The Secret Of Success Of 2 Million Per Day Sales In China'S Single Store

In recent months, there has been a "international wave" in Shanghai.

Tornado ":

In February 24th, Inditex, a Spanish fashion giant, opened its Zara fashion brand store in Nanjing West Road, Shanghai. The sales of ZARA in Shanghai stores amounted to 800 thousand yuan a day, equivalent to the total sales of 80 Chinese clothing brands, and another swedish fashion giant in April 12th.

The brand store officially opened in Huaihailu Road, Shanghai, and has been surging on the day of its opening and opening. It has to queue for 30 minutes to enter the door and try to dress for 30 minutes. According to H&M, its single store turnover has reached a maximum of 2 million yuan per day, which is equivalent to the sum of 200 Chinese clothing brands' daily sales.

It is understood that H&M's Hushang second stores will appear in Zhengda square, and ZARA will also open its third retail outlets in China at the Chia Tai Plaza store. C&A will open 4 stores in Shanghai in the first half of this year.

The competition between the global fashion retail chain giant H&M and Inditex in Spain seems to presage the trend of international fashion giants to march into China with the coming rain and wind coming to Shanghai.

The name of Hennes & Mauritz (H&M), a chain store from Sweden, may not be mentioned in Asia, but it is famous in Europe.

In terms of sales volume, H&M is Europe's largest apparel retailer, and its performance has continued to rise even in a recession.

Today, the H&M clothing company has now developed into an international enterprise with 1244 stores in 22 countries around the world. In 2005, the turnover of H&M (including VAT) was $9 billion 800 million, and only 100 stores were opened in the second half of 2006.

Seeing here, we can not help asking, even though the H&M brand has a prominent position in Europe, it is still a brand new for Chinese people. Almost all Chinese consumers have never heard of its name. Why does it enter the Chinese market and create an astronomical figure of "selling 2 million yuan per store"?

This is a phenomenon worth studying in the clothing industry. I believe that there are many secrets behind its huge sales figures. Through market visits and studies, the author makes a summary and summary of the reasons behind this phenomenon.

Parity is the way H&M has always chosen.

Founded in 1947, the founder is the father of current chairman Pearson (StefanFrom CMMO.cnPersson).

At that time, H&M featured a par price. As Sweden's retail industry was the same as most European countries, it had always been dominated by expensive department stores, so H&M suddenly launched a big red market in the market.

When Pearson joined the company in 1972, he hoped that the company could add popular and quality features beyond its only low price.

Although many people believe that these characteristics can not exist in a brand at the same time, Pearson believes that the company can do it.

Later, H&M advertised "best price, providing popularity and quality", which really booted the company's success.

In the understanding of "price", when domestic brand enterprises are doing product marketing, they always think that "fashion" products should add more brand value besides their high R & D and production costs, therefore, they should be "high value" products.

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However, the idea of H&M is different. They think that if the product is not sold, it will only occupy a lot of waste products in the warehouse and stagnant funds. Instead of selling it at a price, it will be better to generate cash immediately and facilitate the two production.

In the H&M store, because the price of the product is low, more consumers will buy it without hesitation if they look at a garment. The price of each garment is not high, but after repeated consumption, the average customer can spend more than two hundred or three hundred yuan after visiting the store, but his heart will feel substantial.

In order to reduce costs, in order to maintain parity strategy, H&M does not have its own garment factory, and manufacturing is totally outsourced to nine hundred factories.

In order to get the best price, the company chooses carefully the outsourcing objects, which are scattered among the 21 lowest wage countries in the world.

Due to the proper cost control, the company's selling price is low, but its gross profit can still be maintained at around 53%.

H&M commented on the possibility that prices, popularity and quality could exist at the same time.

The products in H&M store are diversified, providing basic clothing for both men and women and children.

The average selling price of clothing in the shop is only about 100 yuan, the price of the ladies' coat is 149 yuan -299 yuan, and the price of men's tops and knitted sweaters is 99 yuan and 199 yuan respectively.

The company believes that parity can enable consumers to afford to buy new products in stores every year or even every season.

This strategy best attracts 15 to 30 years old women who want to be able to catch up with the fashionable women at any time.

H&M's business philosophy laid the foundation for the success of the company. It really attracted H&M customers: the highest price performance ratio of fashion and quality.

Because they put different brands in their stores, keep up with fashion changes, so that their customers can find their own way of expression.

Here, classics and fashion get a nearly perfect blend.

This allows customers to walk in without hesitation and have deep memories after going out.

They do not have to rush around to get satisfied clothes.

Tip two: fashion is food with a shelf life.

Besides price cards, H&M also plays popular cards.

The company regards popularity as perishable food and must keep it fresh at all times. Therefore, the company strives to minimize inventory and keep new products in circulation.

So new ideas must be quickly pformed into costumes so that consumers can quickly buy clothes on the shelves and display fashionable clothes in the street.

How does H&M promote fashion and popularity on the basis of parity? Launching a product line with a designer is one of its most important strategies.

KarlLagerfeld (Carle), StellaMcCartney (Stella. Mccartney) launched the product line with H&M in 2004 and 2005 respectively. When the new products were on sale, crowds and FANS flocked to the flagship store.

Big designer is a good strategy in the age of designer stardom. When increasing fashion, individuality and creativity, people are more willing to accept the designer's works of such low price.

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Since its inception, H&M has been popular in the world for its fashionable, high quality and flat price fashion. It is considered to be "McDonald's fashion" (McFashion mcfashion), which represents the fast response to fashion, and has the characteristics of fashion, chain and low price, such as McDonald's.

