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Secret: Fast Fashion UNIQLO Is How To Achieve "Zero Inventory".

2014/2/24 13:35:00 97

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Secret Fast Fashion UNIQLO "Zero Inventory"

83.72 days is the turnover time of UNIQLO average stock, which is faster than at least half of domestic garment enterprises.

Even in China's most "remote" shops, the annual sales volume is over 20 million yuan, and the flagship store is hundreds of millions of yuan in scale, with an average store sales of 30 million, which is 10 times the same retail brand in China. A HEATTECH sold 120 million pieces in the autumn and winter of 2013, which is equivalent to the annual sales volume of the domestic "a target=" _blank "href=" http://www.91se91.com/ "clothing" /a ".

P is the ultimate dream of many retail businesses, which makes every product sell, without overstock.

A strong contrast is that inventory has become a chronic disease that restricts domestic garment enterprises.

Beginning in 2012, from Lining, Anta, PEAK and other sporting goods enterprises to Metersbonwe, Semir and other youth leisure brands, and then to YOUNGOR, fir and other men's brands are deeply in stock crisis, and even the international giants such as Adidas have not been able to escape inventory problems.

How did UNIQLO achieve "zero inventory" and make Metersbonwe not only a colleague like this, but even the enterprises from the new economic field, such as Xiaomi, have taken it as an object of practice?

we found that through the disruptive innovation in the links of R & D, design, production and sales, UNIQLO created a unique management mode, changing the "common sense" of the clothing industry, and constantly bringing more "unbelievable" into this traditional field.

Basic funds > /strong > /p >

Compared with ZARA, H&M and other popular fashion brands, the store of "P >" UNIQLO "gives people a distinct feeling that the former is less changeable and popular, and the style looks more streamlined.

clothing enterprises in the pursuit of fashion trend, regardless of style and design.

The general approach is to divide the market and locate the target market from which to design competitive styles.

this "common sense" has been rejected by UNIQLO.

It uses a completely different product development mode to enter all basic categories that can be worn by all ages and sexes.

P, general manager of Shanghai Rui Yong Enterprise Investment Co., Ltd., who has many years of experience in garment industry, observed that "UNIQLO 70% is all basic, and its SKU is less than other clothing enterprises. The rate of error is relatively low, and the inventory pressure is very low."

SKU of UNIQLO is maintained at about 1000 throughout the year, while local leisure is less than a target= "_blank" href= "http://www.91se91.com/" > dress < /a > enterprise basically in 2000-5000.

Learning the e-commerce brand of UNIQLO, the highest SKU reached 90 thousand, more than 30 warehouses.

more importantly, because of the simple style, the consumers are more comprehensive, rather than confined to certain groups of people, thus forming a larger market scale.

"We are not luxury brands, no matter brand level or design details, it is easy to integrate into the general consumer life."

Pan Ning, President of UNIQLO Greater China, said.

Another advantage of "P > focusing on basic funds is to help UNIQLO to excavate standardized categories in the non standardized apparel industry, so that the terminal control standards can be duplicated easily, and the integrated management can be integrated in store image and product display.

it is worth noting that although SKU is not very large, UNIQLO has developed deeply for each item. A single product is often covered by round collar and V collar, covering all men, women, old and young, especially in terms of color, and each SKU has four or five colors.

the development of UNIQLO for many years is a history of selling products: the wool jacket in 1998, the fast drying Polo shirt and T-shirt in 2001, the cashmere sweater in 2003, and the HEATTECH series after 2008.

Each star product has been accumulated for several years. From the initial idea to the superstar series, it has been continuously improved.

HEAT-TECH series, which created the miracle of sales, began research and development as early as 2002.

At that time, there was a fabric similar to HEATTECH in Japan, which was made into sports underwear. It was sold only in sporting goods stores, and the price was very high. Although the material was thick and thick, it was overstaffed.

At P, UNIQLO received information from the sales line, and consumers had strong desire to buy underwear with cold proof and warm keeping function, but they were not satisfied with the existing material.

In order to develop lightweight, soft and warm products for these customers, UNIQLO cooperated with Japan's a target= "_blank" href= "http://www.91se91.com/" > textile "/a" giant Dongli Co., Ltd. to overcome technological obstacles and quickly apply this professional fabric to public products.

by constantly collecting customers' opinions and improving products, from the basic functions of cold prevention and warm keeping to increasing anti-static function, the latest series of women's wear HEATTECH series even add cosmetic ingredients camellia oil to make it have moisturizing function. HEAT-TECH is exerting its utmost in the field of thermal clothing.

to change the fashion industry's focus on style and design, UNIQLO starts from the needs of customers, enhances the quality of products through developing fabrics, continuously improves product functions, and implements the "user experience supremacy" principle of the Internet industry to the apparel industry.

