Misunderstanding Of Manufacturers Opening Shop

It is a famous dairy brand manufacturer in China. Its sales volume in all kinds of food supermarkets has always been the top three brands.

In 2005, they began to choose some cities to run their own dairy stores, and infiltrated all kinds of communities through franchise chains.

We will discuss some defects of this chain according to the performance of a T shop, and remind them of the changes in strategic thinking necessary to enter the franchise chain.

What we need to point out is that we are not looking at T with a purely critical view. The performance of some shops in the T chain has been quite good no matter from the traffic volume or the price of the customer.

To understand, from a manufacturer's brand to a retailer brand, the gap between them will take a long time and professional efforts to fill it.

The failure of T shop

From October 2005 to November, we conducted a continuous inspection of a T community Dairy Store, which was about 20 square meters.

Since it does not contain a deep evaluation of the store, we do not first analyze its customer structure, but from the most basic retail management technology, we can see in the following analysis that customer factors are playing a role.

Some of the findings are as follows:

Atmosphere - although a very important part of T products is young people (especially women), unfortunately, we do not think this T atmosphere is very attractive.

A prominent phenomenon is that because of the rapid temperature drop in Beijing this year, the whole city has presented the unique cold gray in winter.

Naturally, customers really want to experience the "warm" smell in the store.

But the main color of T's display is still in the habit of summer, showing green, white, blue and other cool colors.

Coupled with the dark tone of the store shelf, the whole store is rather cold.

In addition, the chaos display in horizontal freezer will also deepen the bad feeling of customers.

Lights - although some of the products of T dairy shop can not have too much lighting, but compared with the excellent convenience store, the T lighting is still too dim.

If there are better sources of fluorescent lamps above certain shelves, especially those on the inner wall of the doorway, it is expected to bring 10% or even 30% to 40% increase in sales.

Products -- obviously, T's practical experience in various stores helps it, the dairy structure in the shop is reasonable, but when we look at other commodities of T, there are many problems.

T is clearly aware that dairy has become a basic dietary ingredient. Many office workers like to buy a box of dairy products and a bread at the same time.

They believe in the quality of T products and value the convenience of T stores, but they do not choose to drink milk on an empty stomach. Therefore, T specially set up shelves for bread and other packaged foods, with a view to attracting more customers outside the specialized dairy customers.

But at present, the brand of bread in T shop is very complicated, and there are few brands recognized by the market.

For customers who drink dairy products originally for health, this will not only attract their purchase, but also hurt their impression of T dairy shop.

This shows that T store chain has great problems in commodity structure and procurement strategy.

The characteristics of bread are not highlighted in the shop.

Although the shop owner may know the principle of a commodity display: bread, grain and so on are best displayed on wooden shelves for buying desire.

But the problem is: the wooden shelves of T store are in the wrong color.

When the shop lights are not very strong, it should display bread with light yellow wooden shelves, and preferably with natural wood grain, or bamboo basket display.

In fact, in the T store, besides dairy products, there are many ready to eat foods, which can form many kinds of matching sales opportunities.

For example, simple working meals in the morning and noon, for small groups of students on the way to school.

But the store did not find and strengthen these collocations, and lost many sales opportunities.

What can we see from these results?

Retail is a business that combines many details. It often does not need to be guided by strategic and systematic thinking. Retail organizations are also flatter than those of ordinary manufacturers. But because of this, if retail guidance is slightly biased, the performance of stores will be a thousand li.

So, people who do retail business do not understand the trajectory of retail. Why?

Mistake of manufacturer

At present, not only dairy products, mobile phones, household appliances, kitchen utensils and other manufacturers are continuing to join the retail industry, but our research is to remind them: retail has the rule of retail, if you do not go deep into the retail operation, step by step improvement from the details, it is likely to follow the martyrs' footsteps.

Ordinary manufacturers join in chain stores. The biggest mistake of the criminals is that they only regard their chain stores as a channel for their own product distribution, but not really close to the retail business, so as to find out the rules.

If there are such concepts in the consciousness of manufacturers chain stores, the details will emerge one after another.

The failure of this strategic direction will lead to many chain reactions in chain retail business.

1., we value the profit model of commodities and ignore the profit pattern of retailers.

This is a fundamental mistake: if manufacturers value their goods too much and are too confident about the profitability of their products, they often neglect the retail principle of using commodity structure to earn money. The following problems arise:

Even if the sales cycle of their own products is long and the turnover rate is slow, they are reluctant to change.

This is a serious violation of the principle of "enter and sell fast" by retailers.

A chain store of a food manufacturer placed its group's coffee drinks in the gold position, but because of price and quality problems, sales were very small.

But because it is a "close relative" and refuses to withdraw, it insists that selling other well-known coffee drinks is for others.

If we ignore the retailer's profit model, it will probably lead to the failure of chain stores.

If you fail, you will have no access to this channel. What brand building will you talk about?

