Should Shanghai Cheap Road Change Its "Grassroots Image"? &Nbsp; Will Pform High-End

"Cheap Road is also in need of pformation.

Therefore, Cheap Road has always been an important place for young people to "Taobao" and has gradually become one of the most distinctive shopping places in Shanghai in the eyes of Chinese and foreign tourists.

In the face of pformation, many consumers are somewhat repellent: one is worried that they will never find such a distinctive shopping place again, and can not find cheap goods. Secondly, they doubt the ability of Cheap Road's pformation. After all, this more than 10 year old clothing market is very "grassy" in appearance or internal pattern, and it is hard to build up a "high-end".

Can Cheap Road really take the middle and high end route?

In the Cheap Road market, some consumers have already felt that

Reporters in Cheap Road clothing market group to see, there are indeed some.

As the main wholesale business and occupy the absolute market share of Cheap Road, Shanghai new seven Pu clothing market has also revealed its pformation achievements at the 10th anniversary opening stage: the price of brand men's and women's clothing has been adjusted from the third floor to the five floor, and the wholesale price of some brand t-shirts has reached two hundred or three hundred yuan, and the price of a brand of fur clothing has exceeded 20 thousand yuan.

Wang Wei, deputy managing director of market operation, said that the whole market eliminated the original two or three tier agency brand, and increased the number of first tier agents and the number of shops that develop their own brands.

At present, the first tier agency brand of the new seven Pu clothing market accounts for 95% of the total number of brands. In addition, there are 84 private brands and more than 100 private brands waiting for approval. It is estimated that the proportion of private brands in the market will reach 20% by the end of next year.

He said frankly, "the price of a brand is higher than that of a brand."

Reporters also met the Cheap Road market "veteran" character Fan Guide.

More than 10 years ago, he wore clothes in the open air booth in Cheap Road. Today, he is the president of Shanghai new seven clothing Market Association.

Fan Guide said that the Cheap Road clothing market from the original Road market to the current pformation of the "high-end" is an inevitable choice: the road market is not standardized, so it is replaced by the house management; but at the moment, the traditional wholesale agent's business mode has been unable to bring higher profits, and the rental price of Cheap Road commercial shop has been rising steadily because of the strong passenger flow. Only when the operators pform, can the added value of products be increased and the high operating cost can be tackled.

Therefore, at present, the seven Pu Lu is in the "pformation period".

In Cheap Road, although the prices of many commodities go up and down, the prices are not low.

There are still a lot of bargains in the lower floors of the new clothing market, such as the new seven pools and thriving markets. The forty or fifty yuan T-shirt, seventy or eighty yuan jeans and 100 yuan coat still stack the shops.

"In fact, the high-end does not mean that the price will be very expensive, we must take a comprehensive view of the significance of the high-end."

Related people explained.

In their view, adjusting the way of operation and developing their own brands can be regarded as different ways of taking the middle and high end routes, and there are consumers among the ultimate beneficiaries.

For example, many clothing markets are increasing the proportion of agents in the field. This is because there are many intermediate links in the two or three stage clothing agents, and the profits of the operators will be reduced because of the turnover of layers.

However, if a first class agent is made, the price decision of the wholesalers and retailers will be greater and profits can be raised correspondingly.

"Originally made two class agent, a T-shirt price 30 yuan, retail price 60 yuan, earn 30 yuan; acting as a general agent, the purchase price of 20 yuan, even if still sell 60 yuan, you can earn 40 yuan.

For us, we have increased revenue; for consumers, we do not have to shift all the cost of operation to them. "

A clothing brand first class agent said.

As for those shops that have the conditions, the market management encourages them to say goodbye to the business model of agents and create their own brands.

Over the years, Fan Guide has also built up his own brand and made it happen.

He said, to build a private brand, first of all, it can save agency fees and profits, and also have a say in all aspects of fabric selection, style design, production and processing, so that it is easier to get out of the low-end wholesale market.

It is reported that many private brands in the Cheap Road market have already entered the famous shopping malls on the Nanjing road and Huaihai Road, while others are looked at by some boutiques. After the "cut and reprocessing", they have become the "personalized design" of tens of thousands of prices.

According to the insiders, even if Cheap Road's business owners are all on their own brand lines, they may not be bargains.

Huang Guoming explained: "in the process of pformation, some of the brands that are unknown and of poor quality are eliminated. Although the adjusted product positioning will be in the middle and high-end, they still have an advantage over department stores.

For example, the same dress sells for us 200 yuan, but the price in the famous shopping mall can be as high as 2000 yuan.

As for the entire Cheap Road apparel market group, the location of different shopping malls is different. Therefore, even if the "high-end" pformation is completed, there will still be many inexpensive commodities for consumers to choose.

Like Cheap Road's clothing market group, such a "grassroots" market needs to be pformed, and it is not the only way for business owners or market managers to wishful thinking.

Many consumers have suggested that the Cheap Road market has its own characteristics, but if it is not properly pformed, it will "draw a tiger into a dog instead of a dog", which has lost its original passenger flow and can not gain much more benefits.

In contrast, the "grassroots" market of Beijing's Xiushui Street and South Korea's Seoul didn't take the "middle and high end" route, but because of its adherence to its characteristics, it has always been popular.

{page_break}

It can be seen that in the pformation of the "grassroots" market, reasonable planning is also needed.

Some experts point out that Cheap Road is located in the central area of Shanghai. If we allow the previous "grassroots" mode of operation, it is bound to be incompatible with the surrounding environment. Therefore, from the perspective of the overall development of the city, pformation is inevitable.

But in the process of spontaneous pformation of managers and managers, government departments should do something.

At present, the brand of central and high-end shopping malls has become very obvious. If the "grassroots" market pursues big brands and high prices, it will lose its popularity.

But if we open up the level between brands and endow different markets with their own characteristics, we will have a better future.

People say: "high-end is a relatively vague concept, Cheap Road can not sell first-line brand, but you can choose some brands and styles that are more personalized and conform to the fashion trend of young people to run, the price is moderate, young people will also be accepted because of love.

At the same time, popularization can meet the shopping needs of middle-aged people, so that people can not lose their popularity. "

Government departments should also upgrade and upgrade their supporting pportation and management systems to create a better shopping environment for consumers.

At the same time, the functional body that encourages independent innovation must also be "within reach".

Reporters learned that, in order to promote the development of private brand, the new seven Pu clothing market has set up a professional market management team. Based on the original management of the original property management, new functions such as business counseling, brand registration, registered trademarks and other new functions have been increased and strengthened. The overall marketing plan for the operators has been promoted, and the "grassroots" brand from Cheap Road can be promoted to the elegant hall.

However, for the Cheap Road apparel market group with more than 10 independent markets and nearly 7000 shops, the service ability of a market management team is limited, which calls for relevant departments and other professional organizations to join Cheap Road to make a difference in promoting their pformation.