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Position: Apparel Information > People > Founder of Inman Fang Jianhua: Internet clothing brands must be "thick" to become stronger

Inman founder Fang Jianhua: Internet clothing brands can only become stronger if they are "thick"

With the theme of "Shangxin", the four main conferences of the New Traffic Summit, the New China Goods Summit, the Cross-border E-commerce Year-end Forum, and the Industrial Internet Year-end Forum; as well as closed-door meetings on new consumer trends, live short video sessions, and Horseshoe A series of theme activities such as the year-end party.

On December 19th, at the "New Consumer, New Domestic Products, and New Brands" summit of the retail conference, Fang Jianhua, chairman of Huimei Group and founder and CEO of Inman, published "From designer brands to smart factories, Internet clothing must be done" "Thick".
Fang Jianhua believes that Internet brands rely solely on online, just like people have only one leg. The ability to have an omni-channel is a very important indicator for measuring the future clothing brands . Online and offline are the two legs of the brand. Only when both legs are aligned, it is possible to go fast and go far.
He also observed that all clothing brands with more than 100 billion yuan have five characteristics: first, high cost performance, it will not sell at high prices. The second is that the product audience is relatively wide and not picky. It may have both men's and women's clothing, but the audience of the entire crowd is relatively wide. The third is to use a large store direct sales model worldwide. Instead of opening a small store model, they are directly operated by large stores. The fourth is the use of volume sales and display. There are no more salespersons behind consumers. How consumers mix and buy is all optional and volume sales. Fifth, it has global operation capabilities.
Therefore, the clothing brand must be "thick". For example, ZARA has a very high turnover rate. It has its own supply chain factory system, which can ship quickly and has its own air logistics company. This is no longer a simple past model, just find a factory for processing or just keep sales. Therefore, to be "thick" in the future, only "thick" can be bigger and stronger.
It is understood that the fourteenth Ebion Future Retail Conference in 2019 will host the four main conferences of the New Traffic Summit, New Domestic Products Summit, Cross-border E-commerce Year-end Forum, and Industry Internet Year-end Forum; A series of themed activities such as closed-door trends, live short video lectures, and the year-end party of the Horseshoe Club.
Reminder: This article is a preliminary review of shorthand, to ensure that the guests at the scene have the original intention, without deletion, or omissions, please forgive me.
The following is the speech record:
Fang Jianhua: The host just said that Inman is a traditional clothing industry. Inman was born on the Internet. Today, e-commerce has become a traditional industry. So I thought that yesterday I heard more words saying that what category is starting to rise now, that lipstick is starting to sell, and some products such as cigarettes and alcohol are selling well. In addition, this year around me and throughout Guangzhou, many entrepreneurs have fallen, and many developing companies have also encountered many difficulties this year. Everyone is confused. What should I do? The industry as a whole has undergone drastic changes, e-commerce has undergone drastic changes, and the retail industry is undergoing drastic changes.
As a women's clothing brand based on the Industrial Internet, Inman chooses to be "thick". In the end, what kind of "thick" style do we play? I want to share with you three things. First, is there still a big increase in pure online channels? Second, when will Chinese clothing brands be able to produce hundreds of billions of brands, which have not yet been produced, and when will they appear? Third, many entrepreneurs and many apparel companies are afraid of being "heavy" and like to be "trading companies." Does the company need to choose "light" or "heavy"? How to weigh the importance? I want to discuss these three issues with you.
Is there a big increase in pure online channels? We have also seen that the golden cycle of a single channel is not as long as it used to be. The rise of a channel may have a 10-year bonus and an 8-year bonus. Many pigs on the cusp have flew for half a year and flew for two. In the year, flying was gone, and the cycle of a single channel became shorter and shorter.
