"Ideal Kingdom" Of Baiyuan Pants Industry
Among many "King" enterprises in China, there are countless invisible champions, Baiyuan pants industry With a more distinctive feature: the king of pants industry is in an extreme fashion However, in a few years, its business scale has increased hundreds of times; it has no factories of its own, and it has not taken any measures Sea of people tactics However, it has established a sales network with luxuriant branches and more than 1400 exclusive stores.
More than a decade ago, when Yang Jianxin sold his first pair of trousers, he had no idea that this small business would be so big. At that time, there was no loud pants brand in China, and the price of pants could only be judged by feeling. In order to strive for more profits, those merchants in wholesale cities around the country used the psychology of customers to play a psychological game of cat and mouse with customers. For consumers, bargaining has become a time-consuming and laborious game. In fact, consumers are more willing to be a fool's buyer, because bargaining is a laborious tug of war, which not only reduces the transaction rate of merchants, but also easily causes disputes with customers.
Yang Jianxin was aware of this problem, and the popular ten yuan store in the country inspired him. He thought, what would happen if this practice was transplanted into his own shop? Therefore, the hundred yuan pants industry came into being. It is the first time that the brand appears in the market. Although this technique has been widely used now, it was a new thing at that time. Yang Jianxin clearly knows where the customers of Baiyuan pants industry are and what kind of needs they have. Therefore, he also spent 13000 yuan to buy a large-scale hemming machine, promising "barrier free return and exchange, lifelong free hemming and ironing" to strengthen customers' psychological feelings.
In the summer of 1995, when people received roses from Yang Jianxin, they had a hunch that the business of this unusual young man would be more and more prosperous. Because, this poor young man did not like the ordinary shop owners, shaking a fan, waiting for guests to come, but tried to move every customer's heart. These creative and ingenious marketing practices have made the business of Baiyuan pants industry soar and become uncontrollable. Up to now, Yang Jianxin believes that this business model is still competitive, because it intuitively expresses the concept of "good quality and low price", eliminates the inherent distrust of customers on merchants, and shopping becomes a relaxed and pleasant experience.
The business model of Baiyuan pants industry is not special. In other words, its unique weapon is "three axes": 100 yuan pricing, chain operation and free ironing. Although there are countless people imitating this practice, market competition is not a war of business model, but a systematic war, which tests the strength and ability of an enterprise. The success of Baiyuan pants industry is not only the "three axes", but also that it subverts the established rules of the game and creates a win-win business spectacle with the most simple values.
One of the keys to the rapid growth of Baiyuan in the past decade or so is its precise brand positioning and 100 yuan pricing. Yang Jianxin also admits that this business model has brought great development to Baiyuan. In fact, this modest innovation solves a series of marketing problems.
"Digital brands are named after the final retail price, which can be said to be very effective in relieving customers of this kind of insecurity and vigilance. Since the retail price can be used as the name of the brand, the transparency and reality of the price are directly tied to the brand's reputation. As a result, under such a more thorough and explicit price, customers' unfairness and vigilance will naturally disappear, and the frequency of successful transactions will naturally be higher. " Qu binye believes that it is more convenient to observe the single brand in the market Moreover, "dealers often change the manufacturer's price policy without authorization for their own immediate interests. Random price increase or discount has become a common means for them to obtain or maintain the immediate interests. The inherent price positioning of digital brands solves this problem to a certain extent, providing congenital convenience for manufacturers to regulate the sales price of dealers."
In order to let this model play a greater power, Baiyuan pants industry chose to join as its channel strategy. In the first two or three years, Yang Jianxin, who had a booming business, often received requests from his friends to join him. Later, he went to Beijing and got involved in the chain franchise training and became fascinated by the system. At the beginning, Baiyuan opened several chain stores in Taiyuan, and then its store network expanded to other cities in Shanxi Province. In just three years, it has developed dozens of stores. At the same time, with the increase of channel scale, Yang Jianxin was unprepared for the trouble caused by relatively extensive business network. For example, Yang's friends even secretly buy pants from Yang's buyer and sell them at a low price. He realized that without his own products, it would be difficult to manage the purchasing channels of chain franchisees. In 1998, he began to plan to purchase cloth independently and select suitable factories for OEM production.
It was also in this year that he began to get involved in franchising. Through the introduction of his friends, he participated in a training organized by the newly established China Franchise Association in Beijing. It was in this training that he realized that the franchising mode would lead Baiyuan into the fast lane. Yang Jianxin firmly believes that he has found a fast track of development. Back in Taiyuan, he made a new arrangement of the company's internal structure and network management, and formulated a unique working system and process for China's pants industry. Every employee can find the answer he needs in the "workflow" manual, which is nearly one foot high.
The unique business model makes Baiyuan pants industry rapidly move to the whole country. Driven by Baiyuan, digital brand has become a wonder of pants industry. If you go to the new pedestrian street in Pingyu County, Zhumadian City, Henan Province, you will find that 20 pants stores account for about a quarter of the total number of shops in the pedestrian street, of which digital pants brands account for half of the whole walking street pants sales stores. At present, there are no less than 100 digital brand enterprises of trousers in China, and there are nearly 200 digital brands. If they are not separated from the traditional business model, it will be very difficult for them to break the traditional business model. Surrounded by more than 200 similar brands, how can the Baiyuan pants industry compete differently_ break}
Yang Jianxin doesn't worry about the threat of similar digital brands, because the terminal price of these brands is too low. Once the opening of stores increases and the price of raw materials rises, these brands will either cut corners, reduce costs, or reduce the profit space of themselves and dealers in order to maintain their original profit level. Both of these options will have the same bad effect: they are getting further away from the brand. The price of 100 yuan can make a certain profit margin for 100 yuan, but it will not make the brand low-grade. In fact, due to the low profit, many digital brand manufacturers are unable to support the long-term development of franchisees, resulting in loss operation of franchise stores. This phenomenon is not rare in the industry, but rarely exists in the franchise system of Baiyuan pants industry.
