La Natsu Bell And Others Entered The Declining Trend. Why Did Costco And Lining Ushered In "High Light"?

In 2019, a lot of things happened in the retail circle. In August 27th, the first Costco store in mainland China opened in Minhang, Shanghai, which triggered a panic buying rush. At 1 p.m., it had to announce its suspension.

On the contrary, Carrefour, China's performance and profits continued to double down in 2012. In June of this year, it made a price of only 6 billion yuan, and committed to Su Ning's eagerness to leave the Chinese market.

In 1996, Metro, who entered Shanghai in the same year as Carrefour, also entered the declining trend. In August 2018, news came out that it was looking for buyers to prepare for selling.

According to the big data research center, a total of 31 Enterprises in 143 retail enterprises listed in 2018 were negative.

Carrefour is just a microcosm. The valuation of many businesses in the retail industry is declining. Even millet failed to stop the volatility of share prices. In September 2nd, the Hong Kong stock closed at HK $8.35 per share, half of the issue price of HK $17.

In addition to Metro and Carrefour and other foreign businessmen, the performance of the foreign businesses has declined significantly. Once known as the "Chinese version of Zara", La Natsu Bell ushered in the "darkest moment" in 2019. In the first half of this year, 2400 stores were closed, and the loss was expected to be 540 million yuan. The loss and closing of the store made La Natsu Bell fall into a series of crises and cast a shadow on the way ahead.

In August 26th, it was the last day of the Hong Kong stock market, and at the same time, the company declared bankruptcy. Bankruptcy, delisting, rich birds still carry more than 3 billion yuan of debt, "China real leather shoes king" this fall. I'm sorry to hear that.

The brilliance of Carrefour, Metro, La Natsu Bell and rich birds in those days!

Let's read another good news. Lining made a comeback from a loss of 3 billion 100 million to a billion dollar revenue pass. Since the launch of the brand new LOGO in 2010, Lining has gradually not been "liked" by the market. From 2011 to 2014, the amount of deficit in three years has totaled over 3 billion 100 million yuan.

In 2015, coach Lining returned to the mall and guided by his active innovative marketing approach. Today, Lining has become the biggest winner of domestic apparel listed companies. The stock price has increased by more than 130% since this year, and its market value is about HK $55 billion 700 million, which has reached a new high in the past 9 years.

In September 2nd, Lining group announced the announcement of the annual salary of Takasaka Takeshi, the executive director of the UNIQLO office, and the former Chinese name Qian Wei, who is the executive director and chief executive officer of Lining. It means that Lining will officially move towards the next stage of development.

User experience determines enterprise success or failure

The market is merciless, and the business determines the survival of the enterprise. The starting point of all businesses is the user experience, and the endpoint must go back to the user experience. It will determine the success or failure of a company.

Amazon is almost obsessed with improving user experience. It is always thinking of user experience. As early as 19 years ago, the goods ordered by users on Amazon online could be delivered to the door within one hour. Up to now, Jingdong is basically buying books every other day.

The logistics speed is ahead of the local life and fresh class distribution service. In the US group, hungry, box horse, daily excellent and so on, we just entered the half hour distribution service life circle.

Because of its strong technical support, buying books on Amazon is usually available within three seconds. This kind of service experience gives customers the pleasure of shopping, so that Amazon surpasses all competitors and even exceeds the expectations of customers.

As a result, the number of Amazon users has increased rapidly, making it sit on the throne of B2C e-commerce first. The founder Bezos ranked first in the list of Forbes billionaires of the world in 2019 with the fortune of 131 billion dollars.

Today, we have entered the era of user experience from the product era. The mode of consumption after experience has become invalid, and the retail mentality of developing super users with experience perception value has become the direction.

In 2017, the Ali Institute defined the new retail business: "the form of data driven pan retail based on consumer experience". In other words, technology and data are external, and user experience is the core. Data and technology must serve people. Talents are fundamental. Technology is only a tool.

　　 How to serve people?

As mentioned earlier, the Costco store in Minhang, Shanghai, opened up a sea of people because it brought a lot of surprises to consumers. Costco sells goods on the surface. In fact, it is service and experience.