What is the ceiling of a single channel? Take our women's clothing brand as an example. There are 50 million, 100 million, 1 billion, and 5 billion online. Can you make it 10 billion? 20 billion? do not know. But I always think that there are only a few Internet brands that have arrived today. I saw in my circle of friends some time ago that there are more than 100 brands in the Taobao brand map, and I remember that when I was in the MBA class at Amoy University, there were a lot of old friends who were no longer there. The changes are very fast. . So I think that Internet brands rely solely on online, just like people have only one leg. The ability to have an omni-channel is a very important indicator for measuring the future clothing brands. Online and offline are the two legs of the brand. Only when both legs are aligned, it is possible to go fast and go far.
Let's take a look again and see if China can produce more than 100 billion clothing brands. I think we can. This already has a very good practice path in the world. Some time ago, the founder of Everbright Power, Zheng Zheng, and I talked twice, and each time he was still thinking about it. We explored a lot of interesting topics, and his model of Inman I'm particularly interested. We have been chatting for more than five hours each time.
Can Chinese clothing brands achieve 100 billion? Let's take a look at ZARA, the scale has reached 190 billion, H & M has 160 billion, Uniqlo has more than 130 billion, and GAP has more than 100 billion. But look at all these hundreds of billions of clothing brands, everyone imagine what common characteristics it has? We have repeatedly refined these points, and you can review them with me to see if there are these points:
First, high cost performance. They will not be sold at high prices, do you agree?
Second, the product audience is relatively wide, not picking people. Both men's and women's clothing are available, but the audience of the entire population is relatively wide.
Third, the global store direct sales model is adopted. It is not a mode of opening a small store, it is all directly operated by a large store. You see, Uniqlo, H & M, ZARA, etc. are very large stores, relying on these stores to achieve 100 billion, it may only have 5,000 stores worldwide, the Ping effect is very high.
Fourth, the use of volume sales and display. There is no salesperson behind the consumer, how to match, how to buy, it is optional, volume sales.
Fifth, global operational capabilities. The unprecedented opportunity China has is that we are a big country with a population of 1.3 billion. I surveyed the market last month and found that the Chinese retail market is too big. I went to Henan, and Henan alone has a population of more than 100 million people, which is equivalent to another country. The consumption habits are completely different from one region to another. I take Henan as an example. We are going to buy a down jacket in South China. We may not pursue leather goods anymore, but after I went to Henan for a business trip, I found that the down jacket there must have a large fur collar. Shoes still need leather shoes. Here are some differences in consumption habits I have observed.
These are the five big common traits that we repeatedly sum up, which constitute the important point of the 100 billion clothing brand.
As you can see, all these over 100 billion clothing brands play the SPA model to the extreme. This big store model has the advantages of the big store model. It requires its planning to be very precise and the supply chain required. The efficiency is very high, and the store floor efficiency is very high. Of course, the pressure on investment and funding is very large. The franchise model, the franchise model, as well as its brand image and the difficulty of management, also have its shortcomings. Therefore, the SPA model and franchise model have advantages and disadvantages. We must choose the model that the brand should go according to the stage of development of the brand.
Let's take a look at Uniqlo. How does it maximize the efficiency and play the SPA model to the extreme? Uniqlo's stores, its stores in Guangzhou, Hangzhou, and Henan, each store's products are different, the display of products is different, it can achieve 40,000 square meters.
I want to focus on all the clothing brands that exceed 100 billion yuan. I do n’t know if there are any clothing brand owners who open offline stores. The labor cost is very high. I know that in direct-operated stores, the labor cost of most Chinese brands is also the cost of wages, which accounts for more than 10% of the total revenue of the entire store. 10% to 20%. Let's take a look at the labor cost of Uniqlo and H & M, which accounts for 5%. This gap is very large. The average profit rate of the entire clothing industry is between 6 and 10 points. If the labor cost accounts for more than 10%, it is difficult to form a scale and it is difficult to have profit. Its turnover rate is 7 days, so Inman firmly believes that through the adjustment of these years, new opportunities will be ushered in.
