Three Major Business Principles Of Clothing Stores

I always think that I am an understanding of marketing, and I am often invited to the industry's marketing discussion as the guest speaker. I had nothing to do in the past few days, and then I went to my friend's small clothing store for two days. But in the short store of 10 square meters, I found many marketing principles that made me feel ashamed. The marketing principles of these small businesses are so plain but they are so practical.

Cost, competition and

When buying, a friend looks at a garment. The wholesale price of the unit is 60 yuan, and it is preparing for a deal. An acquaintance told us that the wholesale price of the clothing was 50 yuan in some place. After running for 40 minutes, the friend bought a batch of 50 yuan of this style of clothes, exhausted the toll and the cost of the car.

Analysis -

In this industry, shoppers usually increase their price by about 50% for each item of clothing.

If the price is 60 yuan per unit purchase, each friend will sell 90 yuan, gross profit is 30 yuan; if the purchase price is 50 yuan, then each piece of clothing can be sold for 75 yuan, gross profit is 25 yuan, and the profit of 5 yuan is reduced, but this has become the advantage of a friend.

The first case: if someone else's clothing sells for 90 yuan, friends can sell 90 yuan, so gross profit can reach 40 yuan, and friends' profits are at the highest point.

The second situation is: if others see a friend selling 75 yuan, and the price is adjusted to 75 yuan, then the gross profit of a friend is 25 yuan, while the gross profit of others is 15 yuan, and the profits of friends are still at the highest point.

The third case is: if the dress is made

Smooth, other people insist on selling 90 yuan for cost problems, and friends sell 75 yuan, then the single paction price of friends is 15 yuan less than others, seemingly the profit point of friends is reduced, but because of the quality and style, the comparability is very strong, so the turnover of friends will surpass others. According to the value of 1: 1.5, the profit point of friends is still the highest, and under normal circumstances, other customers can not insist on high price when the price is low, so the clothing will be unsalable, so it can only be led by friends, and sales can be returned to second situations.

In the fourth case, if this series of styles is unsalable, friends can clear the warehouse at a price of 55 yuan, while other shopkeepers are going to clear the warehouse at a price of 65 yuan, and the loss of their friends is still the lowest.

Marketing insights:

Nowadays, many large enterprises spend money on selling products, although they also calculate the relationship between costs and profits, but how many of them can be rigorous? "The cost saving is to increase profits". Marketers are familiar with each other but stay at the stage of slogans.

If we can really tighten the cost under the condition of adhering to the quality of products, how can the profits of enterprises not rise?

Of course, the so-called "compression cost" is an exception, with its own legal sanction.

Location and sales

The proportion of the clothes in the shop is very interesting. It is suitable for young girls to have about 35% of their personal clothing. Most of the rest are suitable for young women and for middle-aged women.

The clothing store next door has a distinct personality and clear positioning, but the number of customers is not as good as that of friends.

Analysis -

Pure personality clothing, the general positioning is relatively dead, it is only for a certain group of people, assuming that the group accounted for 25% of the total population actually purchased, that means that it will lose another 75% of the customers, and the 25% group may be shunted by other stores, so the turnover is smaller.

If the store is all suitable for women of all ages, then they will lose the personality of the shop. Without the target group, they are likely to be diverted by other prominent shops, and the beard eyebrows will be caught, but nothing will be caught.

25% of the individual costumes plus 75% of the commonalities.

The patronage rate of young women and women of all ages can be guaranteed. And because of the existence of young women, many 30 year old women will follow suit to buy or personas or public clothing.

And the guarantee of these passenger flows is the premise of volume.

Assuming that the sales ratio of each store is 20%, the daily sales volume of other stores is 100, which can sell 20 items of clothing. The daily traffic volume of a friend shop is 150, and the turnover can be 30. The daily profit of a friend's shop is the highest.

It is assumed that the daily traffic volume of each store is 100, and the sales of all kinds of clothing are 20, so the shops with distinctive personality can sell 20 items of clothing every day, while the friends' stores can sell 40 items.

Marketing insights:

For product positioning, whether it is playing the theme card or positioning ambiguity, is to improve the potential customer purchase rate, improve sales.

However, no matter the location is clear or vague, it must be clear, that is the balance between the two. Otherwise, the narrow positioning of the sales crowd will lose some potential buyers. If the positioning is too broad, they will be robbed of the consumers by the products with distinct positioning.

The Moderation between this is really thought-provoking.

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Consumer psychology

After customers arrive, friends sometimes call on salesmen to introduce clothes and help to choose. Sometimes they use eye color to stop salesmen from coming to service. Sometimes they come to ask for warmth.

Analysis -

People, or shopping, or loitering, then have to observe, just idle people, do not need to go forward to inquire, only need to quietly look at it, if we want to persuade them to buy, then it will leave a bad impression on this part of the customers, and then the probability of re patronizing will be reduced; those who come to buy clothes are also divided into service staff advice and choose themselves, so the service personnel need to observe at any time, find that customers see themselves, and immediately come forward to answer questions, in the process of analysis and judgment, whether the customer still needs to continue his staff, such considerate service, the probability of returning customers will be greatly improved. There are two kinds of shops in general.

Marketing insights:

The research of consumer psychology is a knowledge. The general marketers will formulate various strategies for consumers to achieve the purpose of attracting consumers and promoting sales.

This is correct, but this "dogma" scheme itself may lead to failure of the scheme, because it ignores the uncertainty and instability of the consumers, but if the power is given to the front-line personnel of the market, it may cause some new drawbacks.

In just a few days, many phenomena happened in my friend's shop not only overthrew my old marketing concept, but also brought me many thoughts.

Many marketing principles that exist in small businesses really deserve our deep consideration.