Business School: The Way Of New Retail Operation Of Shoes And Clothing In The Future

Why is it called a pit guide? Although it is often said that one can gain wisdom from a fall, for the retail transformation, the cost of * * is the cost of time, and if we can step on the pit less and take the detour less, it will be the ＂ of ＂ and it is equivalent to making more money.

　　 Pit 1: recognize the offline rigid cost

Perhaps practitioners are more keenly aware than others that since 2013 and 2014, offline store passenger flow in the footwear and clothing industry began to decrease. The reason for this is not that consumers don't pay the bill, but the way they buy is changing quietly. Especially after Taobao and pinduoduo occupy the consumers' view, consumers increasingly like convenient online payment. Not only the first and second tier cities, but also the lower tier cities have been stimulated.

Therefore, although the total consumption is increasing, the number of consumers entering terminal stores is decreasing. In just a few years, the number of orders for meituan's intra city retail sales has increased from 100000 to 60 million per day, greatly diluting the offline passenger flow.

"Consumers are paying more and more attention to their time cost, and the channels to buy goods are becoming more and more diversified, so online is naturally more popular." Zhang Yanrong said so.

However, for the industry of shoes and clothing, which has a huge amount of SKU, experience is a factor that can not be ignored. After all, many people need to repeatedly compare and try them on. Offline stores still have irreplaceable advantages.

However, the disadvantages of offline channels can be seen in a glance due to an epidemic situation. Labor costs and site rent have resulted in high rigid costs, high threshold for starting the market and poor anti-corruption ability.

Zeng Tianxin shared his "history of blood and tears" - "when the epidemic came, we lost about 1 million yuan a month. After one or two quarters, we basically included all the previous year's events."

We have previously shared a study of Huachuang securities. They compared the cost structure of online and offline. The final conclusion is that the offline rigid cost is high and it is more difficult to start trading; On line, the threshold is still low, and the theoretical value is higher than offline.

　　 Pit 2: fixed rate or turnover rate?

Zhang Yanrong said that the turnover rate and the commodity turnover rate determine whether a brand really has the retail gene. However, before we pay attention to the rate, we usually pay attention to the fixed ratio.

Generally speaking, when the business is booming, the fixed rate of the industry will generally rise accordingly. However, there is something special about online. When Taobao first appeared and broke the original format, the first decline was in fixed times. This is because businesses want to obtain a large number of consumers with lower prices.

In 2010 or so, the constant rate of shoes and clothing is 5-10 times, but in recent years, the sharp price war has made the constant rate of shoes and clothing products drop sharply, some even as low as 2.8 times.

However, in recent years, when the market slowly returns to rationality, the fixed rate has a rising trend.

In fact, the improvement of fixed rate is related to the whole channel structure. If there are multiple channels (such as online, offline, agent and franchise), the fixed rate is relatively stable; If the channel is single (for example, only Amoy brands), the fixed rate may be relatively low.

People often think that the ratio of * and fixed rate complement each other, which determines whether a brand makes money. But Mr. Zhang said turnover is more important because it determines whether an enterprise can have enough cash flow on hand to plan for the next step or even expand business.

Zeng Tianxin agreed with this: "everyone's competition is the turnover efficiency, and the goods are actually the same inventory, but when more and more strong channels appear and are driven by capital, the compression on the whole ecology is still very severe."

　　 Avoid the pit 3: focus on the niche, don't be greedy

When the goods are extremely rich, homogenization will inevitably continue to intensify, at the same time, the number of merchants pouring into each track is also increasing year by year. Different from the wholesale market where goods can be sold before, businesses need to consider the fine operation.

But when we no longer focus on goods, we find that there is a route with strong development power, that is, the minority type.

Niche products are often referred to as "small and beautiful". Offline products are called designer brands or original brands, while online products are called cutting-edge brands. However, no matter what they are called, their essence is to do business for a group of people. In particular, footwear industry, aiming at a specific group of people to do small and beautiful products, can occupy a very broad track.

But the premise is to find out who your product is for, what kind of labels these people have, what kind of portraits, and even what their cultural value system is. The more you know about the core group, the more opportunities your brand will have in the future.

In addition to delineation of the crowd, there is a big difference between the brand now and the past: basic ability. In the past, as long as good R & D, design and channel are enough, but now it is far from enough. On the basis of this series, we also need to have brand stories and let consumers participate and express their opinions.

