Internal Integration Or GXG Will Be The Key To New Retail Pformation.

According to the world clothing shoes and hats net, previously, the outside world

There are quite a lot of rumors about equity acquisition, and speculation about the upcoming listing of GXG is also ongoing.

In fact, as early as October 2016, the well-known private equity fund LCatterton and Crescent Point have officially completed the holding of GXG's parent company zhe Mu Shang.

Online competition is heating up, and Internet demographic dividends are gradually diluted, over the past year.

The concept has come to the ground, the traditional electricity supplier is dead, and the industry is dead.

Quietly coming.

In the early morning of 2017, 11 GXG cheers came from "double 11 minutes selling billions of dollars".

In the face of the record of Tmall double 11 and great changes in the environment, GXG founder Yu Yong has focused on the second half of retail sales.

He believes that in the past, GXG needs brand management to enhance the competitiveness of new retail companies and avoid the separation of online and offline businesses.

In fact, the electricity supplier has great room for growth.

In 2017, the total retail sales of China zhe Mu Shang line reached 10 billion 500 million yuan, of which 40% accounted for online, while the company estimated that the proportion of electricity providers will reach half in the next 3 years.

But the era of digital economy has arrived, and the traditional electricity supplier is a stumbling block on the new retail practice.

As Alibaba group CEO Zhang Yong said on January 16th in the consumer goods Forum (CGF) China day, "after more than a year of new retail exploration, there is a belief that it is a consensus that online and offline are unified, not separate, and must be integrated into one operation to meet the growing demand of consumers."

In order to become a new retail data driven company as soon as possible, and continue to lead the men's clothing market, GXG said it expects to go to the electricity supplier within three years, and the adjustment of its internal organizational structure is the first step towards the new direction of the electricity supplier.

When this step takes place, a new page has been opened.

Within two years, the electricity supplier department will disappear.

In the past, in 2017, there were more than two years left for GXG to go to e-commerce.

So far, the world's deepest mark on the GXG brand may still be the electricity supplier.

GXG e-commerce team is indeed like the "legend" of the electricity business community.

On line only 3 months, GXG in 2010 Tmall double 11 sales in the single day will break tens of millions of yuan, thus "World War I became famous", and then the general manager of the electricity supplier Li Shujun was also known as "tens of millions of sisters" by the industry.

2011 double 11, GXG sales of 43 million yuan to become a topic of hot topics, surpass many traditional first-line brands to pull the top.

After that, GXG has been leading the category of men's wear.

Therefore, for such a clothing brand that has been popular with the electricity supplier, it is no longer a revolution to go to the electricity supplier.

But there are reasons for this.

As early as 2012, when the turnover of GXG double 11 reached 80 million yuan, the concept of "all channel" has been considered. It is believed that the same price, channel pattern, consumption mode and customer demand will be changed in the future, and GXG will be ready for price adjustment strategy.

And after adjusting the price strategy to sell volumes, GXG further improved the brand line and laid new channels in 2013.

Not only did we create the brand of children's clothing, but also added new channel departments to seize the future trend of future electricity business including two-dimensional code, micro scouring, wireless terminal and O2O.

By 2014, multiple channels were initially formed, and GXG began to think about how to form synergy among all channels and breed "full channel sales".

The core of O2O is to open up, open up businesses and customers, open up product passages, open shops and shops, open up membership systems, and open up wallets.

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That is, in this year, Wu Lei took over ten thousand elder sister to become the general manager of GXG electric business, and completed the opening of goods.

That is to say, any line on the line is available and synchronized in all channels.

In the face of the stubborn disease in online and offline integration, the distribution of interests among different channels, Wu Lei also has a clear principle of intention, that is, the purpose of O2O is to make inventory turnover more efficient.

Therefore, he chose to give all the profits from the online and offline shipments to the line, and only hope that the agents will make more products next year.

By the end of 2016, the concept of "new retail" was rapidly becoming a hot word after being put forward by Ma Yun, and many fashion brands tried new retail pformation.

Although Wu Lei did not want to know how to really "people's freight yard" concept landing, but he still waits for the market pattern, and launches a new retail cooperation project with ALI.

He found that the integration of online and offline channels has become a past tense, and the integration of internal structure is the real factor that determines a company's new retail pformation.

A year later, Amazon, Alibaba, Jingdong and other business tycoons have laid down the line. The time for GXG to wait for a long time has arrived.

