Chapter 420: Dare to compete with the king

No wonder Lin Fan will refuse Wan Chao's kindness, this is not just a response to Wan Chao's contemptuous attitude earlier, but more importantly, once "snow &elegance" and Yaoguang Group reach a strategic alliance, and do it with the positioning of famous products, the positioning of Jinghong Plaza does not match it, if "snow &elegance" enters Jinghong Plaza, the damage to its brand value is far-reaching, difficult to measure with money, and may even destroy a brand because of this move.

The most taboo positioning of retail products is not clear, whether you are doing high-line, mid-range or mass fashion, you always have to choose one, it is impossible for a brand to include all three. Because these three types of demand for channel channels are inherently inconsistent.

Knowing this, Wan Chao naturally did not mention the matter of letting "snow &elegance" enter Jinghong Plaza, but began to compliment Lin Fan constantly, and also skillfully probed the bottom between his words, wanting to know what the relationship between Lin Fan and Li Wangxing was, and he could put a new brand directly into Yaoguang, and gave such a good position.

Li Wangxing and Lin Fan are such people, naturally they can only know what they want him to know, and they don't want him to know clearly, and they can't hear it no matter how much they probe.

Wan Chao sat on the side, and there were not many opportunities to speak, just holding a cup of coffee in both hands, hunched over and listening to a few people chatting.

Li Jin said: "I've always been curious about one thing, I don't know if Mr. Lin can help solve my doubts?" ”

Lin Fan smiled: "Ask, as long as you don't let me predict the future!" ”

Li Jin laughed and said, "I really want to ask you about the future." ”

"'Yaxi' has cooperated with Mr. Lin for more than half a year, from the current development status of Kyung Province and Mr. Lin's operation of the entire project, you should be very handy with the operation of this mass route of goods, it stands to reason that if you are ready to take the route of your own brand, you should also do it in the low-end market where you have already had successful experience, why will "snow &elegance" be made in the form of such a collection hall, although the image of the store. You have achieved excellence in the quality of the product, but because of your high positioning, the traditional street shop and supermarket channels, the two major channels are directly blocked, combined with what you have communicated with me before, I think that in recent years, the investment income of the street shop will be very high, and the market will be very large, I think it is strange, obviously the market here is so good, but you gave up. Why don't you do it in a region that everyone is so unfamiliar that you don't even know what the future holds? ”

Lin Fan smiled and turned his face to look, Li Wangxing and Wan Chao were also attracted by Li Jin's words, and looked at him at the same time.

"The brand of the mass route should quickly improve its brand awareness, relying on the rapid occupation of the market, by expanding the market share, to become a household name. To have heard something so many times that one can repeat it back. To do this, it depends not only on the understanding of the market, but also on the reserve of money and management talents. I don't have to compare with 'Yaxi', even if I compare it with 'urban mood', 'Livus' and the like, I think I'm 108,000 miles behind. By the time I completed the initial accumulation of funds and cultivated a group of teams, they had already extended the tentacles of the store to the north and south of the country. I can't catch up with them even if I'm tired. ”

A few people nodded in approval, Lin Fan said this reason, like "Yaxi", "Urban Mood", "Lifus" These have been relatively mature, you will naturally be very tired to start chasing others now, and the previous brand has gradually been recognized by this group of mass consumers through rapid expansion in recent years, and you can get a similar brand out, there is not much attraction, and the mass market is not high, with the domestic retail market continues to rise, there will be more and more funds into this piece, At that time, there will be few dozens of brands, so many companies will share the cake of the mass market together, and how can they compete with homogeneous goods? Price wars, promotion wars, inevitable, in the end, the overall market volume has not changed, everyone's gross profit margin has decreased, and profitability will be lower and lower.

"Speaking of department stores, at present, the 'Qianzi' group is a monopoly, its multi-brand, multi-echelon brand layout has been for many years, several aces dominate the department store, and even have 'no Qianzi, In this case, they use the absolute right to speak in the shoe area of the shopping mall to have the best location and the best business conditions, and can affect the layout of other similar goods in the shopping mall, and the development of their own is also restricting the development of competing products, in recent years, with the rapid development of the department store format,' Qianzi's group is even expanding stores with 1,500 new stores every year, which is a scary number, it can be said that the shoe area of the department store, the pattern has become, except for individual high-line brands, in terms of overall influence, "Qianzi" has been invincible, and it is difficult to appear for a long time to compete with the brand, "snow &elegance" even if it is strong, can you be stronger than the crowd? ”

Li Jin nodded, "Yaxi" has developed very rapidly, this year's sales can increase by 1 billion, reaching a scale of 1.8 billion, but the total retail sales of "Qianzi" Group last year has exceeded 20 billion, and its rent proportion is very low, due to the strength of the brand, the increase in the cooperation conditions with the shopping mall will not change greatly, unlike brands like "Yaxi", the shopping mall will not only give you deductions, but also have the possibility of adjusting you at any time, not to mention the street paving path, The vast majority of landlords don't pay attention to the quality of the brand, but pay attention to the short-term benefits, and the increase in each contract period is much higher than the growth of sales in the same period.

"Therefore, when I was planning the "Snow &Elegance" project, I considered the strategy of focusing on the shopping mall channel in the future, supplemented by the department store channel, which is to avoid the department store channel that has now become the king and the street paving channel that will be 'multinational scuffle' in the future, and turn to the shopping center channel that is not much in China at present, but I am very optimistic about the future. Here, whether it is 'Qianzi' or 'Yaxi', the current focus is not placed here. I'll have a good strategic buffer period to gather strength in the short term, and when they focus on this place one day, "Snow &Elegance" should have the strength to compete with them. ”

Li Jin looked at him silently, this young man who couldn't even get the first batch of payments more than half a year ago was already thinking about competing with the king of the industry with annual sales of more than 20 billion and net profit of more than 4 billion in the near future. (To be continued.) )