Success Tips Of Daily Sales Of 2 Million Yuan In Single Stores In China

In recent months, Shanghai has experienced a period of "international Fashion clothing Tornado ":

On February 24, the Spanish fashion giant Inditex opened a Zara fashion brand store on Nanjing West Road in Shanghai. The daily sales of Zara in the Shanghai store reached 800000 yuan, equivalent to the total daily sales of 80 Chinese fashion brands; On April 12, another Swedish fashion retail giant H&M The brand store was officially opened in Huaihai Road, Shanghai. On the opening day and after the opening, there was always a crowd of people. A 30 minute queue was needed to enter the store, and a 30 minute queue was needed to try on clothes; In addition, H&M claims that its single store turnover has reached a maximum of 2 million yuan per day, which is equivalent to the total daily sales of 200 Chinese clothing brands.

It is understood that H&M's second store in Shanghai will appear in Zhengda Plaza, and ZARA will also open its third retail store in China in Zhengda Plaza, and C&A will open four franchised stores in Shanghai in the first half of this year.

The competition between the global fashion retail chain giants - Sweden H&M and Spain Inditex in Shanghai seems to indicate that the international fashion giants are marching into China with "rain and wind"!

The name of Hennes&Mauritz (H&M), a chain clothing store from Sweden, may be rarely mentioned in Asia, but it is well-known in Europe. Measured by sales volume, H&M is the largest apparel retailer in Europe. Even in the economic depression, its performance continues to rise.

Today, H&M Clothing Company has developed into an international enterprise with 1244 stores in 22 countries around the world; In 2005, H&M's turnover (including VAT) was 9.8 billion US dollars, and 100 new stores were opened in the second half of 2006 alone.

Seeing this, we can't help asking that even though H&M brand has a prominent position in Europe, it is still a brand new brand for Chinese people. Almost all Chinese consumers have never heard of its name. Why can it create an astronomical figure of "daily sales of 2 million yuan per store" once it enters China?

This is a phenomenon worth studying in the clothing industry. The author believes that there must be many secrets behind its huge sales figures. Through market visits and research, the author summarizes the reasons behind this phenomenon:

　　 Secret 1: Brand positioning:“ parity Fashion of

Parity is the way H&M always chooses. The company was founded in 1947, and its founder is the father of current chairman Stefan From CMMO. cn Persson. At that time, H&M focused on the feature of low price. As Swedish retail industry, like most European countries, has always been dominated by expensive department stores, H&M made a big red market in the market at once.

After Pearson joined the company in 1972, he hoped that the company could add the characteristics of popularity and quality beyond the only low price. Although many people believe that these characteristics cannot exist in one brand at the same time, Pearson believes that the company can. Later, H&M's slogan of "providing popularity and quality at the best price" really gave a shot in the arm to the company's success.

In terms of the understanding of "price", when conducting product marketing, domestic brand enterprises always think that "fashion" products should add more brand value in addition to their own high R&D and production costs, so they should be and must be "high-value" products.

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However, H&M has a different idea. They think that the best products, if not sold, are just a pile of waste products that occupy the warehouse and hold up funds. Instead of waiting for the price to be sold, it is better to generate cash quickly to facilitate secondary production. In the H&M store, because of the low price of the product, more consumers will not hesitate to buy as long as they look at a piece of clothing. The consumption price of each clothing is not high, but after many times of consumption, the average customer can spend more than 200 yuan or more after visiting the store, and they will feel very affordable.

In order to reduce costs and maintain the parity strategy, H&M does not have its own garment factory, and the manufacturing is completely outsourced to 900 factories. In order to get the best price, the company selects outsourcing objects carefully. These factories are scattered in 21 countries with the lowest wages in the world. Due to proper cost control, the gross profit of the company's products can still be maintained at about 53% despite the low price.

Business Week recently commented that H&M "redefined the popularity of parity", confirming the possibility that the company believes that price, popularity and quality can coexist.

