Over the past few years, the development of e-commerce retail has caused many physical retailers to suffer, and even let the whole retail industry of real entities have entered a stalemate in development. E-commerce retail has its inherent advantages, such as cross-regional, overtime, low-cost, etc., and modern consumers are more accustomed to this type of Internet consumption. This is an unavoidable issue for retail entities, but it is not a problem that cannot be overcome.
It is reported that the designer fast fashion brand KM based on the Nordic culture brand has added more than 200 stores at an alarming rate at a time when physical retailers generally encountered a development bottleneck last year. This is not enough, and KM plans to continue investing this year. 6 billion, 300 new stores opened. In the escalating physical retail industry, how does KM achieve rapid increase in storefronts and maintain sales?
Earn strengths and avoid short-term prices to win In the confrontation with e-commerce retailers, physical retail companies need to avoid weaknesses and surpass the innovation-based consumer experience that e-commerce retailers bring to consumers. This requires the physical retail industry to differentiate itself from e-commerce retail sales. Advantages and disadvantages. A major reason why e-commerce retail can attract consumers is price advantage. Modern consumers tend to consider prices in conjunction with the pursuit of fashion trends. If the price exceeds the value of the product itself, consumers will often not pay. Traditional physical retail brands do not seem to be able to lower their prices because there are distributors and agents in the middle, and the goods sold to consumers can only be sold on a relatively high price base. There is a dilemma of losing money or no profit.
The secret of KM Men's ability to keep adding new stores quickly and selling on-site hot is actually price. It is understood that after KM entered the Chinese market, it did not follow the footsteps of traditional retail entities—raising prices, but instead set a new path to create a unique sustainable development model that would supply Scandinavian's best quality fashion design products at extremely low prices. What makes Chinese consumers feel even more inconceivable is that KM Menswear is not inferior to ZARA, Uniqlo and other brands in terms of design, tailoring, creativity, or matching, but it is sold to consumers at a price that is nearly cost-effective. This is a major advantage of KM in the e-commerce retail under high pressure.
Face the challenge
According to the latest industry news, KM will not only invest 600 million new 300 stores this year, but it will also have plans to add 600 stores in 2017. In 2018, it will invest 20 billion in 1,000 new stores, and it will be completed in China. Established a physical retail layout for 2000 stores. As KM's philosophy is that all customers have the ability to purchase high-quality fashion products, China's physical retail industry should break through from the perspective of satisfying consumer demand, and seek new developments in physical retail based on innovative brand management models. .
Blindly rising physical retail brands will most likely spur both the retailer's retail sales and the new entity's retail model. It will obviously be unwise to seek breakthroughs or changes, and it will be difficult to keep pace with the development of the industry. KM quickly added more than 200 physical stores and maintained a good operation during the year, perhaps due to the timely adjustment of the challenges faced by e-commerce retailers, or perhaps just because KM understands China better than ZARA and other brands. The psychological needs of consumers.
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