This has to mention their supply chain. Itm.sofia's commodity supply chain is purchased by global buyers, and cooperative factories are integrated from Asian countries to European and American design firms. Its style goods are sold privately in China almost at the same time as the four major fashion exhibitions (new york, Milan, Paris and London Fashion Week), Japanese and Korean departments and Hong Kong and Taiwan departments. Itm.sofia only needs to check the quality and after-sales, so the supply chain cost is low, while EP's supply chain is produced by its own factory. This is also the fundamental reason why itm.sofia is lower than EP.
As far as business module is concerned, itm.sofia, because its business model is itm model, each of their stores is equipped with professional fashion designers resident in the store, and their aesthetics are all online, so their professionalism is definitely too strong in China. By the way, the new profession of professional fashion designer is also initiated by itm, which provides new employment opportunities for the society. ). Itm.sofia implements a membership contract service system, usually quarterly and annually. Itm.sofia pays more attention to customers' overall clothing image and excavates customers' inner connotation culture. Therefore, with the increasing attention of urban intellectual women to clothing, the acceptance and recognition of this new format and new model are getting higher and higher, and the renewal amount, repurchase rate and stickiness of membership contracts should be very high. EP is a traditional clothing store model, that is, selling goods and pursuing monthly performance. Compared with the current competition, the customer churn rate is high, but fortunately, it is a listed company with strong strength (in recent years, some clothing companies of listed companies have withdrawn from the market, and many have closed down, such as La Chapelle, VIP Bird and so on. ).
In terms of profit, itm.sofia mainly collects service fees through signing contracts, and clothing is only distributed and sold; EP Yaying still relies mainly on sales to maintain profits. The profit models of the two brands are different, and each has its own advantages.