Analysis Of La Natsu Bell Shop Partnership System

Last December, La Natsu Bell intended to land at the Shanghai Stock Exchange.

After raising HK $2 billion 200 million in Hong Kong stock in 2014, La Natsu Bell returned to A shares less than half a year later.

It plans to raise 1 billion 640 million yuan, of which 1 billion 560 million yuan for network construction, and 80 million yuan for the construction of information platform.

According to this plan, in the next three years, La Natsu Bell will expand about 3000 outlets on the basis of the existing 7147 retail outlets.

Once the recruitment plan is completed, there will be more than 10000 outlets nationwide in La Natsu Bell.

This will be an amazing number of shops in the clothing industry.

According to the brand operation of many well-known clothing enterprises, many enterprises have adopted multi brand operation mode to reduce the risk of single brand operation and cover different market segments.

All brand architectures cover women's wear, men's wear and children's wear market.

Of course, La Natsu Bell is no exception.

Despite the early operation of the two women's clothing brands, including La Chapelle and Puella, La Natsu Bell has obviously increased the strength of multi brand development since she got several rounds of venture capital in the first half of 2010.

It has launched 7.Modifier and La Babite women's wear brands, Vougeek, POTE and other men's wear brands, as well as La Chapelle Kids children's wear brand.

At the same time, it also launched a fast fashion brand UlifeStyle with full product coverage.

In order to further enrich the brand line, in the first half of 2015, La Natsu Bell also bought the brand of seven brand and Walker's men's clothing brand.

Of course, the multi brand mode of operation provides strong support for the expansion of La Natsu Bell's retail channel.

It not only enriched its channel resources, increased bargaining chips of department stores, but also played a synergy effect in supply chain management.

For example, in the first half of 2015, the net increase in 7.Modifier, La Babite, Vougeek, POTE, La Chapelle Kids, UlifeStyle and other retail stores contributed 51.26% of the total net increase in the total number of shops.

But with the increasing number of brands, the demand for personnel training or management system is getting higher and higher.

Operating costs will increase significantly, brand management will also lead to dislocation, and at the same time prone to internal friction.

This phenomenon makes people feel familiar.

What kind of cooperation system?

The important driving force for sustained growth of store performance is to adopt a partnership system for shop personnel, who share the business results according to store performance.

The design of this partnership system is compared with the traditional assessment mode, which creates a huge gap between the original incentive and the salary gap.

There are two parts in the shop appraisal of traditional clothing enterprises: the fixed wages and the Commission (that is, the so-called royalty).

This form of motivation can promote the efficiency of personnel in the short term, but it is easy to form an incentive ceiling. After achieving certain effect, it is very difficult to continue to exert incentive effectiveness.

For retail stores, independent accounting can be adopted, so many domestic retailers have adopted independent accounting and profit sharing assessment models.

Such as fat Dong Lai, Yonghui supermarket partner mechanism, and Huarun Wanjia's "fresh partner" mechanism.

At present, La Natsu Bell adopts a variety of "linked to the results of the operation".

According to the sales situation in the past year, the total remuneration of the store is set. According to the proportion of the store sales, the store manager and the shop assistant share the total payroll of the store.

Secondly, in the traditional form of shop assessment, store managers and clerks are easy to manage and execute two skins because of their inconsistent interests.

At this time, in order to cultivate the team's operational capability, La Natsu Bell implemented the system of the total salary paid by the store manager and the shop assistants, so that the interest community formed between the store manager and the shop assistant was strengthened.

Third, the general store manager only cares about the performance, but seldom considers the overall business, such as marketing, shopping guide, cost control, etc.

Under La Natsu Bell's partnership mechanism, shop operators need to consider the overall store operation activities, so that shops can become an independent management center to maximize performance.

In the words of La Natsu Bell, vice president of Wang Yong, "this system has solved a series of bottlenecks in management and management, including the decrease of employee turnover rate, the acceleration of turnover of goods and the sharp rise of customer service experience, which is of great help to improving the overall sales performance of the company."

