All Customers Adjust Efficiently: The Biggest Move Is Improving Products.

The two key words of "inflation" and "out of control" are the evaluation of the founder of van guest in the first half of 2011.

At that time, the fans were constantly emerging under the glare of lights: DDT chose it as the fastest growing enterprise in the Asia Pacific region, and every object became a new cultural craze. Even the spokesmen Han Han, Wang Luodan and Huang Xiaoming all revealed a "superior" atmosphere.

In early 2011, data grew by 400% over the first year, which made the whole team extremely inflated. In the next six months, we went crazy to expand categories, recruit people and expand cities.

Customers and investors are looking forward to a seemingly visible boom.

But all of this stopped abruptly, and old age began to notice this swelling emotion, including himself, which was around July 2011.

Old age realized the problems of the company, but he could not be very sure where the problem could be. After all, the data he had always cared about -- sales, new users and repeat purchase rates of old customers still had a good growth.

So Chen began to change the route of thinking, and began to investigate data in this corner through data companies.

This is a long process, and it turns the attention from concern to concern. Now, for him, product turnover, inventory turnover, sold out and gross margin are even more important indicators.

"I used to look at the data wrong, and I learned that in the past year. If the company's goal is to make profits, these indicators will be the premise."

Speaking of the major mistakes made in the first half of 2011, the first point of the year is summed up as "overconfidence". Specifically, it is the blind expansion of the category, which leads to the ignorance of the category, too much SKU (stock unit), and many items in the category are articles that are cheap but need the same logistics cost.

There are also logistics in this case. In the craze, there were more than 30 storehouses, and the stock in the storehouse did not need to be stocked for a year.

He often finds companies recruiting people on a large scale, but many employees are having coffee and chatting while working.

The second mistake is the absence of the "supply model". This is, of course, the topic that all clothing brands or vertical B2C are facing in the past year. However, this seems to be more pressure on customers. When suppliers expect customers to give some suggestions for the stocking cycle, customers can not answer them because the suppliers should be more professional, and suppliers can not see the data that customers refuse to disclose on the grounds of business secrets, and they can not make any judgments.

"We were too arrogant to ignore this Sales rule."

Chen sighed.

Chen recalled that when he met in July last year, he would have a feeling of being at a loss, and there was no clear idea of all kinds of problems and problems.

At the end of September, he was able to breathe a sigh of relief, because the organizational restructuring was finally completed: there were 6 major business units and 6 small business units in the total of 12 business units, and the product line was divided into 19 according to young, mature and trial and error.

This is a painful process, adjustment, layoffs, negative rumors, but the old age with "illness like mountain fall" to describe, especially when he saw the current data, in September has basically reached the planning expectations before, he felt that "disease like silk."

As early as in March this year, Chen said that he hoped the fourth quarter profits would be completed on schedule. Chen thought that he could do it in October.

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Along with the adjustment of the whole guest, the express delivery of customers has been adjusted extensively. Not only did the staff shrink from 5000 people in the rush hour to 2000 people, but also abolished more than a dozen sub stations.

The explanation for this incident is that the expansion before Feng is based on the rapid development of the electricity supplier industry, but in fact, the electricity supplier's cold winter has led to a far smaller volume of orders.

"E-commerce enterprises are not really suitable for self built logistics."

But Chen believes that only by doing so can we come to this experience. "The more than 2000 person is already a small scale, such as Feng Da will become an industry benchmark under such a scale. Will it continue to expand and look at the environment?"

In the old age, the fundamental purpose of such a demining and medical treatment year is to return all customers' products to the scale that they can do.

"Now that everyone is cured, we will slowly explore the possibility of innovation and trial and error, but at least we know how to control the company."

Product SKU reduced by half

In March this year, our board of directors convened the fourth quarter profit target.

Although sales in 7 and August are off-season, but during the fast growing period of new users, and in the autumn and winter new product sales season in September, the rhythm of our new products will accelerate. The growth of shirts is very fast these days. This shows that we are exactly the same as what we expected in autumn and winter.

Especially in the last week of August, the end of the off-season, in the past half a month and the end of August, our overall revenue growth has exceeded 50%, from all indicators, October profit may have a drama.

Last year, customers made a series of adjustments, the biggest improvement is the product.

Because last year, customers expanded a lot of categories, and many of our products contracted.

At the beginning of our planning, we put forward that this year's products should be dedicated and professional.

From the end of September last year, we announced the establishment of 5 business units. To date, they are already 6 big business units, 6 small business units, and 19 lines. This is a very clear arrangement.

Last year, this time was very chaotic. The establishment of the 5 departments was only an expedient measure to adjust.

