Why Has The Flourishing Solid Clothing Store Become A Small Profit Industry?

clothing

Shop status quo: in cold and cheerless, to earn a shout.

A shop in Quancheng road is deserted. Sometimes there are more salespersons in the shop than customers.

One

If you have a lot of fire, look at the number of shops on the street.

However, in today's online shopping has been popularized, the bustling streets decorated with exquisite and once surging brand clothing shop, but obviously cool down.

How do these corner shops survive? A press survey found that many of the costumes in the busy sections are operating in meager profits, and their brand revenue mainly depends on the support of the two or three line cities.

The reason for losing money is to insist on opening stores, that is, to maintain brand influence, and create a very popular atmosphere for online products.

More than 100 customers a day

Shopping accounted for 1/10

At 8:30 a.m. on April 20th, a 361 degree clothing store in Dongguan Street in Ji'nan began a day's business. In order to understand the business situation of the real clothing store, the reporter experienced it as an intern clerk.

On this day, the main job of the store is to take inventory, and the 10 shop assistants of the whole store only keep one person open, while others are busy counting the goods.

Reporters noted that from 8:30 am to 12 noon, 3.5 hours, 20 customers came to the store, only 5 of them went shopping, and the total turnover was less than 1000 yuan, even if only one salesperson was able to deal with it.

On that night, the store ushered in 120 customers, of whom 13 shopped, with a turnover of about 3000 yuan.

"This is normal. Customers usually spend less time on holidays than usual, and the average turnover is about 4000 yuan a day."

The clerk said.

After two consecutive days of practice, 100 square meters of shops had only 100 customers a day.

Moreover, it is not only a store or a brand that is cold and cheerless, but also a lot of brand clothing stores in the Urban Cultural Road East, Hualong road and Huayuan Road.

What is the profit of these brand clothing stores? Taking the 361 degree store of Dongguan Street as an example, the daily turnover is 4000 yuan, which is 1 million 460 thousand in the whole year, deducting the rent cost of 250 thousand yuan per year and the 360 thousand yuan salary of 10 salespersons (3000 yuan per person per month), leaving 850 thousand yuan.

After deducting the original cost of goods, there are still 4.5 million profits a year.

Wang Zheng, director of the Institute of economics, Ji'nan Academy of Social Sciences, said that the operating costs of brand clothing stores include not only rent and staff salaries, but also brand affiliation fees, warehousing costs and so on. After a few deductions, most of the brand clothing stores are no longer profiteering but operating in a state of small profits or even no profits.

"Golden Street" shops rent more than 5 times the average block.

The Quancheng Road, which is separated from the East Gate Street, is one of the main business circles in Ji'nan. It is dubbed "Golden Street" by the public. This section of the road less than 1500 meters has four or five commercial complexes on both sides of the road. It runs across a dozen clothing stores with different brands. How are they operating?

In April 15th, reporters in Quancheng Road

See, the upper and lower 4 storeys totaling more than 400 square meters of shops, has maintained fifty or sixty to one hundred people's traffic.

The nearby Semir store and the 361 degree store are also a lively scene with large traffic volume.

In fact, the volume of passenger traffic has been reduced compared with before. "Before, the volume of traffic is two times more than that of now, and Chengdu has higher wages than it does now."

Izumiki Jimorima store clerk said.

However, the profitable "Golden Street" store has not looked so beautiful.

The manager of a sports brand store revealed that because of the high rent and other reasons, most of the clothing stores on spring road looked prosperous but actually they were not profitable.

"Our profit is mainly in the two or three tier cities, and the main business of the provincial capital is the community store."

Wang Zheng pointed out that the reason for not making profits is simple, that is, the high cost of operation.

Taking the rent as an example, the rental of the shops along the streets of Quancheng road is as high as thirty or forty yuan per square meter per day, which is 5 to 8 times that of other blocks. That is to say, the traffic volume of these shops reaches 5 to 8 times the volume of other block shops.

"As far as I know, the brand clothing store on spring road has been continuously related to doors in recent years."

Wang Zheng said.

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Traffic jams and parking difficulties

Will affect the physical store.

Why has the flourishing solid clothing store become a small profit industry? Almost all clothing salesmen and managers have pointed the cause to the electricity supplier.

Reporters randomly selected 20 college students in the university campus to investigate. They all had online shopping experience. 7 of the 10 girls said that the first thing they thought about buying clothes was mobile Internet, or even did not buy the demand, but when they browse the goods, they did not know it.

"No need to go out, look at the buyers show and the seller show can get the experience of" window shopping ". The time for shopping is completely saved.

A girl told reporters.

Wang Zheng believes that not only people's consumption habits have changed, but also with the expansion of the urban layout, the distance between residential areas and shops is getting farther and farther away. Traffic congestion and parking difficulties will reduce people's willingness to go shopping.

Shang Haiyan, an economics school teacher at Shandong University of Finance and economics, believes that besides the convenience of shopping, the biggest impact of the electricity supplier on the entity store is that the electricity supplier does not have warehousing, and does not need the expenses of store rents and so on. The cost of operation is low.

To cope with the price impact of the electricity supplier, the entity clothing store had to lower the price and even set up a special discount store, which could not be imagined five or six years ago.

"At that time, only the broken codes and the over season styles will be discounted."

A shop assistant who worked in a brand store for more than ten years said.

Downtown clothing store

Mostly to maintain brand influence.

Since they are in a state of small profits or even no profits, why are these stores still losing money in busy sections? Will they close in the future?

Business Hai Yan analysis, short-term losses do not necessarily lead to corporate exit, especially store rents are long-term fixed costs, as long as the guarantee of short-term income is higher than the cost of goods can be maintained.

Even if physical stores are eliminated, that is a relatively long-term process, with a pitional period.

361, Ms. Guo, manager of Quancheng Road store, has an optimistic attitude. She believes that the solid clothing store in the prosperous section is indispensable, although the shop may not be profitable, but it is an image representative for a brand.

"There is a shop in the busiest section, the customer will think this is a regular shop, brand is big enough.

Such a store has advertising effect, has great strategic function, and can also improve the brand's influence of selling online.

In the long run, Ms. Guo believes that there will still be room for survival in physical clothing stores.

Before the signing of the contract, the rent of the busy section has been rising, and the rent has been increased by a certain proportion every year.

As the physical clothing store business is sluggish, some landlords have lowered their rent according to the actual situation, for example, the rent of some shops in Quancheng road has been reduced by 5 percentage points.

"No rent to clothing stores, and other industries are not good at doing business."

She believes that the future customer groups will definitely diverge, some people or some categories of goods will be fixed online shopping, while the other part will still love the physical store.

This coincides with Wang's idea. He said that the shortcomings of online shop lack of on-site experience are not resolved in a short time, which gives the entity a chance to breathe.

Physical stores can use experiential services to enhance attractiveness and create their own fixed customer groups.