As of June 2015, the total sales volume of La Natsu Bell's pilot retail stores increased by 5% over the previous year.

Obviously, La Natsu Bell shop partnership mechanism is successful, but no matter what kind of mechanism design, the design of store partner mechanism should be the mainstream mode and important direction of the retail store in the future. The partner system can make employees realize that they are the real owners of the enterprise.

Of course, the partner mechanism is a "double-edged sword". If the system design and implementation level is not well considered, it will easily hurt employees' enthusiasm.

At the same time, designing partners should not only focus on incentives and interest bundles, but also require enterprises to establish a supportive organizational culture and cultivate like-minded and consistent employees.

Otherwise, the partnership system with only interests tied is also difficult to sustain.

What kind of store do you want to open?

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According to the existing channel mode of the industry, most brands choose franchisee mode or "partial direct + Affiliate".

Because the franchise mode is conducive to the rapid expansion of the channel, the withdrawal of funds and the relatively low inventory pressure. In the direct mode, the brand business needs to manage the inventory and shop clerks themselves, and its management cost and management difficulty are also greatly increased.

But in La Natsu Bell's view, direct battalion can make the company more flexible to adjust the expansion plan to adapt to market changes.

At the same time, the POS system can be linked to the ERP system of the company's headquarters.

In this way, La Natsu Bell can build his own terminal consumption data, master inventory and optimize sales and marketing strategies in time.

In recent years, in particular, the number of shops in La Natsu Bell has expanded rapidly from nearly 2 000 in 2011 to more than 7000 in 2014, and is expected to reach 10000 in 2016.

Because of the advantages of direct operation, La Natsu Bell has a natural advantage in online and offline implementation.

Under the franchisee mode, how to coordinate and balance the interests of online and offline dealers has become the biggest problem for them to get rid of online and offline double line operation and promote online and offline integration.

If YISHION throws up a plan to build an online shopping mall, it must not terminate because of strong opposition from the channel operators.

Under the non direct camp mode, online and offline are fragmented.

La Natsu Bell and agents or franchisees are fragmented, distributors and franchisees or consumers are also fragmented.

In the case of channel segmentation, it is impossible to achieve O2O, let alone customer experience.

Today, with the development of retail channels, the advantages of La Natsu Bell's direct operation are obvious. The store achieves the national layout, and the new and synchronous activities on line and line are synchronized with the same price.

At the same time, La Natsu Bell storehouse and store storage can be shared. The store is equivalent to the warehouse of the online store, achieving a complete synergy effect.

It also links the scattered and fragmented Island store system inventory resources into one.

Especially in the management of goods, La Natsu Bell emphasizes fast turnover, fast new and quick digestion, and every week, new 30~50 new 4~6, each sent directly to the shop.

With the same price, regardless of region, direct operation has become a natural advantage.

At this time, La Natsu Bell just opened up inventory online and offline, which brought better logistics experience for customers.

This is why it landed in Tmall Mall for the first time, and entered the "tens of millions of clubs" in just 3 months. Under the "double eleven" line, the brand electric business ranked twelfth. At the same time, the "double two" went to TOP10 in one fell swoop, and ranked third in the offline brand electric business, next only to UNIQLO and bauden.

In fact, franchisee mode and direct battalion mode have always been controversial, and there are no advantages and disadvantages.

For example, YISHION is expected to sell more than 17 billion yuan in 2017, with more than 7 000 shops.

But over the years, YISHION has been a model of joining.

Where to open a new store?

As of December 2015, the number of four international fast fashion brands including UNIQLO, H&M, ZARA and C&A has risen to 1 000 in China.

The proportion of the number of shops in the first tier cities is decreasing, but the development speed of the expansion of the two or three tier cities is obviously faster.

Over the years, La Natsu Bell has more than 80% revenue in the two or three tier cities, and the proportion of revenue contribution has increased year by year.

In fact, many years of good performance are closely related to the early layout of the two or three line city network.

At the same time, along with the acceleration of urbanization and the increase of residents' consumption level, the mass fashion and casual wear market of the two or three tier cities will develop rapidly, and the retail scale of the Chinese public leisure clothing market is also increasing.

