HomeNewsChina's version of MUJI+ IKEA + Uniqlo, does Kashima have a future

China's version of MUJI+ IKEA + Uniqlo, does Kashima have a future

2020-12-12

Core tip: Frequent shopping mall visitors may notice that in recent years, a special store has appeared in large shopping malls in Chengdu, Chongqing, Xi 'an, Suxichang and other places. The style is similar to ikea, MUJI and Uniqlo, which is simply a combination of the three. However, it can be said that the pursuit of cost-effective on the road can be all the way.

Frequent shoppers may have noticed that in recent years, a special store has appeared in large shopping malls in Chengdu, Chongqing, Xi 'an, Suxichang and other places. The style is similar to that of IKEA, MUJI and Uniqlo, which is a combination of the three. However, in the pursuit of cost performance, it can be described as a gallop along the road.

The shop called kashima ordinary life (hereinafter referred to as kashima), some place called kashima (members), both are the same brand, the author understands, kashima starting xi 'an, the headquarters is located in chengdu, the brand was established in 2017, two years later usher in rapid development, has now opened across the country nearly 70 stores (stores), in addition to the two new cities, chengdu and hangzhou, most of the stores located in two or three line, three or four line city.The property owners who choose to cooperate with the brands are basically well-known commercial enterprises, such as Longhu, Wanda, Cade, China Resources, etc.But the pace of brand openings has slowed.

In style, Kajima is a hodge podge of IKEA, MUJI and Uniqlo, including clothing, household goods, gardening and green plants.It is reported that the early brand started with clothing and expanded the business category step by step in the development process. In recent years, the proportion of GARDENING and green plants SKU has increased significantly.

On every social media platform, consumers' most frequent comments on Kashima are "cost performance".Kajima regards itself as a "model of pragmatism". It is the brand's business philosophy to let customers enjoy the pleasure of purchasing single items at factory batch price. Office workers, ordinary families and students are its main customer groups.Those who like it think it's a place of treasure, giving ordinary consumers a little bit of life.Therefore, price-performance ratio can be said to be the core of The brand of Deer Island. By providing products with excellent price-performance ratio, consumers can increase their happiness in life in shopping experience.

The author sees in longhu Hangzhou Binjiang Tianjie shop, this shop area has fully 500 600 square meters, the shop is given priority to with dress, divided men and women upper and lower outfit, household Underwear, household life, household articles for use, fresh flowers and plants, garden market and so on partition.The clothing area is dominated by versatile basic clothing, which is similar to the height of Uniqlo. The lowest price category is socks and underwear, which are basically within the range of 7.9 yuan to 14.9 yuan. The middle-collared woolen sweater of 92% sheep wool and 8% cashmere is 199 yuan, and the most expensive one of men's medium-long down jackets with 80% down content is 599 yuan.

The garden area covers nearly a third of the store. Fresh flowers and plants can be sold in POTS, including a cherry crystal for 9.9 yuan, a meaty combination for 14.9 yuan, a pocket coconut for 14.9 yuan, and five roses for 9.9 yuan...In addition to selling fresh flowers and plants, the garden market area also sells a set of gardening peripheral tools, including flower POTS, kettles, garden spatulas and other goods. The flower POTS alone have nearly 10 materials such as iron sheet, plastic, ceramic, broken glaze, bright glaze, coarse earth, cement, PP resin and plant fiber, with prices ranging from 4.9 yuan to 24.9 yuan.

Ordinary life in Kashima is a members-type shop, where the logo "membership only" can be seen everywhere on the shelves and price tags.Among them, clothing products can be purchased without membership, while department store products can be purchased only by becoming a member, and membership card requires 20 yuan handling fee.

It is reported that members of Kashima have the following rights and interests: 1. Full-price clothing products can enjoy a discount of 5%; 2.2. Some goods and household products can only be purchased by members;3. You can enjoy a 60-day refund or replacement discount when shopping with your membership card;4. Members with more than 500 points can redeem corresponding gifts.

In terms of operation and management, in order to strengthen the exclusive identity and sense of acquisition of members, all the promotion, gift, discount, experience and other activities held in Ludao (Member) store throughout the year are only open to members.

The triple test of Kashima's future

Generally speaking, Kashima is a clothing and lifestyle brand with a Japan-South Korean style, which undoubtedly reminds people of Uniqlo and MUJI in the top stream of Japanese Fashion brands. So will Kashima become the Chinese version of Uniqlo or MUJI?

1, the ultimate price is characteristic is also shackles

Although the store style makes Kashima get the market attention, the extreme cost performance also makes Kashima get a lot of consumers favor, its commercial value has been recognized by the industry to some extent, but the brand is not without crisis and challenges.The moniker of "MUJI at par" (from consumers) may help the brand gain popularity quickly, but there are a lot of problems behind it.

