KM Why Is "Crazy Shop" Hidden Mystery?

In recent years, under the continuous encroachment of the electricity supplier and the continuing economic downturn, the clothing retailing industry in the past has been losing all its profits.

According to public reports, in 2015, half of the clothing brand performance declined, 3000 many garment enterprises closed down, the industry average profit fell by nearly 3, and even the "last piece of pure land" - fast fashion also showed a weak trend: UNIQLO parent company fast sales group 2016 new fiscal year started bad, net profit fell 16.9%, H&M in the 1 quarter of this year net profit fell 30%, GAP net profit fell 33%.

The downturn of these three representative brands shows that under the backdrop of economic slowdown, fast fashion is also hard to get rid of.

As a result, fast fashion Brand Company have lowered market expectations and slowed down shop opening speed: UNIQLO opened 100 stores in 2016, H&M60-80, MUJI30, and ZARA will grow at 6%-8% in the next few years.

Against this background, KM targeted 300 stores in 2016, 600 in 2017 and 1000 in 2018, completing the "three year plan" for 2000 physical stores nationwide.

Because of its speed and passion and intensive cultivation, KM has built a "double harvest" of scale and efficiency over the past year.

Old laugh thought that if "fast and steady" and "steady win" development ideas can be consistent, "fast" and "stable" can always be accompanied by shadow. Chen Hao's "dream to do first" dream is fully realized.

Moreover, when communicating with the company executives, we know that the KM brand is planning for the development of e-commerce with self built channels and platforms. For a brand with complete supply chain control capability, the layout of O2O and B2C will undoubtedly bring considerable sales increments. This is a low-key operation for a year. WeChat fans are close to the million mark. We can speculate that while waiting for a certain market visibility and market coverage, we can see that the operation and development of KM brand is practical and grounded.

Maybe the road ahead is not smooth, but I hope more brands like KM brand will boldly explore and innovate, and make a new path for the whole industry to get out of the predicament.

In the plight of the whole industry, this Nordic culture based designer is a fast fashion brand. Why did it go against the trend of expansion and "crazy shop" in the Chinese market just a year ago? Where did it come from? With a lot of doubts, he studied the young company with serious smiles and found that it is really different from most garment enterprises. Generally speaking, it is mainly manifested in three aspects:

First, super high performance price ratio.

The price of "butcher knife" is always invincible. Fast fashion is much sought after. The key lies in low prices. "Cross border purchase" has spent over a trillion years, and low price is an important trigger point; cross-border electricity suppliers are red and hot, and are closely related to its cheap and preferential.

The merciless rolling of retail entities is also a cheap weapon.

It can be said that price is one of the core elements that push consumers to make purchase decisions. This is the same thing as cock silk, middle class or local tyrant. Who does not want the price to be cheaper?

The pricing of KM is very subversive, far lower than UNIQLO.

So fast fashion brand, and a certain treasure is also more than let.

Shop around, 10 yuan scarf, 25 yuan belt, 69 yuan shirt can be seen everywhere, most of the products are priced below 100 yuan.

Moreover, these are not special deals, but full price new ones.

Such a pricing strategy can really touch the hearts of most consumers. Therefore, KM stores have the name of "the most frequent shops and the most affordable shops".

If it is just cheap, it will fall into the trap of low quality and low price, and it will be difficult to win the business at the moment.

The biggest attraction of KM is not only low price, but also product quality and fashion. Both clothing, shoes, bags, belts or umbrellas and cups are unique, simple and comfortable, and the design style of leisure and elegance makes every product full of texture. The elegance of Nordic low profile is fully deductive. This is highly consistent with the consumption trend of people advocating "quality life and simple fashion". Hundreds of tide products are gathered in the same store. Three and five hundred flat KM shops have become the fashion birthplace of this city.

The third performance of KM high performance price ratio is location selection and decoration design.

It is understood that the location of KM shops is concentrated in the first and second tier cities A and B business district, mostly in the city commercial center, with pedestrian street, commercial street, shopping center and mainstream department store.

KM brand store

Seemingly simple and elegant, but in fact very sophisticated, concise and bright, stylish and elegant style and products come down in one continuous line, and the width of the door is more than 6 meters, very eye-catching.

Second, control the supply chain.

Some people say that the supply chain is the waist of the retail industry, and the waist is strong enough to exert great force and agility.

