Fushou Home: copying the retail road 2 years, 2,000 stores annual income of 1 billion

Business Guide: When the business form is on the line, Wang Decai has copied the road to the offline entity. When the retail industry was mourning, the Fushou House’s single store revenue was more than 1 million yuan. Why is this retail industry heterogeneous so fierce?

[Business Merchants Network / Lei Zubo]

In 2014, the traditional industry always seemed to be shrouded in “winter”.

E-commerce erosion, the retail industry is no exception. In the past January, Wanda announced the closure of 10% of the department store floor, while compressing 25 department stores; Carrefour, Wal-Mart store is also much stronger than before.

Retail does not make money?

In a sorrowful voice, the Fushou Home of Hong Kong Yimei Group has aggressively attacked offline retail entities. Since 2012, 2,000 stores have moved from Changli in Xinjiang to Qiqihar in Heilongjiang to Quanzhou in Xiamen. “We are opening the last mile of O2O”, and the Fushou House, a channel provider, had revenues of more than 1 billion yuan in 2014.

Offline "Mei Tuan"

Just as the traditional industry gradually withdrew from physical stores and moved to the line, Wang Decai went against the trend and deliberately laid out the offline channels. The head of the Hong Kong Yimei Group saw the opportunity under the line. “In 2014, China’s total online transaction volume was 13 trillion yuan, retail sales were 2.8 trillion, and 310 million person-times contributed. That is to say, at least 1 billion people have no online shopping experience.” He verified the Fushou House from a set of data. The correct strategic choice: "The elderly in China are currently 220 million people over the age of 60. The important target group of the Fushou House is the 220 million old people." Fushou House picked up the retail cake that investors are not optimistic about.

In the past two years, Fushou's home has grown rapidly, and the single store has reached an annual sales volume of more than 1 million yuan. This is also surprising in the store evaluation of a dozen square meters in a single store. Is there anything special about the store itself?

The facts are completely out of our expectation. The storefront of Fushou House is not different from other small supermarkets. In order to verify, I carefully looked at the photos of its chairman, WeChat about the store, even if it sells more than one million yuan in Anhui. Wuhu shop, there is no exception, only these small shops have more chairs (later learned that for the elderly to rest). In the retail industry, these small-sized shops generally have annual revenues of nearly one million. It is not difficult to see that the Fushou House has been in existence for only two years, and it has been heated by the industry. How does its store achieve this performance? ?

When Wang Decai began to design the Fushou House model, he proposed to “build a platform with a physical store”. This platform uses the “factory price group purchase” to directly string together manufacturers and consumers. Wang Decai, who once worked on consumer goods for daily use, knows that the high price of China is on the one hand, and on the other hand, it is the superposition of middlemen. On the other hand, goods entering the market generally go through big contractors, provincial agents, and municipal agents. Finally, go to the store and increase the price.

"Do you want the online transaction volume to be so high? Isn't it actually two points? One is cheap and the other is convenient!" Wang Decai believes that this is the root cause of the great development of e-commerce in recent years.

No matter the traditional retailer or today's e-commerce, it has never been so close to consumers as Fushou's home. This will solve the feasible road of Fushou House.

First, the store really opened to the consumer's home. All cities open large stores, the goal is to use hypermarkets to do big business. Wal-Mart, Carrefour, and Tesco have closed stores because of the higher costs and the meager profits of the retail industry. Fushou House is located in cities across the country, using intensive forms of small stores to open, slowly swallowing the business of hypermarkets.

Second, offline "Mei Tuan Network". Fushou House has a membership system with 500-1000 members per store. The products required by all members are directly purchased by the manufacturer, all intermediate links are eliminated, and 10% of the profits are appropriately added, and then directly sent to the consumers. This is known as the “offline beauty group” by Fushou House. The core of this offline mode has two principles. First of all, it guarantees the authenticity of the goods. Taobao implements a 7-day return. The Fushou Home has a large number of middle-aged and old-age consumers, and has no reason to return the system for half a month. Secondly, it is the lowest price guarantee. If the member finds it The selling price is high, and the compensation system is doubled with the purchase invoice. It is also the reason why people often see the hot queue of Fushou House.

