This is the 275th article of Qingshui Yidiantong Daily Update. I hope it can help you.

Nowadays, small daily consumer goods stores with red logos have appeared in commercial streets in many cities: miniso, famous brand. At the beginning, many people thought it was the kind of 10-20 yuan store. It is a variant of a discount store for small commodities, but as the company grows bigger and more stores become available, Miniso has attracted the attention of the entire business circle.

Speaking of why it attracts so much attention or doubts? Because its emergence has nothing to do with the popular new terms such as e-commerce and O2O. In the field of terminal sales, it does not consider the Internet at all. It just opens stores one by one, but it shows explosive growth. What is the logic behind this? ?

Miniso’s global co-founder Ye Guofu recently held a class at Chaos University, telling the story and philosophy of Miniso. The core is the product, and Miniso’s products are cost-effective. If you want to achieve the target cost-effectiveness, you must achieve "three highs and three lows".

What stands out here is the design concept. Domestic products rarely pay attention to design. Except for several leading industries such as mobile phones, the design sense in areas such as white home appliances is extremely poor.

Miniso has invested a lot of financial resources in product design, from hiring designers to preparing to build a designer platform, and then gradually establishing a sense of series, simplicity and fashion. The product concept enables Miniso to achieve the integration of cost-effectiveness and artistic sense.

This reminds me of the Smartisan mobile phone. Luo Yonghao has also put a lot of effort into industrial design.

Everyone knows that product quality is important, but why do many companies fail to do it?

Ye Guofu shared his experience in this regard. In the final analysis, it is supplier management. He summarized it in twelve words:

The top leader spends money and places big orders. Give cash

Here we can see the arrogance of Miniso, just like what JD.com did with 3C products back then. They believed in their own judgment and strength. After investing huge sums, they made the quality and price of their products smart. .

Putting these two together, according to Ye’s original words: these two points are complementary to each other. Only high efficiency can bring about low cost.

The following three points are important:

1. Explosive product strategy: There should not be too many product categories. This does not need to be explained too much.

2. Large-scale procurement: In addition to large orders, it also mentions the construction of warehouses across the country for faster circulation.

3. Shorten channels: For consumer goods, the best way to reduce costs is this. Directly from factories to stores is the most efficient.

After analyzing the above three aspects, Ye Guofu talked about his franchise model, which is to share the channel. You go to Miniso with the location and funds of the store, and Miniso is responsible for management and operation. A more accurate statement for franchisees is: investors cannot intervene in the operation and can only share the profits.

Miniso has always insisted on low gross profit. Ye compared himself to Uniqlo, IKEA, and Costco.

It shows that the best companies in the world are those who have good quality and low prices.

Finally, the terminology of a well-known time-honored brand was adapted into values:

Although profits are low, we do not dare to save labor; although prices are low, we do not dare to reduce material resources.

In this regard, Ye first talked about innovation. Innovation can lead for a while, but only with extremely high cost performance can we continue to lead.

Moreover, he also put forward his own view on product prices: product prices are determined by the efficiency of the enterprise. The higher your efficiency, the more competitive your price will be. The lower your efficiency, the more competitive your price will be. The higher you go, the harder it is to survive.

He gave the example of China's clothing industry. A piece of clothing costs several hundred yuan, and when it is sold in a mall, a zero is added directly after it is sold. This is because the efficiency is too low.

Therefore, he summarized what new retail will look like in the future:

Let’s stop talking about this today and continue in the future.

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