Last week, I made plans for next spring, that is, planning 19 lines along with the 11 business units (the original 12 departments merged).

I felt more relaxed and clear last year than I did last year.

At this time last year, nothing could be seen clearly.

First of all, the category can not understand.

Too many SKU (Stock Keeping Unit inventory unit), in fact, the most important thing is not focused team to do something focused.

People's energy is limited and there are many contents. You can't finish the rapid expansion of the team in the first half of last year.

In fact, you can't keep up with others.

Our assumption at that time was that if you do so many SKU, how many people you match, what kind of income level you match, this judgment is Utopian.

You really want to know which major categories we are focusing on, but after I went to several traditional enterprises, I found that you regard this as the biggest secret, no one told me.

I went to ask the product brand, I said, what's the structure of your product, I asked him for three hours, he didn't tell me.

In fact, you can not statistics, but everything is clear.

We have abolished many categories. Maybe the users don't feel very much.

Actually, from inside of us, the feeling is still very obvious.

From the user's point of view, it's only a large class allocation, but a lot of SKU has been made under the big category.

Our SKU is half less than before.

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There is a saying that customers are expanding too much and there is a lot of inventory pressure, which leads to shrinkage now.

But actually

It's a financial pressure. We want to go back to the product itself and focus on the customer experience.

From this point of view, we are mainly looking at our own abilities.

Our evaluation of last year is called overconfidence.

Since this is an assessment, what we may be concerned about is: where are the boundaries of our capabilities? What can we do well?

Yesterday afternoon, I accompanied a stockholder to eat, he asked me, how do you define your product?

I said, I think I can do the product well; I do not do well in the product, or completely beyond our capability.

This does not mean that those products are not good products, but that we are unable to do well.

The categories you see on the page today may not have changed significantly compared with last year.

But in fact, from the internal data, the reduction of SKU is very large.

That's why a lot of people have been laid off. Last year, there was a lot of redundancy.

There are many comments that these measures are for profit, but actually not, I think it is to lose weight.

If anyone can master these brands and be able to do them well, I will never be foolish enough to cut them down.

Because I really feel that the ability of the existing team can only be achieved now.

Plagued by overconfidence

We used to look at results only.

For example, we used to chat, I was most concerned about a few data, sales, new users, old customers repeat purchase.

These are actually the results. What we are more concerned about today is product turnover, inventory turnover, sales volume and gross profit margin.

If the company's goal is to make profits, these indicators are the premise for us to decide whether or not you can do a product.

This is a big change for me.

I learned this only in the past year, so I used to look at the wrong figures.

In the first half of the year, everyone made a mistake. I have been working on the disease for the past year, and I have been in operation all the time.

First of all, it is the psychology of overconfidence or team spirit.

I think this is a very important thing.

Since last year, we have suggested that there must be something wrong with the company, which was put forward in July last year, and then the first structural adjustment was made in September, then it was reset again at the beginning of this year, and then again in May this year.

First of all, of course, it was the adjustment of the Department. Later, we set up three new production centers, and later added a new production center.

We had nearly 30 warehouses during the craze last year, and now we have cut more than half of the warehouse.

These are the biggest changes.

But the past year has been the most stable year for our team.

Our team, especially the core team, has no change, just a tune up.

Since the adjustment began in September last year, there has been no change in the core management team during the year.

This process must be very painful.

I say that there is often the pain of mountain sickness, but lately, slowly, especially when I see the situation in September and the expectations we adjusted, this trend has been very clear.

I will be self doubt in August, but because I have been working for five years, I know August.

I was waiting for the coming of September for a week. In the three weeks of September, I thought I could catch my breath.

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In the past few months, it has been reported that our traffic and purchases have declined, which is normal.

We do not promote every year in 7 and August, but this year we are particularly concerned.

7 and August are the traditional off-season.

September dressed in disorder.

Half the SKU has had an impact on the overall sales volume, but the impact is not that big, and the growth is still growing.

The reason why we didn't do it last year was that we couldn't do it last year. Some SKU did something wrong. Some of them were false prosperity. They looked good on the surface, but in fact, many SKU did wrong.

For example, we made many accessories and accessories last year.

And those little things are SKU.

The unit price is very low, and it affects the supply, for example, there are several pieces of money. These things are very important for the operation of the customers.

You can let him make a delivery of three or four yuan, you can not say that the three or four yuan can not be sold to the user alone, it must be enough to sell one hundred.

It is rumoured that our customer unit price is very low. Although I have never disclosed this data, I can say responsibly that now our unit price is close to 200 yuan.

