Shang GE Has Found Its Own Unique Market For Clothing And ID.

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In the field of RFID application, Shang GE technology develops a variety of targeted products to open up the market.

"Quotient wants to do something like this: we have designed an electronic tag based on radio frequency identification (RFID), which is applied in specific fields, and is equipped with reader and rear software.

Once the label is attached to a single product, we will collect information on the whole life cycle of the product.

Wang Gang, co-founder of Mdt InfoTech Ltd, was hoping that the company would be able to survive when the company was founded in 2009.

Find a unique market.

It works in an obscure little white house in Zhangjiang science and Technology Park in Shanghai. When it was founded, there were only 3 employees. Product director Liang Chen was born in the clothing industry. Now he is responsible for locating a series of products. Jiang Wenbo has been doing project management in the top 500 enterprises before entering the commercial grid, and now he is also responsible for management. Wang Gang himself grasps the direction of technology and coordinates the team.

Now they have a team of 25 people.

Before starting a business, Wang Gang had been watching for a long time: the RFID industry is characterized by wide application.

For example, the postal industry, food and drug safety traceability, automobile manufacturing and other fields, and even the two generation ID card and bank card, it is the most basic application of RFID technology.

"But there are not many companies that can really make money in this field."

Wang Gang attributed it to the fact that most RFID businesses are very fragmented.

"In every field, there is demand and what field to do, and no field has been thoroughly done."

Wang Gang hopes that Shang Ge can jump out of this strange circle, and their strategy is to concentrate on one field.

The entrepreneurial team locked in the clothing field in the early days.

"Liang Chen made clothes before, and he understood the potential demand of the clothing industry for electronic trademarks."

According to Wang Gang, for

The identification of a single product is meaningful.

Clothing is not only of many styles, but also of the same color and size. The clothes of the same color code are very few. Maybe there are only two or three pieces of clothing with the same color code in a shop. If you put an electronic label on each piece of clothing, the amount of data that can be excavated is very large.

What Wang has just started is: the clothing companies themselves have certain demand for such technology, which will help the company consider discount sales promotion or other business strategies.

Coupled with the fact that the RFID itself is subject to the environment, the electronic tag will interfere with the signal once it gets close to the card reader. It is likely that the data can not be read. But if it is hung on the clothes, the clothing will play a good interval effect on the trademark, and the reading will be more accurate.

Computer born Wang Gang hopes that RFID technology can bring some new things to the information system construction of local garment enterprises. "The information system of many enterprises is not backward, but there is no good way to collect information."

He said.

However, in the process of project cooperation, Shang GE technology found that compared with the fine management of commodity information, garment enterprises are more interested in the solution of quick delivery and delivery.

"Compared with foreign clothing companies, local garment enterprises attach less importance to information technology. They are more sensitive to logistics chain efficiency and cost."

In an interview with the media, Wang Gang analyzed the three ways to increase the inventory turnover rate and speed up the logistics turnover efficiency of clothing enterprises: first, double the labor, establish a new warehouse, and increase the efficiency by one time; two, build a stereoscopic warehouse, invest one hundred million, make the pipeline sorting, increase efficiency by tens of times; three, invest in RFID technology, increase efficiency by ten times, invest in one million level, and at the same time, reduce labor.

Land commerce is one of the early customers of the Shang Dynasty.

At present, Shi Jie, the IT manager of the prime minister, put forward a request when he found Shang GE technology: he did not open the box when he received the goods. He wanted to get the details of the 200 clothes in the box at once.

In order to prove that the solution and product are feasible and stable, Shang GE technology had to conduct a test at the logistics center of Di Su commerce.

The test is three boxes of clothing, 200 cases per box.

"After a day's test, there was no error in the device," Shi said. "Considering the return on investment, this is also a cost-effective business, and the company can recover the cost in almost a year."

Now, D's "zzit women's clothing" from warehouse to store has adopted the quotient solution.

Shi Jie told reporters that at present, D "zzit warehouse" requires only 4 workers to spend 150 thousand days to 200 thousand garments in one day, while another Dazzle brand that still uses barcode recognition can only finish 14 thousand pieces of inventory a day, and the number needed is four times that of the former.

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In addition to improving the efficiency of the supply chain, Shang GE's products can also help clothing companies prevent the occurrence of Cross shipment. They can record the information of each garment and track them so as to avoid irregularities between agents at different levels and regions.

However, at the beginning of the business, Wang Gang and his team did not develop standard reading and writing tags, mainly relying on the antenna to identify the electronic tags on the cargo channel, but this would affect the recognition effect, so that they lost some customers at that time.

"At that time, we did not take into account the characteristics of the use of electronic labels in the clothing industry. When we demonstrated to customers, we set up a reader antenna on the door of the receipt, and the label information was read. But when the workers took care of so much in carrying goods, it was easy to tilt the antenna. We had to arrange our own RFID engineers to adjust, and the customers were very upset about the result."

Wang Gang said.

The improvement plan of the team is to make the reader product available.

Quotient quickly designed the first version of reader in 2009, and upgraded it to 2011 in 2011.

Now, Shang Ge can customize the products of different specifications according to the needs of customers, and has developed recyclable clothing tag and supporting equipment.

A variety of special RFID devices have been developed for shielding the radio signals, such as tunnel scanning channel, packing workbench, automatic card detection equipment and intelligent fitting terminal.

In 2011, Shang Ge mainly served four customers in the apparel industry, with sales reaching 3 million, but profit margins were small.

In 2012, they added five new customers, and the total number of customers at present reached nine.

These customers mainly come from domestic clothing enterprises, such as children's wear, casual wear,

Brand name.

Although Shang Ge is supporting software at present, they are not planning to enter the field of electronic label production.

"We have a dedicated design team, and they are more likely to provide antenna design for the labelling plant, so that the performance of the chip can meet the standards of the garment industry."

Wang Gang said that Shang Ge is now working with several manufacturers of label labels in China, because all of these manufacturers have large capacity to meet the demand of Shang GE technology.

Quotient's current revenue mainly comes from the sales and label processing costs of reader devices.

"The electronic label will become cheaper and cheaper. At present, the price of an ordinary electronic tag is one yuan, but it will be reduced to three or four cents according to the theoretical value of the industry.

Many clothing companies are aware of the benefits of electronic labels. Now we are talking to some larger clothing companies. This year's profits will be better, "Wang Gang told first financial weekly." we expect to achieve sales of 15 million yuan this year. "

At present, commercial banks rely mainly on the funds initially invested.

However, the company applied for small loans in Zhangjiang in 2011, and the other side provided rolling funds according to the project.

"Companies are pressing on expenses. We need to make long-term plans.

When sales go up, we will look for venture capital. "

Because the threshold of technology is not high, competition in this industry is fierce.

"There are many enterprises in the industry that make electronic tags, such as Yuan Wang Gu (8.03, -0.07, -0.86%). This company was founded in 1993. They make labels, read and write devices, and can also do software, and their business is very large."

Wang Gang said that all RFID enterprises can be competitors of Shang GE technology.

Wang Gang has another helplessness, which is often encountered in negotiations with some garment manufacturers: these vendors will use the quotient solution after negotiation, but in the end they do not use the product of quotient.

After all, cottage products are cheaper, and the value of the solution is not reflected.

"We are very helpless. At present, the protection of intellectual property rights is like this, but we have applied for patents all the time, and now several items have been approved."