Listen to this course taught by Mr. Ye Guofu, founder of Miniso, at Chaos University to refresh your logic and understanding of modern retail.
Teacher Ye Guofu has been engaged in the retail industry for nearly 20 years. Starting from the bottom-level understanding of the nature of the retail industry, in the current cold winter period of physical stores, more than 2,000 stores have been opened worldwide in four years, and have been recognized by Muji and Watsons. , Uniqlo is listed as "the most terrifying competitor in the world", and is also the first Chinese to open a store in the world the fastest.
He shared his experience and the secret of Miniso’s success, mainly in three parts: from the era of retail 1.0 to the era of retail 4.0, the “three highs” of creating products with extremely high cost performance ", creating the "Three Lows" of extremely cost-effective products
Different retail eras in Mr. Ye's eyes: 1.0 era - mainly offline; 2.0 era - mainly online (in the past ten years, Taobao and other e-commerce platforms); 3.0 era - online and offline (in the past year); 4.0 era - products are king (the era of small and beautiful selections replaces the era of large and comprehensive)
The reason for the change is based on the background of an era and the current social situation
The background of the era: the 1970s - no food and no clothing; the 1980s - well fed and clothed; today - well fed and well clothed. People are more concerned about eating healthily and wearing comfortable clothes.
The current situation of society: excessive material abundance, highly transparent information, and extremely precious time. The current social situation makes everyone pay more attention to spiritual enjoyment, social interaction and fitness, and they have less and less time for shopping. Therefore, the previous era of large and comprehensive products has changed to small and beautiful consumer demand.
Product is the first strategy of an enterprise. If you position the crowd and price well, and create a product with a very high cost performance of 90 to 95, you can have sustained competitiveness. Then through "three highs and three lows" to create products with extremely high cost performance.
Specifically: good looks, high quality, high efficiency
Teacher Ye Guofu advocates good looks as justice. Classic products are extremely simple.
Every entrepreneur is an artist and advocates learning from American and Japanese design. From software design, packaging design, appearance design, everything is detailed. For example, the design of Apple mobile phones is still the most beautiful product in the mobile phone market, and Miniso invests heavily in design to increase the added value of the product, making the product's beauty transcend its price.
The design is divided into three elements: sense of series, simplicity and fashion. For example, Apple's series feel, from mobile phones to charging cables to charging heads, is a series of styles and extreme simplicity, and simplicity is high-end fashion.
I think of the first time I received Xiaoyou (Uelaisin). It was packaged in a pure white bottom lid box, with a little blue ribbon exposed at both ends. After tearing off the plastic bag, pull the two ribbons up and lift them up. The cover slowly rose, revealing translucent copy paper, wrapped in 10 bags of simple rectangular bags, but the four corners were carefully designed into arcs, with a small hole left at one end for tearing. The simple and fashionable design of white and blue is in line with high appearance~
The core is to find the right suppliers and develop good products. Find the best factory in the industry, grab it, spend money on it, place a big order, and give cash.
Minso’s products are all sourced from world-class brand manufacturers. For example, eyebrow pencils and eyeliners are directly supplied by manufacturers such as Dior, Pamp; It also invests in high-quality suppliers to create an ecological supply chain. Create high-quality, low-price, high-quality and cost-effective products.
The raw material of elastin, collagen peptide, is purchased from Nitta Gelatin, a Japanese century-old collagen company (reported by CCTV); the elastin peptide is purchased from Linkan Industrial Co., Ltd., which has patented technology. The manufacturing plant is Shanghai Puwei, also the manufacturer of Yunnan Baiyao. Comply with high quality~
High efficiency = low cost. Three methods: explosive product strategy, large-scale procurement, and shortened channels.
Teacher Ye Guofu once went to a 30-square-meter restaurant to eat. The food was served 2 minutes after ordering. He found that there were only 10 dishes on the menu and there were not many choices for ordering. He finished ordering quickly and the kitchen prepared The ingredients are available quickly and the chef is very skilled and serves the food quickly. Therefore, one wave of customers can finish eating in 30 minutes, and the next wave of customers can be replaced quickly. The table turnover rate is improved and efficient. Therefore, the product should not be too much but less.
A large number of branches and a complete logistics network allow Miniso to purchase premium products on a large scale. From the factory to the customer, there is only Miniso, which shortens the channel.
Uelaisin only produces Xiaoyou, this beauty and anti-aging food, which is a hit. The order volume of elastin in the first month exceeded Taiwan's annual purchasing volume. Large-scale purchasing does not go through traditional counters, and it also saves administrative fees and management fees for dealers at all levels. We are currently preparing to build a warehouse in the United States. Channels are shortened. In line with high efficiency and low cost~
Insist on high quality and low price. Low materials, low prices; high materials, high prices, everyone can do it, and there is no competitive advantage.
You get what you pay for, which no longer makes sense today. In the past, because information was opaque, we could not judge whether a product was good or not based on its quality and raw materials. We could only choose products based on brand and price.
With the help of the Internet, information is highly transparent and we can buy high-quality, low-price products.
Some friends said that if I develop new products through innovation, it will be okay to sell them at a high price, right? Teacher Ye Guofu believes that only when innovation can lead for a while, can cost-effectiveness continue to lead. If the price of a new product is too high and the consumer base is limited, it will definitely be replaced when a new product comes out. Therefore, even if the product is innovative, it is meaningless if it is too expensive.
It seems that I understand why the president asked Urelastin to only use micro-commerce channels. Collagen is originally very expensive, and adding a sufficient amount of elastin, which is hundreds of times more expensive than collagen, is available at offline counters. The effect is that it can instantly kill similar products, but the price will definitely increase several times, and the consumer group is effective, which is meaningless.
Therefore, we only engage in micro-business, shorten channels, and reduce costs, so that we can achieve today's affordable prices, extremely high cost performance, and continued leading development.
Teacher Ye Guofu believes that today’s brands are not traditional. They launch new products, shop around, and ask celebrities to endorse them. The current brand methodology is based on highly cost-effective products with a large number of users, followed by word-of-mouth and marketing to form a brand.
Therefore, the correct answer to the brand's internationalization strategy is: high-quality and low-price products are the passport to the world.
I want to say, isn’t this what Xiaoyou is talking about? Haha, we don’t advertise, we don’t ask celebrities for endorsements, we all rely on the incredible effect of customer experience, word-of-mouth, and sharing. In just one year after the listing, For a long time, agents are all over the world~