There Are A Variety Of Internal Hidden Rules In The Retail Industry.

China's retail industry takes traditional department stores as an example. Most of them adopt the business mode of affiliation, introduction of brands and charging various "entry fees". They rely on sales rebates, extension of accounts and charging of "entry fees" as the main source of profits, resulting in high price.

At present, there are general problems of high rate of deduction, long account period, promotion cost and various unspoken rules.

Many consumers do not know this.

Especially in the north, the hidden rules of suppliers and shopping malls in department stores are extremely serious.

From shopping malls to investment promotion, brand adjustment, decoration contract, deduction rate, return point rate and so on, there are various internal rules in these links.

From the factory production to the shopping mall, it has also experienced many layers of agents (the common process is: the producer, the general agent, the regional agent, the dealer, the shopping mall), which directly leads to the final retail price of the goods that consumers are facing.

Taking clothing as an example, many garment suppliers have said that the high price of clothing in the mall is not their original intention, it is the various fees charged by the mall, forcing enterprises to increase their prices and sell clothes.

Every big holiday, the mall will launch more vigorous promotional activities, will eventually be passed on to suppliers.

After deducting the rent, assessment fee, tax and so on, the mall can sell 65 yuan for every 100 yuan sold.

And now, the cost of raw materials, shop staff salaries and so on are increasing year by year, can only raise the price of clothing.

What is a foreign department store?

Western retail industry adopts the strategy of private brand, that is, the combination of retail industry and manufacturing industry, the superposition of commercial brand and commodity brand, and the vertical integration management from design, manufacture to sales, so as to minimize the cost and optimize the channel, so that consumers can buy goods with good quality and low price.

Many foreign department stores have their own commodity brands, and 70% of Sears stores in the United States own their own brands, which has become the core of their success.

Owning own brand can not only keep the consistency of stores brand, but also reduce the cost of procurement, and also solve the problem of brand choice being restricted by supplier channels.

For traditional department stores, pformation is not necessarily dependent.

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Let's take a look at him first. In 2015, Inditex group boss Amancio Ortega surpassed Gates with $79 billion 800 million assets and became the richest man in the world.

The same is the clothing industry, Japan's UNIQLO boss, fast Marketing Group Chairman Liu well is ranked forty-first in the world in 2015, two years later became the richest man in Japan.

The examples of these 2 brands are that they do not rely much on the Internet, but rather rely on their own research and development, high quality and low price clothes to get very large sales.

At the end of 2016, Ma said: in the next thirty years, new retail will replace the so-called traditional sales mode.

Whether new retail or traditional retail, we must follow the basic law of development, and core competitiveness is the most important.

The traditional sales industry should not blindly follow suit, think that only "unified industry + Internet", in my view, the pformation of traditional enterprises is fundamentally based on technological change, and the core competitiveness is the most important.

For more information, please pay attention to the world clothing shoes and hats net report.