The Big Store Model Of Brand Shoe And Clothing Enterprises Depends On Whether You Can Hold It In The End
In February 2012, Nike's flagship store located in Nanjing West Road, a bustling business district in Shanghai, was closed due to unaffordable rent increases. Not long ago, the flagship store of Me&City, a brand of Meters Bonway, covering an area of more than 2000 square meters in Huaihai Road, Shanghai, was closed. At one time, Footwear The discussion of the once enthusiastic store model in the industry is very noisy.
The trend of big stores
"Big stores are the best channel mode at present. Big stores cater to the psychological needs of consumers. People's consumption of shoes and clothing products is no longer more reflected in the material needs, but in the spirit. To meet these spiritual needs, there must be some space and style." An industry insider once said.
In 2005, Meters Bonway opened its first 5000 square meter store in Hangzhou. At the end of 2007, it opened another 10000 square meter store on Nanjing West Road in Shanghai. On May 23, 2011, Anta Beijing's first flagship store opened, covering an area of 1083 square meters, striving to build "Anta Sports City". "The first flagship store is of great significance to Anta's product sales and brand connotation," said Zheng Jie, president of Anta brand.
Big stores can not only accumulate popularity and improve the overall brand image, but also establish an image in the hearts of potential agents and dealers, so as to promote market expansion and attract more franchisees. In addition, large stores have a deterrent force to the local market and competitors, and will also play an invaluable role in promoting brand sales in the local market.
As far as the trend is concerned, many children's wear and shoes brands have also quietly emerged "big store mode". Mami Maka has opened flagship stores with an area of more than 500 square meters in Anhui and Henan, and Huang Liangsheng, General Manager of Xiaoyupi, also revealed that it will open a flagship store with an area of more than 400 square meters in Quanzhou Wanda Plaza in the future.
But is the big store really so good?
Be cautious in big stores?
Whether or not to open a large store, and in what way, depends on the actual situation of the development stage of different brands. After all, none of the models is universally applicable.
Li Kailuo, a famous economic research expert in China's fashion industry, believes that the disadvantage of big stores lies in the high cost of product development. Large stores of international luxury brands can only talk about brand culture, while domestic brands must have complete products and a large number of styles. However, product management, inventory management, goods turnover rate, retail technology management and other aspects are complex and changeable, and there will be a large amount of inventory backlog if the coordination is not good. The most important thing is that large stores are set up in prime locations, and the high cost of stores results in low floor efficiency.
Of course, in addition to rent and other tests, big stores also have higher requirements for brands in other aspects, such as management. Compared with ordinary stores, the management system of large stores is more complex, and their operation system, personnel target management and incentive system, goods data analysis system, and service promotion system are different from ordinary stores.
In addition, the number, theme and series of products in big stores are also different from those in ordinary stores. If a store has an area of several thousand square meters, how can the brand highlight its theme, how to show its series, and whether there are enough rich products? These not only put forward certain requirements for the brand in the store, but also challenge the product development. In the final analysis, what big stores test is the comprehensive operation ability of the brand.
Chen Guoqiang, Executive Deputy Director of the Institute of Industrial Economics of China National Garment Association, also said that the operation of large stores is not simple. Behind the large stores are industrial chain issues including product supply, logistics, finance, etc. If the industrial chain structure of a brand is not well built, the big stores opened will not be able to support it.
The emergence of big stores was originally the result of market competition. Whether Meibang closed its stores or Nike closed its stores, it actually reflected the advantages and disadvantages of the big store model itself. There is no good or bad model. The key is that the brand makes strategic choices suitable for development according to its own actual situation.
As the experts in the industry said: "Although opening a large store can show the momentum of the brand, it will correspondingly increase the operational risk. In the early stage, a lot of rent and other costs have been invested, but in the later stage, if there are problems in the operation, it is too late to recover. Opening a large store is not the only development mode of the brand, and it may be more meaningful to make your own characteristics than simply asking to open a large store."
It is worth mentioning that with the development of the times, if today's big stores still stay at the level of attracting consumers through visual impact, they will inevitably enter a dead end. How to improve the profitability of large stores, optimize services and carry out refined management is the way for brands to ponder. After all, spending so much human, material and financial resources can not bring certain benefits, which is a knotty and regrettable thing anyway.
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