Chapter 251: Losing money and making money
Pretty Lady Clothing has been established for three months and has only one factory, but it has opened 28 directly-operated stores. This speed of expansion is completely out of money.
The cost of these stores alone exceeded 10 million, and if it weren't for the quarterly dividends of Manhan Food last month, the money in Wang Haoan's pocket would not be enough.
Now that it is the end of October, the company has once again reached the end of the month to check the accounts, and Wang Haoan also accompanied Jiang Yurou to come over to have a look.
"Mr. Jiang, Boss Wang, before lunch, I will definitely be able to check all the data and hand over the report to you. ”
"Okay, hard work Vice President Zheng. Jiang Yurou nodded, with a sad look on her face.
Wang Haoan sat on the sofa and crossed Erlang's legs: "You don't have to worry, the company has just opened, and it is normal for the benefits to be poor, and it is inevitable to lose money." ”
"But I heard that AnJie had just opened, and the sales were very hot, and it made money that month. "Why does Wang Haoan make money when she does it, but she loses money when she does it?
"That's different. At that time, there were no decent denim clothes in the mainland at all, and even many people did not have the concept of denim clothes, had never seen or heard of them. We hyped it up with advertising, and the price was not too expensive, and it became an instant hit. ”
"Now there are many clothing brands in the mainland, and many foreign brands have also entered the mainland market, and everyone's choice has become more. What's more, the boutique women's clothing that is the main feature of pretty women is a bit expensive, and it is normal that the sales situation is not very good. ”
"Why don't we set the price a little lower, like Anjie Company, so that the sales volume will definitely increase a lot, right?" Jiang Yurou was a little confused.
"Because I can see the ceiling of Anjie's denim and casual wear, even if the development is good in the future, the profit margin will not be very high, and this year's profit margin will be one percentage point lower than last year. ”
"Pretty women are different, the profit margins are very high, we mainly sell style designs, which is not meant to be affordable for everyone. ”
"If this can be developed in the future, the profit may exceed that of Anjie, and it can even be exported to Europe and the United States. ”
Guo Bingxiong promised to sell AnJie's clothes to Europe and the United States, but he was unwilling to open stores there, but sold some clothing markets, similar to the wholesale market in the mainland, which could ensure sales but was not conducive to the brand's expansion.
Therefore, Wang Haoan did not agree, and in a few years, Anjie Company expanded its own overseas channels and operated its own stores. Even if it is a loss, it doesn't matter, it can be advertised that AnJie's clothes are exported to many countries in Europe and the United States, thereby stimulating sales in the mainland.
The advantage of brand management is that it can attach brand value to clothing, thereby increasing the profit margin of clothing. For the same style of clothes, big brands are more expensive than those miscellaneous brands, or even much more expensive.
Big brands have invested more design costs, brand operating costs, and if they are really the same as small brands, I am afraid they will lose money.
Jiang Yurou was moved by the vision depicted by Wang Haoan, can this pretty woman really be sold to developed countries in Europe and the United States?
"Well, everything you say is right, I listen to you. I'll draw a few pictures first, you can. ”
Wang Haoan leaned on the sofa and took out a copy of Old Man Jin's martial arts from under the coffee table, no matter when he looked at it, he felt so classic.
While he was fascinated by the words, there was a knock on the office door, and Zheng Xingchen, the vice president of Pretty Beauty, came in.
"Mr. Jiang, the report is out, I'll send it to you for a look. ”
"Hard work Mr. Zheng, put it here. ”
Jiang Yurou opened the report, she actually didn't understand it, but she only needed to look at the final profit and loss. When she saw the negative sign in front of her, Jiang Yurou's heart sank, she had lost so much this month!
"What's the matter, sad face. Wang Haoan took the report and glanced at it, and lost hundreds of thousands, no wonder it was this expression.
"Hao'an, it's been three months, and I'm losing money every month, and it's getting more and more, is there something wrong with the direction of this company's business?" Jiang Yurou fell into deep self-doubt.
"What's the problem, it's normal, I didn't explain it to you, the reason why you are losing more and more is because the number of stores is increasing, and the advertising expenditure is increasing, which is all within the normal range. ”
In many cities, TV commercials and newspaper advertisements are being advertised, the transportation distance is getting farther and farther, the number of stores is increasing, and it is normal for losses to increase.
If it weren't for the increase in the number of stores, the loss would definitely be decreasing month by month, in fact, the number of losses now is lower than Wang Hao'an expected, which proves that Zheng Xingchen's management ability is very strong and saves a lot of costs.
"But if you lose money like this, when will you start making a profit? If you have to expand new stores every month, won't the amount of loss be more and more, hundreds of thousands a month!"
Hundreds of thousands, Jiang Yurou has never seen so much money, tens of thousands of yuan she has never seen.
"You have to change this concept, you are losing hundreds of thousands now in order to make millions, tens of millions in the future. Don't you believe me when it comes to business?"
"Look at Lao Zheng, his salary is not high, the purpose is to get dry shares and dividends in the future, if the company really has no future, why doesn't he leave?"
Jiang Yurou was stunned for a moment, yes. I heard that Vice President Zheng always took a lot of salary cuts, but on Vice President Zheng's face, I didn't see any disappointment, could it be that this company is really promising?
"The speed of expansion is not enough now, we will expand to 50 stores after the year, and continue to expand to 100 stores next year, we will advertise on CCTV to let all Chinese people know the brand of Pretty Beauty. ”
"But there are only so few stores, what is the use of everyone knowing, and they can't buy it, isn't it a waste of money?" Jiang Yurou didn't understand.
"Think about it, if you watch TV and know a big brand of clothing, one day you suddenly go on a business trip, or have a friend go on a business trip to a city with a beautiful store, will you want one?"
"Or would you be glad someone brought you back from out of town?"
"I'm glad you bring back anything. Jiang Yurou said.
Wang Haoan rubbed Jiang Yurou's head: "I'm making an analogy." We're just going to let everyone know about the brand, and then make it impossible for many people to buy it, so that in the future we can open where they can buy it, and we don't have to worry about the store being deserted. ”
"The strategy of Pretty Lady now is to expand quickly, choose the right place, or place with potential to open stores, and at the same time reduce the number of locations available to other brands, reducing the strength of our future competitors. ”
"Are we just losing money and making money?" Jiang Yurou understood.
"That's right, it's a loss to make money!"