"Let your product open its mouth." Zhang Yanrong explained that this belongs to the category of cultural attributes of products. When a brand can convey cultural ideas and attitudes, combined with such high national publicity channels as Shuo Yin and xiaohongshu, its own cultural attributes can be amplified.

Today's consumers, more and more like their favorite culture related goods, light has good material and function has been unable to meet them. Therefore, product developers must pay attention to the link force behind the brand, and this chain relay is culture, emotion and social contact.

　　 Refuge 4: should we pursue Gmv or * * in the end?

With the product and the brand, is the story all right? Obviously, in the current competitive retail track, there are still some things that need to be paid attention to in order to live better.

As we all know, the first importance of business is to pursue profits. However, it seems that new brands and old brands have different understandings on how to pursue profits. According to our observation, new brands like to pursue Gmv and scale, while old brands are committed to ＂.

So, should we value Gmv or * * in the end? The answer given by Zhang Yanrong is that the goal of enterprise transformation and new retail needs to be phased.

The birth of a brand, according to the most rough division, needs to go through three stages, each stage has different concerns.

The first stage of new retail is to run through the seed test, that is to realize the digitalization of stores and shopping guides in 10-20 class A stores. If it goes well, we can see that customers of seed stores start to place orders online;

The second stage is the scale of running Gmv. In the process of running volume, we can find out whether the infrastructure is reasonable and how to optimize it.

The third stage is to pursue the goal of ＂ innovation ＂. Under the premise of stock, commodity and price, we optimize the input and output of each replacement and start to pursue sustainable ＂.

There are three main value points of the new retail transformation for enterprises

1. Efficiency improvement brought about by management, because many owners do not visit the shop. Only strengthening this area can generate 20% growth.

2. The refined operation of offline stock users can bring about 30% growth.

3. Develop the single customer economy online through "cross industry cooperation", that is, cross sell the products of * * in the private domain of their own stores, which can bring about 30% - 40% increment!

　　 Refuge 5: how to motivate shopping guide?

Despite its inherent defects, offline stores are actually a traditional and effective DTC scenario. And complete the actual operation of DTC, of course, is the store shopping guide.

Zhang Yanrong suggests that shopping guides in the shoe and clothing industry should be young as possible and have basic social skills. When selecting, they can refer to their achievements achieved through social networking in the past. For example, they have recommended some products with wechat community or friends circle, or have received wechat business training.

In order to encourage shopping guides to attract customers more actively, brands should set some goals, including the proportion of members, the number of new members, the proportion of sales, and the value increment of members.

Based on these basic KPIs, Zeng Tianxin further shared that performance can be used to motivate the shopping guide team, such as giving about 10% of the sales turnover to the shopping guide.

But there are many ways. In Zeng Tianxin's Secret collection, the incentive methods used for private enterprises and state-owned enterprises can be completely different. Private enterprises can encourage individual purchasing guides according to their performance. However, employees of state-owned enterprises are not likely to be particularly aggressive and passionate because of their stable work and are older. Therefore, incentive measures should be put into the whole management level, such as film management and regional managers. At the same time, the incentive should be made more detailed. The way of * * is to give them the rated bonus.

　　 Avoid pit 6: the future of store community is actually the cooperation of different industries

On the private domain of clothing brand stores, Zeng Tianxin gave a practical case.

Generally speaking, the average area of a sports brand store is about 80 square meters, and the number of offline bills per day is about 8-10. Let the offline shopping guide make the action of diverting store customers to wechat private domain, and the conversion rate can reach 80%. That is to say, on average, every store has at least five people joining the online community every day.

In this way, a store can have 4-5 wechat groups a year, and generate 40000-50000 yuan of revenue in the private domain every month.

However, it should be noted that the sales logic of their community is not only to sell products of their own brands, but also to do special sales of all categories. The sales ratio of self owned brands and different brands may be 1:5.

Not only that, but also another sharing guest, Zhang Yanrong, also mentioned that the children's clothing brand piggy banner also has a large number of cross industry cooperation products, and the performance brought about by cross industry cooperation is more than 30% of the market.

At the same time, for example, in the private operation of the diary, 50-70% of the products of cross industry cooperation, including bags, Meitong, hair dryer, electric toothbrush and snacks, etc. Therefore, different industries can bring great increment, especially when the store flow, gross profit rate and turnover are shrinking, cross industry cooperation is a clear way to run. And facts have proved that as long as it can help users to solve problems and provide high-quality products of different industries, it will not cause the phenomenon of killing the chicken and laying eggs, and the customer's life cycle value is growing steadily.