(1) Jing: refers to the banker. As the name implies, retailers buy goods from manufacturers or suppliers in cash or on credit, then display and promote them and sell them to consumers. The advantage of this model is that the real right and pricing power are in the hands of retailers, and at the same time, because the procurement is in the form of distribution, the procurement volume has a certain scale, which can minimize the procurement cost of retailers.
Generally speaking, the commodities with distribution as the main sales form are mainly classified into fast-moving categories, such as fresh and frozen products, daily food, washing and so on. These are the categories of goods that users buy and consume repeatedly, which makes the purchase well controlled in both inventory turnover and off-season sales forecast, and the inventory risk of distribution is relatively low.
(2) Agency: refers to consignment. That is, retailers sell products instead of manufacturers or suppliers, but do not buy out the inventory in advance and implement after-sales settlement. In this model, the retailer does not bear the inventory risk, but only facilitates the transaction and extracts a certain proportion of the share (deduction model) or gross profit (pricing model).
Generally durable goods, clothing, shoes and hats, electrical department stores, etc. By consignment. Because the styles in these fields change rapidly, the fashion trend is not easy to grasp, and it is easy for novices to overturn when buying. Therefore, in order to avoid this risk, retailers often adopt consignment mode, which minimizes the risk of retailer's inventory backlog.
However, the problem brought by this model is that suppliers will raise the cost price of supply and reserve cost space for possible inventory backlog. According to the old bird in the industry, there are two ways to buy a clothing bag: distribution and consignment. The purchasing cost of the latter is higher than that of the former 15%~30%, and these high costs are ultimately paid by customers.
This also explains why the same brand of goods, except taxes and freight, are much cheaper abroad than at home, although the prices of different stores in China are different, because the company with low price may be a distribution model, which saves a lot of its own costs. And those with high prices are just the role of a commercial second landlord.
(3) Joint venture: refers to the joint venture. Retailers provide a space or network channel for suppliers. Retailers are responsible for unified planning, cashier and customer service, while suppliers are responsible for sales, inventory management and display. In this mode, retailers are less involved, or even not involved in sales, but only responsible for the overall environment creation, such as poster opening and holiday planning. General cosmetics, watches and wines are classified in this mode, because these all need high professionalism and strong on-site service ability. Retailers' employees are generally not qualified for this kind of work, and suppliers also trust their professionally trained sales staff.
(4) Lease: refers to venue lease. This kind of format retail managers hardly participate in it, which belongs to complementary formats and secondary realization of traffic. For example, Hong Kong Kuaijian, Mr. Mi and optical shops are often seen in supermarkets. After renting the venue, the general retailer will not only operate the main format, but also sublet it to a third party at 5~ 10 times the rental cost, thus making a profit. In large-scale retail shopping malls, customers can enjoy the flow by combining different formats. This investment management model can create more profit value than a single main business format (in the final analysis, it is repeatedly squeezing consumers' wallets).