Uncovering the path to development of original brands 5

　　At the Crown Regular Meeting of Laogao Crown Club, Gao Ruoshun took the creation of market segments as the entry point to share with you the secret of the development path of original brands and how to become the number one brand of Taobao's Chinese-style jewelry. Passing the brand concept of "pure heart and no evil thoughts" to employees and customers is not only a marketing slogan, but also a sharp analysis of brand building.

　　The reason for lack of cash flow is excessive investment and excessive inventory. I have a deep understanding of the inventory of clothing, including some offline brands. The excessive investment and excessive inventory are determined by the inevitable defeat of the arrogant soldier just shared. This year, it will cost 100 million yuan, and next year, I will prepare 500 million yuan in inventory. Because I have left the market, I will grow three times every year, so I will definitely be 300 million yuan next year. What should I do at this time? We can take a look at the data cube. There is an industry growth in the Rubik's Cube. We must ensure that our growth is faster than the entire Taobao category. For example, the growth of the entire Taobao category this year is 100%, then if you achieve 100% growth, it means that we are just rising with Taobao's water, but we are not falling behind. If you are higher than the growth rate of the entire market, even if we are doing well at this time, we are lower than the industry's growth rate. Then you must be careful at this time. Whether you are in the sight or online peers, you are eating your share.

　　You think it is good to grow by 30% this year, but the entire industry has grown by 50%, and your top value has increased by 300%. So at this time, we must always be vigilant and a sense of crisis. We have finally unveiled the veil of the brand and announced this formula to everyone. Let’s talk about this formula, return on assets = profit margin * turnover rate. This formula is basically invincible with the following formula. Make sales and then protect your profit and turnover. At this time, all the problems have been solved. Do you have a sudden enlightenment feeling?

　　This formula is not original by me. It was a book I read in about 2005. The CEO said that if you are interested, you can read it. It was proposed in Chapter 2. He was talking about the common thinking of CEOs and street vendors. Now I quote it to our Taobao club. Turnover rate = total sales/total assets. For example, our sales this year are 100 million and inventory is 10 million. My turnover rate is 10, and I make 10 times a year. This is easy to understand. Regarding profit margin, compared with For example, if your net profit is 10%, multiplying 10 is 100%, this year's return on assets is 100%, which means that I invested one million yuan and I made one million yuan this year. I usually come into contact with ROI. The return on investment is mainly used on the express train, and the amount of investment is produced as much as the investment is spent. Now we should focus on the entire asset return on assets, because we are not Taobao's horsemen, but our own horsemen. We only look at the ROI of the express train, and we only focus on the express train.

　　If we are looking at the entire return on assets, then we are focusing on this project, this company, and this brand development. Buffett's 20-year yield is 22%, and the average yield is 20.5%. If we do 100% every year and you can maintain it for 20 years, that is the miracle of the world, but we can maintain it for 300% in the first year, 200% in the second year, and 100% in the third year, and then maintain normal growth. Keeping it at 20% is an excellent project. If our return on assets is not 10% higher than this year, it means that it cannot offset the cost of our funds, because our loans also have to be costly. If we can't offset the cost of the loan, then our boss and shareholders will not be happy.

　　Speaking of business growth, our business growth is largely driven by traffic. Everyone agrees. Relying on traffic is driven by platform, giving money to the platform and protecting fees, I give you money to me, you give me traffic. In fact, what should we rely on to drive, rely on our own systems and talents. Let’s discuss whether Taobao belongs to a high-tech industry or a talent-intensive industry. In the view of investment companies, it is definitely not a high-tech industry, it belongs to a talent-intensive industry. This is our core: talents, direct trains need people to drive, title culture needs people to do, pictures of your conversion rate, your artists, your after-sales service, your customer service, everything is done by people. How these people are guaranteed, they are guaranteed through systems, we will give them any system they need, and we will design the system as they are happy, because we want them to help create value.

Click to register online to apply to join the well-known e-commerce network - Laogao Crown Club. Any businesses, Tmall merchants, Taobao Crown Stores, Jinguan Stores, and other e-commerce platform merchants can apply to join!

E-commerce people are in the world, and it is a terrible thing to have no circle! If you have a circle, you can avoid detours, broaden your connections, expand your thinking, obtain the latest experience and information, cooperate with multiple parties, and join forces... What kind of people you are with will lead to a life like that. Everyone is welcome to join!

Thank you for your attention and support to Laogao Crown Club . Please indicate the source of the reprinting website www.shxuanming.net