More than 100 designers focus on the trend and characteristics of the world, absorb popular elements, and quickly organize the production through the store terminal system.

Under a rigorous and legendary system measure, H&M guarantees rapid response and low cost from the fashion prediction design production goods feedback sales phase.

This is what Lang Xianping said, rapid reaction and personalization can actually achieve the ultimate benefit of scale.

Tip three: speed is fashion.

As we all know, the core value of clothing brand is to "speed".

"Fashion followers, not creators" mean effective control of lead time (leadtime, that is, the time from design to sale).

Statistics show that the leading time of ZARA is 15 days, and the leading time of H&M is 20 days, while the leading time of domestic clothing enterprises is 90 days ~120 days.

ZARA and H&M, this is a pair of fierce rivals that are often mentioned by the fashion industry. They are brilliant before the stage.

What makes ZARA proud is the fast supply chain. Even if it opened stores in Spain far away from Spain, it also miraculously maintained its speed for 15 days. While the three in one H&M that believed in "time, quality and price" adopted two supply chains, trying to find a profit balance between efficiency and cost.

Considering the cost of procurement, H&M put 60% of its production in Asia and the rest in Europe.

Generally speaking, regular fashion and children's wear are small and popular garments produced in Asia, usually to European suppliers.

This strategy is a classic story of time and cost.

So H&M designed two supply chains: the efficient supply chain that controls production in Asia, and the fast response supply chain that controls European production.

Compared with ZARA, H&M's fastest lead time was 5 days late.

However, the cost of these 5 days has earned H&M the cost advantage - "its clothing price is 30%-50% cheaper than ZARA".

This is indeed very important.

H&M maintains close links in all aspects of the supply chain, serving as importers, wholesalers and agents.

Like in the US, H&M has 13 distribution centers in Europe and Asia.

Products from European suppliers arrive on railways, while goods from Asia are pported by sea.

For H&M, between all its line products, H&M has been wide enough from basic clothing to classic style to fashion front, from young people to teenagers, to children and pregnant women.

The color is also very complete. Every basic item has different colors to choose from.

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Two times a week in the store, and each style is not less than 3 weeks.

The most timely and accurate way to provide customers at the moment is the most desirable thing, and a typical H&M shop owns women's clothing department, men's wear department and children's wear department, instead of classifying them by tops, trousers, leather bags and accessories.

The clothes in the shop are unusual, not the tops and tops, trousers and trousers, but tops, pants, leather bags, accessories and so on, so that customers can easily buy a whole set of things.

The H&M brand has more than 1200 stores all over the world. Each H&M store is called a small shopping mall rather than a shop. The H&M store in Huaihai Road in Shanghai has four floors, 500 square meters per floor, and the total shop area reaches 2000 square meters.

Such a large business area, tens of thousands of different styles of clothing, so that consumers can form a "one-stop" shopping environment.

A small number of marketing methods, so that the same style, different sizes of fashion more than ten pieces, sell well, then replenish two times at most, on the one hand, reduce the production of homogeneous products, to meet the needs of fashion and personalized market; on the other hand, it also encourages customers to produce instant consumption and avoid shopping regret.

Tip five: "small, multiple, parity".

Adopting the concept of "small amount, multiple prices and parity" to react quickly to fashion is the common ground between ZARA and H&M.

Take ZARA as an example, ZARA claims that fashion needs speed.

The way of ZARA is to speed up the speed of fashion consumption and elimination by changing the speed of fashion, breaking the laws of fashion and creating a popular fashion without breaking the peak season, breaking the traditional brand's regional advantages and operating rules, and always maintaining a strong sales situation. It is hard to be defeated by rivals.

The ZARA store supplies two times a week, because there are few orders for the finished products. The store will update every 3-4 days, and it will always give people a sense of freshness.

Every 3 weeks, all items in the clothing store must be renewed.

Keeping up with fashion trends, frequent updates and more choices has created the unique attraction of ZARA to customers, thus greatly increasing customer preferences and loyalty to ZARA.

ZARA does not focus on producing more quantities for each style, but focuses on the diversity of styles.

ZARA launches about 12000 kinds of fashions a year, and the amount of each fashion is generally not large.

Even with the best selling style, ZARA is limited to only a limited number. Often there are only two pieces in a specialty store, which are sold out and not replenished.

Just as the limited issuance of stamps has raised the value of philatelic products, ZARA has created a scarcity artificially through this way of "manufacturing shortage".

The more it is not easy to get, the more it can stimulate people's desire to buy.

ZARA executes the strategy of always out of stock. For the same style of clothing, there are only a few stocks in the retail store. Perhaps because of your hesitation, you may miss the chance to finally own it, because you may see a new shelf tomorrow.

This initial chagrin comes from the decisive buying speed of customers when they patronize again, and has trained a large number of loyal followers.

In addition, small volume supply and warning of tight supply have stimulated the frequency of customers visiting Zara stores.

For example, consumers in the city of London only visit 4 clothing stores a year, but for Zara consumers, this number is 17 times.

Frequent patronage also reduces advertising costs. Zara advertising accounts for only 0.3% of revenue, far less than 3% to 4% of competitors.

In short, there are more secrets of success for the H&M brand fashion retailer.

Because of these unique business secrets, these brands are no longer surprising at the beginning of the article.

So we believe that in Shanghai, and even in a very short time, in China, we will hear the footsteps of these dinosaurs.

Chinese consumers are looking forward to such footsteps, and Chinese clothing companies need to be careful not to be afraid, but they should not be indifferent. The scientific attitude is that we should learn more new things from these strong opponents, and find the objects that can be referenced for their rapid strength.