Tian Ling youpin photography

Established on 20 13, the famous "China 10 yuan's largest store" has recently submitted an IPO prospectus to the US Securities and Exchange Commission, and plans to list on the NYSE.

Founder Ye Guofu never gave up the operation of offline traffic. As for a "ten-yuan store" with an annual income of about 9 billion and a gross profit margin of about 30%, what supported its rise? Modesty can make four sentences translate for you.

As a retail enterprise, products are the bridge between companies and consumers. Therefore, in the selection of materials and design, famous products can be said to have spent enough time.

There are two main points about the selection criteria of famous products. The first point is the nature of the product itself: only the basic models of high-frequency consumption are selected.

In the consciousness of many consumers, the basic paragraph has a strong positive orientation, breaking the boundary between the rich and the poor. Look at those famous and excellent products, which are basically basic models.

Such as cosmetics, towels, perfume, underwear. There are also some explosions, such as eyeliner, perfume and mineral water. , characterized by high frequency consumption. In the field of clothing, Uniqlo has achieved the ultimate in basic models, thus achieving great success.

The second point about product selection is the structure of the product: it covers all aspects of personal life.

Behind this point, it actually involves the consideration of the cost of obtaining and retaining customers and the cost of sales for retail enterprises. If famous products only sell one vertical category, such as cosmetics, or only sell high-margin products, it is not conducive to the company to balance the above three costs.

In short, the products on the shelves cover all aspects of consumers' lives through reasonable selection and collocation, which makes it difficult to give up.

This is at the level of product selection. Famous products also attach great importance to product design. One of the co-founders of the company, Japanese Miyake Junya, is a contract designer of several international leisure fashion brands. And his other identity is the chief designer of famous products.

In addition, the company has built a team of designers to imitate international big-name designs, which further ensures the design sense of products and reduces the design cost to some extent.

In the prospectus of famous and excellent products, "supply chain" has been mentioned more than 70 times.

Efficient supply chain management greatly shortens the overall cycle of design, production, transportation and sales, and achieves a high commodity turnover rate far exceeding that of similar enterprises.

Through research, we have sorted out several characteristics of supply chain management of famous products.

First, "eliminate" the distribution system and get the goods directly from the factory.

Different from the general traditional retail enterprises, there is no intermediate channel for famous products, but orders are placed directly from the factory. After leaving the factory, the products are transferred through nearly 20 warehouses around the world and sent to stores around the world.

Among more than 600 suppliers of famous products, there are many international big-name foundries. In addition, famous brands will regularly provide suppliers with suggestions on product quality, production efficiency and cost control, and send experts to give on-site guidance.

Second, "first, throw money, place big orders, and give cash."

This is the original words shared by Ye Guofu, the founder of the company. He often negotiates with suppliers personally, attracting suppliers to cooperate with him with large orders and attractive payment terms.

Too long an account period will often make the foundry fall into a cash flow crisis. The account period of famous products provided to suppliers is less than 20 days, which is much lower than that of enterprises of the same scale or even less. In other words, the famous products voluntarily gave up this part of the capital income brought by the long account period.

Thirdly, a digital management system including designers, product managers and suppliers has been established.

The system greatly improves the efficiency of inventory management of famous products.

In addition to the conventional digital functions such as suppliers can obtain real-time terminal sales data and dynamically optimize production plans, the system also has an automatic replenishment module, which can adjust the replenishment process of best-selling goods inventory, calculate unsalable goods between stores and make timely adjustments.

In addition, the system also includes a visual online quality control module, which enables the company to find the product quality problems of suppliers and franchisees in time.

However, shortly after the release of the prospectus, a nail polish of the company was found to have a carcinogen content exceeding the national standard limit of 1400 times. It seems that Mingchuang's supply chain management needs to further strengthen quality control on the basis of high efficiency.

Just mentioned the franchisees of famous and excellent products. Mingchuang has a unique joining mode, which is also very helpful for the company to generate income.

Cooperation policy of famous franchisees

Ye Guofu once revealed that he invested about 3 million yuan to open a franchise store of famous and excellent products. According to the annual turnover forecast and profit distribution policy (food category accounts for 33% of the turnover and other categories account for 38%), you can get nearly 2.7 million investment profits in the first year of joining, and you can pay back the capital in more than one year, and the investment profits will arrive in the account the next day every day.

Although the franchisee's initial investment is high, the famous products will make the franchisee "lie down and make money": the company has arranged decoration, clerk recruitment and store operation, and the franchisee only needs to pay rent, salary and utilities. This model has attracted many people to join.

Therefore, only through this unique joining mode can famous products make a big profit.

However, what if the franchisee does not have enough funds, but still wants to cooperate with famous products in depth? It doesn't matter. Franchisees can also use the store assets and 750,000 deposit as risk protection funds to make loans on the P2B financial platform associated with famous products. As long as you join more than three stores, you can raise funds through profit sharing.

Fenlibao has a deep relationship with famous products. According to the industrial and commercial data, before 20 16, Ye Guofu was a legal person who distributed Libao. Before September 27th this year, the actual controller of Fenlibao was Li Minghuan, who jointly held shares in Hubei Aiya Industry and Trade with Ye Guofu.

In this way, the funds will flow out from Fenlibao, pass through franchisees, and finally probably return to famous products, so that the company can get a steady stream of cash flow.

Therefore, Fenlibao was once considered as a financing platform for franchisees to invest in famous and excellent products, which triggered the "self-integration" storm of famous and excellent products.

Although Ye Guofu got rid of Fenlibao from industrial and commercial relations several years ago, according to public information, as of June 30, 20 19, the total transaction amount of Fenlibao still reached 5.892 billion yuan.

With the accelerated clearance of the mutual gold platform, Fenlibao also announced the closure of the server in August this year 10. The era of "retail+mutual gold" for famous products has officially ended.

From this point of view, the eagerness of famous and excellent products to submit prospectus is not unrelated to the closure of the mutual gold platform.

Famous products are one of the few retail brands in China that have achieved "going out".

Ye Guofu once said that famous and excellent products started passively: since 20 15, the company has been receiving emails from all over the world, and overseas users have taken the initiative to find stores.

According to public information, as of June 30 this year, Mingxiaoyou has opened more than 4,200 stores in more than 80 countries and regions around the world, including more than 2,500 in China market and more than 1,680 in overseas markets.

Moreover, among more than 4,200 stores, only 129 are directly operated by the company, and most of them are abroad. By the end of June, 2020, there will be only seven direct stores in China.

It can be seen that, compared with other similar enterprises in China, Mingteyoupin is indeed one of the few retail brands in China to realize "going out".

However, there are hidden worries behind the expansion of famous products, which were also mentioned in the previous article. The following is a summary.

First, product design plagiarism. For example, Muji signature pen, EOS hand cream, Apple headphones and so on. , the company has "the same paragraph".

Second, it is the issue of quality control. In addition to the carcinogens in nail polish mentioned above, a famous eye shadow pen was also found to have excessive arsenic in June 20 18.

Third, the closure of the mutual gold platform and the distribution of Bao Li may affect the company's ability to attract new franchisees to some extent.