Ye Guofu: What Is The Next Wave Of New Retail Sales?

According to the world clothing and shoe net, the 2016 black horse community conference was held in Beijing.

Founder Ye Guofu attended and delivered keynote speech.

At the meeting, Ye Guofu took a clear-cut view that if all online and offline businesses were new retail outlets, all of China's physical retail sales were new retail, because there was no real retail sales in China.

Department.

In addition, he boldly predicted that the next 3-5 years, the electricity supplier will die a large piece.

"What is business? Endless creativity.

Any enterprise, no matter the originality of goods, the originality of marketing, the creativity of business mode, once your creativity is over, your business will be over.

This is the essence of business. "

Ye Guofu said.

Speaking of the next wave of new retail sales, Ye Guofu gave three points: good environment, good service, good product and excellent price performance.

Among them, the ultimate product.

That is to say, the product should be less and have a sense of design, so that the supply chain should be thoroughly opened up. The high cost performance, which means less product cost, less profit and less price, will make a lot of money in the end, such as ZARA, UNIQLO and IKEA.

The following is the content of Ye Guofu's speech:

"You can't understand us, just like you didn't understand Alibaba ten years ago."

Today I want to share with you the core part of the world's 1500 stores: the power of design.

Last month, we found Miss Tung was dismissed from the group chairman. We made an advertisement: Miss Dong Zhuhai, they do not want me, chairman! + one hundred million, I give.

Together, over 100 billion! Guangzhou Ah Fu, @ famous brand.

Why do I dare to advertise this? If there is no bottom and no domineering, I dare not do such news.

Today, there are still some doubts about the famous brand products. Many people do not understand the name creation.

You can't understand us, just like you didn't understand Alibaba ten years ago.

The development of famous and excellent products in the past three years, including its development momentum, can be said to kill GREE and beauty.

We started our business in the three year of this year, and sales are close to 10 billion this year.

Alibaba took four years from 0 to 10 billion, Jingdong spent 0 to 10 billion for six years, and vip.com took 0 years to 10 billion for seven years.

Famous and excellent products took three years from 0 to 10 billion.

And what I do is consumer goods, which consumers buy every day, and I have done the whole world.

What does GREE do? Sell air conditioners.

Do you know how many years it takes for an air conditioner? Only when you move and decorate the house do you buy air conditioners.

How can it compare with consumer goods?

GREE was 120 billion in the year before last year, and it fell to about 90000000000 last year.

The growth of durable goods should not be said to have reached the peak in China.

Why is Dong Mingzhu so anxious and so angry? There are reasons for mobile phones, rice cookers and cars.

We are now opening up businesses in 15 countries around the world and doing business abroad better than China.

In the future, more than 90% of famous and excellent products are not in China.

China will only account for 5 or 10% of its business in the future.

By 2020, our target is 600-800 billion, and by 2025, our target is 300 billion.

This is our bottom line.

"The next 3-5 years, the electricity supplier will die a large piece".

I would like to talk about new retail today.

What is new retail? Ma Yun has said that new retail is online + online.

Is that so? Is that the new O2O? If all the new retail outlets are online and offline, all the physical retail outlets in China are new ones.

You tell me, China's entity retail now, which has no electricity supplier department, which is not doing online?

What is business? What is the most accurate explanation of business? Endless creativity.

What makes Apple keep buying its mobile phone? Apple's mobile phone is of good quality. It is much better than Motorola and NOKIA. Apple is relying on Apple 5, Apple 6, apple 7, and constantly has new ideas to guide us to spend.

Any enterprise, no matter the originality of the product, the originality of marketing, the creativity of business mode, once your creativity is over, your business will be over.

This is the most fundamental nature of business, "endless creativity."

Back to new retail, is physical retailing dead? Let's make a judgement here today.

Over the past 3-5 years, physical retail has lost a lot. From 2016, the next 3-5 years, the electricity supplier will die a lot.

What is the next wave of new retail sales?

In the past, the electricity supplier would push the innovation of Chinese entity retail.

What is the next wave of physical retailing? Let's give you a few examples:

Cosco, a high-end supermarket in the US has not yet entered China and has done very well in the US.

I have to go to all parts of the country, so long as I have Cosco, I have to go in.

What's the biggest feature of it? The products are beautiful, the display is good, and the price is very low.

And most of the products are brand name products.

Its biggest drawback is that there is no membership card to prevent you from paying the bill.

In Japan, no membership card will let you in.

In the United States, you can enter, but at the moment of paying the bill, you must use cash, and all VISA and UnionPay depend on one side, unless you use his own bank's credit card.

At this moment, the experience is very bad.

Therefore, we should not go all in to start businesses, and do not think that every place needs to be perfect.

It is better to cut off one finger than to hurt ten fingers.

We must break through at one point, and the rest of the services will be fine.

Cosco, no matter how many things you buy inside, or do not pay cash, do not let you pay.

Buy, buy, pull down, you go out, I am so cattle, so cock, this is the cattle business.

