Depth Analysis Of The Distant "Bestseller Era"

ONLY, VERO MODA and JACK&JONES, once upon a time, these brands of the company are the "three carriages" that drive the performance of all the major shopping malls in the country. They occupy the best position in the store, creating the achievement that the colleagues can not catch up with.

"No silk, no shopping mall" is the best portrayal of the unlimited scenery in the golden age.

Recently, however, rumors have been heard that the company has issued an internal order, brakes the brakes on the nationwide brand expansion plan, and no new stores are opened this year, and stores that sell less than 100 thousand yuan a month are closed.

In addition, the company officially announced that it had bought the online fashion store Mand M Direct at the price of 240 million US dollars to make efforts to O2O mode.

Myth from Denmark

In 1997, the company that just opened the Chinese market could be seen as an opportunity.

At that time, domestic consumers knew little about European and American clothing brands. ONLY, VERO MODA, JACK&JONES and SELECTED almost became fashionable vane in the eyes of young people, and quickly won the favor of consumers.

At that time, other international clothing brands had not yet entered the Chinese market, and domestic leisure apparel brands such as Metersbonwe, Semir and so on were also at the initial stage of development.

It can be said that the beauty of that time monopolized the cake with great market potential for young consumers.

In just a few years, its brand has covered more than 300 cities in China, with more than 6000 outlets and a breakthrough of 30 billion yuan.

From 2006 to 2008, it was reported that in a shop less than two hundred square meters in Hangzhou, the annual sales volume of the bestseller can reach tens of millions of yuan, which is equivalent to the sales performance of about two hundred thousand yuan per square meter.

Of course, it is not so easy to make such a performance, and its success is also related to the strong "bestseller mode".

Build a set of "China custom"

Whenever asked about the significance of the Chinese market for the Bestseller group, the general manager of Linghua fashion (Tianjin) Limited will produce a set of figures: the Bestseller group has more than 9000 stores in more than 40 countries including the European base, of which more than 6000 are in China alone, occupying more than half of the total.

However, the company did not only introduce products to China, but also made improvements to the Chinese market in terms of product positioning, design styles, channel strategies and promotion methods.

The Danish company has proved that a foreign company can understand the local market better than its local counterparts.

For international clothing brands, how to locate Chinese consumers has always been a difficult problem. Its brand positioning often corresponds to the universal Pyramid type consumer structure, while China's consumer structure shows more dumbbell characteristics and polarization is more serious.

Therefore, foreign clothing brands will often be misplaced after entering the Chinese market.

After careful analysis and analysis of consumers in China's clothing market, the company changed its initial market positioning and business strategy, and redefined its target consumer group, locked in 20~30 years old young people. They can come from first tier cities, two or three tier cities and even county towns, which have certain purchasing power and fashion, but do not have strong identification ability.

Accordingly, the design and style of the product have been adjusted accordingly.

The overall design of the product comes from the Danish headquarters, but it also adjusts the color and details according to the preferences of Chinese consumers, because the response time of local consumers to the international trend is limited, and the design that is closely following the trend of the tide is not necessarily recognized.

Dan Fei once said: "what is brand? That is, there are stores in large and medium cities."

This undoubtedly determines the expansion strategy of the company that relies heavily on channels in China.

When the customers decide to enter a shopping mall, they will regard the four brands as a whole and negotiate with the channel merchants, so that they can have more voice in the negotiation process.

In the layout of shops, the intention of multi brand operation of clothing enterprises is often hoping to gather consumers with different gender, price orientation and style preferences through scattered brands.

However, the choice of the opposite shop is the way to put the four brands together, and to block the walls between them.

Behind this is the accurate grasp of the Chinese consumer psychology by the bestseller and the accurate cognition of the service to whom.

stay

It seems that Chinese mass consumers have limited devotion to fashion and time and energy. They are not willing to work hard to study the true value of each brand.

Therefore, in judging brand strength and influence, they prefer to store the size, location and decoration as the standard, which is why Chinese consumers prefer the flagship store.

Therefore, the meaning of store is not only the channel of products and sales, but also the best form of advertising that conveys the brand image to consumers.

It is easy to see that when you walk into a store with a brand name, you can see that the investment in terminal sales staff is much higher than that of other brands.

Once the consumer enters, the guide will greet them enthusiastically, and from time to time they will call the consumers "baby" and "beautiful woman".

Subsequently, the shopping guide will follow the consumer, introduce products, persuade them to try, or even be too enthusiastic.

But according to the study of bestsellers, Chinese consumers do not know much about collocation.

Especially in recent years, after the channel sink, the aesthetic quality of many two or three line urban consumers is still not mature. Therefore, consultative marketing plays a decisive role in terminal sales.

The trial rate and purchase rate have always been the capital that makes us proud.

The data showed that one of the 3 people in the JACK&JONES store tried to buy one.

I do not know from when, occupy the mall gold corner silver edge position under the banner of the flag began to withdraw from the cabinet, and replaced by the international fast fashion brand multi-storey market.

"Fast fashion entry has a great impact on bestsellers."

From the development curve of the company, its downhill time coincides with that of fast fashion.

In 2006, many fast fashion brands, led by ZARA, entered the domestic market. They were popular from ZARA's first store in Nanjing West Road, Shanghai. As of June 2013, the total number of four fast fashion brands of ZARA, H&M, UNIQLO and GAP has reached 523 in China.

Even in a year and a half, an average of two and a half days opens a new store's record.

A survey has shown that the early customer group has a large degree of overlap with the fast fashion group.

The same European and American styles and styles, faster update speed, close and even lower prices, fast fashion brands quickly won the favor of domestic consumers.

In contrast, several "old faces" of the company, the store image for many years, the original style of European style has become blurred and mediocre under the impact of these new international brands.

As far as cost performance is concerned, there is no advantage in fashion fashion nowadays.

Inventory and OEM

"Almost every shopping mall is a bestseller, and it is estimated that it is a nationwide clean inventory activity."

Earlier, insiders said that the development of China's "overdraft" was excessive development.

In particular, the growth rate of the two brands of ONLY and VERO MODA far exceeded the average level of the market.

Faced with this problem, the electricity supplier has become a new channel for bestseller pformation.

Last year, "double eleven", the four brands of the group reached a total turnover of 208 million yuan.

However, some people criticized the brand mode of e-commerce, especially from the perspective of ultra-high return rate. Consumers are constantly questioning the brand supply and distribution.

According to the report of the Ali Research Center, in 2011, the sales volume of eleven brands was three yuan, and its sales volume was 56 million 620 thousand yuan, while the number of customer service was only 25.

Such a low cost investment, coupled with backward information management level, the bestseller business model is not only not fine management, but even simple sales.

In addition to the "sewer" status quo, the rise of the cost of subcontracting is also a problem that can not be ignored.

It is understood that more than 90% of the original brand of the brand is manufactured by Chinese manufacturers. In recent years, the cost of domestic foundry is getting higher and higher, and the updating speed of products is faster and faster.

Three or four years ago, in order to reduce the cost of foundry, the designer began to try to pfer some foundry links to Southeast Asia. However, the demand for high quality products was very high, and the profits were stuck.

In the long run, the instability of supply chain and the imperfection of supervision will not only cause frequent problems in product quality, but also lead to brand development.