Talking About The Overconfidence Of Fan'S Brand In Old Age

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

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.

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.

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

But in fact, inventory pressure is a financial pressure. We hope to return 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?

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.

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.

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.

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.

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 the growth of our right brand is still very good, for example.

This year's T-shirt price has been adjusted, 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.

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.

In fact, in the past year,

They are all discussing this problem and are 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.