When Physical Retail Enters The Good Currency Era, What Kind Of Brand Must Succeed?

The surplus of channels, the excess of products, the scarcity of traffic and the escalation of consumption, and the volume of commodities that each person can choose rises sharply. After having more choices, consumers have higher requirements for quality.

All signs have unveiled a new era for us. Physical retail has entered the era of good money. When everyone is still fighting for traffic patterns, the next draught is actually very simple: good products.

Good products, good service and good prices can win the future.

Over the past ten years, bursting electricity providers have released China's small and medium-sized processing factories and cock wire consumers. This chain has accommodated China's largest number of employed and consumer groups, allowing producers without brands and channels to connect consumers who have no time to shop but are full of chop hands.

However, it also released the fake and fake cottage production chain that Wan Fu referred to, because China in the half of the Internet is such an asset situation: imitation productivity, can copy, learn fast, large volume, have employment and have tax revenue, China has not been able to provide so many innovative, brand, and tall products, it is necessary to rely on this industry chain to raise people, so the electricity supplier industry can not get rid of fake products for a long time.

Because channels are more fragmented, micro businesses are even more mixed.

The low cost Shanzhai merchants hit the most money on traffic acquisition and promotion, and created a "bad money drives out good money" ecosystem.

We are fighting for price, not quality, and even better cottage industry chain.

Rush traffic is not working, but we need to redefine "good products".

The traditional business model of Chinese people is to buy road money and rent. Most businesses spend most of their energy and money on traffic and customers rather than products and services themselves.

When too many people connect for a connection and spread rampant, in order to get users without cost, vicious competition, the final result is like infrastructure surplus, road paved, the floor is good, but no effective products or services fill in, then fill in the poor quality products.

Facing the huge crowd to be consumed, doing traffic business is the easiest and most convenient way to look.

When everyone is chasing such a space, the actual space is very cramped.

So we see the collapse of a large number of projects over the past two years, with O2O and e-commerce projects as the most important.

Because there is no hard currency or sticky demand that can impress consumers, the cost of traffic is unbearable.

If there are not enough good products, users will only get a number.

Under the impact of the electricity supplier, large or small retail businesses have been hit hard, which is an important node in the offline business.

That is, under such a harsh environment, some brands that are against the trend have been spawned. KM is precisely this kind of brand.

According to incomplete statistics, new stores were added to major brands in 2016, with the largest number of new stores in KM, reaching 300.

Famous for its sense of design, KM, which has been spreading rapidly in the domestic market, has made the whole industry begin to re examine how to operate the market and begin to redefine what is really good product.

KM product view: good products must be C oriented.

"Customer is God" is a slogan that will not be wrong, but really difficult to implement.

Merchants use the attitude of God to provide services, but you do not understand demand, everything is zero.

KM is a fast fashion brand that attaches particular importance to young consumer groups. The product can add some sense of design that can be felt in the simple addition. It brings more aesthetic points for the millennial generation with higher aesthetic requirements. But at the same time, it does not jump too far, and does not challenge the sense of security formed by the whole male dressing environment for many years. This subtle user experience directly represents the style of KM.

Thanks to this seemingly subtle user analysis, the launched KM quickly gained the support of young consumer groups seeking innovation.

Whether it's the current fans economy, interactive social networking, social links...

Starting from the brand and taking the user as the end point, there are countless possibilities for this road. But with the demand of the C side, every additional innovation will give consumers more pleasant surprises.

Insisting on low price is also a necessary factor for good products in good currency era.

When we are concerned about the upgrading of consumption, we have realized the contradiction between the growing demand for material and cultural life of the masses and the productivity of the backward Internet products.

But the question whether good goods must be low is still controversial nowadays.

Returning to the essence of life, good products are pleasurable. At this level, low price is also a must for good products, can not provide consumers' needs, and can not produce products that are beyond expectations. Sooner or later, they will be abandoned by the market.

So how does KM insist on low cost?

According to industry data,

There are excellent sales channel resources. By the end of 2016, there were nearly 500 shops nationwide, and 160 cities throughout the country, with 80% young men's consumption market in KM.

And most of these stores are franchised stores, there is no intermediate agent level, and the mode of joining the business management also ensures the actual management rights of KM company to store sales channels.

This is a very attractive sales channel and platform for suppliers.

KM and suppliers form a community of interests, while fully utilizing the clothing production resources of suppliers, it will also drive suppliers to make profits together.

KM joint main suppliers and upstream clothing raw and auxiliary materials suppliers to negotiate a unified bargaining, get higher price discounts, reduce the supplier's production cost, KM's price and market sales price.

The decline in sales prices also stimulated sales growth, increased procurement volume, saturation of suppliers' starting rate, increased proficiency in production and increased yield, thus further reducing costs.

Such a virtuous circle is also the reason why KM products maintain high performance price ratio.

Like battlefields, the market is changing rapidly. In the past, profits may be the real king, perhaps a luckless speculator.

But this era has finally ushered in the dawn of the real business.

When physical retail enters the good currency era, it is also time to refresh our business outlook.