New Way To Sink Market: "Super Store" To Crack Thousands Of Cities

It is an important task for many famous brands at home and abroad to find market increments in recent years.

The end of the North drift back to the old city of Henan municipal institutions to work Xiao Chen, in the old home has sunken market open shop practice. Her parents have local brands in their locals and run more than 10 drinks chain stores.

In the past two years, with the popularity of the red drinks such as Xi Cha, Lu Jiao lane and so on, Xiao Chen, who has worked as a marketing planner in Beijing, tries to change the management ideas of the founders of his parents and relocate the brand of the shop.

After a period of groping, she concluded that the happy tea mode of a second tier city is not suitable for such a small city in her hometown. The locals are more realistic. In addition, the urban area is small, and people ride home for more than 10 minutes at home from work. There is little demand for the third spaces in the middle and high-end beverage shops. At present, two brands of imported drinks are located in the hottest area. The milk tea is between 7 yuan and 10 yuan per cup.

The economic level of the prefecture level city where her hometown is located in the top five ranks in Henan is regarded as a big agricultural city with a well-known brand of agricultural products. McDonald's has opened two stores in their downtown area. They have been closed for various reasons. There is no Starbucks in the locals, and Dicos is the hottest fast food restaurant.

The "double eleven" war is about to begin. Electricity consumption growth is slowing. Brand dealers and consumers seem to be more calm than ever before. The new battlefield facing the sinking market is still hot. The 345 tier cities have become the new market for companies seeking incremental growth.

In the past two years, the infrastructure, population and urbanization of new tier cities and 345 tier cities have been closely watched by consumer brands and become the strategic weathervane of brand sinking.

Go down to the market and open a big shop.

During the interview process, consumers in the 345 tier cities generally disagreed with the statement of "sinking market". Xiao Xu, a young man working in the Yichang government, believes that consumer brands from the first tier cities to the three or four tier cities are a "go out" process, a process of moving from the small to the public, and also an inevitable choice for finding new increments after the slowdown in the consumer market in the first tier cities.

Many enterprises believe that the consumption of small and medium-sized cities in central and Western China has increased rapidly. However, it is worth noting that the smaller the number of young people in the Midwest, the more attractive young people are. The director of a snack food Unicorn enterprise in Hangzhou said that for the brand sinking, there was a big difference between different categories. For example, snack products upgraded, the main audience was a white-collar worker in the second tier cities, and more concerned about the independent packaging and quality. The sinking market is an incremental market in the enterprise storytelling. Their products will sink along with Tmall stores and Jingdong convenience stores, but the market share has not yet been paid special attention to. Their own offline stores are mainly experiential shops, mostly in Hangzhou and the economically active prefecture level cities in the Yangtze River Delta.

Compared with the high-end drinks and snacks enterprises, the clothing and sports brand's sinking seems to be more smoothly. In an interview with the economic news reporters in twenty-first Century, it was found that the brands that had opened up shop in the sunken market were more and more valued by opening up experience shops, such as millet experience shop and apple experience store. The American sports brand Skech started a "super large store" mode in China's prefecture level city.

The star clothing brand of another sunken market is the home of Hai Lan. Most of the cities and counties in the Midwest can see the storefront of Hai Lan's home. Most of the shops are located in the core area of the County Center, with large shops and a sense of quality in other clothing stores in the county seat.

With the popularity of consumer electronics, the experience advantage of offline stores is becoming more and more obvious. According to Skech Chen Weili of China CEO, there may be only one to two large shopping centers in the three or four tier cities, and the type of shops in super stores is more in line with local consumption habits and business models, which will be an important carrier of sinking. Including clothing, sports shoes, home appliances, and so on, there are more and more large stores in the sinking market.

The head of a Jingdong household appliance store in Yunnan also talked about the scale effect after upgrading the traditional couple shops. In addition to business needs and image display, large stores can display more brands and categories of products.

Xiao Xu, a civil servant working in the Yichang municipal government, told the twenty-first Century business news reporter that the first store opened by ZARA in Hubei was in Yichang (after the commercial dispute was withdrawn), and the fast fashion brands such as UNIQLO and HM had already opened shop in Yichang. Middle and high-end cosmetics SK-II, FANCL, Dior, and Cartire, MCM and COACH in jewelry bags also have shops in Yichang. He also mentioned that Skech, a former sports brand he bought at a shopping mall in Wuhan, also opened a factory store in Yichang.

Yichang is the top three city in Hubei, and it can also be regarded as the most fashionable prefecture level city in Hubei. Xiao Xu's summary of Yichang is fashionable but not fashionable. He believed that the brand sinks to the county and the city has made the comprehensive appraisal, the high-end luxury brand gives the person the luxury feeling, also lies in gives the sense of distance, if opens to all the cities and the county seat, besides the cost does not discuss, will certainly reduce the brand itself mystery and the sense of distance.

Xiao Xu, for example, said that some brands in the domestic shops are mainly in the second tier cities, and have a sense of distance for the three or four tier urban residents. However, when he went to Japan to buy Tiffany and MIKIMOTO, he found that these brands did not have the sense of high-end display in the domestic market, and the brand mystique and premium had dropped a lot in his mind.

