Why do the brand merchants

A few days ago, I read an article about the contradictory mentality of brand-makers who are eager and worried about the business of the company, and the problems and conflicts encountered during the process. Problems and conflicts everyone knows that n many people say n many years n many times, in this also don't say much. In my opinion, whether the problem and conflict can be solved depends on how much profit and the value the business can bring to the brand. Clear the interests and values, made the determination, the problem conflict is no longer can not be resolved. The current situation is that the brand is aware of the trend, but if only to talk about the trend is a "virtual" thing, "real" is the brand to do the business to achieve what purpose, how to use the company to combine their own businesses to achieve 1+1>2 results. Make it clear that conflict can compromise. Let's take a look at the value of business to the brand:

1. Inventory Liquidation

As long as the public goods brand, there will be a backlog of inventory. In particular, there are time replacement characteristics of goods, such as clothing, such as it, update changes very quickly. This is because of the information asymmetry and end consumer demand, multi-level channel from the top of the bullwhip effect, the brand of consumer trends in the wrong judgments. Typical examples such as the 08 Olympic Games, some Beijing Olympic sponsors blindly increase, until the end of 09 there is still a large number of inventory can not digest, Adidas backlog of inventory value or even more than 1 billion. Clearance of low price dumping inventory will be faced with the impact of new product sales and protect the brand value of the problem, so often dare not blatantly do, and the enthusiasm of the retailer is not high, so large local passenger flow, of course, the main push can bring more sales of higher profits of the new (I usually go to the mall brand stores to buy clothes, are low floor of the golden position is very easy to find , there was a very deep impression, I heard that the season discount, looking for a long time, finally found in the corner of the high-rise, the salesman is a listless state of malaise, I was also stupid to think how not to sell in the store, and then want to understand. So digest inventory on the brand is a helpless and painful thing. The best place to clean up inventory is the borderless nature of the consumer, the unlimited shelf-life, the user's price sensitivity and the separation of the offline user.

2. Low cost coverage nationwide

We can see that in the continental countries, the consumer does not tend to do better than the retail giants, but medium-sized. Why? This is because the line under the inch of gold, whether it is a direct shop or a channel to store the money and the time required for too long, the business can help their low-cost rapid coverage of the country, so they are more willing to invest in resources and determination to do, naturally can do better. And in China, even the Giants, it is impossible to shop or channel to the remote and economically backward areas, because the cost is higher than the income. Even if there are channels can be paved, also because of the channel cost and information asymmetry, high commodity prices, the number of small, updated slow, leading to a vicious circle, sales do not go, become chicken ribs. In fact, China has countless such regions, the consumer power is not so strong, information is not so smooth, but there is no demand for consumption, but these needs are small and dispersed, the cost is too high. The numerous scattered small demand gathers together, is the big demand which cannot be belittled. While the Internet allows information to be symmetric, and the consumer is to let the goods flow through the stream, the logistics to the end consumers, the JINGUU also need not face-to-face transactions, but through the flow of information and logistics delivery, so the customer is so far to get through the national consumer channel the best low-cost and efficient fast solution, at least

3. Shorten the supply chain, reduce the cost of the channel, improve the profit, speed up the turnover of cash flow, grasp the power of the terminal

The channel is what, is the porter, between the brand merchant and the consumer move the box. Since the people sell the strength (although this value is very low), it is appropriate for a Shing point of profit, you have to leave money in their hands to turn around, busy not to come when you have to play a big pick and pick. Speaking of which, I have to worshipping mention the United States and South Korea, because people's retail channel structure simplification, so on average 10%-15% of the gross margin can also make money, more than 20% of the gross margin in the country also shouted less, is because our channel cost is too high, in the circulation of the participants too much, eventually leading to No one has enough to eat. Even more deadly is the channel Zhanya funds, on the Monday of his own brand cosmetics brother still on MSN with me to swear a big shopping mall even last year's first half of the payment has not been to his knot. Formerly is the channel for the King, now is the terminal for the king, who mastered the end consumer, who is the big rascal, enjoy the biggest profits, with other people's money flow to make reinvestment profits. Therefore, brand dealers want to engage in flat channel, the total generation of distributors to the channel to sink to the terminal. But in physics this is too much for money and time, Siemens in the last century to do their own mobile phone when tried to engage in direct camp, the results found too advanced, and ultimately rely on the amount of channels out; a few years ago Gree and Gome Su ning after bite to engage in straight camp, after a few years eventually to repair, but pay the price is really not small. Brand business and channel is always the process of game, when the influence of the channel is greater than the impact of the brand, channels can even determine the life and death of the brand. To give an extreme example: The great Amazon I admire most, after a few years ago, turned over the line giants like the BASF Bookstore, step by step up, first blocked the disobedient publishers, now the great God Bezos vision to see the decline of the U.S. physical book retailing, to make a Kindle with an era of significance, Changing the form of commodity media to adapt to changes in consumer demand. Because of the change of the medium form of the commodity and the subversive change of the circulation form, Amazon occupies the main position in the value chain, and will get the most profits, and the publishers are stripped of their skins. Publishers are naturally unhappy about making calls, and, well, Amazon kicks off publishers, works like Apple's Kindle stores, and works directly with content creators. Publishers are worth two of books in retail: print and sell. Amazon's web site itself is the role of publicity and distribution, now even printing is not necessary to digitize the library media, so publishers naturally have no value, this is a typical value replacement. In essence, Amazon is a terminal channel (retail type or channel), who mastered the terminal, who mastered the ultimate power.

