Chapter 293: Opening Direction

The idea can not be unified for the time being, as long as the action is unified, because the exhibition of eleven is more useful than a thousand words, as long as the effect of this exhibition and sales comes out, a good market screening is more convincing than any moving words.

"Because the market positioning of "Snow&elegance" is different from the current 'Yaxi' brand operated by our company, it determines that the channel focus of the two brands will be different in the future. Street shops, supermarket stores will be the main battlefield of the "Yaxi" brand in the future, and the influence of the department store channel will be smaller and smaller in the future, the right to speak will be less and less, the proportion of performance share will be more and more bottom, and the profitability will decline sharply; ”

As soon as this remark came out, the audience was in an uproar, all of you present witnessed the development process of "Yaxi" in Qing Province together with "Sifan Commerce", and also once fell for the strong performance of "Yaxi" in Zhonghai Pedestrian Street, a store with annual sales of more than 20 million, a store with a net profit of nearly 10 million, this high return on investment is scary to death, which can not fully explain the superiority of street paving?

The superiority of the street shop channel is so vividly embodied, and even the tentacles of many competing products have begun to stretch in, at this time the company develops a new brand, should not show its strength in this channel? But how can Mr. Xu say that he wants to give up the street shop? Isn't this self-defeating martial arts?

With this question, Han Lei couldn't help but ask: "Mr. Xu, I have some questions!" ”

Xu Si nodded with a smile and encouraged him: "Please say, everyone can raise any questions, allow questioning, and allow rebuttal!" ”

Han Lei thanked him, and then said, "Judging from the current performance of 'Yaxi'. Street paving has great market potential, why did our new brand not try to do it, and just gave up this channel? ”

Xu Sidao: "I would like to ask Minister Lin to answer this question!" ”

Lin Fan saw Xu Si's name, so he straightened his voice and said: "This question raised by Minister Han is very good, "Snow&elegance" initially considered trial selling in all existing channels, and also thought that when the full series of "Snow&elegance" was developed, it would be tried in all channels, to be honest, I analyzed the street paving channel from the perspective of the market. It is not optimistic about the performance of "Snow &elegance", because "Snow &elegance" takes the high-end route, is the boutique route, the customer positioning of this brand is to have a certain consumption capacity, the pursuit of fashion, the trend of the part of the people, and this part of the customer group is basically not in the street shop to consume, they are generally concentrated in the high-end department stores or shopping centers, "Snow &elegance" open in the street shop. For example, if you sell Moutai liquor in the vegetable market, it is estimated that it is not as good as the sales of loose liquor. ”

Han Lei said: "It's good, I think we can try it, it's really not good." It's not too late for us to consider abandoning this pathway. ”

Xu Sidao: "Did Minister Han find a problem? Most famous brands and brands that take the high-end route rarely have street shops, and even if they do, they will not open in the center of the business district. Not to mention the intensive opening of stores like our 'Yaxi'? ”

Han Lei nodded, and Xu Si said again: "When a brand occupies the street shop access and shows its skills in the street shop path." In fact, it also means that it closes itself out of the doors of department stores and shopping malls at the same time, because high-end department stores like to cooperate with brands that specialize in department store channels, and do not like to cooperate with a brand that gives the impression of a 'street shop brand'; needless to say, shopping malls have been pursuing a sense of fashion and differentiation, let alone a 'street shop brand'. ”

"The idea of the "Snow &Elegance" brand is to eventually build a mid-to-high-end fashion brand in a shopping center, and if we want to achieve this goal, we must erect the image of the brand from the beginning, and from the moment it comes out, we must continue to announce to the world that it is a brand dedicated to the development of shopping centers."

Han Lei said: "Is it really worth it to give up the market of street shops and supermarkets for an unknown goal?" ”

Xu Sidao: "From the point of view of sales, it is natural to open more stores, as long as there are profitable stores can be opened, but from the perspective of operating the brand, you can't do this, you must cherish the feathers, and at the same time, we should not ignore the added value of the brand can create profit margins, we should know that we'Yaxi' entered eLong Department Store, and the other party gave compensation for decoration, this part is not the additional profit we use the influence of the brand to obtain?" However, due to the brand positioning of 'Yaxi' is public, in the future, with the gradual upgrading of the department store format, the advantage of 'Yaxi' in this channel is about to disappear. ”

"But everybody's looking' Qianzi's brand, in addition to Yaoguang is too strong Party A, the general local department stores almost all have to compensate for the decoration when introducing them, and can get very superior cooperation conditions, in the rental cost of this control is very low, so as long as they grow in sales performance, profits also grow, on the other hand, our street shop access, most of the landlords are not recognized by money, no matter how big your brand is, who gives more money, the house will be rented to whom, so that when the street shop business is booming, the rent of the street shop is almost growing at a rate of dozens of percent per year, taking Zhonghai Pedestrian Street as an exampleThe rent of one of our stores was less than 600,000 yuan / year at that time, but less than half a year after we opened, there are now competing products shouting out the annual rent of 800,000 yuan or even higher to ask for rent shops. ”

"In this way, in a few years, you can imagine how high the rental cost of street shops will be? Rents will continue to rise, constantly squeezing your profit margins, and the increase in sales will never keep up with the increase in rent costs and personnel costs. At the same time, the competition in the low-end market is also the most intense, competing products are easy to use the copycat your style, and then take a low-price strategy to seize market share to compete, so the consequences can be imagined, that is, the sales increase is getting smaller and smaller, and there may even be negative growth, and the cost of expenses has hit new highs year by year, and the profitability of the enterprise will dive sharply! (To be continued......)