Wang Jiansi Talks About Orders For Service Enterprises

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The 2013 spring and summer product orders will show more than 200 new products. The order policy of L, a franchisee from Nanyang, Henan, is this: fewer orders and more colors, only the blue and fashionable ones that customers like.

After ordering, L told reporters that she ordered 300 clothes in the order.

What is the evaluation of her ordering strategy, Wang Jiansi, a clothing retail expert?

"Fewer orders and more subsidies" is not advisable.

Reporter: L in the local operation of a more than 70 square meter shopping mall, this order will be a total of 300 spring and summer products for the next year.

Do you think this number is reasonable?

Well, her order is quite conservative. Like grasping Chinese medicine, each one is basically reserved for one hand.

This is a typical risk aversion mentality.

It's impossible to do this with such a mindset.

Afraid to order, the money is not neat, the quantity is not enough, put on the store will find that the style structure is unreasonable, or the product that the guest likes is not available.

This business will be very passive and very hard.

I suggest that such dealers should learn from those who perform well. Many times, the more afraid of inventory, the more the inventory will be around you.

We should try to find ways to turn the returned goods into sales rather than inventory.

It is unforgivable for new people to place less orders because of lack of experience, because the market does not care whether you are new or old.

If you don't have any experience, how do you do it? Lower your mindset and explain clearly to the manufacturer. Let manufacturers, general agents and supervisors give you some guidance. Don't just set a hand because they are new people.

Blind order, there is no concept of group goods, so the ordered goods are messy.

Reporter: franchisees believe that "less orders and more subsidies" can avoid inventory and cash pressure. Is this a good ordering strategy?

Wang Jiansi: franchisees always hope that each garment is less ordered. If sales are good, replenish the goods again. Such considerations are understandable.

But from another point of view, it is virtually impossible to add all the risks to the manufacturers without making much compensation.

Manufacturers must prepare a large number of goods to meet the needs of franchisees in late replenishment. In fact, it is impossible for manufacturers to prepare a lot of goods in the storeroom.

This may result in late replenishment.

In addition, the clothing is seasonal, if the first order quantity is small, when replenishment, we will find that this style is good for you, and it is also good to sell in others, so everyone is going to replenish the goods.

Even if it is made up, it may also cause your store to be out of stock due to changes in weather and season.

We all hope to reduce the number of bookings. Let's think about it. If the brand has 500 stores and a store has two hands, that is 1000 hands. If every one has 1000 hands, the company may be dragged to death.

The number of franchisees who hold the idea of "fewer orders and more subsidies" is becoming less and less because the franchisees themselves will become more and more tired and shops will not be able to run well.

A good shop must learn to order enough goods for the first time, instead of ordering less. Replenishment at the later stage should be made as early as possible.

From the perspective of future trends, the concept of subsidy will gradually weaken. Maybe three years and five years later, the concept of subsidy will disappear.

Now some clothing enterprises have already done this: franchisees will buy out the first order, and will not replenish the goods later.

Such enterprises will be more and more.

Confidence comes from data.

Reporter: L, a franchisee, thinks that most local customers like dark blue clothes, and the sales of this color clothing have always been good. Therefore, when ordering, they only choose dark blue.

Wang Jiansi: relying on experience to do the market itself is not a mistake. Experience is very important, but experience is an angel and a devil.

If we believe in experience blindly and blindly, we may hurt ourselves.

Because experience is in the past, the fashion industry is changing every day, customer groups are changing, fashion trends are changing, so we should not be superstitious about the past.

I hope that the experience of the franchisee's ordering is from the data analysis. For example, how many pieces of red clothes were sold last year and how many other colors did they sell? Do they have data support? These data can guide the new season's orders, but they can't be copied completely.

Experience should come from data, not by feeling.

Secondly, businesses can guide consumers' spending habits. Last year many people liked red clothes, which did not mean they did not wear blue or yellow this year.

When ordering, a business should also consider properly guiding the needs of consumers.

In addition, if the color of goods is too single, the display of stores will be relatively passive. When ordering, we must also consider the needs of display, and we must have ideas in mind.

Reporter: L thinks that the new models recommended by the designer at the product description meeting are too fashionable, which is not in line with the popular consumer demand of local customers, so she basically does not consider those items when ordering.

Wang Jiansi: some dealers and manufacturers are opposed to each other when they place orders. Dealers always feel that manufacturers are encouraging them to place more orders, so the more the manufacturers are pushing, the more they are not.

This is like buying clothes. Customers will feel that products that are enthusiastically recommended by shopping guides must be problematic.

This happens when ordering. This is because there is no trust between businessmen and manufacturers.

Some manufacturers have realized this. They will not require customers to place more orders at the order meeting, but they will order suitable products.

Manufacturers also need to advise dealers to place orders, which requires regional managers to understand the dealers' situation well and guide businesses to order scientifically and reasonably.

Only in this way can we dispel the concerns of dealers and get the trust of dealers.

What the dealer wants to say is: when ordering, you can focus on something, for example, the consumption in some place is conservative. Most people prefer formal clothes.

But the market demand is diverse, it is impossible to say that everyone likes the same style, the same color, and other styles should also be ordered, so as to achieve a certain diversity of clothing styles to meet the needs of different personality consumption groups.

Of course, the proportion of all styles should be grasped. It is necessary to analyze the shop sales data to determine the proportion of styles.

Consumer demand can be guided. Dealers must find a balance between the main push and local consumption habits of manufacturers.

Reporter: what preparatory work will the dealer do before ordering the meeting?

Wang Jiansi: when the business is not good enough, the more precise the order is.

When business is good, even if the order is defective, it doesn't matter if the order is defective.

Now the retailing is not good enough. If the market is sluggish, we should ask the dealer to make sure that there is no big defect when ordering. How can we make the order accurately?

First, collation and analysis of sales data.

The sales data of the first two years or even three years are categorized according to their styles, price bands, colors, sizes and categories. The data of each category are counted, and the curve trend of sales data over the years is drawn to judge the dynamic changes of local consumers.

These data are very helpful for guiding orders, but not that they must be ordered according to last year's data. We can make some adjustments in combination with market analysis.

With data, orders can be more confident, and many bosses can not do so.

When ordering, there is no data support. It is just based on the feeling, how much or how much the structure is. There is no clear plan in mind.

This leads them to be particularly unconfident when ordering.

Two, we need to analyze and predict the dynamics of the local consumer market.

Because data is dead, a result of past sales.

The market is changing. Dealers should make some analysis of the composition of the local consumption crowd, the change of consumption habits, the competition situation and the changes of the future business circle.

The job requires the boss and the manager to work together.

Three, do not bring family members when ordering.

A lot of people take part in the order. They are all like tourism. Although the order is only three or four days, it is related to three months or even half a year's business.

It is best for the dealer to bring the shopkeeper together to order, not to come alone or to bring family members.