What Is a Discount Store?

The Discount Store mainly sells its own brands and fast-moving products, and restricts the types of products sold. It also provides consumers with good things with limited operating area, simple shop decoration, limited services, and low operating costs. Value-for-money products are the retail format whose main purpose is.

Discount store

The Discount Store mainly sells its own brand and fast-moving products, and restricts the types of sales. It also has a limited operating area,

Non-brand discount stores are suitable for opening in urban residential areas and are also suitable for expanding into small and medium-sized cities and rural markets. Non-brand discount stores are actually a bit similar

Whether it is a brand discount store or a non-brand discount store, it is very important to reduce costs. On the one hand, it is to reduce business operating costs and save

Discount Store Products

Due to the limitation of the operating area, discount stores often limit the sales variety to 800-1000, and at the same time implement a dual-brand strategy, that is, the discount store's own brand and

Discount store

Fast-selling fast-selling brands, of which private-label products account for about 60% -80% of the total. This is the optimal proportion of discount stores in the long-term development and evolution process. Within this range, not only can the cost be controlled as much as possible, but also the brand appeal of the discount store to the target customers can be exerted as much as possible. Judging from the current development of discount stores, China's discount stores should significantly increase the proportion of private label products, but the development of private labels is not unlimited. According to empirical research, whether a product is suitable for private label strategy often depends on the following five factors. That is, low technical barriers to production; manufacturers with excessive production capacity; manufacturers with lower investment; almost different from products; commodity properties such as freshness preservation, products with high requirements for shelf life such as cooked food, aquatic products, etc., and products that require on-site processing or high High turnover rate merchandise.

At the same time, according to the difficulty of the supply chain transformation of best-selling products in practice, the proportion of best-selling products can be controlled as appropriate. In August 2002, ten "Dishkang" chain discount stores in Shenzhen were quietly closed. The difficulty of supply chain transformation was an important reason for their failure. Because the current discount store private label is not large, most products still need to be purchased from agents. At this time, if you directly place an order to purchase similar private label products, it is easy to cause resentment from large channel agents. However, the retailer must really enter the right track of the development of discount stores, the adjustment of the product category structure, and the transformation of the supply chain are an unavoidable link.

In summing up the successful experience of European discount stores, relevant experts pointed out that the development of European discount stores, to a large extent, has benefited from product values that value quality more than value. Attention to product quality is precisely the weakness of China's discount stores. In order to cope with fierce market competition and maintain their own low prices, under the premise that fixed costs cannot be effectively controlled in the short term, most retailers have adopted a "low quality and low price" development strategy to control at the expense of product quality. At its own cost, this is a typical competitive "myopia". For example, in the statement that Yansha Outlets (OUTLETS Outlet Shopping Mall) does not destroy its reputation with "junk products", although its "brand + affordable" discount business philosophy has been performed brilliantly in stores, Season "is still lacking in the grasp. Although overseas outlets sell out-of-season products, they are mostly limited to one-year cycles, rather than backlogs three or four years ago, and their quality is generally as good as new. Some of the counters at Lufthansa OUTLETS are obviously too old, and some of them are hung up wrinkled without ironing, which seriously affects the image of the brand manufacturers and also affects Lufthansa OUTLETS's reputation.

Discount store price

A research report on the development of Wal-Mart in multiple retail fields shows that consumers' requirements for the authenticity, stability, and fairness of merchant pricing are more important than the price of goods. Consumers do not need purely low prices. It's a price that makes it "value for money."

But in fact, most Chinese brand discount stores are still obsessed with traditional business's rational disdain for consumers.

For example, the LCX youth theme store, one of the three major discount stores in Beijing, takes the road of "international boutique". Its 1,200 square meters store claims that all its products are first-line brands. There are more than 300 brands taking turns in the market, and the price is below 50%. However, these brands are not cheap even after they are discounted. According to reports, its cheapest lady is the Turkish brand TAIFUN. The original price was 2,200 yuan, and the discount was still 880 yuan. The clothing in the entire store looked very old, and it looked like it had been transported many times. The sharp contrast between the price and its products clearly conveys a very unreal price information to consumers.

As a brand discount store, it is aimed at some consumers who are pursuing famous brands but lack economic strength. For these consumers, although the discount store sells out-of-season products, it is still their favorite. Their The slogan is "brand guarantee, good quality and low price", but compared with the rapid development of foreign famous discount stores, domestic famous brand discount roads are quite bumpy, which is related to their immature pricing strategy.