And the SKU of those little things just mentioned is precisely the impact on the unit price of passengers is very large, and the pressure caused by the operation is also very large.

For example, jewelry accessories, so many SKU, how to allocate to the warehouse? This is a difficult problem, which requires a mathematical team to calculate every day.

In fact, the allocation of these SKU is very pressure for us to close to 30 warehouses last year.

We originally served to enhance customer experience.

In fact, in the face of so many SKU, it is impossible for him to achieve equilibrium when dozens of warehouses are allocated.

That means dismantling the bill.

Not only will the cost of the order be increased, but the final result will affect the user experience.

Our products are really flying all over the world.

This is a real pressure.

Cost back to health level

I can not really disclose the cost of specific customers at present, but I know that after a series of adjustments, logistics costs have reached a healthy level.

Taking the return rate as an example, the outside world is very concerned.

We will also care about last night. Last year, this year, the rate of return will increase. I am surprised to say that the rate of return not only increased but decreased.

Another one is that the proportion of our dismantling is greatly reduced.

Our highest score in the past was 20%.

Not even 5% now, because we have closed many warehouses.

The mistake was made by ourselves.

I say that it is not only a product, but also our internal measurement of the supply chain system. Last year, we were very arrogant. We thought that five warehouses were so good that we could manage 30 warehouses.

Why do we reach such a state of mind? It's an emotion.

That emotion is being pushed to you step by step.

Because we grew so well in 2010, we grew too well in the first quarter of 2011.

If you want to talk about data, those are real data.

But data sometimes advocate the role of people's emotions and mentality.

When my mindset changes, the mindset of the management team will also change.

When they change, their mentality changes.

All of these actions will change to every move and attitude towards partners.

I must have swelled too.

I am very grateful for this year, because this year has given everyone a long year to make adjustments.

We found problems last year at the time of 7 and August, but we did not know what had happened. We had been through the data of every corner for a long time to know the reason.

If we all keep swollen, maybe not a year to give me time to make adjustments.

What I used to focus on was the result, not paying attention to the reasons.

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In fact, we are a brand.

All brands we make are responsible for all customers.

We are not B2C platform, B2C platform is cash purchase, will also encounter this pressure.

But most of the products he sells are other people's products.

There will be no such big problems from the early stage of planning.

In the past, when customers grew up very well, especially when they were in short supply, we did not have this kind of pressure.

But when you expand rapidly, especially when you do something that you can't manage, we recognize that as a brand, we should first be responsible for planning, designing and placing orders, and responsible for the initial employee.

But in the past, when everyone was lucky, no one could remember it.

This adjustment has also been postponed and linked with the listing. In fact, the delay in the listing plan is our initiative.

I am thinking today that if I wanted to go public last year, I don't know how bad it is now.

How can it be possible for a company to go public and make such a big change? There are, of course, many listed debates. Especially when the stock market starts to privatize, some people pass this message to me, but we haven't made a clear decision on the future capital road.

E-commerce platform is not suitable for self built Logistics

I said this spring festival that I was thinking about the direction of the wind. I didn't pretend to say so.

A year ago, about July and August, we stopped talking about wind expansion. We stopped at that time to have a look.

Because there is a plan for Feng Da to take out orders.

And one of the prerequisites for our rapid expansion is that small and medium-sized businesses will flourish like mushrooms.

In particular, many of the new business companies that study the customer brand.

We think that if he reaches a scale, he will surely be the first good partner to choose partners.

This is a basic premise for the expansion of Feng Da.

The reason why we stopped at that time was to set aside a time for Feng Da.

When we made the whole year plan in February, the management team members had warned them.

Say whether you have calculated how many orders you can receive, and how big your independence is.

We will say to you like Feng Da that you will begin to re examine yourself.

He also picked up some extra orders, but there was no demand.

The distribution company is like this. For example, if he is in Beijing, he must make full coverage before he can get all orders from all customers.

If he can't get full coverage, he must have a portion of the order to someone else.

If Feng Da can achieve full coverage, he must go all over the country.

But today, no company can do that.

The one hundred or two hundred site that Feng set up at that time was covered with limited places. His limited area did very well.

But we later found that we didn't do well enough.

Later, our position on Feng Da is to set standards and train partners, hoping that he will become such a role.

So, since March and April, we have changed like Feng Da.

The latest news is a result of almost half a year's adjustment.

I would now think that the e-commerce platform is not suitable for building logistics itself, but I have never regretted doing it.

Because you don't go through this accident, you don't know.

Even if we cooperate with the third parties today, we will be the most demanding of the third party partners.

