Can Excellent Set Up China Pandora?

According to the world clothing shoes and hats net, the local jewelry of the East is light and luxurious.

The "UJewelry excellent set" entered the first frame of the jewelry category at the beginning of the Tmall annual festival.

The location of Tmall is known as the "sea view room" inside the Tmall, and it has no market price, only as a support for Tmall's "black horse" brand.

By the end of 2016,

The leader of jewelry category found Xu Xiangming, the founder of excellent set, and invited him to Hangzhou headquarters. On the one hand, he talked about the "flow sincerity" given by the "New Year's festival". On the same day, a Chinese top show also talked about the cooperation between Tmall and the exhibition this year, hoping that it could become a minority Chinese brand exhibitors and perhaps give it to the European royal family as a national gift.

As a jewellery category, the premium set is very clever. From the perspective of Tmall platform, there are more than 1000 yuan brands in jewelry category, and the main brands such as Zhou Shengsheng and Zhou Dafu are selling precious metals.

There are also a large number of jewelry categories below 100 yuan. Between these two, the brand of the current main unit price of 200-800 yuan, such as the excellent set, is still a vacuum zone. Pandora and SWAROVSKI are the main supporting brands of Tmall, but there are still a lot of opportunities for brands with good stories and high-quality IP.

Coupled with the recent trend of light luxury and the rise of eastern culture, the main characters of the alphabet, Xiangyun, the 12 zodiac and the lotus enamel series have appeared at the right time.

In business, Tmall gives the best traffic support to the company, and naturally hopes that the new brand can contribute value.

The conversion rate of the excellent set in the Zambian platform is 8%, and if Tmall can achieve 5-6%, it will be ideal.

But we have plans and confidence. "

Xu Xiangming set the best set to the Danish jewellery brand Pandora, of which four dimensions are the most important indicators. First, the sales volume of Tmall, the sales target of the excellent set this year is 20 million, that is, to reach the 1/5 of Pandora. Secondly, Pandora has 200 stores in the whole country, and the excellent set is planned to open to 50 stores in 2020, and it has 2-3 excellent space in 15-20 key consumption cities nationwide.

The third is the expansion of membership. At present, there are more than 50 thousand members in the excellent set, and the goal is to expand to 200 thousand members within two years.

Of course, what Xu Xiangming most hoped for is the Oriental elements, which can be national rites and be supported by the national level.

Reporters also talked with Xu Xiangming recently about the future:

The following is the interview.

Reporter: December

Xu Xiangming: more online traffic is actually not as good as offline stores to shape brands, close to the market and customers, which is why we must have our flagship store.

Our role positioning is not simply a sales outlet, so we spend a lot of money and Thinking on marketing, design and decoration.

On the design, the designer couple of Shanghai brand Shanghai and Hongkong flagship store have created a space with beautiful scenery.

Moreover, the current trend is to turn the flow of centralization on the front line to the next line, and to balance it again. This is a brand marketing trend, but you must be different under the line. You can no longer consider the old way of selling products simply.

In terms of marketing, we have adopted the public chips.

When the public is raised, the single store is valued at 1 million 500 thousand, which is 30%, that is, 450 thousand, 2 or 3 years' equity.

Within an hour, the two batches of 80 co - workers were swept away.

At that time, it may have broken the two records of the platform, one is the fastest sale of the total number of people, and the rate of completion is over 2500%.

The second record is to break the commercial single square meter public record, the store only 27 square meters area, but actually raised 1 million 280 thousand, equivalent to 450 thousand per square metre.

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Reporter: now the brand is being withdrawn from the store. The focus of this year's collection is "cloth dot". How high is the cost of opening a flagship store in downtown Shanghai? How long is the investment return period of the next store?

Xu Xiangming: judging from the current sales target, the fastest nine months can be returned.

It can be counted: the cost of store design, decoration and so on accounted for 35% of the estimated value.

The depreciation rate in five years is about 7% per year.

In addition, personnel costs plus store rental costs account for 50% of the estimated value a year.

Marketing accounted for 10%.

If the sales target of a single store is now controlled by 2 million 500 thousand / year, if the cost of goods is controlled at 25%, if it is lucky, it can be returned within nine months. If it is conservatively estimated, it will be one year.

And from the point of view of brand promotion, the offline outlets of city commercial centers have become free advertisements.

I have done the calculation of the flow of people. The B1 pportation hub of the Kerry Center in Jingan, Shanghai (where the best flagship store is located) basically has 5-10 people per minute passing our store, and the number of 450 hours per hour passes by, and 5000-6000 people pass 12 hours on that day.

When it comes to outdoor billboards, the cost of advertising has long been recovered.

In fact, the offline space of an excellent set should not be merely a matter of buying and selling. It should also be a hub, and the source of income can also be very diversified.

1, the retail stores, the surrounding office building frequent visitors, the direct purchase of foreign tourists.

2, the unique recommendation mode of excellent members is also an important channel, which is like crowding the role of store sales.

3, the role of the store is actually "excellent set space", which is the space for afternoon tea activities. The co construction people who participate in the crowd raising all have rigid targets, stipulate how many friends they should bring each year to hold afternoon tea activities, and every afternoon tea has a good income.

4, B2C, C2B's business income.

The store of excellent set will also provide the display area for the sub brand U.Land, which focuses on gift customization.

