selling the whole brand discount, selling discounted products all the year round.

In 2000, Li Yan rented 5 layers of pavements of Wangfujing Gong Mei.

At that time, many people said Li Yan was crazy and crowded into a pile of department stores.

The problem is coming, because the 5 level is not a good location, so how to let consumers go shopping is a problem.

Li Yan came up with a way to make a brand regular covering 30 to 50 square meters, but expand to 300 to 500 square meters on a large scale.

In addition, he develops thematic marketing almost constantly, such as the theme of down jacket, spring theme and so on.

He also tried anti season promotions, such as selling down clothes in the off-season, selling products like things in front of department stores, but only half of the price. Top grade discounts gradually became famous.

Now, top grade discounts have 7 stores in Beijing. Last year's sales exceeded 1 billion yuan, and the average annual growth rate was 40% over the past 10 years.

Attracting more than 3000 brands

Top grade discount Asia Olympic store is the largest in 7 stores in Beijing, with an area of 13 thousand square meters.

After entering the door, they are well-known brands such as Adidas, Nike, ELLE, Pierre Cardin, Daphne and so on. In the striking position of the shelves, there are 1 to 50 percent off and 5 to 30 percent off words.

Shoppers sometimes have to lean sideways to get through because the goods are so dense.

"We have a requirement for the density of our products. We need to have a sense of density when inserting our fingers."

Yin Song said that among so many products, you can definitely choose a suitable one for you.

Top grade discounts for consumers are rational consumers who are aware of the brand.

When Yin Song first came to the top grade, the first thing he felt was, "is the commodity here real?"

Because the shopping mall is very simple, the toilet and other facilities feel bad.

Later, when I was bored, I came across carefully and found that it was genuine.

"Every penny needs to be drawn. Most of our shops are two or three floors."

Yin Song said their biggest cost is rent, labor and operating costs.

The rent on the two or three floor is relatively low, and basically no decoration. After adopting the chain management mode, the discount can be completely achieved.

Although the company is trying to provide a slightly better shopping environment, the basic value of the top grade discount is that the shortest distance and the lowest cost to the consumer.

Liu Hong, assistant general manager of top quality discount, said that they now have more than 1000 suppliers and three thousand or four thousand brands, all of which can be discounted and suppliers are in hot pursuit.

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Salesperson holding PDA

At the discounted store, all the sales staff are holding PDA (handheld computer equipment).

If you look at a particular item of clothing, the salesperson will use PDA to punch out a small ticket, then you go to the cashier's desk to check out.

This small PDA makes top grade discount the only department store in the country that makes single product data management.

The traditional department stores in China carry out the joint operation mode. They invite brands such as Nike to open the door shop, and finally sell the brand according to the sales volume of the brand.

When the supplier comes in, he has an account. When he checks out, he knows how much he sells, but he doesn't know what he sells.

In recent years, how to effectively control single product information has become a topic of common concern in department stores.

Yin Song said that every commodity information of top grade discounts is in the database. Relying on this platform, it can manage conveniently and understand inventory information in time.

With a single product management, you can share information with the brand, understand what type and what price is best to sell, so that the brand can understand the goods in the top grade discounts, and timely deploy the goods.

"The traditional department store chain is only a chain of trade names. Only by achieving a unified single product database can the marginal cost decrease."

Yin Song believes that China is a market with excess supply. For example, it is easy to find a few people to open shops and attract business, and it can also store up the shopping malls. But after being filled, the process of continuous optimization is the key.

Now only practicing internal strength.

"We demand the lowest price in Beijing, clearly stated in the terms of the contract with the supplier."

Liu Hong, assistant general manager of top grade discount, said.

Then, what is the lowest price for the top grade discount? Yin Song said that in North America and Europe, the clothing industry has three channels, namely, the positive price channel, the preferential price channel, and Oteri J.

The middle passage is selling goods at preferential prices. They are not seasonal, but a supplement to a positive price channel.

50% of the gross profit of many enterprises comes from two other channels besides Yu Zheng's price channel.

And China is the first to the positive price channel, can not sell to discount stores, and finally can only clear goods, this is a jump floor sales, jumping is the most profitable.

Top grade is the preferential price channel.

On one occasion, Li Yan bought a pair of shoes for his daughter in Niketown (Nai Kecheng) in the United States, and later found the same shoes in top grade Asian Sports Village, which was cheaper than in the United States.

Yin Song said that the brand may have just begun to fear that other channels will impact on the department store, but it will gradually find that the gross profit rate of the department stores is relatively high, but the top quality discount can maximize the gross profit, that is, the gross profit rate is multiplied by the turnover rate.

Clothing enterprises enter e-commerce, which has been a hot topic in the past two or three years, and has also bred a large number of brand enterprises and brand platforms such as VANCL, Okbuy.

Top quality discount is no exception.

In May 16th last year, the sale of the top quality discount line was only tens of thousands of yuan in the first month, and now it is several million yuan.

Yin Song said that the intention of building e-commerce is to provide more channels, and also to serve the physical stores.

Therefore, it is very convenient to find products that are short of code and broken numbers.

But after a period of time, it is found that the growth of e-commerce is very high. The company has reconsidered that e-commerce should be regarded as a very important channel. After all, multi-channel mode marketing is a global trend.

Up to now, top grade discounts have not taken into consideration other cities or financing.

Yin Song said that they are also thinking about where the discount format is suitable. The first step is only in Beijing. Through meticulous and differentiated management, it is estimated that dozens of stores are enough, and now only do internal work.