Discount Brand &Nbsp; Ideal, Bottleneck And Future.

There was a time when discount chain brands, such as a hurricane, quickly attracted people's attention. The discount chain operation model represented by ITAT rose rapidly and fell rapidly. Even before people fully understood, they hurried out of the stage.

Guangzhou dike Dior Clothing Co., Ltd., general manager of the Yellow River believes that this is not the true face of discount chain brands, people's understanding of discount brands needs to be deepened and improved.

The ideal is full and the reality is very skinny.

Guangzhou dike Dior Clothing Co., Ltd. is also a business.

In recent years, the main innovation of ITAT was reflected in the business mode, for small and medium-sized enterprises and those with idle property.

ITAT is responsible for promotion expenses and wages.

The Yellow River also admits that in theory, the logical structure of this model is quite simple and perfect. First, it is extremely light assets and the cost of opening shops is very low (the cost of opening a branch of ITAT is about about one million yuan), so that it can expand explosively in a short time, form a nationwide retail chain network, realize scale advantages, and secondly, pass the risk of most retail formats to suppliers and owners, and their risks are very low.

However, in the crazy expansion of "light assets", ITAT did not balance the relations among several elements, and did not lead the consumption idea well. The core of the whole mode -- high cash flow and high asset turnover rate dried up gradually, resulting in poor turnover.

The failure of ITAT has prompted the Yellow River to think more deeply about the discount chain mode.

Also started in 2005, Di Mike Dio chose a completely different form of development from ITAT at the very beginning.

Instead of concentrating on fast opening, they focus on building relationships with manufacturers.

"We want to

In addition, we need to have enough capital to ensure that all of their stocks are taken over. "

In the negotiations with manufacturers, Di Mike Dio's cash payment is an important weight, which is a win-win choice for some brand enterprises that need to revitalize their assets. In cooperation with Dior,

19 years of age into the clothing circle, years of accumulation, let the Yellow River have a very deep understanding of the clothing industry.

He said: "every brand enterprise will have inventory, generally controlled in 10%~20% inventory is called safety stock, these stocks often lack the appropriate processing channel, to deal with distributors, will affect the sale of genuine products, do their own sale, and not enough manpower and material resources.

Therefore, how to digest inventory is a common headache for brand businesses.

In foreign countries, this special digestion brand enterprise inventory discount chain mode has existed for a long time, and has produced a number of well-known discount brand, such as FOXTOWN.

The Yellow River believes that the demand for discount chain mode is even more urgent due to the large number of Chinese brand enterprises. The discount chain model has a bright future.

In order to win the trust of brand enterprises, the the Yellow River dike Dior discount chain has been insisting on cash receipts and integrity. Once it comes to the spot with the brand dealers, it will immediately withdraw the shelves, give priority to the interests of brand dealers, and avoid the worries of enterprises.

Now, Di Mike Dio has established good cooperative relations with seven hundred or eight hundred brothers, such as brother, Jiangnan and so on.

With the deepening of market cultivation, Di Mike Dio has at most more than 3000 stores nationwide. As most of them are in the form of franchise, the increase in shops has made the Yellow River feel the pressure and bottleneck.

"The difficulty now is the management of franchisees.

Thousands of franchisees, different levels of management, the difficulty of management is too large, even without locking, the control of enterprises to franchisees is weak; on the other hand, the development of discount industry in the past few years is blind and disorderly, mixed with good and bad, and the whole industry leaves people with a bad impression.

The Yellow River is concerned about bottlenecks both in itself and in industry.

"The most common problem I am considering now is how to manage my franchisee well, and what is the way to make the whole industry more standardized."

Play the leading brand demonstration effect

After careful consideration, the Yellow River has decided to gradually increase the number of self operated stores in the diske Dior discount chain and reduce its franchise ratio.

At present, Di Mike Dio has more than 2000 stores nationwide. According to the plan, more than 500 high-quality customers will be retained in the future, and the rest will be self-employed.

In 2011, Di Mike Dio will open 100 self run stores in Guangdong.

The advantage of self operated shops is good management. For an industry that pays special attention to honest management, only by doing self operation can we ensure the smooth implementation of brand headquarters management ideas.

Since the second half of 2010, Dior has begun to try foreign trade exports, which is undoubtedly an important breakthrough in dealing with the discount based on inventory.