In foreign countries, because the operating costs can be effectively controlled, OUTLETS abroad can often get a one or two fold shopping surprise. This intermittent ultra-low-price stimulus can continue to maintain customers' passion for OUTLETS. In Lufthansa, customers Generally, only 50% to 60% of the stimulus can be obtained, which makes consumers 'purchase impression seem dull, and of course it is difficult to arouse consumers' purchase enthusiasm. At the same time, in the product pricing strategy, the price-performance ratio of the product in the mind of the customer is an indispensable reference quantity. Because consumers have uncertainty about whether the product is an international brand, the product price is too high, which will make consumers' decision-making faced. High purchase risk is not a risk for non-fashioned consumers who are in the financial crisis segmented by discount stores. Therefore, in the pricing of goods, merchants must consider the quality, appearance and brand of consumers. The weight in the mind is to determine the price accepted by the target consumer of 20% by estimating the price-performance ratio in the mind of the consumer and then according to the "two-eight" law of the customer's purchase. Such as LCX, its low-cost product perception itself sends a "inferior" signal to consumers, and the price is much higher than consumers' expectations for similar products, and it is no wonder that consumers will give it a "luxury dump" evaluation.

Discount store concept

The operating area of discount stores is usually limited to 500-2000 square meters, depending on the number of varieties and regional competition.

In terms of location, discount stores are usually located in convenient transportation areas, and strive to minimize land rents to control costs as much as possible. Of course, in actual site selection, specific site selection strategies will differ depending on the type of discount store and market competition. Brand discount stores, for young people, are more attractive

Discount store

It is suitable to open in some downtown areas and commercial centers, but considering the strength of discount stores at present, it should avoid direct conflicts with direct competitors such as department stores and brand stores with brand special counters. It is not a brand discount store. Because it operates mass consumables, it is suitable for opening in urban residential areas, and it is also suitable for expanding to small and medium-sized cities and rural markets. Of course, it should also deal with low-price competitive formats such as hypermarkets and supermarkets. Wait for a while. In order to save costs as much as possible, the store environment of discount stores should strive for simplified design and layout. For example, in some foreign non-brand discount stores, the product display is not sold on the usual display shelves, but in small packaging boxes. The upper part of the original packaging is cut off and opened, and it is sold in its designated display position intact. This is quite similar to domestic grocery stores.

In the store design of the brand discount store, the industrialized storehouse style has always been favored. Such as Lufthansa OUTLETS, is a Chinese version of this simple design. This design is a return to the gradual increase in the luxury level of the retail store layout, and it is also a realistic requirement for the low-cost operation of the discount store format. In contrast, the store layout of Times Square LCX is not so much a brand discount store as a new type of open department store concept because the design of the entire store is very different from the low-cost concept of discount stores. far.

Discount store promotion

Promotions are essentially designed to give customers a pleasant and impressive shopping experience. In the traditional promotion model, sales promotion, sales promotion, advertising, and public relations have always been the four magic weapons used by marketers. However, as people continue to understand the concept of promotion, marketers are beginning to realize that the original promotion does not just rely on tangible action demonstrations. Sometimes, intangible factors such as service, humanized design of the store, and the active atmosphere of the store. The characterization of the consumer buying experience is even more profound.

Discount stores use exactly this strategy. Due to the need for cost control, discount stores generally do not carry out direct store promotions and even provide extremely limited personnel services. It relies only on its unique store design, frequent shopping surprises, and limited but most critical service offerings.

In discount stores, because it adopts a dual-brand strategy, it largely avoids the crisis of trust caused by brand fragmentation and reduces customer purchase risks. In brand discount stores, because its products are mostly out of season , Missing files or defective brands, so the product price code is usually marked with a clear reason for the discount, using real and honest information to assist customers in the correct decision; in the establishment of the store atmosphere, its unique and simple warehouse design , Itself is very attractive to attract customers, coupled with intermittent discounts, the fiery atmosphere of the shopping mall can be imagined; on key services, discount stores never discount. Foreign outlets claim to give consumers a room for regret. At the same time, studies have shown that customers favor unconditional returns more than various value-added services, but unconditional returns for discount stores will undoubtedly face a huge cost pressure. In order to reduce risks as much as possible, discount stores can take some flexible coping measures. If you promise to return, but do not return cash, but exchange a card similar to a shopping voucher and shop at a discount store within a limited time; or promise to return cash, but if the price of the product is reduced, the price will be refunded after the price reduction. Not only does the customer's unconditional return requirements be met, but it also enables the discount store to effectively avoid some malicious returns, and at the same time the cost pressure caused by the discount store is greatly reduced.