In the past 19 years, the apparel industry in China is at "turning point". At present, 8 of the clothing brands cooperate with ALI cloud, among which the revenue of domestic goods has increased gratifying, reaching 24%. It can be said that Ali cloud has become a new way of clothing brand transformation.
1: National tide + digital tide, apparel industry ushered in the "turning point".
We observed that the current apparel industry is mainly influenced by the two trends.
The "national tide" is very hot. From 2009 to 2019, the attention of Chinese brands increased from 38% to 70%. We learned from Tmall platform data that in January 2019 -7, the search volume of "chao chao" keyword increased by nearly 400% compared with the same period last year. Most of these search users were after 90 and 00 consumers. The market has released positive signals.
The digital tide in full swing. According to the "2019 digital trend report", the retail industry in the next 3-5 years, the degree of digitalization is expected to reach 70%-80%.
When technology and business change dramatically, there will be "inflection point", which will lead to exponential growth. "Retail business review" believes that on the other hand, the influence of the rise of the national tide will bring long-term impetus to the other side, and the apparel industry is ushering in its "turning point". We judge that perhaps in the next 3-5 years, the industry will see a new round of explosive growth.
2:8 has become famous clothing and Ali cloud cooperation, the rise of domestic goods average increase of 24%.
As the representative brand of Chinese products, Lining, XTEP, YOUNGOR, red dragonfly, Taiping bird, BELLE, Anta, Bosideng and so on have a common figure behind them, Ali Yun.
In December 18th, at the second Alibaba ONE business conference, Xiao Lihua, vice president of Alibaba and general manager of the new retail business department of Ali Yun Yun, revealed that 8 of the famous clothing enterprises had worked with ALI cloud, among which the rise of domestic brands and the average revenue growth rate was 24%. With the help of Ali new retail, they have entered the fast lane of growth.
So what's the direct effect and the growth of performance? Let's take a look at several examples:
Lining also suffered from his 5 years of natural disasters, facing a wave of closing shop and business crisis. Lining, who retired, had to return to power. It is precisely this sports veteran Lining's coming back again that he can turn the tide.
After changing strategy, Lining recovered in 2015, with double-digit growth in sales and orders. In 2017, Lining group's income reached 8 billion 874 million yuan. In 2018, it became the top 20 most popular Chinese brands in the sea, with revenue breaking 10 billion.
By 2019, Lining's semi annual report showed that its revenue in the first half of the year was 6 billion 254 million yuan, an increase of 32.7% over the same period last year, and net profit of 795 million yuan, an increase of 196% over the same period last year. The growth of its performance mainly comes from the channel optimization of offline stores and the rise of e-commerce revenue.
At present, the market value has exceeded 50 billion Hong Kong dollar mark.
Of course, behind the good performance, it also benefits from Lining's key move, which is to cooperate with ALI cloud to carry out the whole link number intellectualization transformation. Among them, the digital store is an important part. At present, Lining has more than 7000 stores throughout the country, and all channels and digital shops have exceeded 1/5.
At the same time, Lining's business efficiency has been improved comprehensively: the average inventory turnover days in the first half of 2019 were reduced by 11 days to 74 days. In the inventory structure, the proportion of new products (6 months or less) increased, and the sales of new products increased by more than 2 percentage points.
Lining not only changed the tide, but also the digital transformation of Lining.
The same way to achieve the reverse trend is XTEP.
Since the beginning of 2012, XTEP's performance has declined, and the total number of stores has dropped from the peak more than 7500 to 6000 at the most dangerous time.
But in 2015, XTEP chairman and CEO Ding Shui Po made up his mind to spend 10 million to rebuild the information system.
Recalling the decision made at that time, Ding Shuibo still had a vivid view.
One day in 2015, XTEP CIO suggested to Ding Shuibo to break, transform and reorganize the existing distribution and retail related systems based on wholesale mode, and establish "business platform", and all of them move to Ali cloud. Ding Shuibo approved 10 million on the spot and opened the "3 year strategic change". In his words, he will never get stuck in two things, one is talent cultivation, and the other two is information system construction.
Facts prove that his decision that seemed risky at that time has become the key point of XTEP's counterattack.
In 2017, XTEP and Ali cloud cooperation to create the "XTEP all channel retail platform" formally launched.
Based on the technical support of Ali cloud, the business center set up XTEP's membership, order, inventory, logistics and settlement system to form a commodity center, a channel center, an inventory center and a member center. Under the unified interface, the data generated under different scenarios can also be quickly returned to the cage.
In the three years of reform, XTEP has reversed its decline and the scale of its stores has recovered. In 2018, XTEP's revenue was 6 billion 380 million yuan, an increase of 24.8% over the same period last year. According to its semi annual report, XTEP's robust performance in the first half of the year, revenue and earnings grew 23% year-on-year.
Since 2016, YOUNGOR chairman Li Rucheng called "five years to rebuild a YOUNGOR", the Chinese men's wear giant after 40 years of rain began a self transformation.
In the middle of 2018, YOUNGOR intelligent factory went online to build an advanced digital suit workshop in Asia and build a smart sales platform to get through online and offline.