We really hope to be able to open the box inspection, when the interview wears, if not like the example of Feng Da, many express companies can not reflect with us at first.

But if wind does it, and we figure out how much it costs, it can be extended to partners.

Before we do wind up, our distribution company has a good attitude towards us.

This is not the result of customer expectations.

I think the size of the more than 2000 people is suitable for Feng Da now.

It is reasonable for all customers to place orders.

We just let it return to a reasonable position.

Because more than 2000 people are very large. Let's see it again.

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Next, customers return to products.

For example, all customers today have excellent product lines.

We used to do breadth and increase user contact points.

Today, we do not think we should do this. We have no capacity to be so broad. We are narrow and deep.

And practice has proved that some of the brands we made wrong are not as good as expected.

But we are still very good at making the right brand, such as lattice.

Wei Yi,

This year's T-shirt has adjusted the price of T-shirts this year, but its volume is still very large.

We focus on these, and we get the trust of users more and better.

The pformation of planned economy

Now we have a few lines, and we limit his size.

We also gave the scale of his possible risk.

Today we return to a basic concept of fast fashion.

Because in the past we were more or less psychologically planned economy, because at the beginning of the first three years, 07, 08 and 09 were suffering from many things.

By the time of 10 and 11, we have been looking for goods and products.

At that time, we were overjoyed.

Actually, that's wrong today.

Every customer is a step by step, especially from 07 to 10 years, one product is very patient.

In the 11 year when we think we can do everything, you must have a change of mind in planning and designing to the final quality, and the final result will change.

We are very worried that some wrong products are not good for users.

We have no way to calculate this result today, but we have made a very clear decision that we have passed it today, especially in spring and summer, and we find that many products should be disposed of.

Because these products may be injure the user experience.

It is not that we limit innovation, but that we do our own products according to our abilities.

The fast fashion I talk about is whether we can really deepen our products and form a quick response relationship with our supply chain.

What we did in the past was not fast fashion, but from the supply chain. We didn't do fast fashion because we did a lot of goods and stacked it there first.

I also talked with our suppliers last week.

He said why China's brands are planned economy, such as the end of the season, a pile of stocks from the channel, this is a common problem.

I said that you actually satirize me, because I do not have the intermediate link of the channel, so I reflect the fastest to the market.

But we haven't shared the change data to our customers in the past few years, so we haven't formed a real fast fashion supply chain system.

So we are making up this lesson today.

For example, he said that next year the product may be less planned.

But our way is that you can get some more yarn.

From the whole

For the cycle, the longest is yarn, if a part of yarn is prepared, not a garment.

We used to be a lot of ready-made clothes there.

He said yarns only cost 1/5 of the garments.

And if the market is not good, these yarns can be used for other purposes.

I said it is reasonable for us to prepare yarn and prepare yarn.

He said, can you tell me? I said, actually, I told you it was unreasonable, and I did it for several years.

I said you should tell me.

He said, but you have to tell me your data.

I said if we did not show these partners to us, we could not absorb the strengths of these experienced partners.

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In fact, the clothing brand has been discussing this issue in the past year and is under the pressure.

Our real fast fashion supply chain system is actually not.

I went to Anta, and Anta mastered it. He was basically his own factory.

He also did not accept foreign orders, entirely his own factory.

He came to do his own internal adjustment.

But it is also very difficult.

Because of the futures system.

They are all my orders for the autumn and winter of next year. They give me orders. They say that they are brands, and they are also accepting profits from channels.

The channel will do something for you. You can do more here, but you can do less there.

I hope that the future of everyone, at least today we are doing spring and summer planning, we hope to do this.

You have an initial estimate that the yarn has a point in time preparation, according to the reaction then.

For example, when we were planning today, we had a very good product line.

We said you might do less next year. He said it doesn't matter. I'll allocate my volume to the next three months.

If the next week is very good.

On the basis of the yarn I prepared, I want the supply chain to distribute these products to me.

This is a very good product line.

He can do weekly reaction every week, and I think this is very good.

But we didn't really do that in the past.

Before and after the Spring Festival, our products in spring and summer were stacked in the storeroom.

The storehouse suddenly soared.

This is not to say that our experience in clothing is not enough because we were too arrogant to ignore this rule at that time.

In fact, when the pressure is really real, I say Ill come like a mountain.

This is actually a devastating pressure.

But we underestimated the pressure.

How many things we did last year? We were really too big last year.

Next, let all customers' products return to the scale we can do.

As for what the future is like.

Now that everyone is cured, we will slowly explore the possibility of innovation and trial and error, but at least we will know how to control the company.