For sports brand sinking, Chen Weili has more practical experience. He told the twenty-first Century business news reporter that China's 345 tier cities have changed greatly in recent years, and many small cities have MALL, which is very suitable for them to open the "big store" (experiential shop) mode. They opened three stores in Shanghai's Dragon dream, because they couldn't get a large location, but the Mall of the three or four tier cities had a large position, and developers attached great importance to them.

Thousands of small cities

Chen Wei emphasized the importance of traveling to China's small cities by using the practice experience of opening stores. If China's big cities are becoming more and more similar, small cities and counties and townships are very different. A city in Henan where Xiao Chen is located is a very traditional small town in the Midwest, and a city like Yichang belongs to a prefecture level city with good consumption and economic strength.

Take coffee consumption as an example. At present, many prefecture level cities in Central China do not have Starbucks stores. However, the total amount of GDP and Zhejiang's Yiwu, which are the same as Xiao Chen's hometown, are 11 cities and towns in the county level. There are a lot of coffee shops in Starbucks.

The 58 group leaders told the twenty-first Century business reporter that the gap between town and town is larger than that between the city and the city. China's counties and towns, especially the economically developed and densely populated southern provinces, are very active in automobile, employment and other consumer markets.

Some towns have industrial gathering areas, relatively stable business characteristics, local recruitment needs are very strong, some towns are mainly agriculture, related industries around the layout of agricultural patterns, active users are mainly locals; and some towns are the net outflow of population, business form is also very different. It is also a challenge to do well the detailed classification of tens of thousands of distributed information.

Xiaowen has the experience of developing O2O market in Yunnan and Sichuan. He shares a similar experience. Compared with his hometown Hubei and the Eastern small cities, the market development of Yunnan prefecture level city has its distinct regional attributes. The main business of Jingdong is to cooperate with local businessmen, while some of the prefecture level cities in Yunnan, though not large in scale, are mostly WAL-MART and Carrefour, which are very popular. The consumption is concentrated in one or two large stores, while Jingdong and WAL-MART, Carrefour have a nationwide joint venture, and business development is relatively smooth.

At present, Jingdong is home to Yunnan, Kunming, Qujing, Dali and Chuxiong. In addition to Kunming, these cities in 2018 GDP between 100 billion to 200 billion, in Yunnan prefecture level city GDP ranked six. Xiaowen said that when they consider the city's entry, they will first look at the macro data in the urban statistical yearbook, including macroeconomic and demographic data. In addition, we should take a look at local business resources and residents' consumption.

According to Chen Weili, they have opened a large store in Yanan, Shaanxi and Jinhua in Zhejiang. They found that consumers in different regions have different preferences and preferences in terms of their preferences for purchases. "Zhejiang"

Chen Weili said that when choosing a city to open a shop, he would go to see the government's policies and investment, including some airports, hotels and other supporting facilities in some cities. In recent years, China has paid more and more attention to nurturing a new batch of new tier cities and some regional central cities, and there are also many new opportunities for enterprises.

Online and offline sales tend to stabilize

For the purchasing power and market situation of the western region, Xiaowen analysis shows that the situation of Yunnan market is even easier to make profits than the first tier cities only from the perspective of enterprise revenue. The biggest cost of O2O business is manpower cost. Yunnan small cities have lower labor cost and lower living consumption ability. In recent years, the consumption market in the central and western regions has increased rapidly.

For the online purchasing power of the sinking market, Xiaowen believes that from the perspective of super O2O business, the online penetration rate is still rising. If we look at the data of a second tier city, the share of the online market may not increase so fast, but the central and western regions themselves have lower permeability and smaller base, so the share of online sales will increase very fast.

In recent years, the electricity supplier has penetrated into the fresh O2O business rapidly, and the proportion of sports shoes and clothing, apparel products online and offline sales has become more stable. Chen Weili introduced, according to their research, Cage has begun to stabilize online and offline. At present, what they do is to get through the whole channel as soon as possible, that is, to get through online and offline, and offline stores are also opening the big store mode, paying attention to offline shopping experience.

In 2018, the total retail sales of Cage market in China amounted to 14 billion 100 million yuan, an increase of 36% over the same period, and about 19000000 pairs of shoes were sold. Skech's product price is within the consumption capacity of the three or four tier cities, between domestic brands and other international brands, and sells well in low tier cities.

Xiao Chen, a working unit in a prefecture level city in Henan, said many young people in the three or four cities do not have the pressure of mortgage loans. Their parents buy houses to their children to marry very often, and the cost of raising their children in many families is shared by their parents. She and her husband both work in public institutions, and the houses and cars are bought before marriage. Although family income is only around 10000 yuan, the fees for children's school and milk powder are all burdled by the parents in law, and she has extra income from rent and shops.

Whether online or offline, people in small cities do generally mention that the biggest problem in the Midwest is not enough young people. Whether it is the sinking of Internet companies or the development of cities, it is not enough to retain and attract young talents.