Crazy &Nbsp; "Box"
Wang Sanshi, President of Beijing Langxiang Technology Co., Ltd. recently met with annoyances. Every few days, he will receive some visitors from all over the country, who are attracted by the Feng Guo Box. This does not include asking every day on the phone whether the merchant can join.
Wang Sanshi looked like an artist. After graduating from Academy of Fine Arts, he worked as a university teacher, worked as an online game designer, worked as an advertising agent, and worked as a boss. Later, he moved from Zhuhai to Beijing. In 2004, he set up a website to provide personalized greeting cards online paid service - "help you post". In February 2007, "help you post" transformed into a crazy fruit network in Wang Sanshi's hands.
Since the first mad fruit shop opened in Beijing Zhongguancun pedestrian street in October 2007, crazy fruit has opened eight physical outlets in Beijing, including the China Merchants Shopping Center store in CBD business circle and Xidan Joy City branch. In 2009, Guiyang mad fruit shop opened.
Inspiration from the creative market
In 2007, at the bottom of Wang San Shi's career, "help you post" website did not make money. The only valuable thing was the accumulated resources of designers. In order to allow more designers to register crazy fruit network, Wang Sanshi's friends website Playing the designer. Advertisement 。 At the same time, as long as there is a designer's party, we can see his figure and introduce his ideas to designers. Wang Sanshi's ultimate goal is to bring designers together to set up stalls.
The so-called Fashion Market, originated in the east end of London, is a "flea market" that converts all kinds of design works and creative ideas. It is the original design work of independent designers, amateur artists and handicraft enthusiasts.
There are some problems in the process of stall. First of all, the question of venue rent. The 60 stalls in the downtown area cost 30 thousand yuan per day. The money can't be sent out by designers. Most of them can't afford to go out. Of course, they can't get out of crazy fruit. The original intention of crazy fruit as a creative market is to provide designers with an opportunity and trading platform for creative product display. If they do not make money, they will not be able to sustain it. Secondly, the application procedures for holding creative markets are complex. Once, a creative market was held, and the day before it was still running around to get the permission of the city management. Once again, the venue was not fixed. Because there is no fixed venue to hold the creative market, the holding time is not fixed.
A post caused him to think deeply. "I rented a box in Shanghai," said a netizen. Crazy fruit net Said on the posting. This box gave Wang Sanshi great inspiration. "Crazy fruit box" came into being.
Crazy fruit is a special shop. This shop does not have its own merchandise, only some boxes for displaying goods. In September 2007, the first mad fruit shop opened in a humble outlet of Zhongguancun pedestrian street in Haidian District, Beijing. In the 200 square meter shop, more than 300 boxes were scattered, each box was 50 centimeters square, cubic and rectangular. At first, sales weren't very good. Fortunately, many of them are repeat customers. Some of them buy things and then go online to make them. In this way, patronizing guests gradually increased, and sales gradually increased. {page_break}
The designer of crazy fruit can be called "box master" in image. Most of them are young people after 80. They have unique views and extraordinary imagination in life. The main source of the box is extensive. Some are students, some are company staff, and some are professional designers. These people used to play with the mindset to rent a small space which is not expensive, show their thoughts to everyone, pursue the resonance with those who come to shop, and see if their ideas are accepted by others. But slowly, the small business in the box became more and more prosperous. More and more part-time designers quit their jobs to start the business. "Happy groceries" is one of the best selling brands in the crazy fruit shop. This is a couple's small lattice. The product and layout are very warm, which makes people feel full of happiness. Now, two couples have resigned, and their boxes bring them annual income of 350 thousand yuan, which is astronomical for ordinary young families.
The two years of crazy fruit shop did not disclose the specific profit situation, but about 95% of the box renewal rate, and the continuous opening of new branches, is enough to show the current good operation and cash flow situation.
Unique business experience
The three vision of mad fruit is to help more people realize the dream of free life; to bring together the power of creativity, to make the world different from its existence; to create wealth.
With the continuous innovation of Internet applications, especially in the field of image and related products, crazy fruit has been able to combine production, channels, service resources and personal creativity to form a complete value chain. Countless professional knowledge embedded in individuals and enterprises has found a new way to achieve market value through the Internet, and create a more free way of life: through remote collaboration, relying on their creative labor to earn income, and thus get more freedom of life.
