Behind The Cottage Apple Store: Regular Authorized Shop Gross Profit Is Only 5%.

According to the Wall Street journal, China Kunming There are several "Shanzhai" in the streets. Apple Shops, their decoration styles are exactly the same as regular Apple stores, and salesmen claim to work for Apple Corp, which has aroused strong repercussions internationally.

Kunming industrial and commercial departments immediately launched the investigation, and found that 5 had Apple graphics on the door. sign Merchants, however, did not obtain the authorized distribution of Apple Corp.

At first glance, these stores are almost the same as Apple's regular retail stores: glass facades, light wooden display tables, rotating staircases, huge posters displaying iPad2 and other Apple products, and neat and orderly accessories. The salesmen wear uniform Apple blue T-shirts and apple nameplates, which are almost false.

Journalist survey found that the appearance of Shanzhai Apple store is not easy for regular Apple dealers. A person close to Apple Corp told reporters that Apple's gross margin to store dealers was only 5%-6% and often broke.

Apple's harsh policy

People familiar with the matter told reporters that Apple licensing stores at different levels enjoyed different treatment.

A person close to Apple Corp told reporters that the price of Apple's shipments to store distributors is usually only 5%-6% gross, which makes some apple dealers less comfortable. For example, in the apple store in Xujiahui, Shanghai, a good location shop has a monthly rent of up to tens of thousands of dollars - just relying on selling Apple products.

Apple's retail system in China consists of five independent parts:

Among the largest Apple Store flagship stores in Beijing and Shanghai, Apple plans to open 25 flagship stores in China. Apple's cooperative distributors in China are also divided into four categories: Apple quality distributors, Apple Shop, Apple authorized distributors and industry authorized distributors. They sell different products to different customer groups, and enjoy different treatment according to different levels.

All stores authorized by apple are required to arrange store and display goods strictly according to Apple's requirements, and shop assistants also need special training.

People familiar with the matter told reporters that Apple licensing stores at different levels enjoyed different treatment. When some of the most popular items are listed (such as iPad2 and white iPhone4), higher authorized stores are able to synchronize with apple flagship stores, while lower grade stores may get goods only after a long time, and the number is limited.

When consumers go to a store to buy Apple products, the boss hesitates, "it takes a few days to get the goods" - this is a low authorized shop.

"Sometimes Apple's marketing policy is unpredictable." Close to the Apple Corp, people familiar with the matter said that an Apple authorized store had arrived at a batch of Apple products, and Apple Corp asked them to put it out in the afternoon. As a result, the store could not wait to set out in the morning. The Apple Corp, which was discovered by the patrol shop, found that the dealer had violated Apple's sales policy. The result was that the store had put the goods in the warehouse for half a year and refused to allow sales to show punishments.

The temptation to resist

"Almost all of these Apple authorized stores make money by accessories."

For some Apple authorized dealers, the sale of parallel Apple products and unauthorized accessories is often an unenviable temptation because it can bring higher profits and make up for the shortage of supply.

Some authorized stores often fail to get enough Apple sources, so they often face sales enquiries. "Apple often breaks down and implements hunger marketing and quota management." People familiar with the matter pointed out.

According to people familiar with the matter, the Apple Corp will send a special person to patrol the stores between the major apple stores to see if they strictly enforce Apple Corp's sales policy. If they find the sale of parallel imports or irregular accessories, they will be severely punished.

Previously, an Apple licensing store called "God bless" was canceled because of selling parallel products. "This is a big reaction in the industry." But those who violate Apple's sales policy still rely on this way to earn a lot of money in the short term, people familiar with the matter said.

"Almost all of these Apple authorized stores make money by accessories." Those close to the Apple Corp said that the most effective way to sell Apple accessories is semi mandatory bundling with some apple products.

For example, some shops require every customer who buys a white iPhone4 to buy 300 yuan of accessories in the store, while others shop in the rush of iPad2 when they first appear on the market, forcing customers to buy 600 yuan accessories "gift package", including iPad2 protective cover, film and so on.

Some Apple authorized stores assess their sales performance by not selling several Macbook or iPad, but selling many accessories - because Apple products are always in short supply, and consumers even ask for more stores to sell them, while Apple's profits come from accessories sales.

These Apple authorized stores only allow sales of Apple accessories affixed with "MFI" tags - "MFI", that is, English "Made for iPod", "Made for iPad", and "Made for iPhone", which are strictly regulated by the uniform designed by Apple Corp. Even the font size, color and resolution of each pattern have detailed standards. And every time an authorized accessory is sold, Apple will charge 20% to 25%.

This has puzzled some apple licensing stores: they want to join Apple's sales system to win more trust from consumers, but are limited by Apple Corp.

By contrast, those apple products that have not been authorized by Apple have begun to grow bigger and bigger in China. Reporters in Xujiahui, Shanghai, see that half of the shopping malls are selling Apple products on the whole floor, and many shops are showing signs of "Apple sold" brand. These businesses often sell smuggled "parallel products" Apple products, or products that are channelled through regular channels, and sometimes even refurbished products.

The phenomenon that the sellers of irregular Apple products are mixed up, let some businesses start to follow the apple shop's decoration style and personnel clothing to set up the copycat store of high imitation "Shanzhai" apple, so the phenomenon of Kunming Street appeared.