At the beginning of 2019, YOUNGOR joined Alibaba's A100 strategic cooperation plan, based on Alibaba's business operation system, to help speed up the digital transformation.
Li Rucheng said that this cooperation between YOUNGOR and Alibaba can not be considered from the perspective of efficiency, but from a new perspective of exploration, what exactly can new retail be made?
"I used to know only the pockets of consumers, but I don't know how to serve customers. The service is to give VIP a discount. With the insight of data technology, we can know.
Double 11, YOUNGOR accurately touches 10 million people online through digital technology, bringing 1/4 increment to itself. In addition, the whole market is traded on line, offline and offline. In the end, YOUNGOR's online sales reached 124 million yuan, up 88.8% over the same period last year.
At the peak of the year, Bosideng down jacket accounted for 1/3 of the world's down jacket production and became a well deserved "feather emperor".
In 2012, Bosideng quickly opened shop, adding 4665 stores to 13009 stores in one year.
However, the market of Waterloo began.
In 2013, there were more than 3000 stores closed nationwide, while the number of stores in 2015 was even more alarming, closing more than 5000 stores directly.
Bosideng's continuous performance loss is mainly due to its strong seasonal dependence on its main business, its backwardness, unfashionable design, over expansion of shops, single business, and obvious peak season. Since 2016, Bosideng has focused on upgrading its brand value, so we can see a series of moves in the strategy of brand remolding and product upgrading.
And then cooperate with ALI cloud to build a "retail cloud" platform to achieve the new retail three links of membership, retail and inventory. The direct result is that the intelligent replenishment system of the stock center effectively reduces the shortage loss 21%, and the sales rate increased by 10% over the same period last year.
In the past 3 years, Bosteng has regressive vigorously and has developed rapidly.
So why do these clothing brands choose to cooperate with ALI cloud? In fact, they are to seize the first mover advantage of the market.
3: in the future, the whole link digitalization is imperative.
The core of new retail is the reconstruction of "people's freight yard". As for the clothing industry, we believe that these three key elements are changing rapidly:
1, people have changed. At present, the consumption power of China's 200 million new middle class is in full swing. At the same time, the Z generation of young people has become the main purchasing force. When buying clothes, TA is more and more valued for the tide, quality, personality and consumption of the circle.
2, the goods have changed. Consumer oriented C2B product development has become a major trend. Such clothing businesses put forward higher requirements for the accuracy and decision-making power of consumer trends.
3, the field has changed. Online and offline acceleration integration, electricity providers and entities have been inseparable. For example, UNIQLO has achieved the same price under the same line, online and offline, and so on, so as to make consumers more convenient.
In order to achieve rapid response to the changes in all links, the whole link digitalization is imperative.
Many of the traditional clothing enterprises that we have contacted before have even done quite a lot. But they all have common problems: they have deployed internal management systems such as CRM and ERP, but they have been severely cut off and chimney like distribution.
In this way, we can not achieve the efficient exchange between the three relations of "people's freight yard". The direct expression is: the reaction between market information and management decisions is not timely, the fault between front-end sales and back-end services, the "lost connection" between online providers and offline stores, and so on, are the core issues, and what they really lack is actually a "cloud".
Aliyun has launched a one-stop, total link number intelligent transformation and upgrading five steps for the retail industry to help enterprises achieve this goal of reducing profits and increasing performance.
1, infrastructure cloud. The clothing industry has a high turnover rate, a new fast market, and a large number of business scenarios.
2, contact digitization. All aspects of understanding consumers, TA what commodities they saw, what commodities they tried, to the final deal, and later consumers' feedback on the use of products, etc., can be understood, and ultimately complete closed loop.
3, online business. Using digital operation and management platform nails, enterprises can realize cloud mobile office, personnel management, organization and operation process maintenance, workflow collaboration, online training, and online connection between enterprises upstream and downstream, enabling enterprises to organize online, communicate online, cooperate online, business online, and ecological online, so as to realize the online and digitalization of enterprise management.
4, operational data. Enterprises will generate data in all aspects of operation, how to manage and develop internal data information. There are data among different departments and how to integrate them. Only when data is in the middle stage can the problem be solved effectively.
5, intelligent decision making. Key information in the data, business integration between the two platforms, through the overall cloud computing power, enterprise can effectively make decisions.
Ali is relying on these 5 plates to help enterprises realize the one-stop full link intelligent transformation.
Zhang Jianfeng, the intelligent president of Ali cloud, said: Alibaba combines cloud intelligent technology foundation with business system, and is a new business operation system for future society. The growth of enterprises through new products, new customers and new organizations is inseparable from the new technology infrastructure. Today's "new" is because new technology has become the main body of the Internet, and enterprises need to grow with new technologies.
- postscript -
The media believes that the rise of the new generation of consumers has triggered a new personalized consumption, and the market structure has also been comprehensively reorganized, and the traditional Chinese clothing brands have ushered in the "turning point".
It can be imagined that the market competition for clothing will become more intense in the future. Brand dealers and retailers need to adjust their posture in time of running. The future retail environment must be the DNA double helix of new consumption and digitalization. Only when both of them are in place and coordinated development can the market take the lead.