For the practitioners in the retail industry, 2019 is too difficult for the real economy to close. According to statistics, 2019 of the US retail businesses have closed more than 9302, of which about 75% are garment and textile industries.
Credit Suisse also warned that the risk of US retail stores closing in 2020 would be as high or worse as that of this year.
Chinese entities cannot afford to sit still, because the domestic retail industry is also hard to escape.
"China A shares sports first share" close to 3000 shops,
"China's first underwear," 1500 city beauty shop.
The Chinese version of "ZARA" La Natsu Bell closes 2400 stores.
China shoes king Daphne closes 3860 stores...
Big brands are also falling down, and street stores are struggling to make a living. After seeing nearly 100 brands' close shop experiences this year, the reasons for the fall of the Republic are summed up as follows:
First, product homogenization, lack of competitiveness.
To open a store and make a brand is not to see what products others launch, but what products they push. If there are other things that you offer, what is unique about it? Looking at the current retail industry in China, the homogenization of products is still very serious.
There are so many stores on the market that there is no shortage of you. Why do consumers only shop at your store?
A good product is a strong brand development support.
For example, in April 30th, three years after the opening of the fresh supermarket box, Ma Sheng Sheng first announced the closure of the store.
At the same time, standing in the outlet of new retail, the US group has small elephants fresh, Tencent has "super species"... However, for an ordinary consumer, I really don't know the difference between these fresh supermarkets.
The sale of goods homogenization, there is no outstanding traffic products, consumers choose what you do? The final result will be just like the box horse, even if backed by Ali Mountain, will be eliminated by the market.
Therefore, products must understand consumers and market needs, only in this way can they react according to the market, launch the right products, and win the opportunities for the development of their own brands.
Two, crazy expansion shop, unable to make ends meet
In addition to product homogenization, the crazy expansion of stores is also a major killer of brand downfall. La Natsu Bell and Daphne really have to mention this.
La Natsu Bell, known as the "Chinese version of ZARA", has opened 9540 stores throughout the country at its best.
The more money we make, the more money we make and the money we spend constantly expanding new stores. The cost of labor and rents has soared. This has led to a tight chain of funds.
Take last year's data, La Natsu Bell's annual revenue growth is only 13.08%, and operating expenses reached 38.37%.
Now, in the face of performance losses and debt crisis, La Natsu Bell can only choose to sell real estate to tide over difficulties.
Besides, "China shoes king" Daphne. When Daphne performs best, it can sell 50 million pairs of women's shoes in 1 years, and nearly 800 stores open every year.
The success of a store will have tens of thousands of replicas. Daphne's open and rapid expansion, behind the surface of the scenery, in addition to higher and higher costs, is the more serious inventory backlog problem.
In order to solve the inventory problem, their year-round "jumping off the building sale" caused the brand image to collapse in the public mind.
4000 stores closed, the market value plummeted 16 billion 500 million, Daphne no longer looked at it.
In fact, many small brand owners began to have some wrong ideas when they opened their shops, because they did not have a sound layout thinking.
"I opened a shop in this street, and no competitor appeared. I made money, then I drove first; I opened another branch, and my competitors appeared, so my shop could not make money and turn it off."
Do not think that playing brand is crazy shop, to do things within the scope of the load, do not shop more money loss.
Three, ignore visual marketing, aesthetic weakness
Products can not, pattern thinking is no good, some brands often ignore the most basic shop value. How important is the shop value? There will be no net red shop in the next 10 years, because all the stores are net red shops.
Why is the brand of sportswear in full swing? Now, the "A shares of China's first sports stock" still do not survive, close nearly 3000 stores?
There are many reasons, but visual merchandising is bound to be included.
The colourful eyes make people unable to find the key points. There is no display of rules, no sense of substitution. This can be said to be a common fault in many sports brand shops, 360 degrees, once Anta, Lining...
In the future of the comprehensive upgrading of consumption, how can the old fashioned aesthetic shop survive in the big shuffle?
We must pay attention to visual merchandising.
In the new retail environment, consumption upgrading is actually upgrading aesthetic power. Many shopkeepers may not understand that the current aesthetic demand of consumers has reached 90 points, but now the store is less than 60 points.
If there is no image upgrades, do you have the confidence to head up and dominate in front of such stores?
Four, ignore consumer experience, service minus points
Of course, besides upgrading the visual experience, there is also an extension of the service in the store.
With the great enrichment of people's material level, many people are pursuing the function of commodity rather than the experience and feelings brought by service.
Many brands fail to conform to the trend and fail to create scenes or experience spaces in shops. The customer's cognition of brand is gradually formed during every contact with brand merchandise.
Why is IKEA open to all customers? Why do we need to do the best service? Why do these services extend their brand image?
The life cycle of a business without services is not long. The future retail industry will enter the era of experiential consumption.
Five, no management thinking, distraction.
To run a brand or a shop is bound to be confused. Some shopkeeper saw others' success stories, and thought they could succeed after learning. So it was copied and applied without any understanding of the details behind it.
Without systemically learning management, it would be like starting a business without getting a driver's license.
How can it compare with the big brands that are rich in professional systems and collectivization? How can they be able to keep up with the 95 generation of new generation personalities?
Good managers spend a lot of time predicting challenges, coordinating overall situations and drawing blueprints. If there is no overall management thinking and staff distraction, the brand will not last long.
Those shops that only sell things will become less competitive, and those entities that can provide users with unique experience will stand out.
Source: display Republican Author: focus on Visual Merchandising