New retail is the general trend, and the reform of retail is not only the integration of channels, but also the creation of a brand-new business form. However, looking at traditional physical stores, most of them still use old ideas to do business, and they can't go far. Consumption upgrade, the thinking of doing business should also be upgraded simultaneously, otherwise it can only be abandoned by the market.

As for how to upgrade and break through the clothing industry, I have mentioned it in many answers. Today, focusing on the so-called "profiteering" may be just what you think!

Gross profit refers to the profit generated by selling purchased goods without considering taxes and expenses.

Gross profit margin = total sales-cost of sales

Gross profit margin = sales gross profit margin/total sales * 100%

For example, the sales volume of a store in June 5438+00 is 80,000, and the sales cost is 30,000. Then the gross profit margin of the store in June 5438+00 = (8-3)/8 * 100% = 62.5%.

If a store can maintain a high gross profit margin for a long time, it shows that this store has certain competitive advantages, such as exclusive supply, novel style and guaranteed price. And get an extra premium in the market.

On the contrary, if the homogeneity of goods in the store is serious and there is little difference with other stores, then only general market income can be obtained, and it is difficult to maintain a high gross profit margin.

But the higher the gross profit, the better, and the turnover rate of goods is also very important.

The benefits of stores are generated in the cycle of funds-purchase-sales-funds. The higher the number of commodity turnover, the greater the liquidity of the store, indicating that the better the commodity sales, the higher the profit of the store.

Even in the clothing industry, the gross profit and turnover of different stores vary greatly. Generally speaking, the situation of high gross profit and high turnover is the most ideal. However, "you can't have your cake and eat it", and those with high gross profit usually have low turnover, while those with high turnover have low gross profit.

Let's look at the table below:

There are two stores, Store A and Store B, with the same batch of goods of 65,438+10,000. The gross profit of store A is only 2 times, and it can be sold out in 15 days. Although the profit is only 200,000 yuan, 1 quarter is 1.2 million yuan.

The gross profit of store B is five times higher. 1 sold out of goods in the quarter, reaching 500,000, which was much worse than the quarter of A store 1.2 million.

For store B, although the gross profit is high, the turnover is low, and the backlog of goods can not be sold out until 1 quarter, which takes up most of the funds and is not conducive to subsequent operations. So high gross profit does not mean that you must make a lot of money.

Therefore, we should not only pay attention to the appearance, but also dig the essence behind it.