It is a business mode of crazy fruit to collect box rentals and extract certain service fees through consignment, and it is also a basic cooperation mode between crazy fruit and box owners. Crazy fruit can turn user's creativity into commodities through on-demand production, and is responsible for sales, distribution and service. The earned income is divided into proportion to the seller. In general, after the work is sold, 25% of the sales volume of the box owner is taken as the source of service fees, taxes and profits. In addition, the box owner also needs to pay a rent of 200~500 yuan per month to share the fixed cost of crazy fruit. In short, the business mode of crazy fruit is to set up brand stores, rent boxes to designers, collect rents and sales commission.
Crazy fruit also adhere to the two principles of operation: originality and non mass production.
The products sold on crazy fruit include doll design, cloth handicraft, ornament, clothing, handbag and so on. Mad nuts require more than 70% of original ingredients of consignment products, and a special audit department has been set up to evaluate the products. For the original works with lower originality, the crazy fruit adopts the method of increasing the sales commission rate to control the designer's income, so as to urge the designer to design better and original works. In order to ensure the originality of the products, the crazy fruit also invested 2000 yuan a month to implement the "non original complaint mechanism for goods".
Crazy fruit will store products into three categories: market shipments, re processed products and original products.
Market shipments refer to bulk goods that can be seen in the market. For such goods, crazy fruit must take a resolute and resolute way to crack down on such products, and make sure that they are not paid for their stolen goods.
Reprocessed products, also known as batch reprocessing, mean that all or part of the creative material originates from the market and has certain innovative products. Taking into account the status quo of China's original market, the attitude of mad fruit to such products is limited, and measures are taken to raise its service charge to 40% of sales.
Original products refer to native original works with good quality and without any plagiarism or imitation, regardless of design concepts and production processes. Crazy fruit adopts encouragement and support attitude. The service fee will be reduced to 15%~20%. According to the quality of products, the incentive period for reducing service charge ranges from 3 to 12 months.
Insisting on originality is the embodiment of the core competitiveness of crazy fruit, making its brand image more prominent, which distinguishes itself from the ubiquitous shop in the community, thus gaining market recognition.
Non mass production is another feature of crazy fruit. In order to understand the mainland market, a toy company in Taiwan has hired applications in the nuts store for several years to serve as an "experimental field" for the future development of the mainland market. However, the factory has already set up factories in Taiwan for mass production, which is not in line with the principle that the nuts are not mass produced. And considering that if the dealer in Taiwan develops the mainland market in the future, it will produce many similar products overnight in the mainland, so mad nut has rejected the application of the toy company. In the distribution channel, the crazy fruit also adopts the non production direct chain, but does not take the fast expansion voluntary joining chain mode. Its purpose is to better control product quality, shopping environment and ensure that every store takes the position of crazy fruit and develops steadily and steadily.
marketing strategy
Pricing. Considering that more than 70% of the products are non original products with strong originality, the crazy fruit gives most designers the power of pricing, and the so-called "cognitive value pricing" is applied. Such prices are more expensive for most consumers, causing them to buy or buy less. But there are still a lot of high priced art goods bought by customers, and there are many repeat customers in the shop.
Noting that some products are not so high in artistic value, the crazy fruit will give some guidance on price, or adjust the price indirectly through adjusting the placement of products and strengthening the evaluation of designers. When you decide which designer to choose, you will pay more attention to the selection of artistry and originality, and the price will be more reasonable.
Promotion. In terms of sales promotion, the crazy fruit box appears to be "low-key", and more consumers say it from mouth to mouth. Just now, it has begun to try to use the media and various forms to expand the popularity of the brand. CCTV second channel broadcast "creative way" program on crazy fruit made an excellent publicity. In addition, crazy fruit is also planning a creative design competition for many colleges and universities in Beijing, aiming at collecting designer resources in Colleges and universities. This is also an excellent opportunity to publicize crazy fruit brand among college students.
Channel. Crazy fruit was originally developed by the creative market. The crazy fruit network gathered 50 thousand designer resources. In 2007, crazy fruit became the first entity shop to walk out of the virtual space from the network. Now, crazy fruit does not operate very much on the network. The network only plays an important role in providing an exchange platform for artists, and the main business activities are in physical stores.
In addition, crazy fruit and Taobao cooperate to further put the shop on Taobao network, instead of having its own special website. Because the shop has provided some processing services before, most of them are small batch production products, so the cost will be relatively high. But in order to win customers, we have to lower the price. In this way, profits will definitely be affected. At present, the profit of the entity store should be higher than that of the online store.
