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    What Are The "Hard Cuts" Of Marsha General Store In China?

    2017/1/3 16:47:00 55

    Department StoreUnderwearZara

    According to the world clothing shoes and hats net, some of the oldest British brands. Department store The company seems to follow a tacit understanding or tradition, that is, to launch their own Christmas blockbusters on Christmas day, of course, is inextricably linked to the indispensable Christmas gifts and consumption of the people.

    The 132 year old Marks&Spencer's Christmas movie still conveys warmth. The little boy in the movie was so naughty that he threw his sister's favorite sneakers to his own puppy and was bitten to pieces. Another year's Christmas is coming, and my brother writes to Santa Claus, hoping that Santa Claus can help himself to prepare a pair of new shoes for his sister as compensation. However, it is not Santa Claus who really opens the little boy on Christmas Eve. Can the little boy's wishes be realized? This micro film brings you full energy and love between people.

     Marks & Spencer

    Martha's spending on Christmas in the UK may be particularly emotional. The centenary store became the first local retailer with a profit of more than 1 billion before tax in 1998, and its revenue has exceeded 10 billion in 2015. More than 1/3 of women in the UK own the brand of Marsha's department store. Underwear Therefore, people who may have heard about it must think that their retail business is mainly in various kinds of clothing. However, as shown below, in fact, Marsha's food business in Britain is close to 60% today.

    In the near future, British department store Martha is about to close its 10 stores opened in mainland China. For a time, all kinds of news bombardment, saying that Martha could not escape the difficulty of foreign retailers' "acclimatized" for eight years in operation in China. One was that Martha was not clear about positioning, and was competing with Zara, H&M and other fast fashion brands. Since it is a poor performance and unsustainable, it is natural to say that acclimatization is a symptom. But are these attributions appropriate?

    Electricity providers did not let Marsha end.

    First of all, if the development of electronic commerce makes the old department store end, it may be overstated. In fact, there is also a performance growth in Martha's department in the UK market. The engine comes from nearly 60% of the food business. But, as the case of the department stores in the new blue ocean that discovered the spanformation of department stores in May released by Huaxing Rio Tinto, the traditional clothing industry is dominated by men's and women's clothing, and the shoe and clothing retail is one of the commanding heights of e-commerce.

     Marks & Spencer

    Therefore, the expansion of the department store category must be the key to the spanformation and growth. Martha's performance change in the last two fiscal years also confirms this judgement. The food business has brought about a sales growth of 200 million pounds, while the clothing business has lost 100 million pounds, compared with the international business of China's stores, which has a negative growth of about 20 million pounds.

       Martha never thought about it. Zara conflict

    There is media discussion that Marsha is lagging behind fast fashion brands like Zara and H&M. It is like hitting the egg against the fast fashion store. However, the real Marsha general store is also very confident in positioning itself. Any effective product positioning must come from the true cognition and grasp of its core customers.

    What's the difference between the customers in the UK and the department store in China? I'm sure you can't guess. Even in the UK, more than 40% of the customers are over 50 years old, while the 80 and 90's customers are only 22%. These customers are about 32 million people a year, and their core value customers buy more than two clothes per month to Marsha or buy at least once a week. Their purchase value is 23 times that of low value customers (only two times a year), and the value of purchasing food is 29 times that of low value customers.

    More importantly, by studying the buying behavior and preferences of the general customers and the core customers, Marsha found that these middle-aged and elderly customers who are purchasing power are more concerned with the style and comfort rather than the fashion. For example, when men enter the middle age, the belly of the man is getting more and more fat. His frequent problems may be that the waist of the trousers can not keep up with the rhythm of the fat, so Marsha's men's formal trousers will have a special design of the telescopic waistcoat to enhance the comfort and fit of the dress.

     Marks & Spencer

    Pay attention to the style of clothes, comfort rather than fashion, which is a very clear product strategy of Martha. Therefore, as you can see, the clothing of Marsha's store is indeed proper. No matter for adult men, women or children, its products and display are not as bright and trendy as those of Zara. But the quality and comfort of products can even kill the fast fashion brand. This can be seen from its user comments in the public comments of Chinese stores. Therefore, in the investment world's popular words, Marsha's department stores and fast fashion brands do not compete on one track. There are many differences between customers based on age groups. Although retailers also put young and fashionable young people in a target market (which accounts for a relatively small proportion of core customers).

    {page_break}

    So the voice of Martha's other high customer in the Chinese market is that young customers will think its clothes are very old-fashioned. But we say that the success of any retail format lies in the high degree of match between "field, goods and people". "Field" concerns location selection and store experience. "Goods" concerns product and service provision. "People" is related to accurate customer positioning and marketing communication. You can't say that after 80 or 90, you don't like Marsha's clothes, so Marsha is doomed to fail because the combination of this person and the goods is not what they focus on. So, what is the "hard cut" of Marsha general store in China?

