Why luxury rather rotten in the warehouse, it is not discounted

Edit / Shanlan (micro signal: wrong knife)

Luxury rotten warehouse is not discounted, cheap to buy with the acquisition of a dozen Amoy brand, but only as a meteor across.

Where is the problem?

Knife elder brother recommended investors speech, very thorough analysis!

The following content is licensed from the chaos Society (ID:dfscx2014), the text of investor Wang Gang

Today, some people can say that there are a number of sub brands under the bag? What are their names? No one remembers.

What is the reason for these Amoy brand, as fleeting as a meteor? I've been thinking about this.

In the era of e-commerce has just come up, Taobao as a new channel of weakness, once faced with an embarrassing situation: there is no first-line brand willing to come.

At that time, replica Louis Vuitton bags will sell things on Taobao? Impossible, it is to enter the new world. So Taobao can only focus on supporting a number of vulnerable brands, and grow together with them.

Taobao may vote 8 hundred million a year to do traffic, but only received a $200 million advertising costs, the middle of the flow of cheap who? These are the early years of advertising on Taobao vulnerable brands.

So we will see that there are a lot of company's performance will rise, many companies valuation quickly to hundreds of millions of yuan.

However, this time, entrepreneurs have not thought about, how is your growth?

first kind

In the enjoyment of the flow of dividends, did not seize the time to build brand premium, but in the price war drift.

Your growth is to rely on Taobao's traffic bonus up, rather than rely on their own brand driven.

You said my bag was selling well, and what about the man who sold the same bag next door? Opponents cheaper than you, you follow or not follow up? Consumers do not follow up, follow up the gross margin of 0.

So, Brand Company in the enjoyment of the flow of dividends, can seize the time to build a brand? Ability to build their own brand and design capabilities, quality control ability? Can not be timely to build brand premium, rather than in the price war drift?

If you want to build a brand, then you go to the world's top designers, killing are not discounted.

We are now Brand Company, will be from 220, sold to 220 pieces, even behind the 220 pieces of five pieces, a total of about $three. What are these clothes, can not wear a wash.

Many of us are businessmen, as long as the money, what can compromise. I heard that as long as the price down 1/3, sales will rise by up to three times. Why not do it? Of course, to earn money ah, we all think so.

We not only want the money, but also want the money tomorrow, but also the day after tomorrow's money, I would like to even yesterday's money would like to come back. We do a lot of immediate decisions that hurt our long-term returns.

Brand Company is the most taboo positioning drift, the user will not come back again, and you get the cost of new users will be more expensive.

So, what is a good Brand Company?

Brand Company's most taboo thing is to move the location of the customer to move. We see a lot of luxury brands, it would rather destroy the season, would rather rot in the warehouse, and no discount.

Why? Once you move your original user.

Society is a class a level, you let me and a Dan people wear the same clothes, use the same mobile phone, what I was feeling? Prefer not.

And the old users will not look back, because I have trusted you, and you cheated me, you get new users will be more expensive.

This is a Brand Company offset.

Second

Because it is well aware of the flow of the cost is very expensive, so to fully transform the flow of dividends, resulting in the weakening of the brand positioning and offset.

Brand Company also has an offset.

A lot of emerging Brand Company, because the cost of knowing the flow is very expensive, so it is necessary to transform the flow bonus: it does its own official website, Taobao's customers into their own official website.

But after official website, had to face a new problem: spend so much money to buy traffic to the website, if only sell clothes not too wasted. Why can't the pots and pans together to sell?

Where passengers are very tangled this problem. And because you love the flow bonus, you will have a flow bonus. You will find this decision is too wise, and indeed added new products, sales will increase.

But what did you show off? Is my material, touch the fabric is known as silk, the density and thickness of the material is the number of how many of the textile.

After you sell the pots and pans, how are you going to show off your core competencies? Is to touch the pot material?

Brand Company is showing off the product, is the material, is the development of brand management and control.

Retail companies is showing the ability to invest, the ability to join the brand, the ability to set rules.

These are two completely different competency models, and your company will fight.

Sales will say, with this position to put their own goods, sell so poor, why can not enter the goods?

Products will say, why the best location is not to their own brand, but to sell things outside?

This is split. Users will split.

Where exactly is a brand, or a channel? I used to wear the clothes of every guest, then I found that every guest is equivalent to Dangdang, then I will not wear the clothes?

This is the difference between Brand Company and retail companies.

People who want to get off every day can not do the brand, entrepreneurs should recognize their battlefield, if not, quit.

The brand is in need of the people to be free from arrogance and impetuosity. Would you like apple, let your fans go crazy, turn to line up, the wall came in to buy, whether or how can the smuggling of smuggled goods, and will buy, this is the brand.

Those who can not do two or three years to sell the company cash, it is difficult to do brand. These people should do retail companies, let the wowser do brand, then you help him make money, engage in marketing, advertising to sell the station.

I think the old lady is a brand. The old lady is very paranoid, it does not go on the market, who said it was useless, do the brand is the need for stock paranoia.

And the brand changed me. I am a northerner, before it can not eat spicy, but I now go to any restaurant to eat, the first point of the meal is to be able to match a little godmother? I'm sure I can't say I can get a bit of chili sauce, because I don't want any other chili sauce in your store. This is the power of the brand.

So I think we recognize their own battlefield, if you want to do the brand, it is necessary to maintain a long-distance running mentality. If not, quit.