Zhao Zhe, founder of mikibobo: The proportion of mother and baby store franchise revenue is low, and the strategy may be more radical

A few days ago, Wei Lai Mother and Baby and Mikibobo founder Zhao Zhe made an exchange on the mother and baby offline retail market, the author sorted out some core views, Zhao Zhe has worked in Baidu, Honey Bud and other companies, in 2016 founded the mikibobo brand, the cumulative number of stores has been nearly 6,000, offline retail has a deep understanding and thinking, hope to learn from everyone.

The epidemic will accelerate the elimination of brands, and the supply chain is the foundation

Q: We monitor that about 20% of the mother and baby stores in the entire market have closed down during the epidemic, how do you see this situation?

A: In fact, we monitor more than 20% of the data, the market itself has a dynamic optimization, such as about 10,000 new stores opened every year, the 10,000 stores closed within three years is about 40%, the epidemic accelerated this process, may be the first year of new stores closed rate to 40%.

There is a misleading information in the middle, many people think that 40% of the store is closed at a loss, in fact, it is not, many shopkeepers are young mothers, passion came to open a store, after half a year of fresh feeling ended, and then a calculation of the money earned by opening a store and the money they earn at work is almost the same, but opening a store is much harder than going to work, holidays can not go, so the store is closed or turned, this is the situation of many stores.

The core behind this is the capacity building of the supply chain, now many mother and baby stores are homogeneous, 10 mother and baby stores are opened within 300 meters of a street, and 90% of the products of 10 stores overlap, this situation will definitely make the gross profit of the product very low, and the situation of user diversion is also very serious. Mikibobo tried a variety of operational strategies, and finally found that the core problem is still the supply chain, there must be differentiated products, high gross profit products, so in recent years invested tens of millions of private label products, store gross profit is gradually going up, and now tend to support stores to take market currency to fight price wars and obtain users.

The proportion of mikibobo franchise fee income is very low and negligible

Q: How is the development of mikibobo mother and baby store now, and has the epidemic had a big impact on the company's business?

A: The epidemic has some impact on the company's maternal and infant retail business, but the company quickly transformed into epidemic prevention materials, during the entire epidemic period, the company's operating income and profits maintained steady growth, anti-risk ability was further consolidated, with the normalization of epidemic prevention and control, offline has begun to recover, recent data show that basically has returned to the same period of 2017 high-speed store opening state, an average of 10-15 new stores per week to join the opening.

During the epidemic period, mikibobo brand goods have achieved rapid growth, products have been exported to more than 30 countries and regions, serving more than 300 million users around the world, of which three-dimensional 3D masks, laundry gel beads, mouthwash, children's noodles, fruit tea, milk bottles and other product lines are in short supply, in the entire operating income, the proportion of franchise fees has been very low, basically negligible, which will also help us re-examine the franchise business, with a more aggressive strategy in the market force, perhaps the future is not only free of franchise fees, May also subsidize franchisees to open stores, in this case, the offline mother and baby store business will be completely different, only rely on the franchise fee income of the brand will accelerate the elimination of the market.

The dividend period of overseas brands will end, and how to bind the interests is the core issue

Q: How do you see the next development of overseas product brands in china?

A: The next two biggest challenges for overseas brands are whether there are domestic brands with better cost performance in this category, and whether brand owners are bound to the domestic general generation in a good way of benefit distribution. We have seen many overseas brands that have developed very well in China, and after the development, they have not arranged the distribution of benefits well, resulting in brand development encountering a ceiling, and eventually beginning to decline. These challenges encountered by overseas brands are also opportunities for new domestic products.

The influencer shop model cannot be copied, and each store should find a good advantage

Q: Recently, the internet celebrity shop is particularly popular, what do you think of the net red shop in the mother and baby market?

A: In fact, the net red shop has always existed, the mother and baby store brand head benefit is particularly obvious, in the past we said that the location of the site to choose the right position, the owner has a strong appeal in the local area, this store has a high probability of doing a good job, in the local become an internet red shop, such as mikibobo Huizhou store, in the local basically is the best sales store in the city, almost household name, but leaving Huizhou City, in fact, the sense of existence is not high.

Later, live broadcast and Xiaohongshu led to the brand exposure of some mother and baby stores, through the exquisite decoration of the store, the owner's publicity on the Douyin and Xiaohongshu platforms, some stores were recognized and recognized by the outside world, and were labeled as Internet celebrity stores. In our opinion, if this kind of popularity and traffic does not bring about the growth of store sales, the significance is not very large, and other stores that want to increase sales will learn these methods step by step, which is also the inversion of the horse. The core of the mother and baby store is the trust of surrounding users, word-of-mouth transmission, and the recognition and popularity of users in the same city are far more valuable than the tens of thousands of fans on the Douyin network.

Each mother and baby store has its own advantages and characteristics, it is recommended that the owner of the store consider more about how I am different from the surrounding stores, what are the advantages, how to strengthen this advantage, so that the 5,000 users in weChat recognize this advantage, it is not simple to insist on doing a good job in details, and there is no need to pursue to become an Internet celebrity store.