Inman has gone through two turning cycles. The first time is that I have done foreign trade for ten years. Since 2007, the foreign trade has experienced an economic crisis. At that time, the situation of foreign trade was very difficult. I chose to be an independent brand Inman; Secondly, in 2015, we felt that the growth rate of e-commerce was slowing down. The era of online traffic dividends has passed and is about to enter a new cycle. Now, in retrospect, if we only have online channels today, maybe Yin Man will not have today, and like many Taobao brands, it has long disappeared. Therefore, we have experienced the era of Internet traffic dividends, and later we firmly believe that we should adjust our energy to online and offline channels.
When I first opened the store, many friends from traditional brands told me, why can Inman win? Your price is not high. There are already so many big names in the offline world. So many brands that are more cattle than the Inman brand have occupied the best places. Why can Inman win? In addition, there are a lot of Internet brands. They chose to do offline, and they all ended up and even dumped. We still have to resolutely do it, which is based on the industrial Internet style and scenario-based category strategy. Inman has been offline since July 2015. In four years, we have accumulated offline A few lessons and results.
Of course, to go offline, I think the most important thing is our organizational ability, and the most important thing is the founder's top project. If the boss didn't think about it or the company didn't think about it, you should never go down. This may be a Huge pit. Inman's DDI's industrial Internet model has made efforts in three aspects: first, digitalization; second, data center; third, intelligent manufacturing. Inman's platform store model uses a unified brand, unified product management, unified promotion, and unified supply chain. The most important thing about our platform store model is that it does not use the order method like the traditional clothing brands. The traditional method may just be that the offline franchisees, the provincial and city representatives, gather together in a hotel for a show and order a product. It is this model. All of our inventory is company-owned, and all partners offline use the deduction point model. The last point is that we will uniformly carry out the training of shopkeepers and employees, and iterate on the ability to replicate.
Through the system and digitalization of Inman's mid-stage, the ultimate goal is to achieve speed improvements. Our current online sales rate is over 90%. Without digital scenarios and digital transformation, this turnover rate would not be possible.
Inman's data center platform runs through factories and stores, as well as data flow and decision-making instructions at the sales end, driving the entire inventory turnover efficiency and sales efficiency. In addition, stores and stores have realized the function of each other's goods, and each other can grab orders.
Some time ago, after my inspection, I found that many Inman fans opened Inman's stores. Most of them can return to their books in the first year, earn about 150,000 to 300,000 a year, and have realized very light entrepreneurship. Burden.
If the efficiency is not high, factors such as style, color, and climate will make it impossible to sell. As a clothing company, we used to think that quality is our lifeline. In fact, we should add another one. Time and quality are our lifeline. Last year, we invested in the construction of a 140,000-square-meter intelligent manufacturing industry base in Yudu, Jiangxi, and used the world's best production equipment and facilities in production lines, which greatly improved product quality and production efficiency.
Inman is equal to the comfort of cotton and linen. This is the DNA of Inman products. In the future, Inman will create a living room of cotton and linen. Last year we realized the upgrade of the brand LOGO. It turned out to be "M Inman cotton and linen artist". Now we can more intuitively see a cotton LOGO, which is equal to Inman. This is the stage of development from cotton and linen women's clothing to cotton and linen living space. Inman now has women's clothing, children's clothing, shoes and bags, and home furniture categories. We are planning cotton-linen-related products and cotton-linen-related living spaces, such as slippers and bedding. Our specialty is clothing, but to create a cotton and linen living space, using the big store model, the fastest should be in 2020, the cotton and linen living space will be exposed to the water.
I think that clothing brands need to be "thick". As everyone knows, ZARA has a very high turnover rate. It has its own supply chain factory system. In Spain, it can ship quickly. He has his own aircraft, his own aviation Logistics company. I think the future must be "thick". Only "thick" can be bigger and stronger.
Finally, I wish everyone to continue to courage in an environment where the economic environment and traffic dividend are not so good. We must pay tribute to the strugglers and walk with the innovators. So no matter what kind of difficulties and setbacks, we will continue to run together in 2020 and the future, thank you!

Source: Ebon Power

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