    Lack of communication in China for eight years

    Marsha general store opened its first Chinese store in Shanghai eight years ago, and has 10 stores in China before the news came out. Surprisingly, however, we used Baidu index to look at the active market communication that Martha has made since 2013. As a result, we did not see any news about new product launch or brand marketing / promotion communication around the local market.

    The only Marks&Spencer news is about some reports of Marsha's performance decline or overseas market, and the news keywords "Marsha general store" (official words) or "Martha department store" (commonly used words by netizens) (due to the low volume and search volume) have not even been included in Baidu's key search hot words. Based on the user search index tracking of keywords MarksSpencer (Martha's English name), we can see that there is no big fluctuation in the past four years, and the average search index is above 200. If Watsons compares with the main cosmetics and non-staple food, its search index is much higher, averaging about 12000, and the difference between them is sixty times.

    The low search volume of Martha stores is directly related to its low market coverage and the number of stores. Martha's 10 outlets in China include 6 in Shanghai, 1 in Changzhou, Wuhan, Ningbo and Beijing. The following figure shows the distribution of search user groups over the past four years. It can be seen that with the opening of Beijing stores last year, the search for users in Beijing has increased significantly, and there has been no significant change in other regions. The only exception is the Guangdong area, which may be due to the opportunity for more Guangdong consumers to go to Hongkong and Macao to travel and shopping, and to contact more Martha stores in Hong Kong and Macao, which has produced special interest and attention. However, as Marsha has to close all the 10 stores in mainland China, it has not really opened up shop in Guangzhou, Shenzhen and other super cities.

    However, based on the above data, even if the number of stores is limited, Marsha relies on stores to cover up and enhance visibility. However, the local marketing communication based on the presence of cities seems too bad. Martha even has no micro-blog and WeChat public address in China to interact with consumers. Even if it considers positioning older customers, it does not see the spread of Marsha's traditional media. In the absence of WeChat reading in 2010, the author continued to work in Shanghai, I remember that UNIQLO really occupied the prominent position of white-collar workers reading newspapers in the subway.

    Site has made mistakes.

    Another topic related to marketing is the location logic of traditional retailing. Martha is clearly following the classic location method of retail formats. It will take into consideration the one or two or three level business district of the city. The specific blocks require at least 5 buses, or preferably near the subway. The population surrounding the radiation must be large enough, and the opening area can not have more than two competitors. Of course, its core logic is that good location determines the flow of good people. Good people flow plus good store display will bring good passenger flow. However, Martha may have myopia on two levels:

    First, before the complete layout of the first tier cities was completed, it entered the three tier cities. Although Marsha has 6 stores in Shanghai, the only store in Beijing opened last year. Guangzhou and Shenzhen even failed to complete preparations before they died. In the second tier or super second tier cities, such as Nanjing has not yet considered, it soon entered the three tier cities such as Changzhou. From the perspective of the consumption logic of China's urban circle (consumption culture approximation, traffic connection and so on), regional consumers first look at what the central cities are in fashion and then make a herd purchase. If the Yangtze River Delta is regarded as a city circle radiating outside Shanghai, there is not enough marketing to follow up the local market when Hangzhou, Suzhou and Nanjing do not enter the market. It is difficult to form consumer awareness and word of mouth communication in the regional market.

    Second, Marsha general store in six stores in Shanghai, in addition to the two stores in Nanjing and Huaihailu Road, all other stores are located in the two or three level business circle of the city, especially near the emerging community level business circle, such as Fudan University, East China Normal University, and Baoshan and Xhenzhuang. The problem of approaching the new business district of the university or the outer suburbs is that the young customers are very concentrated. As mentioned above, apart from the imported brand food (such as coffee, black tea, pastry, red wine, etc.) imported by Marsha, its products are not highly matched with 80 or 90 customer orientation. Although the proportion of clothing business in the UK business is lower than that of food, Martha's stores in China, regardless of business area or SKU, have a much larger proportion of clothing than food. This brings a clear contradiction that the core products provide asymmetry with the characteristics of their customers in most locations in Shanghai, and their sales conversion and word-of-mouth communication will naturally be greatly reduced.

    Having said goodbye to 2016 of Christmas, the author suddenly noticed that for a month, the address and user comments of Marsha general store in Shanghai were already on the shelves, while WeChat and micro-blog still did not have the business mark of Marsha. Meanwhile, Martha will retain its flagship store in Tmall and Jingdong after closing the store.

    It is worth noting that, just like the stealthy change of traditional business diversion logic, the growth of e-commerce platform is not an isolated platform to boost flagship store diversion and sales spanformation. In addition to the "man, field, goods" and other factors on the balance line, based on the content of the brand continuity value spanfer, community relations identification and personalized interaction is today any spanformation of retailers must think and action proposition.

    More wonderful reports, please pay attention to the world clothing shoes and hats net.

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