China Ceramics Network News I can’t watch the news recently. Firstly, the stories are not new, and secondly, there are too many accidents. Of course, Weibo, Moments, desires, and nightlife activity are also declining, and everyone has become a silent majority. However, life must go on, and columns must still be written. In this issue, we will talk about two things besides ceramics. One is the sadness of the Chinese version of ZARA, and the other is the hot air-conditioning war. Although there are two things, they express one moment and two endings of one story.
When talking about the Chinese version of ZARA, you will think of La Chapelle, which was founded in 1998. Men may be unfamiliar with it, but women should be familiar with it. In 2018, its sales revenue exceeded 10 billion, with more than 9,200 offline stores. In the first half of 2019, 2,400 stores were closed, and half-year profits are expected to drop by 50%. Judging from expert analysis and financial reports, in addition to doubts about marketability, it is also hindered by the three-high model (high inventory, high expenses, and high expansion).
Take another look at the fierce air-conditioning war that has been going on since June 18. I won’t comment on who is right and who is wrong. This is the scope of the law and the market, but it is an anecdote for a company worth hundreds of billions to compete with a company worth tens of billions. If you ask on Du Niang, you can find out why this tens of billions of companies counterattacked and were torn apart. China Europe Review said: For many home appliance brands, the stock market is a zero-sum game, and dealers are just one of the competition channels or gaming tools. When home appliance brands shout slogans of "meeting user needs" and "driven by innovation," they often just fine-tune panels and functions and go to market in the name of innovation. Few brands can push the industry forward with disruptive innovation. Even when the stock-buying model is obviously not suitable for the market environment and industry trends, × air-conditioning brand took the lead in embracing the Internet. With its flexible play style, young and fashionable positioning, and diversified cross-border marketing, it has firmly established itself after many years of hard work. Firmly occupying the position of the number one brand in Internet air conditioner sales. The main reason may be the redistribution of market cakes, not the cognition of mother-slanderers on the Internet. The random inspection in Beijing last week also gave a slap in the face conclusion. Competition is based on progress based on fairness, so why be too anxious?
Two incidents and two results are worth pondering for the business community. In fact, who will own the future market? There are different opinions, from clothing to FMCG, from electrical appliances to the Internet, from material suppliers to product sellers, there are small difficulties and big difficulties. Only by doing well in the present and embracing the future can we find a way out, especially in the market shifting period and the iterative period of consumption. Looking at all long-lasting brands, there are some consensuses on their development.
一, the brand's style and love determine how far the brand can go. There has been debate about whether human nature is evil or good since ancient times, but no one has come up with a conclusion. But there is no debate about the evil and good nature of brands. All brands are born for good, even if there is a strong smell of copper behind them.
Second, the brand must have core competitiveness, and the core competitiveness must be ahead of the times. In the early stages of industrial development, advantages are not easy to establish. If you have advantages, you will be competitive; but now the technical barriers are almost zero, and competitiveness is relatively easy to achieve. So, now let’s talk about core competitiveness. Core competitiveness is not easy to imitate. It is not an indicator, but a system.
3. Regardless of the size of the brand, it must have good genes and market foundation. In the past, consumers lacked awareness and relied on brands for their understanding of products, quality, and technology, and the brand effect was naturally amplified. Now that consumers have sound self-assertion, the brand will be weakened, but the foundation of the brand is the cornerstone of consumption. Therefore, no matter how consumers evolve, their purchases will depend on the trustworthiness of the brand's foundation and the purity of its genes.
Fourth, from brand building to the collection of brand IP is the process of brand growth. In the early days, the brand itself was very important. It collected a large amount of consumer demand information, so consumers would be highly dependent on the brand. In the future, brands will consist of many IPs and their output will be dispersed. Different people will only capture IPs that match them, which will lead to brand consumption weaknesses and self-labeling of IPs.
5. Small brands cannot suffer from the diseases of large enterprises, and large brands cannot lack momentum. This is the normal and common phenomenon of enterprises in the mature stage. This is not determined by the brand, but is caused by the enterprise's decision-making group and the lack of separation of the three powers. If a small brand suffers from the disease of big companies, it will lose its original advantages. When the market encounters setbacks, it will be more difficult than ordinary companies. Similarly, the lack of kinetic energy in large enterprises is also a terrible thing. If a large enterprise cannot achieve kinetic energy transformation, scale effect and boundary breakthrough, and then realize marginal effects, it will be very difficult to operate, because the performance of any enterprise will not be unlimited. Rapid growth.
6. Should we be responsible for the boss or for the development of the enterprise? Who is the owner of the business? This is a new topic, and it is alsocaused by the current situation. Raising this question is not to say that the boss cannot be the master of the country, but to reflect on the system. In the future, the boss should be the owner of the enterprise, and the enterprise is the master of the enterprise. Only if every practitioner establishes this concept can the enterprise last forever. After all, people also have emotional catharsis, and people's decision-making and management will make mistakes. However, companies can only continue to create according to the rules consistently, otherwise they will die.
7. Management is a good thing, but if the scope and radius of management are too large, efficiency will decrease and productivity transformation will be difficult. The best management is not about standardization, but about stimulating creativity and improving efficiency. Excessive management radius and excess management are a drag. In the future, the efficiency and time cost of everything will be the direction of management and the basis for profitability.
8. Should the negative equity of the brand be thrown away? Who will throw it away? Will it be the sinner to deal with the negative equity? This is the biggest amblyopia of management. For example, inventory and idle equipment on the books maintain their value in half a year, but depreciate in one year. They may have no value in two years, and may become negative assets in three years, or even become negative assets in a shorter time. Do you want to throw it away? Who will throw it? What to do if you throw it away? These are all problems that plague owners, managers, and executors.
9. It is said that people are becoming more and more important. What kind of talents are important? What kind of concept of employment is in line with the times? As the Millennial generation becomes the head of the family and starts a business, people are undergoing great changes. Their casual work has caused headaches for the older generation of human resources managers. Therefore, employing people now is a new test and knowledge. In the past, virtue was the first priority in attracting people, but in the end, there was too much morality and not enough creativity, and good people prevailed and few gave advice. In the future, social ecology and value will be guided by creation, and the workplace will enter a new era where creation is the hero. For example, for the same sales manager, some can only help you achieve performance, while others can help you create profits. When the market is good, performance will naturally be good and profits will naturally be considerable. There is not much difference between the two; but when economic growth slows down, There is a gap, especially in the current market. Nine out of ten people are not satisfied with the existing people. This is also the market-driven talent mechanism that changes from sales-oriented to operational-oriented.
One side is sad, the other side is hot, this summer is a bit irritable. There are not only hundreds of billions of oligarchs in the electrical appliance industry, but there are also tens of billions of companies that make the oligarchs feel pressure. Each has its own success, which is also a real market case. The same is true for other industries. In the past, most of the companies that collapsed were small and medium-sized enterprises. In the future, any company may fail. Today, the plight of China’s version of ZARA, the king of shoes, men’s wardrobes, beverage giants, and shopping mall giants is worth learning from.
Guard the bottom line of the enterprise, give full play to core strengths, keep pace with the times, constantly innovate competitiveness and accelerate corporate efficiency, use creativity as the criterion, make good use of people, and be successful yourself. The era of real guns and real swords has arrived, and exaggeration, exaggeration, and bragging without genes and foundation will bid farewell to this era. In the future, it will be normal to be sad and hot at the same time, and there will be no collective carnival in the market!