In other words, if you go to a third party investor with a chain project, will he allow you to adhere to the "profit" mode that takes your product as the core?

But at present, the brand of bread in T shop is very complicated, and there are few brands recognized by the market.

For customers who drink dairy products originally for health, this will not only attract their purchase, but also hurt their impression of T dairy shop.

This shows that T store chain has great problems in commodity structure and procurement strategy.

The characteristics of bread are not highlighted in the shop.

Although the shop owner may know the principle of a commodity display: bread, grain and so on are best displayed on wooden shelves for buying desire.

But the problem is: the wooden shelves of T store are in the wrong color.

When the shop lights are not very strong, it should display bread with light yellow wooden shelves, and preferably with natural wood grain, or bamboo basket display.

In fact, in the T store, besides dairy products, there are many ready to eat foods, which can form many kinds of matching sales opportunities.

For example, simple working meals in the morning and noon, for small groups of students on the way to school.

But the store did not find and strengthen these collocations, and lost many sales opportunities.

What can we see from these results?

Retail is a business that combines many details. It often does not need to be guided by strategic and systematic thinking. Retail organizations are also flatter than those of ordinary manufacturers. But because of this, if retail guidance is slightly biased, the performance of stores will be a thousand li.

So, people who do retail business do not understand the trajectory of retail. Why?

Mistake of manufacturer

At present, not only dairy products, mobile phones, household appliances, kitchen utensils and other manufacturers are continuing to join the retail industry, but our research is to remind them: retail has the rule of retail, if you do not go deep into the retail operation, step by step improvement from the details, it is likely to follow the martyrs' footsteps.

Ordinary manufacturers join in chain stores. The biggest mistake of the criminals is that they only regard their chain stores as a channel for their own product distribution, but not really close to the retail business, so as to find out the rules.

If there are such concepts in the consciousness of manufacturers chain stores, the details will emerge one after another.

The failure of this strategic direction will lead to many chain reactions in chain retail business.

1., we value the profit model of commodities and ignore the profit pattern of retailers.

This is a fundamental mistake: if manufacturers value their goods too much and are too confident about the profitability of their products, they often neglect the retail principle of using commodity structure to earn money. The following problems arise:

Even if the sales cycle of home goods is long and the turnover rate is slow, it is also reluctant to change.

This is a serious violation of the principle of "enter and sell fast" by retailers.

A chain store of a food manufacturer placed its group's coffee drinks in the gold position, but because of price and quality problems, sales were very small.

But because it is a "close relative" and refuses to withdraw, it insists that selling other well-known coffee drinks is for others.

If we ignore the retailer's profit model, it will probably lead to the failure of chain stores.

If you fail, you will have no access to this channel. What brand building will you talk about?

In other words, if you go to a third party investor with a chain project, will he allow you to adhere to the "profit" mode that takes your product as the core?

But at present, the brand of bread in T shop is very complicated, and there are few brands recognized by the market.

For customers who drink dairy products originally for health, this will not only attract their purchase, but also hurt their impression of T dairy shop.

This shows that T store chain has great problems in commodity structure and procurement strategy.

The characteristics of bread are not highlighted in the shop.

Although the shop owner may know the principle of a commodity display: bread, grain and so on are best displayed on wooden shelves for buying desire.

But the problem is: the wooden shelves of T store are in the wrong color.

When the shop lights are not very strong, it should display bread with light yellow wooden shelves, and preferably with natural wood grain, or bamboo basket display.

In fact, in the T store, besides dairy products, there are many ready to eat foods, which can form many kinds of matching sales opportunities.

For example, simple working meals in the morning and noon, for small groups of students on the way to school.

But the store did not find and strengthen these collocations, and lost many sales opportunities.

What can we see from these results?

Retail is a business that combines many details. It often does not need to be guided by strategic and systematic thinking. Retail organizations are also flatter than those of ordinary manufacturers. But because of this, if retail guidance is slightly biased, the performance of stores will be a thousand li.

So, people who do retail business do not understand the trajectory of retail. Why?

Mistake of manufacturer

At present, not only dairy products, mobile phones, household appliances, kitchen utensils and other manufacturers are continuing to join the retail industry, but our research is to remind them: retail has the rule of retail, if you do not go deep into the retail operation, step by step improvement from the details, it is likely to follow the martyrs' footsteps.

Ordinary manufacturers join in chain stores. The biggest mistake of the criminals is that they only regard their chain stores as a channel for their own product distribution, but not really close to the retail business, so as to find out the rules.

If there are such concepts in the consciousness of manufacturers chain stores, the details will emerge one after another.

The failure of this strategic direction will lead to many chain reactions in chain retail business.

1., we value the profit model of commodities and ignore the profit pattern of retailers.

This is a fundamental mistake: if manufacturers value their goods too much and are too confident about the profitability of their own products, they often neglect to make money in retail with commodity structure.