Chapter 225: Sense of Distress
Lin Fan didn't look at the two, but also knew what the two were thinking, and asked Li Jindao: "Mr. Li, what do you think is the reason why we are doing retail now and doing good business?" ”
Li Jinyi was stunned and said: "Naturally, it is because the brand is popular and there is little market competition!" ”
Lin Fan nodded: "This is the reason, but I want to analyze it from another level, what is profit, profit is equal to income minus all expenses, if you want to make money, it is very simple, it is to increase income and control expenses." ”
This reason is very simple, Li Jin nodded, and Xu Si was already thoughtful.
"Mr. Li just said very well, the brand is good, there is less competition, so in the future, more and more homogeneous brands will enter the market, the customer group will inevitably be diverted, and the average single-point income will decline in theory?"
Li Jin nodded, admitting that what Lin Fan said made sense.
Lin Fan said: "Let's look at the expenditure again, we do business, the highest proportion of expenses is the rental cost, personnel cost and logistics cost, the rent cost is now emerging, which city's rent market is not rising, growing at a rate of more than 20% every year; What about personnel costs, this is also increasing year by year, right? Which employee's income is not higher and higher, which boss dares to reduce salary, and good talents will never be retained; Looking at the logistics cost, fuel cost, labor cost, etc., it also determines that the annual cost is rising in a straight line. “
"When you convert it, revenues are starting to decrease, but expenses are rising sharply, and it goes without saying what the market situation will be in the future!"
Li Jin sighed and said: "That's true, now the market is good, a lot of capital has poured into the retail market, less than 2 years, there will be a lot of homogeneous brands, then the business will not be as good as now, then the profitability of a single store will inevitably decline, if you want to make money, you can only do large-scale, in the opening of more stores to find profits!" ”
Lin Fan nodded and said: "But blindly doing large-scale is not a long-term solution, the three major costs can never be controlled, while the production cost is gradually increasing, and the sales are decreasing year by year. ”
Li Jin said: "I also understand what Mr. Lin means, but this is also an objective law, and everything is inevitable from prosperity to decline. ”
Lin Fan waved his hand and said: "It's far away, the enthusiasm will not be affected, but I will think more about how to ensure the high profit growth of my company in the face of the retail situation in the next ten years." ”
Li Jin said: "Mr. Lin is far-sighted, I have come here again this time!" ”
Lin Fan said with a smile: "No way, those who don't plan for eternity are not enough to seek a moment, and those who don't plan for the overall situation are not enough to seek a corner, the above views are just my personal thoughts, you should just listen to a joke." ”
Li Jin shook his head and said: "Born in sorrow and died in peace, I agree with Mr. Lin's idea very much, but you and I are in different positions, so the problems are different, you are at the helm of the enterprise, and you are thinking about the direction of the future; I am a part-time worker, and I think about how to keep up with the direction set by the boss and where to fight. ”
When Lin Fan heard this, he said: "Li is always telling me, as a grassroots person, don't talk about strategy? ”
Li Jin smiled: "At least I've always done this, that's why I have today's position!" ”
Lin Fan said: "But your position has changed, but your thinking has not changed, before you were a grassroots manager, the most important thing is to implement the above policies, but now you have entered the management, as a department CXO, you have the obligation to give advice to the boss." ”
When Li Jin heard this, his eyes flashed, and he said after a while: "Mr. Lin's words woke me up, it seems that my transformation is still a little slower." Thank you Mr. Lin for your advice! ”
Lin Fan waved his hand and said: "You are cold to me, I am a bystander, you are a fan of the authorities!" ”
Li Jin laughed and said: "You and I don't need to be so polite, I came here this time in addition to inspecting and studying, just to see if there are other places where I can do my best." “
Lin Fan said: "You are not a small effort, you can help me save nearly 5 million every year with a phone call, and the God of Wealth is estimated to be not as generous as you." ”
Li Jin smiled and didn't speak, Lin Fan continued: "The information collection work of your headquarters is more detailed and accurate than ours, and some competing brands have appeared in the market recently, such as 'Lifusi', etc., are there any relevant information about them, such as the number of new stores, single-point performance, etc.?" ”
Li Jin nodded and said: "These are all there, 'Lifusi' has been called very fierce recently, but in fact, the development is very general, there is a brand called 'Urban Mood', you should pay more attention, this brand has a high degree of similarity with 'Yaxi' in terms of decoration style and product style, and its market price is very cheap, from the situation in other provinces, this brand has a great impact on us." ”
"'Mood of the city'?" , Lin Fan frowned and thought for a while, this is a very good street shop brand that developed in the previous life, and its products are also popular fashion routes, and the price is more close to the people, which still has a great impact on "Yaxi".
Li Jindao: "This brand is now developing well in individual provinces, as of the end of July this year, a total of 200 retail terminals have started nationwide, with an average monthly single point of 120,000, that is to say, this emerging brand can do more than 200 million in the first year, and the brand is currently attracting investment in the country, and vowed to add 500 new stores in the country next year, and the performance will break through to 1 billion, which is to challenge "Yaxi". ”
Lin Fan said with a smile: "Bold words are plans, goals, and generally unachievable visions, the foundation of emerging brands is not stable, whether it is products and personnel reserves, there are certain problems, leapfrog development seems to be very beautiful, but once these problems break out, there may be a situation that they cannot control, which is different for 'Yaxi'. Yaxi's market influence has been formed, the company after several years of steady development, not only full of talents and accumulated abundant funds, has reached a period of rapid development, if said next year's 'Yaxi' to expand 500 new stores I believe, "urban mood" I think it is unlikely. ”
Li Jindao: "Mr. Lin really has a unique vision, the company is planning to start next year, large-scale store opening, in the next 5 years with an annual growth rate of more than 30% to quickly occupy the market, do not give competing products a chance to breathe!" ”
Lin Fan smiled: "Other regions, I don't know, in Qing Province, I won't give them a chance to breathe." ”
The two of them burst out laughing. (To be continued.) )