"Our aim is that we must not let the franchisee not make money. If a franchisee closes down, do other franchisees dare to join? Therefore, at the beginning, the company may not be able to make money, but the franchisee must not be allowed to make no money. It is necessary to support the franchisee in various policies. " Yang Jianxin said. In order to let the franchisees obtain more profits and further attract consumers, Baiyuan pants industry has extended the past free ironing and curling service, promising that the pants industry will iron and curl the edge free of charge no matter where consumers buy pants. Today, some stores have also added free dry and wet cleaning services, some shops have added free weaving services, and some stores have even become community service centers, which can send and receive mail, gas swipe cards, bicycle inflation, receive and receive newspapers for free. This service to win customers has become the key point of Baiyuan's differentiated competition with similar brands, and it is also an important way to improve the sales volume of single store.
From the beginning, Yang Jianxin considered more about how to make money for franchisees and how to quickly expand the scale. For the franchise fee, Yang Jianxin did not regard it as an important source of profit. The price of 100 yuan determines that this is a business won by quantity. Therefore, for Yang Jianxin, it is more important to increase the shipment volume of each exclusive store. Because the opening cost of a franchise store is at least 100000 yuan. If we don't try our best to let the franchisee increase the shipment, all kinds of cost pressure will make these small investors breathless. Once the loss occurs, the butterfly effect will appear in the franchisee system, which will damage the reputation of the enterprise.
"The profit we get from each pair of pants is limited, so the cost can be reduced only by scale." Over the years, Yang Jianxin has been working hard to expand the scale. The flagship store in the headquarters of the company is specially equipped with an electronic display screen. Every time an exclusive store is added, the number on the display screen will change. Today, the number exceeds 1400, which is a very good achievement. Even in the whole clothing industry, only a few enterprises have reached this level.
When we approached Baiyuan pants industry, we found that this young enterprise has been pursuing an incredible value system. For example, every corner of its office is a no smoking area, and whoever offends it is subject to a huge fine. On the right side of its front desk is an optional supermarket, where there is no salesperson. People who shop here pay by themselves. This comes from Yang Jianxin's Utopia experiment. Under his leadership, Baiyuan pants industry has opened more than 1400, which is one of the top achievements in the increasingly competitive pants industry. However, he is more willing to enjoy the sense of achievement when he was a parent. Yang Jianxin is an entrepreneur full of idealistic spirit. In this ideal country, his utopian spirit and ideas can be realized. Every once in a while, he would analyze the number and amount of items lost in the supermarket, and draw some interesting management conclusions. Sometimes, he also looks at the curve of smoking fines over the past few months to test the executive power of the management team.
Over the past 14 years, Yang Jianxin has been designing the commercial value system behind the hundred yuan. He thinks that the ultimate goal of an enterprise is not necessarily to make money. In his mind, an enterprise is a small society and an ecosystem. It must have some universal values to drive every individual in it. Under the seemingly unreasonable rules, Yang Jianxin's ambition for management innovation is hidden. Within the rules, there are stories and fables about management. His tireless efforts to solve this problem have become the real essence of his enterprise management. China's private enterprises are used to the state of savage growth. The wolf nature in their bones and the blind worship of high profits make many enterprises taint their original sin. When approaching the hundred yuan pants industry, we find that this company which pursues sunshine culture is full of a kind of upward force from the beginning to the end. It's hard to say that this is not a kind of atmosphere that Yang Jianxin deliberately creates, but at least we can see his intention and affection for the enterprise. We have come into contact with many successful enterprises, whose rapid growth is more or less related to their business model, but the growth path of Baiyuan depends more on its values.
Yang Jianxin believes that the biggest secret of an enterprise lies not in the business model or even in the product itself, but in the values of the enterprise. From a certain point of view, brand is the mapping of enterprise values on products. In today's increasingly homogeneous products and increasingly transparent production costs, the biggest difference between brands is not in products, but in the feelings that enterprises give to consumers, stakeholders and the public. Yang Jianxin clearly knows that the key to make a pair of ordinary pants have a fascinating temperament is the "magic wand" in his hands. Yang Jianxin's vision and ideal determine how far a hundred yuan can go.
Although Yang Jianxin, who had been involved in business for more than 10 years ago, was worried about the loss making grocery store, he never forgot the nature of business. Until he became the famous King of pants industry, these win-win ideas were still adhered to. Yang Jianxin plans to take out a considerable part of the equity to motivate this group of excellent franchisees after the listing of Baiyuan pants industry. Because he believes that only by bringing excellent partners into the long-term development of the enterprise, the wheel of the enterprise will have a stronger driving force. Now, many franchisees have become loyal supporters of Yang Jianxin. They believe that following Yang Jianxin can make a success. Baiyuan pants has become a huge system supported by faith and a cohesive pants ideal country.
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