Clothing Industry: A Blind Spot To Enhance The Efficiency Of "Single Store"

"ABC (All Better Change) reform" is famous fast.

Under this mode, every terminal store of "UNIQLO" is endowed with full autonomy, with the aim of creating the highest efficiency stock through "store order".

Li Kai Luo, President of China fashion industry economic research and President of Bi LAN International Investment Consulting Co., believes that the practice of "lifting up" stores in "UNIQLO" has activated the activity of stores, and the reverse construction of "shop supremacy" is worth studying.

In the past, it was often said that the terminal was king. In fact, only the importance of market occupation was taken seriously. The status of "pawn" in the shop made its proper role not be reflected.

The "lifting up" shop is actually a terminal in another sense.

Li Kailuo said.

Cao Yitang, an investment expert who has served as the strategic director of nine stratagem clothing and the head of Metersbonwe strategy, believes that the direct store will be an important profit growth point for Chinese garment enterprises in the future.

He takes ZARA as an example. "In addition to individual markets, almost all shops in ZARA are directly run to ensure that store image, display and pricing management are in line with the brand strategy established by headquarters and the product planning strategy for quick response, and most of its stores are profitable."

Wang Xiangsheng, President of IFB international fashion brand development management center, believes that whether the brand chooses to open more stores or chooses to enhance the performance of each single store can not be generalized. The key is to look at the category of the brand. If it is leisure and sports category, the market space is very large, then we can increase sales by opening more stores. After the sales increase, the operation cost will be reduced, and the profit rate will increase accordingly.

However, some products, such as women's clothing, high priced brands, niche products and so on, can't increase sales by opening more stores, thus increasing profits.

"Therefore, those brands that are not suitable for opening more shops should consider the intensive cultivation of each single store and improve the performance of single stores."

He said.

But in fact, even for those brands that are more suitable for more stores, the expansion of their channels is not necessary.

In the first-line practice of Wang Xiangsheng, he found that the number of brand stores has been increasing. When more than two hundred or three hundred stores, there is a decrease in total sales and a decrease in profit margins.

"Here is a problem of saturation. For example, even when it comes to casual wear and sportswear, when the number of shops reaches seven thousand or eight thousand, the market has reached saturation. If you go to a shop again and exceed the critical point, the benefits will be reduced."

"A single store, if you work hard to manage it, though it may increase sales, but the profit margin will increase is another matter."

Wang Xiangsheng went on to explain: "if we concentrate on intensive farming, we need to spend more manpower, material and energy, which should be included in the cost, so the profit rate may not be as good as expected."

There is also a problem of Ping efficiency, which is also mentioned in every mention of the profit margin of single stores, but Wang Xiangsheng believes that there is a misguided tendency in "Ping effect".

When all other conditions are equal, the larger the store, the lower the flat effect, the smaller the shop, the higher the flat effect, but this does not represent the success of the brand operation.

In fact, "Ping effect" may first be used frequently by department stores, because under the existing circumstances, most Chinese department stores are mainly rental shops, and naturally they are very concerned about "Ping effect". This is obvious.

Therefore, it is inappropriate to measure the brand end store with "flat effect".