Like apples, what do we like best according to Chinese customs? Like dual card dual standby, like changing batteries.

China has a population of 1 billion 400 million. According to our general entrepreneurs' thinking, such an important market, we must pay attention to it. We must listen to the voice of consumers and cater to consumers.

Apple ignore you, ignore you, I just like this, this kind of cell phone, can not double card double treat, can't change battery, buy, buy, do not buy to pull down, sell to the whole world.

We need to be such an aggressive enterprise.

A breakthrough, other shortcomings should not be ignored.

Often, 90% of users' recommendations are invalid.

It is necessary to return to the essence of business, to find and see the most painful point.

For example, there are 10 pain spots, the most painful point of deep tillage, the other 9 points do not look at.

If you put this point to the extreme, your product will be explosive. Don't try to satisfy all his pain points.

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UNIQLO is also a company that I respect very much, and the price is very cheap. In Japan, he also has a name "clothes without money".

UNIQLO's down coats are about 399 and 499, while Japan's UNIQLO is 20% cheaper than China's. but Japan's average income is 5 times that of ours.

In the eyes of the Japanese, 70 yuan can buy a catty down jacket, which can be imagined.

So, the Japanese made a name for UNIQLO, "don't want money", buy it and lose it if you want to buy it.

T-shirt is just a few dollars in his eyes.

And IKEA, which I think is very good retail business.

Last year, we opened 1000 stores worldwide.

There is no brand in the world doing this, whether Apple, Nike or ADI.

We are also the only brand in China that goes all the way to the world: to the United States, Canada, Australia, Israel, Hongkong and Singapore, the developed countries are the United States and Europe, and the less developed countries are Laos and Vietnam.

China has been doing foreign trade for 30 years. What are they doing? They are all in ODM.

In the future, we will go to the world, and every shopping mall and every street can see our logo.

Many of China's products just go into other people's channels, giving you a one meter place, placed in that place, which is very different.

Why do I dare to say I kill GREE? Why do I dare to say three hundred billion or five hundred billion? I am exporting brand and output channel. This is unique. Just like ZARZ, just like IKEA, like UNIQLO, it is an independent brand and independent channel all over the world.

First, I do not sell it in other channels.

Second, I do not help others OEM processing.

Why can't these enterprises die? That's why.

"Why do I say I despise Alibaba?"

Famous and top quality products are two or three times more business overseas than China. Why? There is no such thing as a crazy, malformed electricity supplier in China. I think the Chinese electricity supplier is very abnormal.

It goes without saying that enterprises like Alibaba can not survive in other countries except China.

The electricity supplier relies on fake goods, and can not live in other countries.

What is the essence of retail? Sword can not be left to death.

What kind of sword is the sword in the retail industry? It controls the quality and controls the price.

Why do I despise Alibaba? It does not control the quality, nor does it control the price. It merely sets up a platform, regardless of the quality of the goods, and how much money it sells.

Jingdong is also, Jingdong has just started very well, just rely on direct camp, tell everyone, a platform is rotten.

However, IKEA and UNIQLO do not build platforms? In the future, only through your design, can you enter the supply chain, and you can price yourself, and you can control the quality.

Only in this way can we die.

This is a retail sword. If you lose this point, you can't.

In this sentence, I asked my 6 year old son: Jian, who could not leave his hands until death. What did he mean by that? He said, Dad, for a swordsman, the sword was lost and his life was lost.

For retail enterprises, if you lose your quality and lose your price, your retail business will die.

In my opinion, we should do the following three things, no matter what we do.

1, the environment is good.

Today, consumers are very concerned about the environment.

90% of the famous and high quality products are in the shopping center. All the shopping malls in Beijing have our shops, whether they are joy city or Cade Mall, Wangfujing department store.

What are we doing? Creating a good environment.

Our 200 square meter shop will probably cost 400 thousand of the decoration.

What products are they selling? Most of them are 10 yuan, 15 yuan and 20 yuan.

Have you ever seen a thing that sells such a cheap thing to enter such a good shopping mall and spend so much money on decorating it? There are not second famous products.

2, "service" is good.

The service I talked about is good with double quotes.

In my opinion, good service is not to serve.

Why is the entity retailing going bankrupt today? The service is too much.

The lesbian went to the clothing store to buy a dress. The clerk was very tight. When she tried a piece of clothes, the clerk came in with a nice word. He said, "how beautiful you are in this dress. It's a pity that you are not a star. You are more beautiful than Fan Bingbing!"

In the cosmetic industry, manual wages account for 20% of sales.

The average per capita wages of famous and excellent products account for 5-7 points of store sales.

We have no service, you are willing to buy, buy, do not want to buy to pull down.

Do you think IKEA, ZARA, UNIQLO are in service? No, the shop assistants are very busy. They are in tally and hygiene. No one serves you. You go in and buy them casually.

