Li Yan'S Original Product Discount

　　 Premium discount Yin song, deputy general manager, said that in the form of retail department stores, China lacks discount format, and the company acts as an explorer. In addition, the e-commerce platform of Shangpin discount has been launched, and the concept of "Shangpin" and "discount" has been expanded online and offline.

　　 Discount is a big business

Founder of Shangpin discount Li Yan He was once the general manager of Patty (Patty) in North China. Patty mainly made shoes.

As soon as the new products are put on the shelves, the inventory should be converted into cash as soon as possible. In 1997, in order to clear the inventory, Li Yan tried to do a promotion in the store of Guomao. At that time, the discount of brand products was almost not seen in China. Yin Song said that at that time, it was only 20% off, and the degree of popularity exceeded everyone's imagination. Because there were too many people to rush to buy, they had to pull down half of the shutter door and wait for a few more people to come in.

Li Yan realized that discount is a big business. If more than ten brands can be combined to discount, the effect will be better. Therefore, he came up with the idea of opening a store mainly based on brand discount, selling discount products all the year round.

In 2000, Li Yan rented the 5-story shop of Gongmei in Wangfujing. At that time, many people said that Li Yan was crazy and opened a shop in the middle of a bunch of department stores. The problem follows, because the fifth floor is not a good location, how to let consumers go shopping is a problem.

Li Yan came up with a solution. A brand usually covers 30-50 square meters, but when it comes to large-scale price reduction, it expands to 300-500 square meters. In addition, he almost uninterrupted theme marketing, such as down jacket theme, spring theme and so on. He also tried out of season promotion, such as selling down jacket in the opposite department store. The products sold were the same as those in the department store opposite, but the price was only half, and the discount of top grade products gradually became famous.

At present, there are 7 stores in Beijing, with sales of more than 1 billion yuan last year. Since its establishment, the average annual growth rate is about 40%.

　　 Attracting more than 3000 brand

Shangpin discount Yaao store is the largest of the company's seven stores in Beijing, covering an area of 13000 square meters. The words "1-fold, 5-fold" and "5-fold" on the shelves of "cardidale" and "piridale" are eye-catching. Because the goods are so densely packed, shoppers sometimes have to lean over to get through. "We have a requirement for the density of the goods, so we should have a sense of density when we insert our fingers." Among so many commodities, you can definitely choose one that suits you. Consumers have a rational recognition of the brand.

When Yin song first went to Shangpin, his first feeling was "is the commodity here real?". Because the shopping mall is very simple, the bathroom and other facilities feel bad. Later, when I was bored, I came to compare them carefully and found that they were genuine.

"Every penny needs to be cut. Most of our shops are on the second and third floors." Yin Song said their biggest costs were rent, labor and operating expenses. The rent of the second and third floors is relatively low, and there is no decoration. After adopting the chain management mode, the discount can be achieved completely. Although the company is also trying to provide a slightly better shopping environment, the fundamental value of premium discount is to make the distance between goods and consumers the shortest and the lowest cost.

Liu Hong, assistant general manager of Shangpin discount, said that they now have more than 1000 suppliers and 3000 or 4000 brands. All of them can achieve discount sales, and suppliers are flocking to them.

　　 All salesmen hold PDA

In the stores with the best discounts, all the salesmen hold PDAs. If you see something clothes The sales staff will use PDA to make a small ticket, and you will go to the cashier to check out. This small PDA makes Shangpin discount the only department store in China that does single product data management.

The traditional department stores in China adopt the joint operation mode, invite brand companies such as Nike to open the stores, and finally carry out reverse deduction according to the sales volume of brand companies. When the supplier comes in, he has an account. When he checks out, he knows how much he has sold, but he doesn't know what he has sold. In recent years, how to effectively control the single product information has become a topic of common concern in the department store industry.

Yin Song said that the information of each item of Shangpin discount is in the database. Relying on this platform, you can easily manage and timely understand the inventory information. With single product management, you can also share information with brand merchants to understand what types and prices are the best to sell, so that the brand owners can understand the product dynamics of all stores with the discount of top grade products and allocate the products in time.

Only by unifying the chain stores can we reduce the cost of chain stores Yin song believes that China is a market with excess supply. For example, if you can find a few people to open a shop to attract business, you can also fill up the market. However, after the market is full, the continuous optimization process is the key.

　　 Now I only practice my internal skill

"We require the lowest price in Beijing, which is clearly stipulated in the contract terms with the supplier." Shangpin discount general manager assistant Liu Hong said.

In North America and Europe, there are three channels in the clothing industry: positive price channel, preferential price channel and outlets. The middle channel is to sell goods at preferential prices. They are not out of season, but a supplement to the positive price channel. 50% of the gross profit of many enterprises comes from the other two channels besides the positive price channel.

However, in China, it is first to go to the positive price channel. If you can't sell it, you can only go to the discount shop. At last, you can only clear the goods. This is a kind of sales of jumping off buildings, which is the most unprofitable. Shangpin is a discount channel. I bought a pair of shoes for my daughter in the United States. Yin Song said that brand merchants may be afraid that other channels will impact the regular price department stores at the beginning, but they will gradually find that the gross profit margin of the regular price department stores is relatively high, but the discount on the top grade goods can maximize the gross profit, that is, the gross profit rate is multiplied by the turnover rate.

It has been a hot topic for garment enterprises to enter e-commerce in recent two or three years, and a large number of brand enterprises and brand platforms such as VANCL and okbuy have been bred. The discount is no exception. On May 16 last year, the sales of Shangpin discount online were only tens of thousands of yuan in the first month, but now it is several million yuan. Yin Song said that the original intention of building e-commerce is to provide more channels, and also to serve the physical stores. Therefore, it is very convenient to find the goods with missing codes and broken numbers on the Internet. But after a period of time, the company found that e-commerce has a high growth rate, so the company reconsidered and should regard e-commerce as a very important channel. After all, multi-channel marketing is a global trend.

So far, Shangpin discount has not considered entering other cities and has not conducted financing. Yin Song said that they are also thinking about where the discount format is suitable. The first step is only in Beijing. Through refined and differentiated management, it is estimated that dozens of stores are enough. Now they only practice their internal skills.