FCL mode to the Arctic rookie fire? Rely on the terminal to win

In July 2005, the Arctic rookie created the underwear industry FCL marketing model, and pushed it to the forefront of the market, resulting in mixed reviews of peers and Wenzhou apparel industry.

In July 2006, the Arctic rookie store grew to more than 500 stores. Just a few days ago, agents who wanted to join the FCL model were rushing to come. Two of the two agents who had not yet had storefront rights were actually willing to pay 40,000 yuan.

Zheng Chenai, president of the Wenzhou Garment Merchants Association, said with emotion: The Arctic rookie made me see the new hope of Wenzhou garments in the market competition. The operation of the FCL model can be trusted.

Where is the FCL sacred? How does it come about? How to operate? Is it reproducible? The reporter recently conducted survey interviews with several major industry-related inquiry questions.

Wenzhou underwear water monopoly

The Arctic rookie chairman, Ni Xueshan, is a daredevil, and the Arctic rookie also seems to fully play the unfettered true nature. As the city's underwear industry's biggest player, it is often a step ahead of others. The cost is even greater.

In 2001, the Arctic rookie could not help but want to upgrade the brand, change the traditional "underwear supermarket" sales model, the first in Wenzhou underwear industry highlighted the monopoly chain. However, after several months of testing, it did not achieve the desired results. Ni Xueshan admitted that at the time he was not at the bottom of his heart, he made an unprepared battle when he tested the water. He said that the monopoly operation of blindly learning the famous clothing brand is the direct cause of failure, coupled with factors such as the single product and poor management, the Arctic rookie's monopoly dream is aground. Ni Xueshan, who was not reluctant to die, was silent on the surface, but his heart was still hot. He did not feel bad about the tuition he paid, but rather thought hard about what lessons he had bought. Can Arctic rookies be able to make a comeback on the franchise chain?

No one thought that the Arctic rookie who had lost the city of McCamp had provided abundant nutrition to another rising rookie company, making it spend two years in a row. This is Kangnai underwear that is now known as the Arctic rookie. Chen Zhonghuai, general manager of Kangnai underwear, said that to see the Arctic rookies on the path of pioneering monopoly has no merit, my heart is not very good, so I wanted to open up a new world from the exploration of the Arctic rookie.

To this end, Cornell underwear launched a few unique actions in the monopoly project: constantly enrich the product, the price set in the popular class to narrow the distance between ordinary consumers. Cornell underwear came out of the shadow of the Arctic rookie, and the first Arctic rookie to eat crabs do nothing but do nothing?

Arctic rookie terminal wins

When Kangnai's underwear took the lessons of the Arctic rookie and made the future, Ni Xueshan, who was confident and did not give himself up, had already got his hands full. Ni Xueshan and Chen Zhonghuai are business rivals, but they are very good friends. In mutual learning and learning from Chen Zhonghuai, he realized that the core of monopoly must be changed.

On July 11, 2004, the Arctic rookie "Heroes" was held in the base camp Wenzhou, where the so-called where to fall from and jump from.

The brand new marketing model pioneered by the Arctic rookie piloted in Wenzhou. More than 400 agents from across the country attended the new proposal of the Arctic rookie and signed 86 intention cooperation agreements.

The long-scheduled Ni Xueshan created a strong team. He has only one vice president under him, and then he is responsible for the three directors of finance, administration, and marketing. Marketing is a heavy task. There are six divisions below. One to four divisions are fragmented management. Ni Xueshan compares them to the military sub-district and invests heavily; five divisions plan to serve as staff officers and promote the promotion and branding of the monopoly network. The promotion of the Department has played a major role in boosting the development; 6 departments have been comprehensively integrated, including logistics, customer service, and coordination, which are the basis or guarantee for victory.

Product is everything. Ni Xueshan went to Guangdong, Jiangsu, and Fujian provinces to collect the styles required by the enterprises. There were nearly 20 manufacturers at the designated factories, and the contents of the underwear were expanded rapidly, including household, T-shirts, towels, shorts, socks and other series. Thousands of varieties to meet consumer choice.

This time, Ni Xueshan, who was well-prepared, was successful. The nationwide network based in Zhejiang province was fully profitable. Since July 2004, individual single stores have achieved sales of nearly 2 million yuan in six months. Among them, the downtown Xiaonanmen shop has earned a one-year rent for three days, and Qiankuzhen has almost become a monopoly of local underwear. However, Ni Xueshan did not stand still, not to be dazzled by victory, but brewing a storm of underwear marketing, he wanted to create a new marketing model.

FCL mode has tricks

On July 18, 2005, in order to explore the current status of China's underwear market, Ni Xueshan specifically inspected companies and markets around the country, summed up and discussed and consulted a number of domestic industry experts, and formulated the FCL model for the circulation of underwear, which was first introduced in Hangzhou. More than 500 investors poured into the 400-square-meter venue. After the meeting, more than 200 FCL stores were opened in Zhejiang Province. Three months later, FCL flags of more than 400 Arctic rookies were erected nationwide.

What exactly is FCL? It refers to an end-user marketing profit sharing model. Its innovation lies in: taking the customer's 101% satisfaction (Flattercustomer) as the ultimate goal, with convenience stores and specialty stores (Convenientshopmarketing) as the main forms, and selling in small profits, quick sales, and fast sales. (Lowestearningmoreconsumption) is the operation concept. It uses the six secretaries (brand appeal, model competitiveness, terminal winning power, planned attack power, policy support, and product sales force) as the core of the business. The product reaches retail terminals and completes the sales of goods. maximize.

