Enlightenment from the retail reform of famous and famous products

I listen to the live broadcast of Chaos University every Saturday morning. This week, it was shared by teacher Ye Guofu. The theme is "retail reform: channel is king to product is king".

Before class, I read the topic "Retail Transformation: Channel is King to Product is King".

Then I began to think, today's speaker "Who is he"? Why does he talk about retail reform? What does it mean that the channel is king? When is Channel King? Why is the product king again? Why would he say that? What did he do? How did he do it? Is everything he said right? What's the use of his sharing in my work and life?

With these questions and vague answers in my heart, I began to listen to the class.

Who's Ye Guofu?

New entity retail representative, global co-founder of famous products. In the past two years, it has opened more than 400 stores around the world, with revenue exceeding 5 billion in 20 15 and sales of 20 1610 billion. It has been listed as "the most terrible competitor in the world" by Muji, Uniqlo and Watsons.

1. What is new retail?

What exactly is new retail? The concept of "new retail" was put forward by Ma Yun at the Yun Qi conference on 20 16. At first, our understanding of new retail was "the combination of online and offline and logistics".

But Ye Guofu doesn't agree with this concept. He believes that if it is only a simple combination of online and offline and logistics, there is no need to call it new retail. At most, it is a beautifully dressed O2O. He believes that the greatest significance of Ma Yun's "new retail" lies in denying the impact of e-commerce on the traditional retail industry, and making people who originally thought that online and offline were opposite under the influence of Ma Yun rethink the meaning of retail.

Ye Guofu said that he has been in the retail industry since he entered the society, experienced the prosperity of the physical industry, experienced the "cold winter" that was not optimistic, and ushered in new retail. Practice tells him that consumers do not clearly distinguish between online and offline. They choose more according to their needs, where the cost performance is high and where the cost performance is higher.

Therefore, in his view, new retail is not a simple online and offline integration problem, but uses various tools and carriers to simultaneously improve user experience and operational efficiency, and even deeply integrate into the supply chain to provide customers with products they really need. New retail should be the development trend of retail industry in the future, and it is more efficient retail.

Second, from channels to products.

The retail industry has developed into a product-centered era of small and beautiful selection.

Why is the channel king to the product king?

Because the background is different. People in the 1970s didn't eat or wear, while people in the 1980s had enough to eat and wear warm clothes. Now eat well and get dressed. In different backgrounds, people's consumption pursuit is different with the difference of material richness and information transparency.

In an era of unprecedented wealth of materials, extremely transparent information, and pressing time for consumers, but pursuing the ultimate experience, many enterprises that failed to adjust their strategies in time began to decline.

Belle, for example, has been going downhill because its product positioning can't keep up with the changes in the consumer market. The same brand is Smith Barney.

But at the same time, other enterprises have adjusted their product strategies in time and done a good job, such as Uniqlo, a clothing brand, with an annual turnover of 654.38+02 billion yuan; IKEA in the home furnishing industry has an annual turnover of 275 billion; The annual turnover of Costco in supermarket retail industry is 770 billion yuan.

Why are e-commerce so developed now, and the main turnover of these stores is generated offline?

Third, products are king.

1. How do enterprises become product kings?

Business leaders should be original. What is ingenuity? Ingenuity is "the top leader is fully committed to the product".

Yang Guoqiang, the founder of Country Garden with a market value of more than 200 billion, is over 60 years old. He is still studying the product himself. When he finds out what's wrong with the new apartment, he will directly call the dean of design for in-depth communication. How can this spirit not create a good product?

2. How to make a good product?

What is a high-quality product? Yang Guoqiang believes that a good product should have a high cost performance. To achieve "three highs and three lows", that is, "high value, high quality and high efficiency" and "low cost, low gross profit and low price".

Gao Yan value

High face value is good-looking. Nowadays, consumers are all looking at animals and pursuing aesthetics. Good-looking products are more attractive. So what kind of products look good? Yang Guoqiang believes that good-looking products should meet three elements, namely "simplicity, fashion and sense of series", just like the products of Apple, Uniqlo and IKEA.

high quality

High quality is good quality, and consumers want good products with good texture. So how can we achieve good quality? Choose excellent suppliers. So why do excellent suppliers cooperate with me? Yang Guoqiang gave several magic weapons, such as "First, throwing money, placing big orders and giving cash". He grasped the pain point of the supplier, the order was unstable, and gave the solution. Ranked first shows that the company attaches great importance to it, "throwing money" means that it is willing to spend money, "placing a big order" means that it really wants to cooperate with suppliers for a long time, and "giving cash" means that the payment situation is good and there is no long account period. Only by winning high-quality suppliers can we ensure the quality and stability of products.

High efficiency and low cost

High efficiency and low cost are actually the same thing. Without low cost, high efficiency cannot be brought. Because of high efficiency, the cost is reduced. So how to achieve high efficiency and low cost? Ye Guofu gave three magic weapons: explosive product strategy, large-scale procurement and shortening channels. The explosive product strategy is to sell only the best items; Large-scale procurement is to reduce procurement costs, and shortening channels is to reduce the intermediate costs of channels. Every product of famous products must be carefully selected, purchased by the head office and sent directly from the factory to the store. All these processes are controlled by big data in the background, achieving low cost and high efficiency.

Low gross profit and low price

Low gross profit and low price. High quality and low price are the business philosophy of famous products, but Ye Guofu emphasized that low gross profit and low price do not mean low quality. The manpower and material resources spent on these products dare not be frugal at all. Moreover, he also cited several secret examples of Victoria, a world-class brand. Its product price can be so close to the people, ranging from $65,438 +00-299, which is a world-class brand.

Fourth, brand.

Ye Guofu has its own brand methodology. He believes that a good product creates a good reputation, and a good reputation is a good brand.

Consumer recognition is the best publicity for enterprises. You think the customer must be happy to buy a good product. With such a beautiful product and such a favorable price, he will certainly be tempted to send friends. The publicity brought by consumer social networks will have an exponential promotion effect.

The above is my summary of sharing with the famous teacher Ye Guofu, and I also want to write a little about my own gains.

Looking back at the whole business model of sharing famous products, I am most interested in it. Why is this small commodity retail store successful? Why are other similar enterprises not doing as well as him? Is it because of the explosion strategy? Is it because of the unified store decoration? Is it because the intermediate cost has been compressed? number

His business model solves these problems as a whole. He found the core pain points of suppliers' "unstable orders", retailers' "unstable product quality", the key elements of consumers' consumption decision-making "good quality, low price and good experience" and investors' "having money and resources but not finding good projects". Then he coordinated the pain points and interests of all parties, formulated reasonable rules of the game and stuck to it. For example, many investors think this model is very good. They will use their own resources to find the best place to open a shop in their familiar cities, win the shop at the lowest cost, and then cooperate with famous products to achieve win-win results.