Sasa'S Dilemma In The International Mainland Needs To Solve The "Small And Beautiful" Pformation Mode

The 2013 interim report released by < p > a href= "//www.sjfzxm.com/news/index_c.asp" > Sasa international < /a > showed that in the first 6 months of September 30th, the turnover of Sasa in the mainland market decreased by 3.3% to HK $167 million, while same store sales decreased by 6.9%, and the operating losses also expanded from HK $19 million 826 thousand to 27 million 155 thousand Hong Kong dollars in the same period in 2012.

This is Sasa's eighth consecutive year of loss since he landed on the mainland market in 2005.

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< p > at the recent mid-term performance conference, Guo Shaoming, chairman and chief executive officer of Sasa group, said that China's mainland business will undergo a major reform, which will use area management to control the supply of goods, manpower and scale.

In fact, since June 2013, Sasa has been committed to the "small and beautiful" boutique to try and promote.

However, in the view of the industry, Sasa's price advantage can not be highlighted. The mainland's high cost cosmetics agency channels and high tax problems still exist.

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< p > < strong > performance continued to decline < /strong > < /p >

< p > Sasa's performance in Hong Kong and Macau is quite different from that in the mainland. It is attributed to the "new store opening" and "front-line staff productivity improvement".

Sasa, vice president and general manager of China's a href= "//www.sjfzxm.com/pioneer/" > Huang Ling Heng /a, said that the slowdown represents deficiencies in the implementation of business and policies, especially the need to strengthen staff training and further improve service levels.

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< p > however, such a decline does not seem to be a "brakes" trend.

As of September 30th, the China Daily still made Sasa lose face: during the 6 month reporting period, the company achieved a turnover of 3 billion 899 million Hong Kong dollars and a net profit of HK $357 million and HK $357 million, an increase of 15.4% and 26.7% respectively, and the gross profit margin of the company increased by 1.3 percentage points to 47%.

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< p > in Hongkong, Sasa has been taking a low price route. Compared with competitor Zhuo Yue, Sasa is slightly better at volume and decoration, so the price is slightly higher, but both are the same price cosmetics shop.

However, in the mainland of China, Sasa's "little Jasper" disguised himself as a "great lady". The fact proved that the effect was not ideal: in Hongkong, the main selling perfume in the main floor of the city was the use of "3~5 bottle", "buy 2 gifts and 1" and other promotional measures in mainland China.

Therefore, similar to "L'OREAL", "Clinique" such a mid-range brand in the mainland Sasa has no price advantage.

In order to cater for the taste of the mainland people, Sasa has a large scale of single store stores in the mainland, not only a small number of tourists, but also been dragged down by the high cost of rent and labor.

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< p > "Watson's single store sales in the mainland have reached 8 million Hong Kong dollars, the shop is small, about 150~250 square meters, and Sasa's average store area in the mainland reaches 300~600 square meters. Sasa has to pay more for the same performance."

Cosmetics expert Feng Jianjun said.

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< p > < --EndFragment-- > "now the world's business super companies will choose the way of OEM, make profits with their own brands at a low price, and WAL-MART and Watsons are doing the same. Sasa's future development of exclusive brands for differential competition is almost the only way out."

Yu Xueling, Secretary General of Guangdong daily chemical association, told reporters.

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< p > < strong > boutique mode can work well < /strong > /p >

< p > in the mainland market, the chain stores like Watsons, and so on, all start with the "product localization" as early as possible, that is, the introduction of some cosmetic brands in the mainland and the product line of "price for the people".

On the one hand, Sasa, who landed on the mainland market in 2005, entangled with tourists. On the one hand, he did not think of how to shift from "big to the whole" to the so-called "small and beautiful".

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Sasa P said in June 2013 that it would continue to invest resources in the mainland to further consolidate its market position in the mainland and enhance its capacity to expand its scale. In addition, some new shops would adopt a low cost and more efficient boutique concept store operation mode.

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< p > the so-called boutiques is that the shops will be half the size of the regular shops, and the number of goods will be reduced to 2500~3500.

Its labor, rental and depreciation costs have dropped, focusing on selling best sellers and their own brands to enhance cost effectiveness.

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< p > it is worth noting that the Sasa boutique concept shop opened in September 29, 2013 at Chengdu Kade Plaza Jinniu 1 22 shop.

This is Sasa's first store in Chengdu. There are hundreds of brands and more than 2000 products, of which 80% are imported.

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< p > according to Sasa, the operation mode of boutique concept store will help to enhance Sasa's penetration and speed up shop expansion.

"We will accelerate the penetration of the two or three tier cities and continue to close down the poor shops and counters."

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< p > in fact, as of September 30, 2013, Sasa has entered 28 cities and 17 provinces in the mainland of China, with 58 "Sasa" shops and 6 "Suisse Programme" counters.

In 2012, Sasa opened 15 new stores in the mainland, closed 21 stores, and opened shop at a slower pace than closing stores. The total number of stores in the mainland has been stagnant.

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< p > for this reason, Sasa believes that the important thing is not to open shop speed but quality, and to enrich product mix is one of its first measures.

"Suppliers will continue to work closely with local suppliers, global and regional beauty group suppliers and < a href=" //www.sjfzxm.com/news/index_c.asp "beauty brand /a >. We will introduce more brand products and other new brands, create more diversified brand combinations, optimize store display methods, and promote more marketing activities."

Sasa replied so.

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