The products in H&M stores are diversified, providing basic clothes popular for both male and female consumers and children. The average price of clothes in the store is only about 100 yuan, and the price of women's blouses is 149 yuan - 299 yuan; Men's tops and knitwear cost 99 yuan and 199 yuan respectively. The company believes that parity can make consumers affordable to buy new products in stores every year, even every quarter. This kind of strategy can most attract female consumers who are 15 to 30 years old and want to catch up with the fashion at any time.

H&M's business philosophy has laid the foundation for the success of the company, and indeed attracted H&M customers: the "cost performance" of fashion and quality is the highest. Because they integrate different brands in their stores, keeping up with fashion changes, their customers can find their own way to express their personality.

Here, classics and fashion are almost perfectly integrated. This allows customers to come in without hesitation and deeply miss them after going out. They don't have to travel around to buy satisfactory clothes.

　　 Secret 2: Fashion is food with a shelf life

In addition to the price card, H&M also plays the fashion card. The company regards fashion as perishable food and must keep it fresh at all times. Therefore, the company strives to keep its inventory to a minimum and keep a steady flow of new goods. Therefore, new ideas must be quickly transformed into clothes, so that consumers can quickly buy clothes on the shelves and display fashionable clothes that are still fresh on the street.

How does H&M promote fashion and popularity on the basis of parity? One of its most important strategies is to cooperate with famous designers to launch product lines. Karl Lagerfeld Lagerfeld), Stella McCartney (Stella McCartney) cooperated with H&M to launch designer product lines in 2004 and 2005 respectively. When the new products came into the market, crowds and FANS swarmed in front of the flagship store. It is a very good strategy to invite famous designers in the age of designer stardom. People are more willing to accept such affordable works of famous designers when increasing the fashion, personality and creative characteristics of products;

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Since its establishment, H&M has been popular all over the world with its fashionable, high-quality and affordable fashion, and is considered as the representative of "McDonald's style fashion" (McFashion refers to a clothing enterprise that responds quickly to fashion and has the same characteristics as McDonald's, such as fashion, chain, low price, etc.).

More than 100 designers pay close attention to fashion trends and characteristics, absorb fashion elements, and quickly respond to consumption and procurement characteristics and organize production through the store terminal system. Under a set of rigorous and legendary systematic measures, H&M has ensured rapid response and low cost from the stage of fashion forecast - design - production - product feedback - sales. This is what Lang Xianping said, quick response and personalization can also achieve the ultimate benefits of scale.

　　 Secret 3: Speed is fashion

As we all know, the core value of fashion brands lies in "speed"!

"To be a follower of fashion, not a creator" means to effectively control the lead time (that is, the time from the design to the sale of products). According to the data, the leading time of ZARA is 15 days, the fastest leading time of H&M is 20 days, while the leading time of domestic garment enterprises is usually about 90 to 120 days.

ZARA and H&M are two powerful rivals that are often mentioned by the fashion industry at the same time. In front of the stage, they fight for brilliance, while behind the stage, they fight for supply chain. ZARA is proud of its fast supply chain. Even if it opened stores in China far away from Spain, it miraculously maintained its speed for 15 days; H&M, which believes in the trinity of "time, quality and price", uses two supply chains to try to find a profit balance between efficiency and cost.

Based on the consideration of procurement cost, H&M places 60% of production in Asia and the rest in Europe. Generally speaking, conventional fashions and children's clothes are produced in Asia, with small quantities and strong popularity, and are usually given to European suppliers.

This strategy deduces a classic story of playing with time and cost. Therefore, H&M has designed two supply chains: an efficient supply chain to control Asian production and a quick response supply chain to control European production.

Compared with ZARA, the fastest lead time of H&M is 5 days later. However, the cost of these five days has enabled H&M to gain a cost advantage - "its clothing price is 30% - 50% cheaper than ZARA". This is really very important

H&M maintains close contact in all aspects of the supply chain, acting as importers, wholesalers and agents. As in the United States, H&M has 13 distribution centers in Europe and Asia. Products from European suppliers arrive by rail, while goods from Asia arrive by sea.