Brand effect. The basic way of running crazy fruit is to rent the box in the shop to the artist, collect the rent, 25% of the income is mad, and the other 75% belong to the designer himself. This kind of income distribution structure produces a brand effect that is superimposed on each other. A single designer brand can not operate independently, and it can only be sold well in the box of crazy fruit. This virtually enhances the brand effect of mad fruit, making the value of the crazy fruit brand far exceed the value of any of its independent brands. The promotion of the influence of the crazy fruit brand has nurtured the brand of every designer so as to further consolidate its influence in the customer segments.
The products sold by nuts often combine with the most popular and even more popular elements nowadays, so that customers can never forget. As far as product design is concerned, "life is the source of life". For example, the design products of MI Nian studio, a designer of crazy fruit, are inspired by interaction with questions and answers from the audience. For example, they will ask: what kind of hair do you get up early? Then, according to the description of hair styles, you can create a series of postcards, adventure cups or T-shirts. This product is not only good original, but also has good communication with the audience, making it easy for customers to resonate and impress people.
Brand upgrading. Crazy fruit upgrade shop - "crazy fruit Cube" landed in Xidan's joy city not long ago. On the basis of the original works characteristics, the "crazy fruit Cube" broke through the small structure mode of the box, and carefully selected about 30 famous designers to sell their works. The creativity of these designers has accepted the double test of the creative market and the crazy fruit box, and has a large number of fans. It has become the most representative expression space of the original brand of local designers. {page_break}
Designer's difficulty
Imitation, cheap, artistic value conformity and other factors are threatening the further development of crazy fruit all the time. Once the crazy fruit itself has ceased to innovate its business philosophy, imitators will defeat the crazy fruit without mercy. Once the price is set too far off by the designers with the lack of market experience, the sales will undoubtedly be greatly frustrated; once the designers are exhausted, they will wait for the death of the crazy fruit. At the same time, the joint display of different grade designers in the same box shop will also make customers feel somewhat mixed up.
Like a creative market like crazy fruit, the quality of commodities directly affects their consumer groups. If consumers do not buy desirable products in stores, they will hardly go to second times. In addition, the value of creative goods depends not only on how customers feel about the product itself, but also on the popularity of the designer's brand. However, there are great uncertainties in these two aspects. For products of low quality and rarely purchased by customers, crazy fruit is not eliminated through forced screening. It is necessary to protect the designer's self-esteem, but to adjust the placement of goods after the expiration of the lease.
Crazy fruit faces fierce competition in the same industry. There are several shop faces in the "crazy fruit Cube" shop on the two floor of the underground floor of Xidan, PIN&GE, which is similar to the crazy fruit. There is a checker shop called "PIN&GE". The style and type of goods are completely similar, the rent and royalty rate are even slightly lower, but the designer's products are not required to be original, nor are they restricted to mass production. Because the price is more competitive, from the scene, the number of customers is more than the "crazy fruit Cube".
Compared with other competitors, the popularity of crazy fruit is still low, which also affects the number of designers who come to rent boxes. After all, they prefer to sell products in some famous shops. Now, the crazy fruit network has gathered 50 thousand designers resources, but the group has strong liquidity. Considering the high investment problem of setting up high-end creative shop in the downtown business district, the current capital strength of mad fruit does not have the ability to open entity stores in the main commercial centers and creative centers in Beijing, which will inevitably affect the long-term settlement of famous designers.
In addition, creativity has a high and low level, which affects whether designers can continuously provide high-quality products. If designers are trapped in production and supply problems and have no time to take account of innovation, product styles will become increasingly outdated. Of course, designers who enter crazy fruit mostly earn money for both art and money, and this market mechanism will encourage designers to constantly innovate.
In order to inspire designers' inspiration, crazy fruit organizes artists of similar products from time to time to carry out tea parties to facilitate their communication and communication. The crazy fruit shop in Zhongguancun shopping plaza is a traditional retail layout mode which has changed the retail outlet, opening up the exchange area and exhibition area. The owners can read all kinds of design magazines free of charge to inspire creativity. Vogue magazine in English costs $1500 a year, not every designer can subscribe to it. Through this intimate design, the box owners can find a kind of family wide open communication and comfortable feeling in the crazy fruit.
It is understood that the sales revenue of crazy fruit reached 1 million 700 thousand yuan in May 2009 alone, and it is expected to exceed 20 million yuan in the whole year. However, from the sales volume of single store and sales volume per unit area, the results of crazy fruit can not be considered high. This will inevitably affect the profit margin, and the actual profit margin is relatively low. From the point of view of the structure of the sales division, the big head belongs to the designers, how to change the situation that the trading platform is making less money, and still needs the efforts of the crazy fruit operators, including further optimizing the business mode, finer management and perfection of the industrial chain and key operation links, and obtaining economies of scale and scope economic effects.
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