The Fushou House also has some statements on its public subscription number, advising those who follow suit and imitators can not imitate their "god", the key to grasp the core elements of the model.

Partner system

Speaking of this, Fushou's home is similar to the O2O, 1919, which has risen in recent years. Its store is not the home of Fushou House, but the foundation of its model.

Wang Decai's goal is to open the store to 5,000 stores in 2015, which means that another 3,000 stores will be added this year, covering the county-level cities. Committed to open up the "last mile" with consumers, this entity is more cumbersome, and it is not simple to complete. However, after two years of operation, Wang Decai has found a casing control mechanism for better development.

Generally speaking, a retail department store needs to open a national storefront. Most of them adopt the “joining” strategy to improve the pace of brand expansion. The drawback here is that some companies have started to pick up the franchisee’s fees, and they have frequently appeared in the shopkeepers. Starting a money accident.

At the beginning of the company's operation, Wang Decai had already made a relatively complete layout. In order to quickly seize the market, the company must rely on the strength of others to give full play to its advantages. The partners also grow with the company at the same time - September 2012, partner system Formally surfaced. To ensure that 2,000 stores quickly occupy the national territory, they firmly grasp these three aspects:

First, the share of the clear

The relationship between Fushou House and the provincial and municipal branches is a joint venture, that is, a partnership system. Both the company and the investor are funded to form a branch according to the corresponding ratio. The company has both the mode, the funds, and the distribution. Investors are responsible for finding stores and expanding their local resources with their own advantages. Co-renovation, tax payment, and rent. This series of "golden handcuffs" mode binds each other together to form a concerted action, and it is also better to avoid the company's "circle money" suspicion, the partner's mentality of "foot-turning boss".

Second, hierarchical management

Fushou House implements a layer of management. The head office manages branches and branches to manage various stores. It turns out that this management is relatively easy. "This is similar to Ma Yun. Ma Yun has registered hundreds of thousands of millions of stores. Do you think he manages it? Similarly, all of my stores are also bosses, not working relationships, but real partnerships."

After the opening of the business, the headquarters is not distracted by the partners, but like caring for their children, taking care of them. Three days after the opening of the business, the company first conducted a round of themed activities, opening a month, and conducting a second survey of the market through three rounds of theme group buying activities. The manager and manager of the newly opened Fushou Home will allocate their own district supervision, comprehensively supervise the five areas of East, West, South, North, and China, guide the operation of the new store, timely understand the operation status of the store, and provide timely feedback to the operation headquarters. If there are problems, make adjustments in time and promote them immediately.

Third, the supply zero price difference

The supply price of each store in Fushou House is uniformly settled at the purchase price, which is almost impossible in the traditional way. Fushou Home National Operation Center will summarize the market demand according to market research, recommend hot products to Fushou Home Purchasing Department, and search for prices in various regions of the country according to the recommended products. When purchasing, it is only procured by cash settlement, which is large in quantity, high in quality and low in price. Directly “cut off” the middleman and earn 10% rebate from the manufacturer. All of its products are sold at the ex-factory price.

O2O ecosystem

When people are gradually abandoning the physical store, Wang Decai optimizes the mode and immediately starts to take shape.

“There are more than 1 billion people in China who are not involved in online shopping. One-tenth of the ones in Fushou’s home are not OK? If I reach 10,000 stores, my O2O is connected. From the year before, the whole country In the speculation of O2O, there has been no success so far. O2O is difficult to solve the last mile problem, it is online rather than online. I first solved the line and surrounded the city from the countryside. I built the line, O2O naturally Connected."

“I have an online shopping platform, but I have self-knowledge. The online shopping platform is just a service offline store. For the time being, you can also register for shopping, but promotion is difficult. We are slowly using the offline to drive the line and let the elderly Drive your children to the website."

In Wang Decai's discourse system, the upstream and downstream are freely docked, and the power of users is used to promote the transformation of the production and supply methods of the entire industrial chain. Its large-scale fragmentation demand through online and offline port aggregation is an emerging market that is urgently needed for the transformation of the retail industry. This long-tailed consumption capacity cannot be underestimated, and eventually forms the O2O ecosystem.

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