Fang Jianhua, Founder Of The Internet: The Internet Clothing Brand Is "Thick" To Be Strong.

On December 19th, at the summit meeting of the 2019 billion state retail conference, "new consumer new brand new product" summit, Fang Jianhua, chairman and founder of CEO and founder of Yin man, delivered a keynote speech from designer brand to intelligent factory and Internet clothing to be "thick".
Fang Jianhua believes that Internet brands rely solely on the Internet, just like people with only one leg. The ability to have the whole channel is a very important index to weigh the future clothing brand. Under the line is the two legs of the brand, only two legs are all together, then it is possible to walk fast and go far.
He also observed that all the clothing brands of over 100 billion have five characteristics: first, high cost performance, and the price they sell will not be very high. The two is that the product audience is relatively broad, not to pick people. Men's and women's clothing may be available, but the audience of the whole group is relatively wide. The three is to adopt the direct mode of large stores in the world, not to open small shops. The four is to adopt the sales and display of sales volume, no longer have the salesperson behind the consumer, how to match the consumer, how to buy it, it is self selected, volume sales. The five is the ability to operate globally.
Therefore, the clothing brand should be "thick", for example, the turnover rate of ZARA is very high. It has its own supply chain factory system, which can be shipped quickly and has its own aviation logistics company. This is no longer a simple light mode in the past. It is OK to find a factory processing or just keep sales. Therefore, the future must be "thick", only "thick" can be bigger and stronger.
It is understood that the 2019 fourteenth billion state retail conference in the future will focus on the theme of "new", holding the new flow summit, the new national cargo summit, the cross-border electricity supplier year-end forum, the industrial Internet year-end forum four main forum, and a series of thematic activities such as the new consumer trends closed door meeting, live short video thematic class, and Horseshoe Club year-end gatherings.
Warm tip: This is a preliminary review for shorthand, to ensure the original intention of guests on the spot, without deletion or error.
　　 The following is a record of the speech:
Fang Jianhua: just now, the host introduced that Yin man was a traditional clothing industry. Yin man was born on the Internet. Today, the electricity supplier has become a traditional industry. So I think yesterday, I heard more words that what kind of products began to rise now, that lipstick started selling well, and some products such as tobacco and wine were sold well. In addition, this year around me and in Guangzhou, many entrepreneurs have fallen down, and there are still many developing enterprises. This year, they have encountered many difficulties. Great changes have taken place in the whole industry, great changes have taken place in the electricity providers, and great changes have taken place in the retail industry.
As a women's clothing brand positioning by the industrial Internet, Yin man chose to be "thick". What kind of "thick" style do we play? I want to share with you three things. First, is there a big increase in pure online channels? Second, when will China's clothing brand produce 100 billion brand names? Third, many entrepreneurs, many clothing enterprises are very afraid of "heavy", they all like to be a "trading company". Should enterprises choose "light" or should they choose "heavy"? How to balance the weight? I would like to discuss these three questions with you.
Is there a big increase in pure online channels? As we can see now, the golden cycle of single channel has not been as long as before. Before the rise of a channel, there were ten years of dividends and eight years of dividends. Many pigs that had been on the cusp have been flying for half a year, and have been flying for two years.
What is the ceiling of a single channel? Take our women's clothing brand for example. There are fifty million, one hundred million, one billion and five billion on line. Can we do 10 billion? 20 billion? I do not know! But my view has always been that Internet brands are few today. I saw in the circle of friends some time ago that there were more than 100 brands in the atlas of the Amoy brand, and I remember when I was in the MBA class, there were many old friends there, and the change was very fast. So I think the Internet brand relies solely on the Internet, just like a person with only one leg. The ability to have the whole channel is a very important index to weigh the future clothing brand. Under the line is the two legs of the brand, only two legs are all together, then it is possible to walk fast and go far.
Let's see if China can produce hundreds of millions of clothing brands. I think so. This has already had a very good practice path in the world. Before that time, Zheng, founder of the power of billion power, exchanged two times with me. Every time it was still unfinished, we explored a lot of interesting topics. He was particularly interested in the model of Inman, and we talked less than five hours each time.
Can China's clothing brand achieve 100 billion? Let's take a look at ZARA. The scale is 190 billion, H&M is 160 billion, UNIQLO is about 130000000000, GAP is about 100000000000. But look at all these hundreds of billions of clothing brands. Imagine what they share in common. We have repeatedly extracted these points, and you can go over it with me to see if there are any of these points.
First, cost-effective. They will not sell at high prices. Do you agree?
Second, the audience of products is relatively broad, not pick people. Men's wear and women's wear are all there, but the audience of the whole group is relatively wide.
Third, the global direct store mode. It's not a small shop, it's a big store. You see UNIQLO, H&M, ZARA and so on are all very large stores, relying on these stores to achieve one hundred billion, it may have only 5000 shops in the world, the efficiency is very high.
Fourth, the use of sales volume and display. There is no salesperson behind the consumer, how to match, how to buy it, it is self selected, volume sales.
Fifth, global operation capability. China has the unprecedented opportunity that we are a big country with a population of 1 billion 300 million. Last month, I found that the retail market in China was too large. I went to Henan, and only one billion people in Henan alone. The population of one billion is equivalent to that of other countries, and the consumption habits between China's provinces and regions are totally different. I take Henan as an example, we want to buy a down garment in Southern China, and may no longer pursue leather goods, but when I went to Henan on business trip, I found that there was a big fur collar there, and the fake wool could not work. This is the difference in consumption habits I observed.