Ni Xueshan believes that the essence of FCL is to occupy a more adequate profit space, to seize the major underwear retail resources around cities and counties, and to form a direct management system of direct sales terminals. The core of this model is to maximize the benefits of the terminal and benefit the customer. Some people call it a dangerous model according to this, but Ni Xueshan insists that in this era of low profit, only by adopting the terminal policy of maximum profit, product sales can achieve maximum success.

The most puzzling thing about FCL is its basis for making 100% profit. It is like "accommodation" to consumers: if they are not satisfied, they will be returned. What is the balance between the two is simply a pair of contradictions? The inside story of 100% profitability is that if there are individual stores that are temporarily losing money under the FCL model, they will immediately take a blood transfusion therapy. In other words, the company began its efforts to help, and if it did not see improvement, it would take a cooperative approach with the company's stock, and it would not be up to the company to take over or hand over the agency. The result would not be closed if desired, so as to maintain the integrity and purity.

In the contract with the distributor, they have such a thing: after the contract period and the expiry date, all products will be returned 100%, so that dealers have no worries. All goods in the shop can be returned to the company as stipulated in the contract, and a full refund is required for the franchisee to take the risk of withdrawal; in addition, the Arctic rookie implements the free-fee fee policy, and can have a set of shelves in the contract period of use rights . In fact, the highest point of the FCL model is 100% return that does not exist at all. The theoretical 100% return is actually actively digesting the product in the terminal through various activities and links. Ni Xueshan introduced that products can be exchanged properly in the current season. Once the season is missed, the company will have to sell inventory products in the next year. The transportation costs do not say, but it also requires a lot of manpower and material resources, and eventually the product has to be pushed to the market. The process is labor and financial injury, and becomes a burden on businesses and franchisees. Therefore, inventory can only be effectively retained in the local area, and the company will be subsidized in the second year. Compared with the previous traditional marketing strategy, the FCL model emphasizes and strengthens the concept of “small profits and quick turnover”. According to the needs of marketing promotion, a discount system ranging from 20% to 70% is set. The profits of each shop The space is also different depending on the goods sold. Some of the gross margins reach 60%, and at least 45%. If individual agents feel that they do not have confidence, they will need to apply two months in advance, and then they will take delivery or transfer of agency rights, and the inventory will remain in the market.

Without pressure, there is no motivation. The charm of Ni Xueliang's FCL lies in his skillful balance. For example, they give advance payment to the processing sites and then pay in batches instead of paying full amount in advance. The reason is that if you pay in full, there is no strong guarantee for the quality of the other party or for delayed delivery. Only in this way, cooperation can stand the test, and then it is to promote the normal flow of funds.

Can the FCL model be able to fire?

The FCL model was a passionate version and a carrier of happiness for Ni Xueshan and his staff. The company wrote the FCL song for this purpose. Before singing at work, he listened at work, and it seemed that even the air was filled with gusting FCL. However, can the FCL model ultimately make the company stronger and eventually get out of its expectations?

A year of hard work has resulted in a certain amount of new weather. The speed of opening stores is fast, products are abundant, production is abandoned, and research and development pay more attention. For the current stage of the harvest is to see the operability of the FCL model, in addition to the substantial expansion, more is the hope and future, especially for the decisive impact of participating in the market competition in the performance in three aspects: First, The consumer's demand is the highest aim; second, the profitability of the agent is fundamental; and third, the characteristic management is the core competitiveness of the company.

Is there no risk and pressure in the FCL model? Ni Xueshan believes that there is no problem with the FCL model itself. If the team’s fighting power is not strong or the agents themselves do not seek progress, lack of execution power, then any model is also in vain. In principle, the investment risk factor is small, the return is high and fast, and the terminal moves forward to reach the county towns and communities, and the channels are misplaced, and the cost is low and the hope is high.

Huang Haiping, a humanistic marketing expert in the city, believes that the Arctic rookie has successfully combined marketing resources to form a new system. According to popular opinion, it is the creation of the Blue Ocean economy; however, if other peers completely emulate it, it is likely to become an ordinary model.

Planning expert Wang Aidao said: Wenzhou's shoe and clothing industry has largely entered a relatively high cost and high risk misunderstanding. From product to sales channel, homogenization is serious and profits are worse than before. The Arctic rookie's FCL model is a positive exploration. However, the management and logistics of Wenzhou shoe and clothing industry are still not satisfactory. The Arctic rookie has to overcome the common problems in order to truly win the future.

Chen Zhonghuai, general manager of Kangnai underwear, said that FCL is a brand new model that will have a profound impact on the industry, including Kangnai underwear, will learn to draw on, learn nutrition. However, to a certain extent, the FCL is a rookie of the Arctic. It has a degree of adaptability, it is impossible to copy the date, and it must be based on the characteristics of their own companies to innovate.

FCL just opened a good game, Ni Xueshan claimed 100% point of sale profit In further practice, the Arctic rookie will have to open three or five thousand stores in the vision of a period of time. Ni Xueshan is also very clear-headed that FCL needs continuous improvement and innovation to give it new forms and content. At the moment, he is continuing to identify think tanks, trying to improve the model, and at the same time strengthen the construction of corporate culture, so that FCL will retain its youthful charm. In this sense, the FCL model opened up by the Arctic rookies has made valuable attempts and contributions for the industry.