At present, the product structure of Kashima is mainly clothing. In order to provide consumers with cost-effective shopping experience, Kashima has made direct purchase and selection of products through the supply chain, and achieved the supply of retail terminals at factory batch prices.But under the control of low price, it is not easy to guarantee the quality.Although we have been striving for the simultaneous existence of price, quality and popularity, consumers have complained about the quality of Clothing in Kashima. "The quality is at best worthy of the price" is a more polite comment.Brands have also been on the black list.

On January 24, 2019, The Chengdu Market Supervision and Administration Bureau announced the results of sampling inspection on the quality of wool (cashmere) sweaters in the fourth quarter of 2018. Six batches were found to be unqualified.The results show that the unqualified samples are mainly fiber content and pilling items unqualified, including unqualified batch nominal manufacturers including Chengdu Ludao Brand management Co., LTD.

Uniqlo's success is hard to replicate. In the final analysis, product quality and turnover speed must be guaranteed, otherwise the so-called high cost performance only promotes short-term volume transactions, and membership-based consumption cannot really accumulate brand loyalty.In other words, low price can attract customers for a while, but what really binds users must not be the price, but the experience of sex price behind the price-performance ratio is the most important.

The transformation and upgrading of China's clothing market has already been launched, and Chinese consumers are becoming more and more mature. As for clothing, people no longer pay attention to the previous update frequency, but pay more attention to the basic quality. Otherwise, even if the channel sinks to the third-tier and fourth-tier markets, it will not be attractive.

In the author's opinion, although the promotion of gardening and green retail business has enhanced consumers' happiness of shopping in Deer Island, gardening cannot determine the development advantage of the brand. In the fierce market competition, brand differentiation is still difficult to be highlighted.Gardening alone makes it almost impossible to build a business model that solves the brand as a whole.In the long run, replicability must be built on the strength of the entire supply chain.With the current price system in Kashima, it is difficult to establish a strong supply chain without the scale of rapid development.

2. The sustainability of membership system is poor

All stores in Deer Island adopt the membership mode, and members and non-members enjoy different purchasing qualifications and services.In the author's opinion, the membership system itself is a closed transaction, but based on the current brand positioning of Kashima, the whole bargaining space under the membership system is very limited.

As we know, among the world's famous retailers, Costco and Wal-mart's Sam's Club adopt the membership system. They pay a membership fee every year to maintain the purchase qualification and enjoy the service, and the membership fee cannot be used to buy goods.In this case, consumers who buy a membership will tend to shop at Costco as much as possible to get value for money for their upfront membership fees.Therefore, the unit price of members in this mode is higher and the loyalty is also higher.

However, there is no need to pay membership dues every year for members in Kashima. They only need to pay a fee of 20 yuan for the first time. After that, customers who forget to bring their cards can only consume according to their membership rights after verifying their identity.The membership rights mentioned above mainly focus on commodity discounts and benefits such as return and replacement.

From the perspective of the membership model, Costco's model in the United States includes, in addition to commodity retailing, fast food, gas station, medical treatment, auto repair and other additional services, all of which are highlights to attract consumers to come to shop.

With the same membership system, the biggest difference between Kashima and Costco and Sam's Club is that the former sells consumer durables, while the latter is daily consumer goods, which determines the difference in purchase quantity and consumption frequency.The biggest threshold of membership system, it is service and commodity these two main lines, the premise that service strengthens is to want the strong support of commodity.

The author thinks that, kashima membership of the member loyalty largely depends on the brand flagship cost-effective mode (rather than product quality), to expand the membership value, need to dig the existing members demand behind the scenes, to complement the existing model of optimization for branding, or a member of the current system will be difficult to continue in the future.

3. Profitability needs to be improved

With the low volume of sales, brands like Kashima are barely included in the flow type stores, which has a bargaining chip in the store expansion process. The level of stores that can be entered will not be too bad, but the brand is still in an awkward situation.

First of all, the gross profit and profitability are low, and the rental capacity is limited, so the brand needs to be located in the high-traffic zone for transformation. However, currently in the shopping mall, Kashima is not yet an indicator business brand with double advantages of brand influence and traffic.

In addition, the low customer base has narrowed the fitness of shopping centers in first-tier and second-tier cities to a certain extent, and it is more suitable to take root in community-based shopping centers.However, in third-tier and fourth-tier cities, in the process of consumption upgrading in the future, it is conceivable that it is difficult for brands to maintain the existing model.

In a word, the core of Kashima is to think about the whole business positioning and what kind of life style should be solved in the future. The whole category structure should be built around the life style. On this basis, the supply chain capacity and quality experience can be strengthened and the great development can only be achieved after the adjustment.

HomeNewsChina's version of MUJI+ IKEA + Uniqlo, does Kashima have a future
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