Zheng Yaonan: From A Security Guard To A 3 Billion 900 Million Boss.

In the downturn of the apparel industry, one company added more than 1000 stores in 2014, with a total of more than 7000 stores, 78 days of inventory turnover and 1 million 160 thousand yuan a day, with a market value of more than 10 billion Hong Kong dollars.

On the Internet, Lin Chiling detonated the topic of "exploding milk" advertising for its endorsement, and now added Huang Xiaoming's endorsement of men's underwear + running male cooperation.

This is it.

Its founder and chairman Zheng Yaonan was a security guard for WAL-MART 20 years ago.

However, as a media report said, "how did Zheng Yaonan start from a small security guard in a supermarket? It took only 20 years to make a history of the struggle of a listed company owner, not a key point.

The key point is that when the domestic clothing industry is in a state of sadness, the physical stores have been hit by the electronic commerce, and a city beauty selling underwear has opened more than 7000 stores in more than 330 cities across the country, and the speed of opening this shop is increasing at the rate of 1000 per year.

From security to entrepreneurship

In 1995, Zheng Yaonan, 20 years old, came to Shenzhen with the courage of Fujian Gutian to forge ahead with the courage to fight hard and carry 500 yuan.

Just graduated from secondary school, he found the first job is WAL-MART China headquarters security, responsible for "watch the door."

A few months later, Zheng Yaonan quickly appreciated and changed his duties: from security at the headquarters gate to security in the store.

In Zheng Yaonan's view, this pformation is a great change in his life.

"Why do consumers buy these things when they come in? How can these salesmen sell goods to consumers with the simplest skills and how to manage them?"

It fascinates me. "

When wondering why a bottle of cosmetics can sell for 300 yuan, the salesperson told Zheng Yaonan: "selling cosmetics is a dream".

This sentence really shocked him, and also promoted the idea of not doing security and changing sales.

So Zheng Yaonan pferred to work and worked as a supervisor.

In Zheng Yaonan's mind, a magnificent dream is born: create a business of your own!

Two years later, Zheng Yaonan chose to follow his heart and set up the first cosmetics shop with his own savings plus more than 20 thousand yuan from his father's support.

With his meticulous care, it took only a year to complete 10 cosmetics stores.

Fighting underwear market

Although the cosmetics business is booming, Zheng Yaonan still sees the ceiling of the market.

So he began to look for new opportunities.

His business was hot, which attracted his attention.

Subsequently, Zheng Yaonan immediately began to investigate the underwear market.

After investigation, he found a market blank. At that time, the female underwear shop was polarized: either the high-end brand of the big shopping mall, or the low-end brand of the small supermarket, there was no store for the masses at all. Besides, he also found that female customers had to go shopping for different kinds of clothing.

So an idea was born in his mind, that is, changing tradition.

It will integrate all kinds of items related to personal clothing into a store. This is the "one-stop shopping" model for underwear industry.

Practice has proved that this mode is rapidly favored by the market.

As a result, Zheng Yaonan began to increase underwear categories, from home clothes, thermal clothing has been extended to body shaping clothes and so on.

Later, he completely abandoned other brand agents, completed the brand pformation, and shifted from "production + sales" to "brand + sales" format.

The expansion strategy of counter attack

Zheng Yaonan has a lot of Li Jiacheng's demeanour. His expansion strategy is to counter the potential.

By the end of 2013, the sales of urban beauty terminals were close to 6 billion, with more than 5800 stores.

In fact, his most important opportunity for expansion is the two time.

The first was during the SARS in 2003.

At that time, the cost of bunk was low, and Zheng Yaonan took the opportunity to expand from a dozen stores to 50.

The second was during the 2009 financial crisis.

Zheng Yaonan found that the domestic market had not been seriously affected, but the cost of acquisition was much lower.

That year, he bought the factory at half the cost and bought several companies.

Unique marketing logic

The average price of urban beauty is between 50 yuan and 80 yuan, but the gross profit of Direct stores can reach 60% to 62%, and the gross profit of franchise stores is more than 40% compared with that of Avril.

The logic of urban beauty is to increase the rate of sale and reduce the discount rate.

In practice, first, reduce costs through mass production.

The output of a supply chain of urban beauty is basically around 1 million, while that of other brands is about 100 thousand.

This is a distance from other brands.

Second, maintain low discount rate and no increase in price to retain users.

It is reported that the price increase rate of urban beauty products is between 2.5 and 3 times, and the lowest discount rate for new products is 85% under the same line price.

In recent years, urban beauty has not increased the price to ensure that users will not lose their prices because of their ups and down.

In addition, the discount interval is adjusted according to the product life cycle.

From the point of view of management, not all commodities are suitable for discounted sales during the recession.

If the product has been unsalable during the entry period, it should start selling at a discount so as to increase the sales rate.

"Products are iron, cash is steel, stock is not sold, noisy", especially in the underwear industry.

In 2015, the urban beauty sold 80 million bra sales in one year, sold out at 90%, and the inventory turnover was 90 days. With the unique supply chain standard, it entered the electricity supplier for more than a year, rising rapidly from fifth to 20.

In the past twenty years, most of the people have been mediocre and useless.

But from the bottom of the society, it became one of the richest people in China.

What we see is mostly the scenery of Zheng Yaonan's people. But because he started from scratch, there must be some unseen efforts and perseverance behind him.

You can't build a big company by opening cosmetic shops.

From looking at the security of the gate to the small boss who knows how to sell it, and then to the famous entrepreneur who makes the brand, this road is far from smooth.

He had also swallowed up, and after two years of being a businessman, he was fooled by all his partners at that time. He had also made mistakes, and the rapid expansion due to blind overestimation of the market almost brought disaster to the whole enterprise.

But as Zheng Yaonan said, every process has many challenges. Without trying, you will never know how big your energy is.