I often observed in the shop before I went into a cosmetics shop in Guangzhou, and I went in a shop assistant to introduce me immediately. One of the female comrades went in, and the other shop assistant also introduced it. The woman said, "please stay away from me." what is the subtext of this sentence? Your products are introduced in Chinese, I want to buy them, I will buy them, the prices and ingredients are very clear, I do not need you to introduce me, what do you recommend to me? Let customers away from you and leave the shop as soon as possible.

What is a good service? No service, no new chain.

If we have to introduce and sell products artificially, there is no future for this enterprise.

3, the product is good.

Our eyeliner is produced by a factory in L'OREAL, which sells for only 10 yuan.

You think, from the day of listing to today, we sold more than 100 million, 10 yuan, 1, 1 billion, and 1 billion for a product.

This product is like a lesbian's menstrual cycle. It comes every month.

1 in a month, 12 in a year.

I have 20 million fans, most of whom are young women.

What is it called? This is called expendable, and how long does it take to use an air conditioner?

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Quality must be excellent, and exploded, not many, the one or two, and then let you come back every month to buy.

We see many cosmetics companies in Guangzhou, developing 1000 products a year to make tens of millions.

Jobs gave a deep lesson to entrepreneurs all over the world: how to develop products.

In the case of product quality assurance, the lower the price, the better, not the more expensive the better.

In my team, if I can sell very low, I will be very excited, sometimes I feel very sick, the higher the price the other boss sells, the more excited I am, the lower the price, the more excited I am, and even the excited night I can not sleep.

In China, we all share the price and the goods.

What is the price of one point? The goods are like the UNIQLO and the famous brand.

China's prices are 10 Fen yuan, one point, or even three cents.

You think the reason why the old saying is reasonable is that you bought a high priced product to raise the price for psychology. Why is it so expensive?

I have said two classic words, one of which is: the quality of products is not determined by price.

You should not think that the higher the price, the better the quality.

The quality of products is determined by its direct cost and enterprise efficiency.

The same shirt costs 100 yuan, department stores sell 2000 yuan, UNIQLO sells 199, but he can sell 1000 pieces a day, and only 5 pieces can be sold in department stores a day. Who do you mean to earn more? Of course, UNIQLO makes more money, because UNIQLO efficiency is very high.

The department store is very inefficient, so he has to sell 20 times.

Why can Taobao succeed? What is the core of Taobao's success? The price is low.

Why can Taobao bring us to the line? 2000 below the line, 200 online.

Previously sold only 60, 70, 80, now online can accept 200 yuan price, that is, by such a huge price difference, let our Chinese consumers hard to pull up to the line.

At the earliest, even if the goods are not right, even if they wait for a week or a half, they will be willing to wait.

Because of the huge price difference, let's wait.

Therefore, price is the core gene of Taobao.

To share with you a few cases: L'OREAL mascara, this is my picture taken in Losangeles, 9 yuan 99, this is called one point price, one point goods.

Vitoria's secret underwear, which is in the eyes of Chinese people, is like a god brand. The women's underwear of 2000 square meters in Losangeles, 10 yuan, one optional, promotion, 5 27 pieces 5.

Many people tell me about the US dollar, don't tell me about the US dollar, China's per capita income is more than 4000 yuan, the average wage of the United States is about 3000 dollars, roughly the same.

In the eyes of Americans, it is 10 yuan to buy underwear.

Bra 38 yuan, 48 yuan optional.

You think, how much do you want to buy a bra? You need hundreds of thousands of dollars for a piece of cloth.

You also told me that it is reasonable to split the price in China, you have too little knowledge.

The market of famous and excellent products is not three hundred billion or five hundred billion. If we consume rationally, then we will mature and one trillion will be possible.

Why do businesses in Beijing and Shanghai fare better in China than in second tier cities or three tier cities? This project has made me scare, and we think that people who do not have money will buy our stuff.

As a result, what is the best business in the country? Beijing and Shanghai, because Beijing and Shanghai are of high quality, rationality and rich people.

Finally, let's sum up: in the coming new retail business, we should remember three sentences: the ultimate product design, the high cost performance ratio and the excellent shopping experience.

As long as these three steps are achieved, business is good wherever it is online or offline.

Today, we do not sell one thing on the Internet without affecting us to become 10 billion of the enterprises and 100 billion of the enterprises.

So remember these three sentences, the ultimate product design, products must be less, must have a sense of design, to open up the supply chain, deep into the supply chain; high cost performance, the era of profiteering has passed, the future will enter the era of meager profit, and enter the era of less.

What is "less" and "what is more"? Fewer products: fewer varieties, less cost, less profit and less price, which will eventually make a lot of money, just like ZARA boss, becoming the world's richest man, the boss of UNIQLO, becoming the richest person in Japan, and IKEA boss has become the richest in Europe.

It doesn't affect how much money you make.

High performance price ratio is a measure of whether you are a new retail representative.

Finally, an excellent shopping experience is to avoid the three aspects of e-commerce: no scene, no experience, no guarantee.

Thank you!

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