This is the five major common feature we have repeatedly summed up, which constitutes the important point of 100 billion clothing brands.
As you can see, all these 100 billion clothing brands play the most important role in the SPA mode. This big store mode has the advantage of big store mode. It requires that its layout is very precise, the supply chain efficiency is very high, and the store's efficiency is very high. Of course, the pressure of investment and capital is very large. The mode of franchising, the mode of franchising, and the difficulty of its brand image and management also have its drawbacks. Therefore, the SPA mode and the franchising mode have their advantages and disadvantages. We should choose the mode that the brand should follow according to the brand development stage.
Let's take a look at UNIQLO. How does it bring efficiency to SPA mode? The store of UNIQLO, its shops in Guangzhou, Hangzhou stores and Henan shops, the goods of each shop are different, and the display of goods is different. It can achieve Ping efficiency 40 thousand.
I would like to talk about all the clothing brands that are over 100 billion. I do not know if there is a shopkeeper who owns the clothing brand under the shop. The cost of labor is very high. I know that the labor cost of most brands in China is the cost of wages, which accounts for more than 10% of the total revenue of the whole store, 10% to 20%. Look at UNIQLO and H&M, the cost of labor is 5%, which is very big. The average profit margin of the entire garment industry is between 6 and 10 points. If the cost of labor accounts for over 10%, it is difficult to form a scale, and it is hard to make profits. Its turnover rate is 7 days, so Yin man firmly believes that through these years of adjustment, will usher in a new opportunity.
Yiman has gone through two turning cycles. For the first time, I have been doing foreign trade for ten years. Since 2007, foreign trade has gone through an economic crisis. At that time, the situation of foreign trade was very difficult. I chose to do my own brand. In the second time, in 2015, we felt that the growth rate of the electricity supplier was slowing down. The online dividend era had passed and was about to move into the new cycle. Now, in retrospect, if we still have the online channel today, maybe we still have only online channels. Maybe it will not disappear today. So we went through the era of Internet traffic dividends. Later, we firmly believed that we should focus our efforts on the two channels of online and offline businesses.
At the beginning of the shop, many friends of traditional brands told me, what could win the game? Your price is not high enough. There are so many Jianghu bigwigs under the line. So many Bryant brands have taken the best place. Why can EMMAN win? In addition, there are many Internet brands, which have chosen to be offline, and have finally collected or even dropped them. We still have to do it without hesitation, that is, based on the industry Internet play, the scene of category strategy; IMMAn began in July of 2015, and in the four years, we accumulated some experience and results online.
Of course, if you want to go to the bottom line, I think the most important thing is our organizational capability. The most important thing is the project of the founder's leader. If the boss doesn't think well, or the company doesn't think well, you must never go down. This may be a huge pit. The industrial Internet mode of DDI has made efforts in three aspects: first, digitalization; second, data in stage; third, intelligent manufacturing. Yin man's platform store mode adopts unified brand, unified commodity management, unified promotion and unified supply chain. Our platform store mode, the most important thing is not to use the same order as the traditional clothing brand, the traditional way may only be the franchisee, the provincial generation, the market generation, and gather together in a guesthouse to take a show, order goods, is this mode. Our stock is all company, and all partners under the line use the button mode. The last point is that we will unify the training of shop assistants and carry out duplication and iteration of capabilities.
Through the system and digitalization of the system, the ultimate goal is to speed up efficiency. Our online sales rate is above 90%. If there is no digital scene and digital transformation, it is impossible to achieve this turnover rate.
Yin man's data platform runs through factories and stores, as well as the data flow and decision instructions at the sales side, which drive the turnover efficiency and sales efficiency of the whole inventory. In addition, stores and stores have already realized the function of transferring goods to each other and robbing each other.
A few years ago, I found that many of the fans had opened the store of EMMAN. Most of them could get back to their books in the first year. They earned about 150 thousand to 300 thousand a year, and realized a very light business.
If the efficiency is not high, style, color, climate and other factors will lead to no sale, we do garment enterprises, in the past only think that quality is our lifeline, in fact, we should add another, time and quality is our lifeline. Last year, we invested in the construction of an intelligent manufacturing industrial base of 140 thousand square meters in Yudu, Jiangxi. We used the best production facilities in the production line, greatly improving the quality and efficiency of our products.
Yin man is equal to the comfort of cotton and hemp. This is DNA of Yin man's product. In the future, Yin man wants to build a living space of cotton and hemp. Last year, we achieved the upgrading of brand LOGO, which was originally "M Yin man cotton and hemp artist". Now we are more intuitively seeing a LOGO of cotton, which is equal to Yin man. This is from cotton and flax women's clothing, to cotton and ramie living space development stage. Yin man now has women's clothing, children's clothing, shoes bags, household furniture category, we are planning cotton and linen related products, cotton and linen related living space, such as slippers, bedding. Our specialty is clothing, but to build a living space of cotton and hemp, with the big shop mode, the fastest should be in 2020, cotton and hemp living space will be exposed to the surface.
I think the clothing brand should be "thick". As ZARA knows, its turnover rate is very high. It has its own supply chain factory system, which can be shipped quickly in Spain. He has his own aircraft and his own aviation logistics company. I think the future needs to be "thick" and only "thick" can be bigger and stronger.
Finally, I wish you all the courage to continue our courage in the economic environment and the less favorable flow of dividends. We must pay tribute to the striving and go along with innovators. So no matter what kind of difficulties and setbacks, we will continue to run together in 2020 and in the future. Thank you!