Interpretation of Kappa Business Model

Positioning: Dodge the wolf's nest away from the tiger's mouth

We are discussing if I can avoid the competition if I take fashion. The conclusion is certainly yes, but the next competition avoids Nike and Adi. Who will it meet? That's Esprit, Jack & Jones. Of course we can't just emerge from the wolf's wolves and get into the tiger's mouth again. So choose the fashion line. What do I need to do with it?

First of all, your industry is faster. Because fashion is already fast, unpleasantness is only waiting to be eaten by others. Traditional sports goods, including Nike, Adi, and Li Ning, are generally ordered four times a year, but Esprit, Jack & Jones are ordered 12 times a year. So we have to think, can our ability make 12 orders? We can't do it. My design and development can't keep up with this speed.

Second, from the perspective of business model, Nike and Addi appear in the form of distribution. Nike has little retail sales in the world except for its own retail stores in the United States and London. Adi is the same. But fashion brands are basically started from their own retail. What are the capabilities it needs below these two forms? First of all, you need to have control over your consumers. How can this control be achieved?

Retail is actually a very professional thing. When customers come to your store, they have to stay for a few minutes. Then the clerk may go up and talk to him. Too eager customers will be bored, and cold will lose customers. This very professional experience is not what we have.

As a result, we must be very clear about our positioning. What I want to do is sports fashion, not pan-fashion. There are several points in the appeal of sports: First, I like this dress; Second, I like this sporty spirit. So we left Nike and Adi to find a new blue ocean, but we must avoid the more fierce field of fashion competition.

Channel construction: with whom

If I do sports, who should I be with? So I have to choose to accompanied Nike, Adi these brands. The sports area in the mall is generally on the sixth floor. The more you go up, the less you have. We have also met some shopping malls and found that our products are good for sale. They are very fashionable. They have come forward and we have to give you a better position on the second floor and the third floor. We have rejected it. Although the taste of my product's fashion has increased, I must let the average consumer appear as a sports expert when they see it. This is based on brand positioning channel management, channel settings.

Marketing: Wu Wu second

There is a saying in the Chinese tradition: "Nothing in the text, Nothing in the Wu". Sports is also a "wu". Everyone will always remember who Liu Xiang is, but no one will remember the second name Shi Dongpeng. Can I compete with Nike for Liu Xiang? I don't think I have this ability. Who should I help to spread? In addition to the fact that the efficiency of sports stars is higher than that of fashion and entertainment stars during the Olympics, what the average Chinese consumer is really interested in is still entertainment. So while we sponsored three Super League teams, we also sponsored e-sports athletes - video games. The National Sports Commission listed it as the 99th sports event. Those children playing games are exactly what we consume. This market strategy is actually forced to be helpless, but it is this approach that has helped us save a lot of money and drastically improved our profitability.

Supply Chain Management: The most important is the ability to turn singles

The biggest risk of fashion stuff is his greatest value, faster. It will be quick to see if you can sell it or sell it after it is listed. Your response speed is very fast. After selling the things you sell, can you quickly fill in the list and make up for it to be able to eat all the value of this item? If it is not easy to sell, will you still continue to do it in your one cycle, from the material organization to the retail? This involves research on the supply chain.

We are now generally four orders, and we can't do it any faster. This is our ability, which is also determined by the characteristics of our industry. After the ordering meeting is over, we will send the order received to the factory. Strictly speaking, we should place an order, sell it to him directly after production, and wait for the money.

But the problem is that when things are not going to sell, they will not be able to make money. What does the customer give you? For our industries, on the surface, I only need to complete my wholesale business and my business is done; but from the perspective of the value chain, I and he are sharing this value. I must not have exhausted him. He could not make money. That was the day I died.

Where is he likely to die? I believe that the gross margin we set aside for him is sufficient, but the key issue is that gross profit does not mean that he has ultimate profit. The ultimate profit depends on the seller. So we can not do one thing - this thing is not easy to sell after the listing, then I will no longer sell to customers, although he set, this is to save him, save him is to save myself. How can it be saved? This is reflected in the supply chain. I collected 100 orders at the fair, and we generally give the factory an average of 75% of the list, plus 25% of material reserves.

My information system will judge this thing is very easy to sell, sell well, normal or unsalable. If it's easy to sell, then I'll let the factory finish 25%, and I'm going to prepare a certain amount of material, which requires a series of instructions. Why is this arranged? Our current production organization capacity is still not up to the level of ZARA - they can supply 15 days globally. If I am on the premise that there is no material, from receiving orders to product shelves, it generally takes 45 days to 60 days. In other words, during the 90-day sales cycle, I supply the second shipment on the 50th day. This will not put much pressure on my sales, and I can also prevent some risks. This is the most important ability to turn singles. We have used this ability extremely. Compared with my competitors, I am the fastest, so as to maintain my advantage in this field.

In fact, every part of my opponent can do it. The key is whether or not it can be completed. I think the difficulty is in people. The most important factor in this process is the person.