Orders From Online Brands, Foreign Trade Enterprises To Do Business Pformation OEM

Electricity supplier orders increase faster than foreign orders, and higher profit margins.

Electricity supplier orders increase faster than foreign orders, and higher profit margins.

Shenzhou knitting: only a large amount of money is king.

In October 6, 2011, Jobs passed away.

In October 24th, fan Ke official website began selling "biography of Steve Jobs" and presented the commemorative T-shirt with the book.

When people rush to buy "biography of Steve Jobs" on fans, few people have noticed that the commemorative T-shirt donated from books is only one week from design to manufacture.

It can be said that this is actually a template to achieve rapid response in the supply chain, and the Ningbo T-shirt is the Shenzhou Knitting Company Limited (hereinafter referred to as Shen Zhou company).

Jobs's commemorative T-shirt has only 30 thousand pieces of volume. For Shenzhou company, the additional orders will increase some costs, but the amount of orders and incremental space generated by Internet brands such as van guest are the most valued by Shenzhou company.

Urgent orders from small customers

In 2009, such a "big company" was dealing with everyone in the small company because of an urgent order.

In the Spring Festival of 2009, we found Itou Tadamori, a world-renowned comprehensive trading company, hoping to cooperate with 300 thousand orders for POLO shirts.

But at that time, Yi Tengzhong could not do it himself, and pferred the order to his Shenzhou company, a partner for many years.

But at that time, it was catching up with the Spring Festival and the delivery time was only one month. This is an urgent order for Shen Zhou and needs quick response.

"In case of urgent orders, the production line will be green enough for other less urgent customers to make a little easier.

We now have 300 tons of capacity a day, and if we make 5% adjustments, we will have a lot of capacity. "

Hu Jijun, deputy general manager of Shenzhou company.

The reporter saw on Shenzhou company's production line: many lines of the workshop were working at the same time, and one line was responsible for producing a garment. The sample was hung before the white board at the front end of the production line, and each worker was in charge of a part of the craft.

Once there is an urgent order, it is necessary to assemble several production lines and give priority to sample production.

This urgent order starts with the delivery of quality and quantity, and starts the cooperation between Shenzhou company and all customers.

"The beginning of cooperation with all customers, like our cooperation with UNIQLO, the cooperation between UNIQLO and Shenzhou began with an urgent order."

Today, UNIQLO has become the largest customer of Shenzhou company.

Hu Jijun said he was more optimistic about the prospects of e-commerce and the growth rate of customers.

Facts have proved that Hu Jijun's choice is correct.

In 2011, VT orders for all customers reached 6 million and 2 million.

Despite its small profits, Shenzhou company has its own abacus.

E-commerce companies can shorten the distance between users and manufacturing because they are closest to customers.

Because of this, the initial impression of e-commerce enterprises is that the supply chain mode of small batch and multi orders can be realized, while traditional enterprises are often typical of long orders and large orders.

But in Shenzhou company, the situation is just the opposite.

According to Hu Jijun, for Nike and Adidas, the average one style is only 15000 pieces, and it is not a one-time order. It is usually 2000 times in the next half month, and the average volume of each style is not large.

For Shenzhou company, such an order is a small order, and such a cycle will also increase its cost.

The reason for this is that orders for international brands are global.

Because of the large number of regions and different seasons, there are frequent orders.

However, if some products are placed early, inventory will be generated.

Therefore, international brands will place orders according to their regional time, so the orders of international brands will become small orders.

"However,

The orders of big brands are small, and their styles are various.

For all customers, even 6 million pieces of VT have only five or six styles and three or four fabrics.

Therefore, from fabric to production, are relatively concentrated.

"Although the profit gained from customers is lower than that of other customers from the calculation of single item products, it is not much lower than that of other customers, because from the overall operating cost, the profit margin of customers is not lower than that of other customers. The characteristics of large volume, centralization and predictability are exactly what our company needs."

Hu Jijun said that they have just taken over an e-commerce client in Taiwan, and its scale is no smaller than that of customers.

From now on, although the order quantity of e-commerce OEM is smaller than the total sales volume of Shenzhou company.

But Hu Jijun believes that in the future, OEM orders will have a sustained growth.

The rapid development of e-commerce not only promotes the channel pformation of traditional brand enterprises, but also has an impact on the processing enterprises.

In the face of the general downturn in foreign trade business and the declining international orders, the traditional OEM enterprises have also begun to participate in the new supply chain of e-commerce.

For OEM enterprises, there are two directions in their pformation: one is to follow the development of Internet brands, to take orders from some big suppliers; the two is to create private brands and use e-commerce to achieve domestic sales.

Whether it is the former or the latter, the incremental business generated by the OEM enterprises is very impressive.

Orders from Internet brands

Shanghai Shang Hong shoe industry was originally a branch of back shoe.