For example, providing strict selection of goods and services, reducing the cost of consumer decision-making, Costco help customers choose the best models or brands, no price difference, no need to pick, only need to know what they want to buy, and then take it directly to the shelves.

As for the success of Costco, we all like to talk about its membership mode. Membership annual fee is indeed the most important source of profit for Costco, accounting for 80% of its gross profit. Then, why are customers willing to spend money on Costco membership card instead of spending money on your membership card?

The reason is that your family experience is not as good as its home experience. For example, the price experience: the same commodity, Costco price is always lower; quality experience: the same price goods, Costco quality is always higher;

Try to eat experience: free trial products, comparable to buffet, afraid you do not eat enough; service experience: as long as you are not satisfied, you can retire, no time limit, even membership cards can be canceled at any time, and the full refund of membership fees......

People who spend their time queuing up during the opening period, usually spend the same shopping time in Costco, buy more, faster, more whole and worry less at Costco. The same transaction time and transaction cost, the total consumer surplus that customers get is bigger.

From the opening of Costco to just 5 hours, it is full of people. We can see that the popularity of consumers is far beyond the expectations of people. If we do not do the best service and experience, users will not renew their fees and get the trust of users.

Lining's failure to win is largely due to the adoption of experiential terminal mode to achieve multidimensional interaction with consumers' product service experience, and enhance user shopping experience. According to the June 24th news, Lining expects that in the six months before 2019, net profit will increase by less than 440 million yuan compared with 269 million yuan in the same period last year.

Some people would think that Lining's success is due to the multi brand strategy and the fashion product line based on the sports category. I have no objection to this view. The friend who studied Lining's nirvana transformation probably remembers that "product experience" is the most important thing that Lining paid attention to in 2015.

In order to save Lining, his biggest move after taking office was to transform Lining sports from sports equipment provider to "Internet + sports life experience" provider. Brand slogan also changed from "let change happen" to "everything is possible". The two words of "experience" are the first achievement. The brand positioning without experience value, transformation and upgrading is also zero.

　 Creating customer value

Anna and Karenina said: happy people are all alike, and unhappy people have their own misfortunes. Similarly, enterprises are similar in their success. Unfortunately, every business has its own misfortunes. But Mr. Suzuki Minwen used forty years of experience in retail management to reveal all the problems that lie in the bottom of the business.

(1) indulging in past successes and never willing to make changes.

Second, blindly want to win the game, but short-sighted, only the immediate interests.

Enterprises that are in a low ebb are eliminated by the market because they ignore the changes in consumer demand. Consumers are indeed interested in fresh and rare things, but at the same time, consumers are more "happy and old" than we think.

The market is merciless. If the product does not have the value of customers, it can not be sold at all. Enterprises with no change ability have been unable to "create customer value".

Why is it so difficult to practice such a simple word "customer centered"? To what extent do we really think about the happiness of our customers? Is it money to love customers or to love customers? Is it really to help him solve the demand problem, or is it just to make his business better?

In UNIQLO, it seems that "everything is centered on customers" is not a slogan of gorgeous and empty, but a criterion for thoroughly implementing all business links. It often brings itself in to examine whether the products that are produced can satisfy itself, whether it is willing to recommend to family and friends, and whether it can make oneself proud.

If you don't feel confident about yourself, customers can see through it at a glance and can't sell well at all. Customers will not patronize companies that are not for them.

Under the influence of the experience and ideas of UNIQLO, the managers who grew up are very valuable. The president of a regional Corporation (a global company or a country is similar to a regional market) can be appointed as a joint CEO by tens of millions of Chinese outstanding companies.

The new retail business under the new business is a new fighting ground, but in the final analysis, it is reconstructing the consumer experience. Consumption upgrading has shifted from "functional consumption" to "brand consumption", and has entered the era of "experiential consumption".

If you are convinced of the importance of user experience just as I do now, there is nothing more important in user experience than building a user experience with the idea of "pleasing and pleasing from the bottom of my heart". Because user experience determines success or failure, we can only succeed if we attract and retain customers.

If we use Ryui Masa, founder of UNIQLO, to understand the true voice of customers, the voice of customers is not only reflected in oral, but also in data. Because their real expectations are goods or experiences that have not yet been seen. When customers exclaim "can be so great", they will become fans.