The Unique Supply Chain Standard Behind The City Beauty Is Not Sold In Stock!

Recently,

In the dialogue, vice president and CIO Sha Shuang explained in detail the unique supply chain system behind the urban beauty.

A front end operation logic with low discount rate and high margin

It is understood that the average price of urban beauty is between 50 yuan and 80 yuan, but the gross profit of direct shops can reach 60% to 62%, and the gross profit of franchise stores is more than 40% compared to that of Avril and hundreds of dollars.

The logic of urban beauty is to increase the rate of sale and reduce the discount rate.

In practice, first, reduce costs through mass production.

Sha said that the output of a supply chain of urban beauty is basically around 1 million, while that of other brands is about 100 thousand.

This is a distance from other brands.

Second, maintain low discount rate and no increase in price to retain users.

It is reported that the price increase rate of urban beauty products is between 2.5 and 3 times, and the lowest discount rate for new products is 85% under the same line price.

In recent years, urban beauty has not increased the price to ensure that users will not lose their prices because of their ups and down.

In addition, the discount interval is adjusted according to the product life cycle.

Sha Sha believes that, from the concept of product entry, marketing and recession, not all commodities are suitable for discounted sales during the recession.

When the product is in a bad sales situation, it should start selling at a discount, so as to increase the sales rate.

In terms of gross margin, besides turnover, another indicator of urban beauty is turnover rate.

According to the introduction, the turnover time of urban beauty is 90 days, and the turnover rate of a year is 4 times, which is higher than that of 1 turnover.

"Looking at the turnover at the front end, the rear end is to see the contribution rate of the product, the contribution rate of the single item, that is, each product starts from the production to the final elimination.

It is no use looking at the rate of selling out, for example, ten pieces have been sold and not made any money, but I have sold 1 million pieces, and this contribution rate is very high.

The contribution rate of this year's contribution rate is the contribution rate.

Sha Shuang said.

Piecewise 90 day inventory turnover management

It is reported that in view of inventory, urban beauty has developed its own management system, the inventory value that can be kept every year is between 100 million yuan and 200 million yuan.

First, the urban beauty and franchisees adopt the futures mode. The franchisees have single store management. Franchisees do not need to buy goods. They are built by urban beauty.

The order platform can be ordered in real time, shipped in real time, and supports online pre-sale.

At present, the franchisee's inventory can achieve 60 days turnover.

Second, use the 90 day turnover cycle to split it into "433" mode in commodity management, that is, 40% of finished products, 30% of semi-finished products, 30% of raw materials.

Sha Sha introduced: "when 40% of the finished products are sold well in the market, the remaining 60% will be converted to finished products. When the sale is not good (such as the color is not good enough to sell), the semi-finished products are not dyed, and can be dyed into other colors. Then there are problems, and 30% of the raw materials can be re lace up and re packaged, because the cup is the same, it will become a new one."

Third, online and offline inventory linkage.

It is understood that only 30% of the city's beauty line has special contributions to meet the discount needs of similar double eleven activities, while the online and offline products account for 70%.

In addition, the new product is sold online and offline.

When offline deposits are not sold, online sales will be matched.

In addition, on the management of new products, the urban beauty has a new proportion of 20% to 25%, and there are nearly 300 new styles every year.

For example, on the basis of the original 600 styles, the urban beauty will eliminate 150 products in the spring and summer seasons. At the same time, the new 150 items will also be eliminated, and 150 products will be eliminated in the autumn and winter season. At the same time, the new 150 models will always be sold and 600 of them will be sold well.

Sha said that the inventory of urban beauty sold in vip.com amounted to 100 million yuan this year. However, because there is no stock to sell, the target sales volume of inventory will be reduced next year.

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Allow franchisees to manage their membership independently

It is reported that from 2014 to enter the electricity supplier channels, urban beauty launched a full channel member management mode.

On the one hand, city beauty has launched its own B2C member mall, providing users with integral management, raffle, and product purchase services; on the other hand, it has set up shop assistants to develop a membership reward system for offline stores.

What is more unique is that the management of members of the city beauty is managed by franchisees of various stores, and the brand managers adopt hierarchical management for franchisees and franchisees.

This year, the urban beauty program first developed franchisee APP to communicate with 8 thousand franchisees, and the next step is to develop member APP.

For this practice, Sha Shuang's explanation is: "why not be a member APP directly? If you are a member of APP directly, no one will manage it, and no one will take the initiative to develop it."

But developing franchisees first and then joining franchisees in one to many ways will be much easier.

Branding can not communicate with 30 million members on a single basis, but first we need to know more about the 8000 franchisees and franchisees. They will screen and identify them so that they can be managed one level at a time.

Sha Shuang revealed that the number of members of the urban beauty group was about 30000000, and the number of new members exceeded 1 million 200 thousand per year. Among them, 42% of the sales volume of offline sales came from the members, and the rate of repeat purchase was 15%.

In addition, urban beauty plans to understand the online buying behavior of members through big data, so as to improve the rate of repeat purchase.

According to relevant information, urban beauty entered Tmall in early 2014, ranking fifth in Tmall's double 11 underwear category for more than a year, and has achieved basic profits.

In this year's double 11, the flow of urban beauty in brassiere category reaches the first in the country. Trading volume follows UNIQLO, and the sale of 820 thousand bras on the double 11 day is 410 thousand orders.

In addition to women's bra, Sha said that the company is also actively developing men's underwear, children's underwear and other product lines. It is estimated that annual sales of men's underwear products will reach 900 million yuan.