In 2000, the Huili General Factory went bankrupt.

The upper shoe industry had to restructure.

After the restructuring, the Shang Hong shoe industry caught up with the good year of foreign trade orders, and began to take some foreign trade orders.

At that time, the Shang Hong shoe industry and Shanghai's other more than 40 enterprises producing vulcanized shoes and rubber shoes were relatively good.

But after a long time, after 2008, the financial crisis, the appreciation of the renminbi, the rising cost of labor and other factors led to the collapse of these shoe companies in Shanghai.

"At present, there are only 5 enterprises in Shanghai producing vulcanized shoes like ours, with relatively good quality products."

Shang Hong shoe industry chairman Hu Qilong said.

In 2010, the domestic brand of e-commerce began to expand canvas shoes and vulcanized shoes.

After acquaintance introduced, everyone found the shoe industry.

At this time, the online shopping blowout period.

The first order placed by everyone is 50 thousand pairs. Hu Qilong was very surprised at that time because he did not believe that customers could sell so many shoes.

In the market of vulcanized shoes at the time, both the back and the double stars were brand names of the industry. For a new brand, the amount of 50 thousand pairs at a time was somewhat doubtful.

What surprised Hu Qilong, however, was that the order of 50 thousand customers was sold out in a day.

Then, orders from 100 thousand customers, 200 thousand pairs and 300 thousand pairs came from all customers.

In 2011, the total volume of orders reached by the Hong shoe industry reached 2 million 300 thousand pairs.

But Hu Qilong also admitted: the order of customers, the profit margin is not high, or even to the domestic brand Metersbonwe's OEM profits.

However, the order rate of online shopping is very fast, and the total volume of orders is huge, which makes them have better cash flow.

From the foreign trade pformation to do the order of e-commerce enterprises, the macro shoe industry is a typical case.

It is understood that the domestic apparel Internet brand growth is very fast, like fans, Masa Marceau, dream bazaar, and so on are the fastest growing brand representatives, these brands are their own product design, and the order to the factory to do.

Martha Marceau CEO Sun Hong told reporters that Masa Marceau's original main product was men's full range. Last year, the products were expanded to women's clothing, all orders were designed by themselves, and then handed over to factories for production.

However, Sun Hong also said that unless the international brand of the first generation of industry and commerce, otherwise the quality of foreign trade foundry enterprises, not necessarily better than domestic brand processing enterprises.

Brand strategy of domestic pformation

In addition to the pformation of foundry, OEM enterprises also have a way to pform into brands.

For many generations of factories, making their own brand has always been a dream that can never be seen without a trace.

They usually face two difficult problems: marketing and channels.

The difficulty of marketing lies in the fact that the factory has no contact with domestic users and does not understand users, so marketing does not know where to start.

The path of e-business seems to solve these two problems.

On the one hand, the Internet can make users and products infinitely close. On the other hand, after many years of development, there are already mature platform channels such as Taobao, Jingdong, Dangdang and so on.

As a result, some foreign trade enterprises began to create their own brands online.

This is an example of the 2007, which mainly made OEM for foreign first-line brands. Since 2007, as foreign manufacturers began to cancel or reduce orders, Wu Shihui, chairman of the board, began to consider pformation.

He first opened a store under the line, intended to take the traditional channel to make the brand, but it turned out to be a failure.

Later, it began to explore the independent website, but the result was not very optimistic.

Later, Wu Shihui decided to use the existing platform, first to open the shop on Taobao, to make himself a "brand", and to use Taobao to promote the brand opportunities, to get a lot of support from the Taobao platform.

After that, Wu Shihui began to enter the major platforms for full network marketing.

According to Wu Shihui, compared with the gross profit margin of foreign trade, 10%~20% has earned more than 30% gross profit margin after being pformed into an e-commerce brand.

Coincidentally, Kell clothing is also a case of successful pformation.

10 years ago, when the seven wolves began to make their own brands, Wu Zhichao, general manager of Kell's clothing, missed the opportunity.

Since 2008, when the foreign trade subcontracting industry is going downhill, it will be very difficult to pform the brand with the traditional brand path.

In the second half of 2010, after 2 months of preparation, Kell's clothing brand of online brand was officially launched.

Because the strength of Kell's clothing was autumn and winter clothing, the shop chose to go online in autumn.

At the same time, Wu Zhichao also adopted a strategy of borrowing power -- recruiting Internet agents.

Because most of the sellers on Taobao do not have their own factories, their usual practice is to look for goods everywhere and then grow bigger.

So Wu Zhichao went to these big sellers to talk about agent distribution.

Wu Zhichao said that this way of borrowing is very effective, and in 3 months, the men achieved about 10000000 yuan in sales.

At present, the "Amoy brand", which has grown up on Taobao platform, has been abound in enterprises with annual sales of over 100 million yuan. Some of them are designer brands, and the other part is the online brands created by foreign trade enterprises after pformation.

