Zhu Yu, Vice President Of Top Quality Discount, On Discount Issues

The rise of OLE industry and the frequent discount of department stores make it necessary to reconsider the way of living.

Zhu Yu, vice president of top quality discount, said that the top grade discount was trying to cooperate with local partners to try out the Hilton model and manage the mode and output of its own system.

Cost reduction and high operation

General merchandise industry has become a global trend.

Messi Department recently announced that it would turn more energy to online and close 35-40 poor stores.

Wanda will also regard electricity providers as one of the pillar industries for the future development of the group.

In addition, Yintai, Wangfujing and other large department stores have also been in the field of electricity distribution.

However, at present, there is no very successful case in the department store of electric business.

In Zhu Yu's view, most of the department stores are basically fake lines, and there are no differences between online and offline preparations for two stocks.

Top grade discount launched an e-commerce platform in 2009 - top quality discount network.

Over the past few years, the electronic business platform has lost 10 million yuan a year, and now it has realized losses.

In Zhu Yu's view, the whole channel pformation is the key to profitability.

This year's top quality discount target is the same line, the same quality and the same price.

Zhu Yu believes that it is difficult for the department store to make electricity suppliers to achieve the same price on the line and offline. It is difficult to have a game space when Tmall does not sell a brand to a mall.

It is also difficult to get a high discount rate.

General store rate is 25%-30%, plus shop decoration, the cost is very high.

If offline and online, the price will be difficult to make profits.

Zhu Yu said that the most essential thing to achieve the same price on line and line is low cost operation and high operation efficiency.

"Top grade discount is only 18% of the highest discount point, and the operating cost of the brand is relatively low.

In addition, we have a good turnover and sales rate for best sellers and unsalable products through the Pad end data, and the selling efficiency is also high.

This will cost a lot less than other offline channels. "

Zhu Yu believes that OLE and top grade discounts are different in terms of area, brand and location. The brand in OLE is an independent store, which determines that ole mostly chooses to balance the cost in the suburbs.

But the top grade discount shops are basically open in the center of the city. In addition to luxury goods, the two brands coincide, such as Nike, ADI and other core brands.

Zhu Yu said that top grade discounts are being introduced into Nike and Adidas's core brand factory stores.

Because of its efficiency in operation and operation, it can afford higher rents and keep prices equally or lower.

The discount of department stores and shopping center brands is more and more frequent. This makes the top grade discount which has always been not dominant in new products.

Zhu Yu disclosed that in the past 2011-2013 years, for the sake of cheaper prices and stronger competitiveness, top grade discounts sold mostly.

Now the top grade discount has increased the proportion of new products. This year and next year, the commodities will be flagship, and now the new proportion is close to 40%-50%.

Zhu Yu said that the future share of new products will depend on changes in consumers, categories and supply chain.

The new and tail cargo will form two completely different operation logic, the most important thing is how to achieve win-win with the supply chain.

July 2000, top quality discount.

It opened its first store, opened 9 stores in Beijing in 15 years, and opened 2 stores in Hangzhou.

Top grade discount has said that because of the unified investment, unified operation and unified management mode, it can open a store in 3 months, and the speed of opening shop is obviously less than expected at that time.

Zhu Yu said that the core energy of top grade discounts in the past 3-4 years has not been put on the shop, but the pformation of its own business mode, including supply chain, consumer experience, and full channel market.

He said that business pformation is to increase the efficiency of every store and then open shop. The two newly opened stores in Hangzhou are exploring the capability of cross regional management.

"In the next five years, at least 50% of the department stores will not be able to go on. Under such circumstances, it is better to practise basic skills in the market."

In terms of regional expansion, top quality discount is trying Hilton mode to cooperate with local partners to manage and output its own system.

Zhu Yu said that opening a shop in a city needs to know the local community well and has some connections.

Top grade discount hopes to reduce shop opening costs and speed up shop opening through this mode.

This year's top grade will open 1-2 stores of this model.

Zhu Yu introduced that there will be three different shops in the future top grade shops - community shops, commercial shops and mall.

Among them, the community store is

The most mainstream form of shops is close to large communities and supermarkets, and other supporting services.

Zhu Yu said that community shops are the focus of future store development.

In brand and decoration, this kind of shop will continue the style of top quality nowadays.

Commercial shops are smaller in size, focusing on office buildings and densely populated areas.

Zhu Yu introduced that no matter from decoration or brand, there is no obvious difference between commercial shops and community stores.

But in the future, this kind of shop will be pformed, and there will be a marked difference in brand choice, fashion and product update frequency.

First, pform the shops in Chaoyangmen and Zhongguancun.

For mall shops, represented by grass bridge shop, the area is more than 20 thousand square meters.

Zhu Yu introduced that in the future, it will take 1-2 years to pform the big shop.

"Big stores need to radiate the population of the whole area and even the population of the whole city, and we must make a special feature."