　　 Secret 4: Product diversification

For H&M, among its products in all lines, H&M's field is wide enough, from basic clothing to classic styles, to fashion frontier, from young people to teenagers, to children and pregnant women. The colors are also very complete. All basic models have different colors to choose from.

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The style shall be updated twice a week in the exclusive store, and each style shall be put on the shelves for no less than 3 weeks. The most timely and accurate way to provide customers with what they most want at this moment. A typical H&M store has a women's wear department, a men's wear department and a children's wear department, instead of sorting by coat, pants, bags and accessories. The clothes in the store are unusual. Instead of hanging the top and the top together, the pants and the pants are placed together, but the top, pants, leather bags and accessories are put together, making it easy for customers to buy a whole set of things with one heart

H&M brand has more than 1200 franchised stores around the world, each of which is called a small mall rather than a shop. The H&M franchised store on Huaihai Middle Road in Shanghai has four floors, each of which covers an area of about 500 square meters.

Such a large business area and tens of thousands of different styles of clothing enable consumers to form a "one-stop" shopping environment. A small number of marketing methods make there are only more than ten pieces of fashion of the same style and different sizes. If the sales are good, they can be replenished twice at most. On the one hand, they can reduce the production of homogeneous products and meet the fashionable and personalized needs of the market; On the other hand, it also encourages customers to generate instant consumption and avoid shopping regret.

　　 Secret 5: "Small amount, multiple styles, and low price"

The common ground of ZARA and H&M is that they adopt the concept of "small amount, multiple styles and low price" to make rapid response to fashion.

Taking ZARA as an example, ZARA claims that fashion needs speed. ZARA's approach is to speed up fashion consumption and elimination by changing the fashion speed, break the law of fashion and fashion, create a fashion without slack and peak seasons, break through the regional advantages and operating rules of traditional brands, and always maintain a strong sales trend, which is difficult to be defeated by competitors.

ZARA stores supply goods twice a week, because there are few reorders of sold out styles, and the store will update all the goods on the shelves every 3-4 days, which always gives people a fresh feeling. Every three weeks, all goods in the clothing store must be renewed. Keeping up with fashion trends, frequent updates and more choices have created ZARA's unique appeal to customers, thus greatly increasing customers' preference and loyalty to ZARA.

ZARA does not focus on producing more quantity for each style, but on diversity of styles. ZARA launches about 12000 kinds of fashion every year, and the quantity of each fashion is generally small. Even if the best selling styles are available, ZARA can only supply a limited number of them. Usually, there are only two pieces of one style in a franchise store, and they will not be replenished after they are sold out.

Just as the limited issuance of stamps has enhanced the value of philatelic products, ZARA has created a kind of scarcity artificially through this way of "creating a shortage".

The more difficult it is to get, the more it can stimulate people's desire to buy. ZARA implements the strategy of "always out of stock". For clothing of the same style, the retail store usually has only a few pieces in stock. Maybe because of your hesitation, you missed the opportunity to finally own it, because you may see a new shelf tomorrow. This initial annoyance resulted in the decisive purchase speed of customers when they came back, which cultivated a large number of loyal followers.

In addition, the practice of small batch supply and indicating tight supply has stimulated customers to visit Zara stores more frequently. For example, consumers in London only visit clothing stores 4 times a year on average, but for Zara consumers, the number is 17 times. Frequent patronage can also reduce advertising costs. Zara's advertising investment accounts for only 0.3% of its revenue, far less than the competitors' 3% to 4%.

In a word, there are more successful secrets for fashion retail giants such as H&M brand, which will not be repeated here. Because of these unique secrets of successful operation, it is no longer uncommon for these brands to achieve the brilliant achievements listed at the beginning of the article.

Therefore, we believe that in Shanghai, even in a short time, we will hear the footsteps of these dinosaurs all over China.

Chinese consumers are looking forward to the arrival of such footsteps, while Chinese garment enterprises need to be careful, neither afraid nor indifferent. The scientific attitude is that we should learn more new things from these powerful rivals, and find a reference object for our own rapid strength.