Physical Retail Return? Why Fast Fashion KM Open 2000 Stores Plan

In the global economic environment, China has an enormous consumer market that can not be replaced. With the gradual upgrading of domestic infrastructure, the quality of life, expectation and taste are rapidly improved.

Brands, manufacturers and manufacturers are not aware of changes in consumer trends in time. Product color value, marketability, cost performance, consumption experience and so on do not make consumers scream.

The author believes that from the perspective of consumer demand, the four points of "high quality, low price, rich and fashionable" are concentrated on the products, making a scene with high cost performance and meeting the needs of the young people. First, let's look at the data of last year's clothing retail brands.

You can see that in addition to your concern

Confusion, low cost, brand aging, loss of sensitivity to young consumers, brand operation mode is also the main reason, the traditional physical retail brands have been deadlocked.

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As a representative of the traditional retail operation mode, because there is an agent from the enterprise (branding) to the consumer, then to the distributor, the last thing facing consumers is that the price of products can not be reduced and the experience is uneven.

This is also the fate that most traditional brands can't change.

The spoiler appears?

Last year, when the physical retailers were in a state of sadness, KM continued to add more than 200 stores in the short term last year, causing a great shock in the domestic retail industry. It was predicted to be an amazing black horse that subverted traditional retail entities.

Recently, if you often go shopping, you will find that KM stores are getting more and more: more than 200 last year, it is reported that 600 million will be invested this year, 300 new businesses will be opened, 600 new ones will be opened in 2017, and plans to invest 2 billion new 1000 in 2018.

Complete the 2000 store plan.

In general, KM is doing something that looks alive.

If you look at their business models, they have a tight cycle of operation.

The way of operation is probably that in the fashion design trend of the world, we can immediately determine the garments and accessories that can be put into production, and quickly deliver them to factory production, so that they can be put on shelves in a very short time, and the price is very substantial.

By contrast, traditional brands may take a longer time to produce a few "tonal" designs and eventually put them in retail stores.

The latter way of operation is not attractive, now 80 and 90% of consumers are very fond of buying and buying. They hope to wear the most fashionable style as soon as possible.

6 months for an expensive garment? It's too long.

There is another reason why KM is controlling production.

Generally speaking, the total volume of the retailer's single product is very large, but their operation is not done by a single batch of goods, but a small part of each batch is produced, and on this basis, the consumer's response is judged.

On the one hand, this will create a "limited edition" illusion, which may make consumers buy nodes and buy them more frequently.

This method is especially suitable for retailers to introduce new styles every two weeks.

In addition, they are also controlling costs, slowing down the risk of over production for any type.

On the basis of SPI mode, we use the buyout system to supply goods, shorten the account period, and so on, so that suppliers do not need to worry about the sale of goods, and strengthen the control of raw material prices and product quality, which not only achieves the cost savings of logistics, but also effectively controls the attrition rate of goods.

Entity retail regression and reengineering "customer origin" should go further, meet the needs of customers and extend consumption to attract and retain consumers through experiential consumption.

Obviously, KM is also important in terms of culture, innovation, experience and feelings, as well as price. Today, the creation of consumer environment itself contains elements of creating customer needs.