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    Messi Department'S Marketing Strategy Reform Plan

    2017/6/9 12:41:00 42

    Messi Department StoreFashionBrand

     Macy's

    According to the world clothing and shoe net, the US retail giant just took office at the end of March.

    Macy's

    (Macy 's) CEO Gennette Jeff unveiled a massive restructuring plan for its marketing strategy at the investor conference on Tuesday.

    The strategy covers commodities, marketing, real estate, discount stores Backstage, mobile terminals and online offline service delivery mode BOPUS.

    The focus of this reform will be on reducing the number of goods that are widely distributed in the store and increasing the proportion of exclusive sales.

    Despite the CEO's ambition, Wall Street still doubts the outlook of Messi's department store. Its share price also slipped 8.2% to $21.9 a share, the lowest closing price since 2010.

    In the face of a series of selling after sale, Messi department store has a market value of 6 billion 670 million US dollars.

    Jeff Gennette said in an interview that

    fashion

    The industry has been undervalued in recent years. What Messi stores want to do is to find new brands and categories and create new opportunities for stores.

    He acknowledges that "return to customer needs" is a measure to overcome the need to overcome this problem.

    Commodity

    The goal of Messi's department store is to increase the proportion of exclusive sales from 29% to 40% in 2020.

    These commodities fall into three categories: self owned.

    brand

    The exclusive and capsule products provided by the brand.

    Messi store plans to test many concepts and solutions in 20 stores, including different store designs and inventory unit settings.

    Highlight the most representative products of a particular brand, and focus on upgrading the open sales environment of cashiers, refund service centers, beauty makeup, women's shoes and.

    In addition, Messi will test the self checkout function.

    CEO introduces that these upgrade requests are put forward by Messi's department store's core customers.

    Bloomingdale Messi, a high-end department store under the department store of Messi, has also launched a pilot project to select 200 best employees to enhance online consumer relations.

    Marketing

    The intention of CEO is to take an oath to the industry. Messi, as the authority of fashion retailing, is still one of the most profitable companies in the industry, but now it is facing the problem of poor communication with consumers.

    Marketing strategy is inefficient and will meet challenges through innovation and experimental reform.

    He continued to add that the inconsistency of store experience is also a problem, and some stores lack attractiveness.

    We will continue to push forward the online business while consolidating the entity store business.

    Amazon's aggressive business in the field of clothing will not have a negative psychological impact on Messi's department store. The company will continue to integrate the Internet and mobile client experience, focusing on grasping opportunities instead of worrying about rivals.

    Rich Lennox, chief marketing officer at Messi stores, said that half of Americans would choose to shop at Messi department every year.

    Despite its strong customer base, the company is losing its appeal to the millennial consumers.

    Although Messi stores often carry out substantial promotional activities, they still lose their advantages in terms of authority and value proposition.

    He said that Messi's department store is now redesigning the high-density sales promotion mode and will introduce an improved version of its loyal customer program this autumn.

    In addition, department stores will launch corresponding marketing activities according to different seasons and festivals through multi-media channels.

    The purpose is to make the promotion different from the past and make it more clear and aim at different market segments.

    According to the introduction of CEO, Messi stores will adopt a strategy of "faster, larger and permanent price reduction".

    Messi stores will adopt the "Pyramid" approach to divide marketing into three levels.

    The pedestal is to emphasize the promotion of Messi department store brand value.

    The middle tier promotes the identity of Messi department store's fashion authority.

    The third and the smallest part is the emotional rendering of Messi's department store brand, mainly through the promotion of some symbolic activities (American Independence Day fireworks show, Thanksgiving Day parade, etc.).

    The proportion of the base layer's marketing investment will reach 75%, the middle layer's investment will be 20%, and the top floor investment will increase from 2.5% to 5%.

    The adjustment of marketing expenditure is aimed at increasing the rate of return on investment, such as shortening the advertising time of 30 seconds to 15 seconds.

    In addition, Messi will also launch the "The Edit" project, cooperating with the hottest brands, lists the hottest items in the global season, and highlights the concept of Messi as a fashion authority.

    The slogan of the project is "show you the best fashion in the world".

    In the process, Tommy Hilfiger, Rachel Roy, DKNY (exclusive autumn Series) will gain greater growth, while some less competitive brands will be cleaned up (CEO does not disclose specific brands).

    Recently, Messi department store has cut 40% of its suppliers, and now only 40 core suppliers are retained.

    Backstage discount stores

    Since the launch of the discount store Backstage, Messi department store has observed that business volume has increased, and the number of existing customers has increased, but it has not attracted new customers.

    The company plans to set up 45 stores in Messi stores by the end of this year.

    CEO said it is too early to celebrate the victory for Backstage in advance.

    The company is still adjusting, hoping that discount stores can develop into a scalable mode.

    Backstage is now the driving force of its development by independent teams, but the company is not ready to start the project in 2018.

    Mobile terminal

    Other important initiatives in 2017 included the upgrading of mobile terminals.

    At present, this channel is the fastest growing department store of Messi. The main task in the future is to enhance the speed and browsing and trading experience and personalization.

    Messi's mobile app is second to none in the retail industry.

    Single line pickup under BOPUS Online

    The company also plans to adopt a reward mechanism for consumers who use the BOPUS line to pick up goods under a single line.

    BOPUS is the company's most profitable business, which not only saves costs, but also makes consumers more likely to buy other goods when they pick up their stores.

    {page_break}

    According to chief financial officer Karen Hoguet, Messi's goal in 2017 is:

    Comparable store sales fell by 2%~3% over the same period.

    Adjusted earnings per share ranged from US $3.37 to US $~3.92.

    She said that since 2015, the company's annual expenditure has been reduced by more than 1 billion 500 million dollars.

    Real estate

    Douglas Sesler, executive vice president of the real estate department, said Messi department store currently has 12 million square meters of commercial real estate.

    The company has joined hands with Asset Management Co Brookfield Asset Management to redevelop its 50 properties and seek opportunities to create value.

    The most likely way is to set up containers in the open space around the existing stores, such as parking lots, which can be used for opening stores, apartments or hotels.

    All flagship stores in Messi's department store will increase production capacity to the greatest extent.

    Take the flagship store of 86751 square meters in San Francisco as an example, the flagship store will set up a men's wear store inside the store after the sale of the nearby men's independent store at a price of 250 million dollars.

    The flagship store will open a small container retail store with a total area of 930 square meters, with a rent of 600 US dollars ~700 US dollars / square feet.

    Douglas Sesler introduced that the reconstruction project of West Manhattan, New York, including Hudson square project: below, is in progress. The flagship store of Manhattan pioneer Plaza is the most commercial value of the company and is increasing every day.

    Messi stores will seriously consider the potential of the asset. The possible solution is to develop a rooftop restaurant or water bar.

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

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