Product Management In Korean Group's Product Group To Realize Differential Competition

The martial arts of the world will not break quickly. Han Du Yi she The core of his rapid expansion to today's scale and always making money is his product group system. This is the key to truly support the fast fashion mode of its front desk, which has fifty or sixty items per day and nearly 20 thousand new products a year. And this core is gradually becoming mature in solving problems.

Group system 1: from buyer to buyer group

Before 2007, there were thousands of Han Feng in China's Internet market at that time. Women's wear In sales, either purchasing or copying, each shop has dozens of items, which we do generally.

Zhao Yingguang has been in the business for several years, and has opened a store. But he is still puzzled about what to do in the future. He has been groping for how to differentiate.

In mid 2007, Zhao Yingguang came into contact with The Republic of Korea The biggest fast fashion company. The general company is to give the manufacturer three or four clothes, each producing tens of thousands of pieces, and the company directly gives the manufacturer 700 styles, and the specific production styles are decided by the manufacturer. Although many styles, but a single order quantity is less, less than hundreds of pieces, more than 1000 pieces, sell well and then return.

Zhao Yingguang suddenly realized that he was finally groping for the future of his dream, so he immediately tried this small number of models.

At the beginning, the company had limited resources and could only buy on behalf of him. He put the focus on training buyers, and recruited a group of students. He matched Korean majors and fashion design professionals together, and selected 1000 out of 3000 Korean clothing brands and distributed them to 40 people. Each person picked out 8 new products from 25 official websites every day, which meant 200 new products every day.

At that time, Taobao search was sorted according to refresh time. Originally, Zhao Yingguang just wanted to make the product full and fresh, but did not expect to win the traffic.

This allows Korea to quickly differentiate itself from tens of thousands of Korean clothing stores on the Internet and enhance its competitiveness.

But this competitiveness is mainly manifested in the front-line competition for customers. Zhao Yingguang soon found this model in the background: first, there are several major injuries, such as too long waiting time, no return, frequent breaks, broken codes, and low cost performance. Second, the fund selection division has no sense of management and competition. After finishing the new model, the customer can not place an order. How much of this dress can be sold has nothing to do with them.

So Zhao Yingguang made some adjustments: first, from "purchasing goods" to "purchasing styles". The buyer chooses the style as before, and then gives it to the production department to purchase samples, sample and pick up materials, and find factories for mass production in China. Second, instead of requiring everyone to stare at the 25 brands, they will all disrupt the competition among buyers and cultivate the buyer's independent management consciousness.

However, new problems arise: every buyer wants more products, but does not pay attention to inventory problems. Only upload pictures, buyers do not think much about the supply chain.

So Zhao Yingguang embraced the mentality of trying to give a buyer 20 thousand yuan, let her decide the number of production, color, size, once the profits, the company and the buyer into. But there are also problems with this kind of trial: first, the buyer is a design professional, and if you let her run the business, it will not work. Second, even if a buyer has the business talent, he will choose the money and consider the business. As a result, Zhao Yingguang divested the business affairs, but not as before, to the production department of the company, but to each buyer with visual workers and operators.

The prototype of the buyer group is emerging.

A few months later, the advantages of this group + division system began to show. The enthusiasm of the buyers group came up. They could not only find the latest fashion models in Korea, but also find relatively reliable foundry production, reduce costs and control quality. Inventory turnover is rising.

Zhao Yingguang made an experiment in the interior and set up two teams: one is to set up three departments according to the traditional clothing companies: the designer department, the commodity page team, and the departments that butt the production and management orders; the other system is to break up the three departments, draw 1 people from each Department, and set up 1 teams of 3 people, altogether 10 teams. The two teams started at the same time. After 3 months, the traditional team was stopped, and the company began to try out a group production mode with higher efficiency and better performance.

In this way, the group system has been formed: buyers + visual workers + operators.

Group system 2: internal resources marketization, everyone is the two boss.

By the time 2011, there were 70 teams in Korea. A group of more than one, the original allocation of resources, can not be adjusted, such as the promotion of resources within the company how to allocate the store's home page, put the group's products?

Zhao Yingguang simply gave each group a higher degree of autonomy. Style selection, pricing, production and promotion were all decided by the group itself. The group's royalty was calculated according to gross margin or capital turnover rate. Gross profit and inventory became the two most concerned indicators for each group. Therefore, there will not be a unified discount sale in Taobao stores in Han Du, but each group will make promotional decisions based on their products to ensure gross margin and capital turnover.

