Profit margins have been greatly compressed, and cost control has become inevitable. However, cost reduction is not a simple Special Database subtraction of product quality. It needs to find another way to create a comprehensive and refined management system. 1. Revitalize inventory and grasp business signals Low price does not necessarily mean low quality, which is well explained by Xiaomi. They made 69 yuan for mobile power products that cost more than 200 yuan; 699 yuan for air purifiers that cost 4,000 to 5,000 yuan; and Special Database 699 yuan for high-end mattresses on the market that cost more than 4,000 yuan... and the quality is well-known.
Taking the mobile power supply as an example, the core reason why Xiaomi is so cheap is to buy the stock battery cells. In 2013, IDC (Internet Data Center) and Special Database Gartner (market analysis agency) announced at the same time that Lenovo Group had become the world's largest supplier of notebook computers. That is to say, in addition to Lenovo, other mainstream PC (personal computer) manufacturers in the world are shrinking. Xiaomi Special Database realized that as the laptop market shrinks, there will inevitably be a large surplus of 18650 cells that are most commonly used in laptop batteries.
This battery has high performance and mature technology. Therefore, Xiaomi's mobile power supply uses 18650 cells, which makes the mobile power supply very cheap Special Database while ensuring high quality. 2. Select SKUs to increase order volume In our traditional concept, the richer the sales category, the more choices consumers have, but Costco has done the opposite. Costco (Costco) is the largest chain of membership warehouse stores in the United States. It has only 2-3 brands in each category, with few SKUs (stock keeping units) and Special Database large quantities of single items. Costco only has about 3,700 SKUs. Compared with Walmart's tens of thousands of SKUs.