4. Based on data mining and interaction to master the real needs of the terminal, the real flexible production

Each year the brand will spend a lot of money to the professional research company to do consumer demand research, but due to research methods/time and place environment limitations/sample size/sample characteristics, the final report and real demand deviation. For example, my girlfriend and I first date, by a major brand of research companies pulled aside to ask questions, asked me not to use this brand, I could not afford to use the face to say, or ask me to buy a few times a year I would have bought a little bit more frequent; or ask me what color I like to say I love a color (my girlfriend's favorite color) , even to get a little gift to my girlfriend, I licked my face to say that I was the brand's loyal fan (obviously never heard of this brand ...). Obviously, this sample distortion, coupled with the research company's not serious, I really do not know how high the authenticity of such reports, although the big side will not be too much wrong. In addition to the brand's own sales data accumulation, you know your products sold to who, they are male and female, how old, what area what the professional income, what are their real needs? Obviously you only know the approximate, far enough thin, and not enough real-time. In reference to the basis of limited circumstances, the brand can only through experience to gamble to follow the ostrich, watching peers do what to do, to wrong together wrong. It's not going to work. Advertising open, to guide consumer demand, through television and magazines these media to one-way communication with consumers. BUT, now the traditional media authority and attention in the downhill, are fast to be the internet media dry, they are in the transformation of the Internet. The biggest feature of the internet is real-time and interactive, brand of their own business in addition to the role of sales channels, but also to magnify the role of brand influence and precision of the role of the audience. Most of the users who come to your site are your brand audiences, in the two-way interaction with you to pass the demand is relatively real many, and the commodity shopping evaluation is the real evaluation of the goods consumers (special stores can not find a message to write the product evaluation, the estimated stores do not have a message). Based on real consumer information, shopping records, online surveys and commodity evaluation, product search volume (equivalent to Baidu Index, do Sem will first refer to the selected keyword Baidu index as a vane) and browsing volume/stay time and so many consumers with the mouse to vote accurate real data, Brand manufacturers can adjust the production capacity and style of goods according to the sales forecast to achieve flexible manufacturing, for example, through a small batch of new products sold in real time after the sales reaction to decide whether to add or adjust the merchandise, obviously this online is difficult to do, because the supply chain too long too dispersed efficiency is too low, resulting in slow reaction rate, low reaction degree, small reaction.

5. Meet the personalized needs of consumers, based on the discovery value of capacity advantages, CRM proactive precision marketing, personalized Association recommendation

In the case of clothing, oversize size, special color or special style, offline stores are not available or only one or two pieces. This is my deep feeling, every time I buy clothes to run half the city N stores, because I wear a fixed brand of XXL, not every shop has, or have XXL blouse did not XXL trousers, every time to buy clothes to run half of the city N shop (once I was in Zhuangsheng Chong-light fancy suit, jacket has XXL trousers did not, Salesman Check system only the East Xintiandi has trousers, I do not want to run so far to buy trousers, finally can only pay the deposit, she went off to pick up their trousers, the next day I get the situation I believe that is not uncommon, not only the consumer distress, brand manufacturers are also distressed, the east of the goods are not sold, the west of some people buy but no goods, If the scattered allocation of speed and cost can not be guaranteed, until the brand online sales to solve my distress. Even Wal-Mart, the retail king, is unlikely to meet the individual needs of every consumer, but Amazon can!