KM has entered nearly 200 stores in China in one year, and its "efficiency" is 37% higher than its peers. The secret of low price and high sales is to have a strong waist, which controls the supply chain.

It is understood that KM has built a complete industrial chain from raw material procurement to marketing channels, including procurement, design, production, brand, logistics, retail and so on. Its advantage lies in grasping the high value-added links such as original design, retail terminal and so on. Through large-scale production and multi store sales, it is ensured that enterprises should have profits on the basis of guaranteeing low prices of products. Two, production and other low value-added links, through global thinking, will be arranged and adjusted in the world according to different regional labor costs, exchange rates and safety.

Thanks to the "power of supply chain", KM can reduce costs, improve efficiency and save costs from various links. When advertising fees and marketing costs are almost not invested, brand communication can be achieved through fast opening stores and consumer reputation. This is also a great guarantee for its low price.

Because of the control of the upstream and downstream supply chain, with the help of advanced IT technology, any information of the KM retail terminal can be quickly returned to the product center, then to the OEM business, logistics center, storage center, and finally back to the store to form an unblocked cycle. This is the foundation for KM to maintain the sensitive market smell and the ultrafast reaction speed, and is the invisible force supporting its "fast".

First, fast fashion is the product of "fast times". KM can satisfy consumers' pursuit of fashion and cater for the tastes of consumers at the first time. It has a strong supply chain base. KM can acutely capture the latest fashion elements at home and abroad and integrate them into the research and development of garment design in the shortest time.

Secondly, from design to shelf, tradition.

About half a year or so, international brands are also down 100 days, while the KM brand takes only 15 days, and every week there are new products on the shelves. The renewal rate of goods is much higher than that of peers. Many brands are still promoting winter products, and KM brand stores have shown new products in spring.

This keeps KM shops always fresh and attractive to consumers, and is hard to imagine without strong supply chain support.

Third, many "foreign brands" enter China, and there is not a degree of "acclimatized". In the end, there are not a few of them. However, KM operates in nearly 200 stores in 20 cities such as Beijing, Shenzhen and Guangzhou. Its combination of Nordic design concept and Sinicization experience is very successful, which is also benefited from its supply chain support, enabling it to adopt differentiated version design according to different regions, according to the customers' physique and wearing habits in different regions, and design a more suitable tailoring version for local customers, so as to provide customers with the best wear experience.

In the end, we should manage our products with vigor and stability.

A successful business model is inseparable from long-term operations and intensive farming.

The advantage of quick opening shop is that it can scale quickly and achieve large-scale operation. But if the operation is extensive, the performance of single store is not good, and a large number of stores will become the negative assets of enterprises. Such cases are too many. Those large scale shop brands are the "negative teaching material" of living.

KM brand attaches great importance to this point. Although it has made 1 years of "200 miracle" in the 200 stores and Ping efficiency industry, Chen Hao, the founder of her company, believes that the development of KM brand is far from good, and only 50 points can be scored.

He said, "walking fast is not the most important thing. The key is to walk steadily.

Only in this way can enterprises develop healthily and for a long time.

Therefore, in the 2016 plan, Chen Hao put forward three key words: "robust layout", "hard work and internal strength" and "team integration": Although the KM brand has the ability to open 500 new stores, but it has been cautious to reduce it to 300, and has made time and energy to build 4 logistics centers to support the opening and operation of the store. "Hard work" is mainly to consolidate the backstage, promote information and data system upgrading, and set up KM business school, and implement "full staff training". In the face of rapid expansion of enterprises and sharp increase in staff, Chen Hao put team integration on the key agenda, and made team learning and coordination as one of the three major tasks of the year.

In the first year of the Chinese market, the KM brand showed special caution: considering the level of economic development, the level of purchasing power, the convenience of the competition, and the employment rate of the city, each of them has strict assessment criteria, which must be thoroughly investigated and comprehensively evaluated before making decisions. In terms of product mix, it is reasonably determined according to the factors such as regional environment, human characteristics, shop size and passenger volume, so as to adjust measures to local conditions, to make the store suitable and not to "cut the same size". In the placement of products, KM also has a set of unique standards and requirements, which ensure the convenience of customers and the seriation of brands. In fact, just like low prices do not mean sacrificing quality, fast opening and fine operation can also be "both fish and bear".