It is foreseeable that with the increasing demand for online shopping, the brand of online pformation will be a mainstream direction for the pformation of OEM enterprises.

Online shopping "OEM" is a good opportunity for pformation.

According to the data released by the General Administration of customs, China had a deficit of 31 billion 480 million US dollars in February and a surplus of US $27 billion 280 million in January.

The decline in exports is closely related to the decline in demand in Europe and other markets, which has led to a new round of "cold winter" in China's manufacturing industry.

In 2006, Ye Haifeng, who had contracted overseas bags for more than ten years, decided to pform Taobao into e-commerce.

After 6 years of development, wheat bag has become the largest domestic luggage brand enterprise with more than 1000 employees and sales of nearly 1 billion yuan.

In 2011, in the "fan guest ceremony", Chen announced that the sales of canvas shoes for all customers amounted to 5 million pairs.

And the order of canvas shoes also made Shanghai's upper shoe industry hard to survive, and became the biggest supplier of canvas shoes for all customers.

The same story also happened on Taobao's big sellers, such as Han Du house, rash and silk, and seven grid.

In order to better grasp the needs of users and reduce the risk of inventory, large sellers reduced the number of days of inventory turnover of traditional brand clothing enterprises to 60 days to 90 days in 180 days.

Many traditional foundry enterprises have adapted to 10000 bulk orders which are ordered, but they are not suitable for small or medium-sized batches of 200 or so batches.

Under the new mode, the Internet brand maintains close communication with manufacturing enterprises, not only requires manufacturers to achieve quick response and timely production, but also strictly control the quality of products.

In such a situation, the raw material procurement of the foundries must also be adjusted.

The rise of online shopping has brought more and more opportunities for growth to Chinese OEM enterprises.

According to the AI data report, in 2011, the scale of online shopping pactions in China amounted to 773 billion 560 million yuan, of which clothing was more than 220 billion yuan. In addition to customers, hundreds of hundreds of annual sales of more than ten million yuan, or even hundreds of millions of yuan, were produced on Taobao.

Overseas OEM enterprises have been pformed into online purchasing brand OEM. Although there is no large volume of convenience, the small batch mode will have better gross margin and no risk of exchange rate fluctuation.

In the Pearl River Delta and the Yangtze River Delta, foreign trade enterprises are numerous.

Although e-commerce can not fundamentally change the business models of these OEM enterprises, it can not shake any industry pattern, but changes and miracles are taking place.

Zhou Dou, who has been in fashion for ODM for 20 years, has worked with all the big clothing brands in the world.

When he decided to start his own Internet brand business, he had excellent industrial quality and design level.

Based on this, Zhou Dou has built a clothing business brand brand, leno in the past 3 years to achieve sales of 100 billion yuan.

The traditional OEM enterprises only change the order from partners to purchase orders.

In fact, the biggest opportunity that the e-commerce market brings to the OEM enterprises lies in the fact that the manufacturing industry can make its own brand at low cost and thus have a better premium capability.

This is the easiest pformation path for many generations of OEM operators, who are OEM companies and earn meager profits.

Learn to create brand by external force.

A factory building, dozens of production lines, each worker division and cooperation, mechanically responsible for the part of their craft.

After wearing dozens of processes to become finished products, day after day, year after year, the essence of factory management is: order, accuracy and efficiency maximization.

However, for the operation brand, what it needs is not precision, not step by step, but sharpness, publicity and creativity.

Looking at the growth history of all brands, they are all branded with brand characteristics.

For OEM enterprises, orders for e-business enterprises need not be changed too much. At the most, they are minor changes in the supply chain, or adjustment of production lines. The increase or decrease in costs will not involve any changes in bone and steel.

However, in order to pform the brand, this is a huge project that needs to change the gene of the company.

Although the Internet channel has brought the relationship between users and enterprises closer, the Internet channel has developed its inherent patterns and rules after years of development.

Compared with traditional channels, this is another completely strange river.

Both Shenzhou company and Mona Hosiery Industry are cautious about making brand on the Internet.

They have realized that not everyone can play the Internet brand like a customer.

In fact, for OEM enterprises, e-commerce is not the master key to open the brand door.

Many domestic traditional brand enterprises often set up new companies to build new teams when they are involved in e-commerce.

For example, BELLE and Yintai department all take this route.

Therefore, OEM enterprises can not believe that their quality is excellent, they will surely get the favor of users.

In order to make use of the Internet channel to build their own brand, OEM enterprises need to follow the rules of brand operation as well as the rules of the Internet channel.

From the very beginning, instead of taking the whole line, it is better to use external force to make use of the existing platform, first try to find out experience, then build up a professional team.

Even on the Internet, building a brand is a gradual process of persistence.

The so-called "Rome is not built in a day", self created brand is the same reason.