So with the first step of GXG going to the electricity supplier, GXG started to push the new retail business from the top level design. It is expected that the whole company will go to the electricity supplier within two years. The electricity supplier is no longer a department's existence and become a universal tool. The online and offline team will merge and return to the retail essence.

How to accomplish impossible tasks?

The undercurrents of change have begun to surge.

In the past one or two months, the departments formerly working on line shooting, online marketing and offline marketing have already completed the merger. After that, they only serve the "brand" in a unified way, and bid farewell to the marketing status of the front line under the front line.

According to Wu Lei, the design of the closed loop paction based on social networking and the profit distribution mechanism under the online and offline will be completed, and the business between departments will be gradually integrated.

Under the structural adjustment, the GXG team customised nearly KPI:2016 years as usual for themselves. The sales target set by the electricity supplier group was almost two times the sales volume of the previous year, and finally completed the annual sales volume of 4 billion 250 million yuan in retail sales. By 2018, the target upgrade was changed to "10% reduction in the production volume compared with the previous year, 18% increase in GMV and 100% increase in net interest rate".

Previously, the net interest rate of GXG electricity supplier has been close to 30%.

In this regard, Wu Lei claims to have 90% to complete.

GXG's goods are still made up of three parts, namely inventory, electricity supplier's special contributions and new products, but a clear trend is that online users are only one or two years younger than offline, and the overall range is between 21-35 years old.

Therefore, from the beginning of this year, the meaning of the special contribution of electricity providers will gradually be weakened.

For the brand assumption, GXG wants to further improve the quality of single product by improving the quality of accessories.

Under the promotion of quality, GXG will moderately control the discount strength, such as optimizing the original extensive operation mode, giving more benefits to super members, and increasing the turnover while ensuring the increase of profits.

More interesting is that in addition to the brand marketing through the fashion industry to deepen the brand image - GXG wants to cooperate with domestic high-quality fabric providers, cross industry brands, etc., will also this year after the lunar new year, in the production and design department to put two large screen, real-time play consumers feedback on products, further enhance the brand's product strength and design ability.

"The brand needs to be imprinted and advocated, with new things that young people like."

Wu Lei said, "in the future, we must control a certain scale and increase profits to become a new retail mode driven company."

In 2017, the total retail sales of zhe Mu Shang line in the GXG parent company reached 10 billion 500 million yuan, of which the online retail sales amounted to 4 billion 250 million yuan, accounting for 40%. The estimated electricity consumption in the next 3 years will reach about 50%. The O2O retail sales amount to 300 million yuan, while the online retail channel entities synchronize new product sales to a compound growth rate of 100%.

According to industry data, GXG continues to maintain rapid growth in addition to online and offline channels, and has become the most profitable brand of top fashion men's wear in China.

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What does LVMH bring to GXG?

In 2007, GXG was born and hit the Chinese offline market through the black and white style. After 10 years, it has grown into one of the most potential fashion brands nowadays.

According to the data disclosed by zhe Mu Shang of GXG parent company, its brand stores cover 32 provinces and autonomous regions of the country (including Xinjiang, Tibet and Macao), with a total number of about 2000.

The proportion of Direct stores has increased from 40% 4 years ago to 60%.

As early as December 1, 2015, according to Thomson Reuters's base point, L Capital Asia, a private Holdings Company of European luxury group LVMH group, is seeking a five year installment loan of US $130 million (about 832 million yuan) to supplement the 70% stake in Ningbo GXG menswear company. The GXG management team will retain 30% of the company's remaining equity.

At that time, GXG did not give a positive answer to the matter.

Through this interview, GXG affirmed this fact for the first time. In October 2016, the famous private equity fund L Catterton and Crescent Point bought 70% of the 4 billion people's money in the name of zhe mu. GXG became the only company in the Asia Pacific region holding more than 51% of the LVMH fund, which is totally different from the similar venture capital in the domestic investment fund with Heji group and hershin group.

L Catterton, founded in 2016, is the world's largest consumer goods company founded by LVMH private equity and real estate investment agency L Capital, merged with Catterton, a private equity firm Catterton.

It is reported that L Catterton has not been directly involved in the operation level, but it has brought more resources of fashion brands and channels for China zhe mu.

A typical case is that in June 2017, the sports brand 2XU, which was invested by L Capital, was formally brought into the professional sports market in China by GXG.

Under a series of layouts and ambitions, GXG is not only a fashionable men's wear brand that has been very low-key.

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