Every customer who passes through and enters the store is a potential gift customer. If there are 1 single B gift purchases per month, it will cover a large part of the cost.

Reporter: what is the expansion scale and profit plan of this year's stores?

Xu Xiangming: Our line has been able to make its own profit and loss during its trial run.

Therefore, the next few days will be a rapid expansion of several cities that have done particularly well in the afternoon tea activities.

They are mainly Shanghai, Beijing, Nanjing, Hangzhou, Suzhou, Chengdu, Chongqing and Shenzhen.

From the point of view of expansion cost, in addition to relying on investors' money, it is entirely possible to rely on the crowd raising approach, that is, to obtain funds, and to get these co building people's local resources, including government, media and activities.

So when copying in other places, the excellent set may only act as the manager, and the single co building participant who participates in the public funding will become a shareholder with a 1% stake in 3 years. Under the premise of interest binding, they will manage with all their heart and import resources into the store.

In fact, there has been a profit for a single store under the line, but for the brand, this year's goal may remain flat, because there will be greater input in brand building.

Reporter: our customer price is currently in 200-800 rooms. How about the cost structure of the single product?

Xu Xiangming: the main cost, 1, is the factory's original cost, including raw materials processing; 2, the personnel cost, that is, the cost of the brand, the explicit including personnel, office, publicity, this is a dominant cost.

The implicit cost is that the platform cooperation has a point of discount, that is to say, the cost can be controlled at 30%, and the rest is gross profit.

Jewelry, like cosmetics, is a product with relatively high profit margins in the field of female consumer goods.

Reporter: how much is the new speed and the turnover rate of the whole product?

Xu Xiangming: the new speed is to add 200 SKU a year, that is to say, every day and a half will come out. This is also the reason why Tmall found us. Our production cycle is the fastest and the slowest one month.

Usually the turnover rate of goods is about 15 days, and we will also keep the classic 30%-40% sales for a long time.

Reporter: in fact, in the process of consumption upgrading, there are quite a lot of individual designer brands. What is the competitive advantage of the excellent set?

Xu Xiangming: first of all, the difference between the supply chain. Now, the main thing is to push their jewelry by individuals instead of brands. The most important reason is that too many niche brands do not have the ability of backend, and can not win the best conditions in time, quality and cost.

The excellent set has started from the customization of the gifts, and now it has made C accessories. The supply chain comes from the same manufacturer. This factory has made OEM for the first tier luxury brands. Now, 80% of the production lines are in the excellent service set, and it is an exclusive agreement.

But for personal designers, the input-output ratio can not be estimated at first, and the cost of metal products is high, and there is an order quantity.

So a lot of personal designers tend to be solitary because cost is controllable.

Secondly, it is very difficult for individual designers to test the market reaction. We usually use the excellent assembly platform to allow tens of thousands of members to evaluate and pre design new products in advance, and then put into production, at least one mechanism of market feedback is guaranteed.

Reporter: what is the current mode of cooperation among excellent designers?

Xu Xiangming: now we are divided into five kinds of designers, one is our own designers, and they also have their own troubles. For example, our three designers graduated from the best jewelry design institute in foreign countries, but after returning to China, there are no more than two choices: not just a company like Pandora or SWAROVSKI, but also a personal designer.

But they want their designs to be accepted and sold as soon as possible, so the excellent set is a very good platform for them, and the proofing and production cycle is very short.

Moreover, the best gathering is a designer with the potential to participate in the four fashion week of Paris fashion week and New York fashion week.

Second, we have also worked with several of the best design institutes abroad, including the World Design Institute, the second Japanese culture and Fashion Institute, the Paris luxury Institute and the European design center.

Compared with big brands, the cost of cooperation is relatively low, but the media, activities, experts and other resources can be maximized.

Third, recruit excellent design students to come to practice and work in advance.

We will also display outstanding works of students at New York fashion week, Paris fashion week and DesignShanghai exhibition.

For the college, the demand is not only to enable students to find a good job, to let the fame of the school be reflected in the activities of the corresponding fields, but also to get some economic security.

At present, we use copyright purchase and sale sharing to ensure the economic benefits of colleges and students.

More than 300 sets of SKU now have their own copyright.

Fourth, our annual design competition for our fans is a celebration of non professional designers.

In 2015, one of our fans painted little monkey Kong, and sold more than 3000 pieces in Luo Ji's thinking and the whole network platform. At the beginning, we bought copyright at the right price and divided it into sales with excellent fans fans.

Finally, stars become excellent designers, such as singer Shun Zi design notes series, excellent set proofing production, and then jointly promote, sales divided.

Reporter: last year you tried to collaborate with logical thinking and Wu Xiaobo channel producers. How do we see content realisation in the future traffic environment?

Xu Xiangming: I understand from my point of view, the main online traffic is still concentrated in Tmall, Jingdong, this pattern will not change in a short time.

Content e-commerce is not a process of "goods on the shelves". High-quality content providers must have good content to import and develop exclusive design cooperation, and turn content into real marketable goods.

For example, the season series of excellent and fruit shell cooperation.

It is a new design developed from the fruit shell, a scientific product PPT.

If the goods sold are not independent, it is more than price than loyalty.

The opportunity of content providers lies in the special customization, and it is necessary to grab the point of customer demand in the market segments, and such a space can not be taken away by Tmall Jingdong.

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