How Does Deichman Shoe City Win?

There is no superior position and no advertising signs, but it can not stop the traffic flow. In the shoe business of Beijing, there are probably few of them. Its business secret is written on its store shelves: shortening the supply chain links and ensuring that customers buy low-priced "brand" goods. Deichman, assistant general manager of shoe city, Roy said: "we used price war to spell out a territory." Deichman shoes city is one of the more successful cases of the national retail trade in 2007. Only a year after its opening, it has produced a great impact on the industry because of its nearly 50% price lower than that of the same kind. I have to admit that this is a bit legendary. The reporter decided to explore it. Along the escalator, the reporter came to the five floor of the shopping mall of the shoe store in the city of Dai man, crossing the corridors of several commodities, and then climbed up a narrow staircase to arrive at the location of the shoe city. In such a large exhibition hall, there are many illustrative cards on the "supply chain links with low prices." Reporters looked at the price of shoes and found that the price of shoes in the shoe city of Dai man is really cheaper than the general market price. According to the common sense of the retail industry, the higher the floors, the more difficult the operation is, but this is resolved by Deichman shoe city's "price war". "Because we have really grasped the needs of customers," Roy told reporters. In the interview, the reporter learned that the reason why Dai Shi man shoes city occupied the territory rapidly in the fierce competition environment completely relied on a brand-new supply and marketing mode: no joint venture, no rent, no rent, completely self operated and reduced operation cost. General manager of the shoe city told reporters that as a channel sales platform, Dai Shi man shoe city is completely self operated in circulation and store operation. It shortens the supply chain with the cash supply of manufacturers and effectively reduces operation costs. In the process of participation, the manufacturer only appears as a single supplier. This will not only avoid the contradiction between supply and demand, but also enable customers to buy low-priced goods. It is understood that Dai Shi man shoe city sales peak, the number of tens of thousands of people. This brand new business model has brought considerable economic benefits to Deichman shoe city and achieved the goal of small profits but quick turnover. General manager Yang said, Deichman chose this channel operation mode, on the one hand, "zero supply contradiction" intensifies, and the internal driving force of the market is promoted; on the other hand, it sees all kinds of problems existing in the operation of other channels, and more importantly, Dai Seaman is a new enterprise, choosing the traditional wholesale business circle in the zoo, plus the current zero. The highly homogenized selling market can not compete in the absence of lower prices. It is an inevitable trend to take the road of "self-reliance". A professional hypermarket like Deichman is known as "price killer" abroad, and they quickly base themselves on the market with much lower prices than similar products. Insiders pointed out that price war is the only way for the rapid development of professional stores. If Deichman wants to develop rapidly, he will not be able to bypass the price war. Rationalizing the "zero supply relationship" is a way to win the market for Deichman's shoe city. "Self run system" is not a common business mode in China. It has long been the mainstream in the world. It is understood that Dai Shi man shoe city at the beginning of the opening, the responsible person to investigate the consumer market, they found that customers attach great importance to the brand of footwear products, but the prices of brand shoes in major shopping malls are too high for customers to accept. With the understanding of the domestic consumer market, the responsible person will turn to the foreign market and explore the consumer market in Europe and the United States. After the inspection, they found that the price of footwear produced in China in Europe and the United States was far lower than that in the domestic market. The reason for this situation is that China's channel operation mode is far behind that of the European and American countries. Roy told reporters that not only footwear products, some brands of clothing abroad at a price far lower than the domestic, the key lies in the supply chain of foreign goods less. "The operation mode of the retail market in Europe and the United States is mainly self operated, which can reduce the supply chain, but the joint operation system commonly adopted in China's Zero selling market can not do this." the general manager of Yang compares the advantages and disadvantages of the two modes of operation. "Compared with the self-reliance system that can reduce the supply chain, the domestic joint operation system leads to high cost and high price of goods. High, for footwear products, half of the price of shoes is occupied by all kinds of expenses and hard retention (water reverse), and the price of goods purchased by customers is not equivalent. General manager Yang gave an example: "for example, a large shopping mall in Beijing, if manufacturers want to enter shoes sales, they must first pay a small public relations fee, and then spend a series of expenses, such as shop charges, location fees, management fees, decoration fees and so on. In the face of such a huge expenditure, manufacturers will often add the cost to the price of shoes, so the price is high. It will be on the top. " Seeing the drawbacks of other businesses in their business models, Deichman decided to adopt the "proprietary system" business model. "Because there is no smooth" zero supply relationship ", there is no stronger competitive power. General manager Yang is confident of this decision. The industry believes that the joint venture system not only leads to high commodity prices, but also tends to intensify "zero supply conflicts". Some department stores often default on suppliers' loans, and the contradiction between supply and demand is increasingly prominent. However, the self run system can effectively avoid the contradiction between supply and demand on the basis of reducing supply chain links. Professional channel logistics trend insiders say that it is not easy to establish a store on the six or seven floor without fail. It is rare to achieve such performance. The success of Deichman shoe city depends on the innovation of the logistics mode. This mode not only enhances the competitiveness of enterprises, but also achieves a win-win situation between businesses and customers. "Self run business model may become the future development direction of China's retail industry". Deichman, general manager of shoe city, foresaw the prospect of self management mode. He believes that professional channels will become the main channel for people's consumption in the future. General manager Yang said, at present, the major shopping malls are developing in an integrated way. There has been a fundamental change in the past major shopping malls with single sales. As a result, many luxury goods are playing the leading role in shopping. Similar to those in the past, many popular consumer goods, such as footwear, have been completely sold out, and the trend of developing professional channels has been quite popular. Among them, "cost performance" is one of the main reasons for giving birth to professional channels. Nowadays, as people's consumption attitudes are becoming more rational, they need a more cost-effective channel of consumption. Therefore, Deichman shoes city, which reduces the supply chain links and reduces the price of goods, has been recognized by many people. In short, the trend of consumption determines the direction of the market. Professional channels will be the main channel of mass consumption in the future, and professional channels will also affect the more flat supply chain.