Physical shelves are limited by space and passenger flow, can only show some of the best-selling goods. A brand has hundreds of products a year, even the largest direct store/distributor, it is impossible to purchase. Even if entered, each product has a different display position. Sometimes it's not the mainstream of the commodity, but the display resources they get determine their sales. And the internet shelves are unlimited, based on capacity advantages, the Business-to-consumer can accommodate countless goods, while the other characteristics of the "intuitive display" can make all the goods are intuitive display, which is the discovery value of the long tail.

Strong as 7-11, also only know "the afternoon of July 25, rain, young women, 25 years old, bought coffee and rice balls" such data, do not know the consumer after the year what consumer behavior. Only according to the statistic value calculates the consumer group and the outside condition factor to the commodity sales the approximate fluctuation. Unable to track records to determine the consumer's unique consumption behavior, can not do CRM active precision marketing. This is the advantage of the customer, based on consumer information and shopping records analysis of his shopping preferences, the establishment of RFMP (last consumption time/consumption/consumption amount/commodity) model, at the right time to use Edm/sms Low-cost initiative to give him this time he may need the goods, Increase customer repeat purchase rate and active viscosity, reduce loss. To give a simple example: I bought a razor rack/blade set for the first time, after half a year to buy a blade, then you should press this frequency every six months ahead of one month to send me an email reminding me to buy a blade, two years later reminded me to change the knife.

We walked into a store where all the layout and furnishings were the same, and the goods at the entrance to the store were usually new or fast-selling items with low prices, used to attract attention and popularity. But in fact, everyone's shopping needs are different, someone in the shop door to buy goods 10 minutes away, someone to shop the most inside buy goods one hours before coming out. Unless the store adjusts the location of the goods, theoretically every consumer buys the same route/time for each item, which means that some of the consumers have gone unnecessary wasting time. and the consumer can for each different consumers according to his user habits/shopping record personalized adjustment product display order and way, everyone see the home page can be different, and even see the home page is different every time (this is the most NB of Amazon). And when we browse or buy goods, the customer can find the products that are related to our personalities and to the commonality of our people. For us to recommend related products, such as according to your shopping records for you to recommend XX products, browsed/bought this product has also browsed/bought XX merchandise, to enhance the customer unit price. Benefit from the accumulation of online databases, mining and analysis, this recommendation is based on real data matching high accuracy, and the recommended presentation way does not disturb consumers, not like the offline sales staff have no data, completely through experience and for the performance of the recommended products, both you do not trust and disgust.

So many of these are the values that can be brought to the brand, if you can achieve these values, I believe you can drive the brand to balance internal conflict, benefit distribution, bear the courage to turn costs. Of course, to achieve these values, it is not so easy, it will take a long time to invest. End with some numbers: 11% of TOP500 in the United States are brand makers, and TOP20 has 5 brands: Dell;apple;sony;hp;victoria ' S SECRET.

PS:

1. A private brand of men's friends got a small amount of venture capital, Kong Higong hi you.

2. Recent attention to several DM started the Web site: Macaulay Forest, Dream Bazaar and leisurely goods. The top two hit ads very crazy, after a quiet silence to make money, compared to the behavior itself, I am more concerned about the purpose behind the behavior.

3. Now the community is looking at E-commerce, I quote the words of Uncle Rockefeller to express my view: "Friendship based on business relationship is far better than the business based on friendship."

4. Rakuten in Japan's electricity market is very NB, Baidu search market in China is very nb,nb 1+NB 1 is equal to NB 2, I questioned. (according to one American classmate, Lotte has three NB in Japan: The system is very nb;mkt very NB Business relationship is very NB. I just don't know how much these three NB can replicate in China, anyway, in China's Taiwan region Rakuten and 7-11 Alliance also did not get what cheap, follow in Pchome;payeasy, Xing Qi technology/Yahoo Kimo, such as the first camp behind pick up the left

5. One of the famous Taiwanese in Taiwan is going to replicate its Taiwan success model in Shanghai, and it is said that the site has not yet been online for a VC with millions of knives. In view of the VC and I very familiar with, this time I do not have the mouth of the disorderly add comment, roar.

6. Non-famous electric business young male Zhang Zhiyong classmate unemployed at home after the start Volume production blog, quality is still good, I personally guess he is to take this to attract the attention of the gold owners. But Zhang classmate's RP is very worthy of scrutiny, because I call him JS Zhang, he and his wife Jia Jia students gave me a very nasty nickname "Electric quotient big xx" ...

7. The topic of the next article already has: "The big Taobao net goods brand strategy", please look forward to. But the recent really busy dying, but also fast Spring festival, it is not quiet heart to write things, estimated the article came out in March ... Cold March, cold to tomorrow, worry about the March, the reserved March, the North warm to swallow, and then confide in March days;