It is an imaginative thing to deal with the stock of brand enterprises abroad.

It has proved that this idea is not an idiotic dream. In the past two months, Di Mike Dio has sold 1 million 500 thousand stock products abroad, including Africa, the Middle East, and even Europe.

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The opening of foreign trade channels will give the Yellow River more confidence in the future development of enterprises.

"We sell our products abroad, and our domestic enterprises are more motivated to cooperate with us, because their concerns are no longer there, and the establishment of our own system will also help regulate our domestic market. Dior will gradually establish the identity and status of the leading brand in the industry."

The Yellow River hopes to learn from McDonald's and KFC's development model, open shop first, and then switch to maturity after operation. He said that only in this way can we ensure the benign development.

Moreover, after self employment, Di Mike Dio will gradually build his own discount brand. All the products in the store will be replaced by their own trademarks, so that more standardized and clearer brand images will emerge.

For the current problems in the field of discount chain sales, the Yellow River believes that the benchmarking role of powerful brands should be taken into consideration. The more irregular market, the more leading companies need to play a good example.

In order to make their enterprises stronger, the Yellow River is now focusing its efforts on the personnel structure and the specific work of goods and financial management.

The discount chain model is not without prospects.

The failure of ITAT is only a deviation from the operation and the way and method. The industry has potential as a whole. "

According to the latest news, in December 15th, the China Hui Ying joint supply chain group held a news media meeting to announce the merger of ITAT group. Does this mean that the resurgence of the discount sector?

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ITAT coming back?

In December 15th, at the Sheraton Hotel of Greater China International Plaza in Shenzhen, the first China supply chain association was held by China Hui Ying joint supply chain group, and a news media communication conference was held to announce the merger of ITAT group.

According to reports, China Hui Ying joint supply chain Group Co., Ltd. was founded in November by the China Merchants Alliance Group in Hongkong.

As the main shareholder of Hui Ying group, the China Merchants Union Group is a comprehensive enterprise that has developed rapidly and has strong strength, including clothing design, technology research and development, raw material supply, production, sales and investment. The company is involved in garment production, department stores, commercial real estate, network operation and financial investment industries. It has nearly 1200 retail outlets, 10 large department stores, 30 textile and garment production bases, 5 textile and garment import and export companies, 1 online shopping mall companies, and 1 logistics pportation companies, with a total assets of HK $3 billion.

After the merger of ITAT group, the main shareholders include China Merchants Alliance Group, ITAT group, and 16 financial investment institutions such as Morgan Stanley, Lanshan fund and so on, which were converted into common stock, and the original ITAT suppliers and the new supply chain partners who have merged into the ITAT group.

According to Ma Huijun, chairman of the board of directors of Hui Ying group, after the merger, the Hui Ying group has a broader supply chain partner, and ultimately forms a strong supply chain network system that integrates production, supply and marketing. The assets structure is measured by means of acquisition, holding, merger, equity replacement and so on. Individual independent accounting and group consolidated statements are combined legally and effectively to form a multi-step operation mechanism.

Ma Huijun said that in the 2011 and 2012, the compound growth of the group was 3 times and 6 times.

It is understood that Ma Huijun is one of the ten largest suppliers of the original ITAT, and is also the largest creditor of the original ITAT supplier.

After nearly two years of mediation, we persuaded and received 98% of the original ITAT suppliers and other creditors' support. In the form of debt to equity swap, we reached a satisfactory reorganization and merger plan, and established the China Hui Ying joint supply chain group and became the chairman of the board of directors of the group.

As one of the victims of ITAT, Ma Huijun pointed out objectively that the mode of ITAT is feasible and successful in some aspects. It is unfair to call it "failure", and failure is the more appropriate evaluation of ITAT. "ITAT"

After the media conference, nearly six hundred people attended the association, representatives from Morgan Stanley, bank representatives, and people in Guangdong, Hong Kong, Macao, Fujian, Jiangsu and Zhejiang and other related persons or trade associations, all of them expressed their recognition of the development mode of Hui Ying group and their support for Hui Ying group.

The ITAT group, which aims to integrate the textile and garment industry chain, with innovation mode, will move towards where it will go. In the public mind, it will be a new wait-and-see target.