Why do high-end shops in many shopping malls still stand still when no one cares?

I have dealt with shopping malls for several years. It depends on several aspects.

First, in order to upgrade the mall as a whole when it opened, some high-end shops were introduced, and the location was better. The cooperation mode is mainly the joint venture deduction mode, and the brand store will consider the decoration cost, and the contract signing cycle is relatively long. Even if the store is not well run, it will not be withdrawn.

Second, if the brand has high personnel costs and investment in pre-decoration, and reaches a certain sales volume, the manufacturer will give subsidies, the manufacturer will give high rebates, and the manufacturer will also give advertising fees every year.

Third, high-end brand stores generally have more members and face different customer groups. Retail investors can sell whatever they can, or give priority to members and provide after-sales service.

Fourth, I won't elaborate on it for the sake of running accounts.

Fifth, in general, some high-end stores have to do it even if they lose money, such as listed companies. If they close the store, it will have a great impact on the whole company. In the eyes of others, they will think that the enterprise is going downhill and there is a problem with the capital chain.

Let me talk about my own experience. I used to sell underwear. I had no money at first, but later I rented a cheap shop in a market. I sold underwear for 25 yuan. Later, I thought about 25 yuan and made a few dollars. I can't earn 20 thousand or 30 thousand this year

Then I met my friends, who opened a boutique of high-end clothes. Although there is a lot of investment in the early stage, it is still possible to pay back the money later. Then I represented a high-end brand store and asked to decorate it. I rented the frontispiece with an initial investment of about 400,000 yuan and decorated it. After I played the money, I lay on the sofa, wondering if I could earn it back after investing so much money. But there is no way, the money has been spent, and we have to find a way to earn it back. At that time, I was still thinking, these underwear are so expensive, a set is hundreds of thousands, who will buy my clothes?

Then there was nothing I could do. The money has been spent, so I have to find a way. Then I went to that institution, just in time for Women's Day on March 8th. I just sent some acquaintances to work and asked them to order some clothes in the store. Starting from the administrative unit, I slowly opened up the market. Later, all the people who came here to buy were big bosses and officials, so I got to know a lot of upper-class people. Gradually, more people introduced them to me one by one. The money I earned this year is the money I earned in a small market for several years.

But business was bad during the epidemic, but the underwear of this big brand I represented was subsidized to us at first. How much is the subsidy for selling a dress? Therefore, it is not easy to sell during the epidemic and can be maintained for a period of time. But the manufacturer always calls you to urge you to purchase, and there are new goods, so you should hurry in and always urge you when to purchase. You'll be in trouble, because the goods can't be sold, and looking at the goods in the warehouse will give you a headache.

Relying on the old books sold before and the subsidies from the merchants, our store has been maintained for some time. But it won't last in the end, just like those brand stores you see in big shopping malls, it will last for a while. But if the manufacturer doesn't support it, you can't sell the goods, and you won't last. Then I switched to online sales. Now a certain sound, a certain hand and a certain treasure are selling well. I didn't know at first, but I couldn't help it. I wouldn't have to learn. I plunged into it, learning while doing. Later, I slowly learned to sell online, so I sold all the goods in my shop through online sales. Then I put the shop there. The rent is not due yet, and so is the house. I'm going to sell the shop. All changed to online sales.

Doing business is to make money. It seems that many big stores can't sell much goods, but they just can't go out of business. In fact, there is still cash flow behind it. If there is no cash flow behind it, all the shops will be transferred and returned when they expire. After all, rent and storefront fees are not a small expense. If the income can't cover this expenditure, then the business will really lose money. So the big shop you saw didn't fall down, probably because it didn't fall down.

There are some little-known doorways hidden inside, and many shops are making money invisibly. It can only be said that poverty limits many people's imagination and reduces many people's knowledge.

Because my uncle runs a luxury store with stores in Wanda, Lihe and two major squares, I know some inside information.

On the surface, this phenomenon itself is contrary to the common sense of economics. Ordinary people can't understand: don't you want to make money? Open a shop just to occupy a hole?

In fact, the water behind is very deep! Every industry has secrets that ordinary people can't see through at a glance.

The gross profit of some women's clothing brands is between 60% and 85%. Yes, 85% of the gross profit is the cost 150 yuan, selling 1000 yuan, and making a profit in 850 yuan!

Do you think it is exaggerated? Not at all. For example, a fast-fashion men's wear brand that has flourished in recent years has an actual profit of more than 50% a year.

Those high-end brands in shopping malls and counters should not foolishly believe the published financial reports. Financial accounting ability is far stronger than you know.

The net profit of most high-end brands can basically reach about 35%, and there are not a few who exceed this figure.

This profit rate is far ahead in the industry, even comparable to some financial industries. For example: Masfair, known as "luxury goods in China".

You can look at the glittering silver ornaments in the cupboard of the shopping mall. I believe you will be surprised to sweat! The price of gold is completely marked, but silver is sold. Of course, the price will be marked with a discount that looks lower, so as to form a price gap and improve the transaction probability.

A shopping mall can't have only high-end brands. Shopping malls provide shops for small and medium-sized brands to ensure rental income and people flow, while the purpose of introducing big brands is to upgrade the whole shopping mall.

There is a key point: real luxury brands, when entering the mall, the rent is so low that you doubt your life, even rent-free!

On the premise that the rent is 0, the mall only accepts rebates. In other words, if you sell more, you pay more, and if you sell less, you don't have to pay a penny.

For a business circle, the gathering of high-end brands represents the promotion of commercial value and commercial attraction. If the average shopping mall wants to invite top brands such as LV and GUCCI into the store, people will never consider it. Why? Afraid of being pulled down by the positioning of your shopping mall.

Many shopping malls will make full use of their own strength in order to establish their own image. For high-end brands, they are generally rent-free, and some voluntarily spend money to carry out exquisite decoration according to the style required by the other party.

We went to her small villa in the suburbs, which was decorated classically and elegantly, resplendent and unique. The housekeeper took us to a wing with many mirrors, which was the client's cloakroom. My uncle joked that this place is like a princess's palace.

VIP invited us to have afternoon tea, and then my uncle showed her new clothes and various accessory bags in turn.

She said that she bought some new hats and asked for some clothes and some bags to match them. As a result, my uncle's performance increased by 60 thousand in less than half a day.

In shopping malls, bustling shops sell products, while high-end shops that nobody cares about sell brands.

There are great differences in business models and operating costs, and the consumption levels they face are different, so are the consumption patterns of the two consumer groups.

The law of 28 is the axiomatic law of fashion and luxury goods industry.

A brand with a stable market value must have a stable VIP customer base and contribute the largest sales share.

High-end stores don't need a sea of people. In order to ensure customers have a good shopping experience, they even queue up to limit the flow of people. My uncle's shop has a VIP service room to ensure that top customers have excellent private space when shopping.

Top brands are top in maintaining VIP customers. Because these talents are real hidden customers, they never even appear in the shops of shopping malls.

To sum up: the value of high-end shops lies not in products, but in brands. Bankruptcy It doesn't exist.