For the home page resources, they have a mechanism of internal resources Marketization: a group that has been established for more than 6 months can compete for the position; within 6 months, the home page takes out a special location to let everyone grab, who will rush to get it.

The most important financial power is completely liberalized, and the amount of each group's funds is freely controlled. This amount is directly linked to the sales volume of the group, and the more it sells, the greater the amount. In South Korea, the amount of funds this month was 70% of last month's sales. For example, last month a group sold 5 million yuan, and 5 million yuan 70% was 3 million 500 thousand yuan, so this group can use 3 million 500 thousand yuan to go back to the new order this month.

Therefore, every team must have a strong sense of crisis. Suppose that a group is 50 thousand yuan, and the group will not use the 50 thousand yuan to place an order. Because if there is no sale, there will be no more quota. The team must start selling stocks. If the stock is never sold, the team will never have a quota or even die.

What happens when you die? It's "bankruptcy" and "reorganization".

They will compete for all kinds of teams, and the top three will be rewarded, and the three will be broken up and reorganized. In this way, each group is a competitive factor, almost a small company. Inamori Kazuo and Zhang Ruimin are trying to make the company smaller, and South Korea has gone further by relying on the genes of the Internet. The mission of this stage is to solve the problem of internal resource allocation, and it is also a comprehensive stage of the whole company structure. If the product group feels that the corresponding photo group is not good enough, then replace it; if a team in the production department coordinates well, it will allocate more tasks, and that group will have more income and more motivation. The entire organization structure is like standard parts, which can be freely butted, and also ensures that the income of most people can be linked to market performance.

　 Group 3: sale for abnormal sale

From 2012 to 2013, Korea has more than 200 groups, 7 brands, nearly 20 thousand each year. What is the most troublesome part of this stage? Supply chain!

This requires global planning and precise management of single product.

Therefore, the group system has evolved, they have created a single product full process operation system, and the company level has set up the planning center, which uses the selling rate to force the chain to achieve single life cycle management, and co ordinate the overall situation. The so-called single product operation is to consider a single paragraph, this piece of clothing from design to sales, all have data to control; each product's life cycle, there are dedicated maintenance. On average, each team manages seven or eight items of clothing each month, giving each location, what matching to do, how much it can hit the explosive money, what kind of state the inventory level needs to be discounted, and practicing it in a long period of time.

According to the historical data, the planning center set the target according to the annual crest trough rhythm at the beginning of the year, and then decomposed it into each group. Each group had subdivided indexes in the monthly, quarterly and annual periods. The planning department is equivalent to the Korean development and Reform Commission and data center to coordinate the competition among the teams.

The rhythm control of the planning center is very important to the Korean supply chain, which enables the production department and its factories to predict the next step ahead of schedule and facilitate the preparation of materials. Tens of thousands of orders, no rhythm control, pure death.

At present, the sales rate of Han Du can reach 95%, which is very abnormal in the clothing industry, especially in the 20 thousand cases each year. According to Liu Jinggang, head of the Distribution Department of Han Du, there is little pressure to complete this index.

In order to achieve this, Han Du divided the products into: explosion and stagnation. The explosive money and money can be returned. (Han Du's explosive money is not tens of thousands of traditional enterprises, can sell 2000 pieces, in Korea is a burst of money), flat money and delay must be immediately discounted sales promotion, and in the selling time, a little discount will be sold, until the end of the season, need to clear up the vicious inventory is naturally very little. As a result, the whole supply chain is more responsive and the quality is easier to control. Of course, this process is a little bit groping and improving. There is no accumulation of historical data and no prediction.

To sum up, the panel system can combine large commonalities with small personalities. All non standardized links, such as product selection, page production and discount promotion, are all done by teams. Standardized links, such as customer service, marketing, logistics, marketing, photography, etc., are collectively referred to as public service departments, which are done by companies. With the addition of personnel, finance, and administrative departments, the three level management of ROK's organizational structure has been completed.

This is the evolution history of the whole Korean group system. Every step is actually faced with a core issue, which is forced out. If you have read "runaway" (a book that has deeply influenced the US Internet), you will find that the group system of South Korea is exactly the characteristic of the distributed collaboration of the Internet. It is also the embodiment of bee thinking and drives the market through the group. You can not simply regard the group system as an organizational change taken by enterprises for internal incentives. It is not only the change of market demand from mass to small, but also the management response after competition from diversification to cross-border yuan. This may not be an individual phenomenon, but a whole business circle.