From Decathlon To UNIQLO: "Famous Brand Low Price" Is The Way Out For Physical Stores?

1, consumers are getting more and more "2" and consumers are getting more and more "pick".

Consumers are getting more and more "stingy". This is because the economy continues to run at a low level, and the disposable income of residents is reduced, which is not as wasteful as before. Consumers are getting more and more "pick" because of the information explosion era, all kinds of fun and practical.

Information pmission

Pass to the consumer, although did not eat pork, but also saw pig run, consumer eye is more and more wide.

So the manager of the store put forward a difficult problem: how to deal with consumers' "stingy" and "picky" at the same time? Some visionary entrepreneurs have given the answer, that is, "famous brand low price".

The so-called "low price" is not the pursuit of absolute low price, but focuses on cost-effective.

Zhang Yungen, managing director of the company, explained in a very popular way: four star merchandise, three-star price.

In fact, some entity retailers have applied the strategy of "famous brand low price", and have achieved a good market effect.

Such as Decathlon,

IKEA and so on, they appear in the retail industry in the cold winter trend of contrarian growth.

Data show that Decathlon's sales revenue in 2015 was 9 billion 100 million euros, an increase of 11%; IKEA's sales revenue in 2015 was 31 billion 900 million euros, an increase of 11.2%; UNIQLO's sales revenue in 2015 was 16817 billion yen, an increase of 21.6%.

From Decathlon to UNIQLO, we ignore the difference of its business category, store type and mode of sale, and abstract the core business logic, that is, "famous brand low price".

In the brand, it attracts consumers with the image of "Gao Ge Ge", and at the price, it promotes pactions with civilian price.

Take Decathlon as an example, a pair of men's sports shoes only cost 89 yuan -109 yuan, while in some sporting goods stores, the same quality sports shoes should be more than 300 yuan or even higher.

Not only fast food products, but also some luxury goods, they also adopt the strategy of "famous brand low price".

Take luxury cars as the three major brands, Mercedes Benz, BMW, Audi as an example, BMW launched the 1 series, Mercedes Benz launched a grade and Audi's A3 series and other entry models, and two hundred thousand out of the world can have a world top brand car, this is also the reason.

The third retailer thinks that Decathlon, UNIQLO and other cases give us an important lesson: in the future, if we want to survive, we must take the road of "low price of famous products", which will change the life of traditional retail businesses.

01 the emergence of every retail giant appears in the image of "price Destroyer".

The source of this sentence is Professor Chen Liping, Professor of the first economic and trade university.

As a Japanese retail research expert, Chen Liping found that several Japanese retail giants initially subverted their predecessors with the image of "price Destroyer" to gain market share.

Mr. Chen Liping told this discovery to Wang Wei, general manager of Le Cheng supermarket.

Inspired by this, Wang Wei was inspired by the strategy of "price Destroyer" in the legend of his innovative format.

In many locations of the legendary stores, you can see four words: "always low".

It uses various labels to express this idea to consumers: the products sold in fresh legend are the cheapest in the local market.

Because all the products in the legend are cash direct, the retailing price is guaranteed to be lower than any competitor in the vicinity.

With the introduction of Chen Liping's theory of "price destroyers", we will find that not only is Japan's retail industry, but almost every retail giant in the world has appeared in the image of "price Destroyer" at first.

Take WAL-MART as an example.

At the beginning of WAL-MART's establishment, it tried to save money from all aspects of purchase channels, distribution methods, marketing expenses and administrative expenses, and put forward the slogan of "parity and consistency", and made efforts to realize the promise of cheaper prices than other businesses.

The emergence of WAL-MART overturned the high price of traditional department stores in the United States at that time.

However, WAL-MART needs to be vigilant that it initially overturned traditional department stores with "parity", but there was a discount store like Hardi (ALDI) covetous, ready to subvert it.

In fact, the store format was first born in China, and the image of "price Destroyer" subverted the general phenomenon of sales, expensive and poor experience at the state department stores.