La Natsu Bell's network layout in the two or three line cities has effectively grasped the opportunity for market development and achieved rapid development.

As of June 30, 2015, the number of shops in La Natsu Bell's one or two and three tier cities was 713, 2672 and 1890 respectively, and the number of shops in two or three cities was more than 60% in the total number of La Natsu Bell stores.

In addition, from the type of network layout, La Natsu Bell Hussein Di set up special counters or exclusive stores.

As of June 2015, it had 5088 counters and 2059 stores.

According to the composition of the main business income of the channel structure, the revenue of the special counters is decreasing year by year, and the growth of the franchised stores is relatively slow, and the online growth is relatively fast.

In the next three years, La Natsu Bell will expand about 3000 direct outlets, including 2094 new outlets and 906 monopoly outlets.

In the early days of brand development, La Natsu Bell set up small shops.

But after obtaining venture capital in 2007, it accelerated the pace of its opening up, and changed the strategy of opening small stores in 2008, and fought Shopping Mall. Opening big stores and gathering stores is the key point of La Natsu Bell's channel pformation, and also has made La Natsu Bell's industry position today.

Founder Xing Jiaxing thinks, "department stores are in downtown area, this resource is very scarce.

In the future, we must improve efficiency, and then we must raise the unit price and raise the customer's age.

High priced products are affordable to a certain age and stable income. "

Now, department stores have become a very noble place, like Japanese department stores, most of the mature age groups are spending.

However, Shopping Mall has just started in China in 2010, and it is far from being developed.

So the future direction is Shopping Mall, the site is comfortable and spacious, the lease is long and the rent is stable. This will be widely promoted in China.

Therefore, La Natsu Bell adjusted the strategy of opening a large store and found the key reason for the loss.

After the adjustment of stores and the relocation of brand positioning, the establishment of large collection shops will eventually achieve the "1+1>2" effect.

The practice of Shopping Mall has also changed La Natsu Bell's more firm strategy. The sales network was mostly 100 square meters to 200 square meters.

Now, La Natsu Bell must open a shop with an area of more than 1000 square meters in Shopping Mall.

At the same time, with the development of Shopping Mall in China, La Natsu Bell shops have gradually become the protagonists, and the establishment of large collection shops has given them ample profit and development space.

Will supply chain management become a stumbling block?

Despite La Natsu Bell's achievements, supply chain management is still being questioned in production outsourcing.

La Natsu Bell thought he should do something with high added value.

As a result, production has been contracted out and contracted with hundreds of garment suppliers in China, and there are three regional warehouses and logistics centers in the country.

For La Natsu Bell, a multi brand, fast fashion and all direct battalion, it needs more resources.

In the process of product development, supply chain management, warehousing and distribution, retail management and other business links, the establishment of a professional management information system, outsourcing products style, category and quantity also requires more complex and diverse.

Moreover, as a consumer group of La Natsu Bell, a popular fashion casual clothing, its consumption habits are demanding that enterprises have the ability to react quickly.

The outsourcing mode can effectively coordinate the complex supply chain system, so that it can provide all kinds of products in time, accurately and adequately, and avoid the sales situation of the retail terminal due to adverse factors such as product quality problems and delivery delay.

The whole supply chain management system will be the next great challenge for La Natsu Bell.

In terms of channel layout, as more international fast fashion brands continue to sink and layout the two or three tier cities, the future competition will become more intense.

And because of La Natsu Bell's multi brand strategy, large-scale opening of direct outlets will inevitably lead to large-scale inventory.

At the same time, with the rising cost of labor and rentals, both production and terminal sales are the problems La Natsu Bell has to face.

But it can not be denied that La Natsu Bell's achievement is because he has just captured the rapid rise of China's fast fashion industry and followed the development of China's Shopping Mall to set up a large collection store.

The product accelerates the iteration, and breaks through the "Internet +" through the merger and acquisition, thus opens up the cash flow, the information flow, the logistics, simultaneously realizes the information system fusion under the line and the on-line.