What is the underlying logic behind KKV to complete the 3.0 store iteration？
Zhongxin Jingwei, October 21st KKV, a new retail brand that was suddenly "killed" in 2019, has completed the iteration from 1.0 to 3.0 in just three years. Why does KKV insist on iteration? What is the underlying logic behind continuous iteration?
Scene-based iteration
On September 21st, KKV’s first 3.0 flagship store in South China was unveiled at China Resources Wanxianghui, Songshan Lake, Dongguan, which was the fourth 3.0 cargo ship theme flagship store opened by KKV in September. On the opening day, the store was crowded with young customers who came to spend money. According to the store, the passenger flow exceeded 30,000 on the opening weekend.
The young lady named "Happy Can’t Ting" wrote in her punching note, "The theme of the freighter is good to shoot and visit, and the division is still clear. The favorite is the snack area, where you can always visit."
As a student party, what attracts the attention of miss "Berry has a banana worry" is the Chaowan area. "All kinds of toys, blind boxes and building blocks have opened my eyes, and the variety is rich and complete. They are also divided according to different age groups, and the display is simple and clear, which is very intimate. It can improve the shopping efficiency and get a full sense of experience at the same time. After shopping for an afternoon, I returned home with a full load."
According to Kearney’s consumer research, consumers have now upgraded from simply "looking for" goods to "looking for" goods, "selecting" goods and "visiting" stores, and to undertake this trend, store minds such as "category collection experience" and "one-stop shopping" have gradually emerged to meet the needs of consumers.
Among them, the iteration of store format layout can bring consumers a more intuitive impact and a subversive experience of shopping methods. KKV, an exquisite lifestyle collection brand under KK Group, has more space, but also carries more diverse scene elements.
Compared with the 2.0 store type, KKV has set up many whole-wall products for display, and the 3.0 store type is different. There are not many traces of the whole wall products on the KKV 3.0 exhibition in Songshan Lake, Dongguan. In this way, the complexity is simplified, the key points are highlighted, and the demand of consumers for shopping efficiency is also met.
In addition, KKV’s representative bright yellow container is transformed into a giant cruise ship. There are navigation elements such as anchors, lifebuoys and docks in the store, and the atmosphere is directly filled with navy blue. It is reported that the 3.0 store "carries" 18 categories, over 20,000 SKUs, and has a variety of new products, which is in line with the consumer preferences of the current Z generation.
1.0-store KKV is the first flagship brand launched by KK Group in May 2019. It is a major store with a card space of over 1,000 square meters, including 14 categories of beauty, personal care, accessories, drinks, snacks, clothing, stationery, toys, etc. Jewelry wall, mask wall, lipstick wall, red wine wall and bubble ball wall are all landmarks in online celebrity.
KKV 2.0 focuses on the concept of "travel theme", with red, yellow and white as the main vision, and creates various interactive truck theme scenes with interesting elements such as car tires, traffic signs, traffic roadblocks and mirrors to create interesting and multi-dimensional photo scenes for customers. 3.0 upgrades the theme of travel to the theme of navigation, so that more exquisite living things can be carried on KKV freighters.
Generation Z: Paying for Resonance and Experience
Talking Data has published a report showing that Generation Z has begun to lead the changes in consumption trends in some areas. As Generation Z enters the workplace, their income is gradually increasing, and they are building a new traffic center, which will become a powerful growth point in the future consumer market.
Throughout the new consumption "battlefield" where KK Group is located, new brands for the Z generation are emerging one after another. To break through, it means that brands need to strengthen their understanding of the consumption concepts and habits of the Z generation.
For retail, everything is equal to zero without users. Understanding consumer demand is the first step, followed by products.
The founding team of KK Group believes that consumers will not pay for the beauty of punching cards and stores, and will not pay for business models and feelings. They will only pay for products.
It is understood that KK Group adopts the "last elimination system" for products. At present, KKV maintains a product update rate of 30%-50% every year. Through data selection and sales management, SKU replacement is carried out according to the real sales situation of products. This "digital product selection mechanism" is endowed with user needs, making it easier for young consumers to experience their own free lifestyle in KKV.
In addition to frequent product updates, the category division is not static, but the product proportion and location are adjusted according to the characteristics of different cities, so as to meet the favorite product proportion of local consumers and let consumers realize the convenience of one-stop shopping.
In addition, KK Group’s buyout mode means that the business logic of the retail industry has begun an innovative change.
Under the buyout supply chain system, the brand will hand over the exclusive supply right to KK Group, and use KK’s channels as the starting way. As more and more well-known brands settle in, it brings a fixed consumer group to the channel. At the same time, by "exempting" the back-office expenses of suppliers, the operating costs of suppliers are reduced, and the purchasing costs of retail enterprises are also reduced simultaneously. The win-win zero-supply relationship ultimately benefits consumers, so the traditional "win-win" situation of zero-supply is changed to "win-win" situation of zero-supply.
Iteration every year, is it worth it?
The new environment and new trends bring about the upgrading of business formats, which is the necessity of business evolution. Nielsen, a data analysis company, believes that most fast-moving consumer goods around the world are facing a structural challenge under the influence of the epidemic. Under the new trend of consumption, how to break through product boundaries and explore new scenarios is a problem that all walks of life need to think about.
In recent years, endless innovations in the fields of consumption and automobiles have also provided an example for enterprises. For example, the 600-year-old Forbidden City’s high-profile "out of the circle" is due to its protection and inheritance, as well as its integrity and innovation. The digital transformation of the Forbidden City has activated cultural relics and brought fire to the buildings, making cultural exchanges "transcend time and space" and lead the times.
For another example, the new track of new energy vehicles is gradually emerging, and the car market share is also quietly changing. In September this year, the sales volume of self-owned brand passenger cars was 1.166 million, up 40.8% year-on-year, and the market share increased by 2.9 percentage points to 50%.
What is shown behind this is the change of market demand. Grasping innovation means grasping development, and seeking innovation means seeking the future. Enterprise innovation must first find the right direction, and this direction is the pulse of the market and the needs of consumers.
As mentioned above, from 1.0 to 3.0, the continuous iteration of the scene shows that innovation has always been the main color of KKV. The rise of Z-generation people and social media has led to the rise of a new generation of collective stores such as KKV, which focuses on the youth market and upgrades the consumer experience.
Facing the new consumer group Z generation, it is very important to create a new urban space that integrates commercial consumption, cultural creativity and art exhibitions. If the business model of traditional stores is to meet people’s basic material needs, today’s new trend retailers facing generation Z hope to become the spiritual corner of this generation and even the next generation. Whether you can buy something that truly represents "me" may be the ultimate torture of contemporary young people for the store.
In this environment, the commodity has surpassed its own meaning, and the offline experience has also become the carrier for consumers to pursue humanistic, artistic and aesthetic experience to a greater extent. (Zhongxin Jingwei APP)
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