But after more than 10 years of development, the traditional hypermarket format has become backward production capacity, which requires new "price destroyers" to subvert them.

This is evolutionism, natural selection and survival of the fittest.

If the entity store does not subvert itself, it will wait for others to subvert it.

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02 Decathlon and UNIQLO's routines

Decathlon, IKEA, UNIQLO and so on can achieve "famous brand low price", in fact, there are routines.

First of all, set up a brand image from top level design.

We mentioned the most professional sports brand shop, the first one would think of Decathlon; we mentioned the Nordic style home store, the first one would think of IKEA; we mentioned cheap and good quality basic men and women costumes, the first one would think of UNIQLO.

It can be said that Decathlon, IKEA and UNIQLO started with brand promotion to emphasize their positioning for consumers.

In terms of Trout's positioning theory, they have occupied the minds of consumers through spare no effort in brand promotion.

Second, make the best of a certain category.

Why can Decathlon, IKEA and UNIQLO become killer categories, while WAL-MART and Carrefour are not? This is because the former focuses on one category and makes deep efforts.

Now there are some specialty stores, such as good shop, child king, and so on.

Finally, strong product development capabilities and supply chain control capabilities.

Decathlon, IKEA and UNIQLO have one thing in common, all products are developed by themselves.

On the one hand, it protects product quality from the source, on the other hand, it forms a natural barrier to the electricity supplier. The product is mine, and I can choose to sell on the Internet or not.

For example, IKEA has been reluctant to launch e-commerce business.

The powerful supply chain is a powerful guarantee for its low price.

In order to save costs, they can scale procurement, the global layout of industrial chain, and organize production in the lowest cost and efficient way.

Taking the birth of a garment as an example, it can put the design part in Tokyo or New York. The purchase of cloth is in China, zippers or buttons are purchased from South Korea, and the final garment processing is placed in Southeast Asia where labor force is much cheaper.

For example, IKEA can even contract a whole block of forest for a piece of furniture.

The third retailer thinks that in China's retail enterprises, there should be a famous brand product.

Although many people disapprove of its Shanzhai practice, its commercial success is undeniable.

For example, in order to establish a brand image from the top level design, Miyake Junya, a Japanese designer, came to Tokyo to register her "Japanese blood".

For example, Ye Guofu, who is familiar with China's small commodity manufacturing industry, has achieved the overall control of the entire supply chain from design to production.

03 how can local retail enterprises achieve "low price of famous products"?

For China's physical retailers, Decathlon, IKEA and UNIQLO are hard to follow. Even learning from famous brands is not very realistic, but this does not mean that China's physical stores will not be able to make "famous products cheap".

Third retailers looking at retail outlets have found that they are working in this direction.

In summary, there are several ways to do it.

1, integrate supply chain and strengthen direct mining.

This is what most retailers are doing now and is easier to start. The specific approach is to push the supply chain flat, develop the buyer system and carry out joint procurement.

Take an enterprise in Anhui as an example, the company directly imports imported beer from abroad and creates explosive products.

The imported beer has a gross profit margin of 48%, a net profit of 4 million yuan in the first quarter.

2, develop own brand.

Chinese enterprises still have much room to explore in their own brands.

In Europe, retailers account for 30% of their own brand goods. In the UK, private brand goods account for 43%, while Tesco accounts for 50% of the world's three largest retail giants.

The practice of some local retail enterprises shows that private brand can not only become a "exploding" commodity attracting consumers to enter the store, but also has huge profit margins.

In the case of a brand owned bread made by Jin Hao Lai, for example, the retail price of a slice of bread made by 500G is only 3 yuan, and its retail price is cheaper than the supplier's ex factory price, and it can maintain a profit margin of 30%.

3, reduce labor costs

Although WAL-MART's "comprehensive man hour system" launched in China triggered a collective protest.

Apart from disputes and legal disputes, reducing the cost of manpower is the trend of the physical stores in the future.

In the future, physical stores can reduce labor costs in two ways. First, reduce the number of formal staff and increase the proportion of part-time staff; second, implement one person more posts and optimize the time of employment.