Clothing Industry: "Fast Shop" Fever Behind "Slow Sports"

Terminal, as a large profit node in apparel industry chain, is regarded as an important factor related to the rise and fall of enterprises besides strategy and brand.

Wal-Mart Store Inc is a terminal selling product, and replaces the world's richest man. Similar examples show the importance of "terminal is king" strategy.

Since the focus of garment economy development shifted from foreign trade to domestic demand in 2006, competition for enterprises has intensified.

In order to control the terminal, clothing enterprises try their best to deepen the work.

Some big domestic brands have launched large stores and multi store projects, some are supplemented by network channels, some have acquired direct terminals, some have been listed to raise funds for expansion, and international brands (including four big cheap retail brands) have been driven directly into the market. Recently, several foreign companies have announced that they will open hundreds of stores in China.

How can we find suitable business development mode and business channel for small and medium-sized garment enterprises in China in the face of constantly deteriorating environment and soaring business costs?

The general idea is to squeeze into the business circle, but feel powerless.

Because small and medium-sized enterprises in the capital strength, brand added value, brand personality and operational efficiency and other aspects of domestic and foreign, but the business has been consistently ignored.

If we wait for the new business circle to enter again, we may not be able to afford it.

The "unknown" brand of Zhejiang red top Clothing Co., Ltd. has made use of the "1+N" mode, and has made a breakthrough in the predicament of terminal expansion.

The "1+N structure linkage" mode is a shortcut. Li Xiaoping, a senior consultant and expert in strategic pformation, said that enterprises should create their own profit models from the strategic height on the basis of weighing the existing resources.

For the problem of terminal development, Li Xiaoping put forward the "1+N structure linkage" mode of opening shop, which provides a shortcut for avoiding the weakness and rapid growth of enterprises, especially for small and medium-sized brands of public life clothing.

The "1+N" structure refers to the establishment of a full store in the commercial market of the brand's target market, commonly known as flagship store ("1" store), whose function is mainly to display the whole product structure, assume the role of brand image building and brand communication, and radiate the regional and peripheral markets with good reputation; "N shop" refers to the N store which is densely populated in the secondary business circles, shopping malls, communities and townships. The main function of "N shop" is to sell products and achieve profits.

"Linkage" refers to: "1" stores can be jointly invested by brand enterprises and city brand operators. "N" stores can be jointly invested by city brand operators and their partners (managers or other investors).

Urban brand operators are entrusted by brand enterprises to be responsible for the operation and management of all 1+N stores in the area.

Through the "1+N" structure linkage, enterprises, brand operators, store managers, social resources and other elements can be fully integrated to form a win-win situation.

An agent's dream of opening several stores can be quickly solved through this way.

Because the cost of linkage terminals in capital input and human resource allocation will be very economical.

Take the "slow motion" as the core to enhance the value of the system. The brand of Zhejiang red top Clothing Co., Ltd. is "unknown", that is, using the "1+N" linkage mode to expand the success of the terminal network.

In many areas of "unknown" brand, there is a pattern: in the past, we invested 300 thousand stores and sold 700 thousand yuan annually.

Now, through 1+N, there are about 1 million 500 thousand stores opening 10 stores, with annual sales volume of 8 million yuan.

Scale and intensive results have been fully reflected in this model.

However, the "1 + n" linkage mode is mainly a matter of financial distress. In order to make this model successful, enterprises need to have conditions and advantages in product quality, brand positioning, commodity mix and management capability.

The final sales volume of products depends on the brand tension built by various elements of enterprises, not only the value pformation of terminal execution.