"China's clothing industry is changing every year. The basic thing is not valued. The basic style is not really quality.

All of them pursue personalization and pursue fashions, but rarely use their brains to find ways to do what they really want.

Cheng Weixiong, executive director of Yalu holdings, said.

big data monitoring

every spring is the peak season for clothing sales. But in 2012, Pan Ning found that sales figures still did not appear to be rising in expectation until April.

After comparing the data with that of the same period last year, Pan Ning thought that the big events were not good enough, regardless of his colleagues' objection, he immediately offered promotional discounts for the new ones.

UNIQLO tracking the sales data in weeks, and the sales figures also reflect the inventory changes in real time, so the sale of the goods is basically clear at the end of the two weeks after the goods are put on the rack.

"Many enterprises are worried about inventory problems, but UNIQLO is not" entangled ", and we can always be from the whole store to each product sales data obtained support is inseparable, the number can explain everything.

Pan Ning said.

Data analysis ability helps UNIQLO to control inventory timely and adjust to avoid crisis.

2012 is the inventory crisis year of China's clothing industry. The major brands of clothing have burst out of storage problems.

The semi annual report showed that the stock of sports and leisure brands such as Lining and Anta grew year-on-year, and the stock of XTEP reached 887 million yuan, up by 92% compared with the same period last year. The inventory of the youth leisure brands such as the United States, Semir and so on also frequently amounted to 1. 2 billion yuan; the total inventory of the nine men's clothing listed companies including the seven wolves and the nine herding kings amounted to 3 billion 862 million yuan.

In order to cope with the crisis, the major brands have taken measures such as price war, promotion war, goods rejection and closing stores, while UNIQLO completed the inventory disposal six months ago.

The employees of P, UNIQLO, have to observe numbers, understand figures, feel the changes in numbers, and create numbers after entering the company's first day.

For more than 20 years, P has formed a huge database by collecting all the sales data of every day, every color, every yard and every shop.

Through real-time monitoring and analysis of sales data, to formulate production volume and adjust the marketing plan, UNIQLO finally basically achieved zero inventory.

"P > 2014, the cold winter is still going on. UNIQLO has decided to speed up in an all-round way. It plans to open 80-100 new stores a year, an increase of 30% over the same period.

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"P >" UNIQLO "established Tmall flagship store in 2009, unlike other brands such as Jingdong and Dangdang, the official website of UNIQLO and the traffic on APP are all directed to Tmall flagship store. At the same time, it analyzes who buys, the amount of single consumption and frequency of consumption in the background, and makes use of these data to guide the new stores in QQ in China.

"Our products have been sold to 661 cities across the country, but our physical stores only enter more than 50 cities, and online stores can help us expand our customers' scope."

Pan Ning said.

"Store accuracy is high, which is the advantage of big data."

Zhang Bingliang, general manager of Shanghai lion consulting limited, believes that the exact rate of opening shop also enables UNIQLO to avoid maximum inventory loss.

most domestic garment enterprises are lagging behind in terms of digital analysis capability. "How many products are sold every day, what is the situation of replenishment, and which good sales are not good sales, even if the domestic counterparts can see the data a month ago."

Cheng Weixiong said.

"P" is management difficult or technical backwardness? "The hardware people all have, but rarely summarize the things that have happened in the shop, before the business is too good to do, people do not pay attention to this thing, why so bother? Second year product plan to pat the head is done, not based on data analysis made decisions."

Zhang Bingliang said.

Shen P also thinks that the reason is management. "Technology is only supplementary. Many brands can do it. The key is whether you can persist in whether the data collected are really used to analyze and make decisions."

occurring in shops: /p >

in addition to data management, UNIQLO can control the real and effective information at the first time. Pan Ning believes that the more essential reason is its direct store mode. "Doing direct business is very hard, but it can quickly win more direct market reaction."

and many fashion brands adopt franchisee mode at the retail side. There is a great difference in information control ability. Inventory problem is a concentrated reflection.

"joining can bring huge cash flow and deep channels to facilitate the rapid expansion of enterprises, but the information collection link is faulting.

It is impossible to control the real data of consumer terminals and know what consumers want.

Many garment enterprises actually have not yet entered the retail market, that is, wholesale, do not understand the first tier market dynamic sales information, goods are pressed to the dealer there, only to create such a large inventory.

Zhang Bingliang analysis.

It is particularly important for P to grasp what is happening in the shop for the first time. In the fast fashion industry, changes in seasons and fashion trends have led to rapid changes in clothing demand, making quick decisions on front-line sales, and often holding instant business opportunities.

"P" is different from the practice of many retailers relying on headquarters to issue orders and shops. On the contrary, in UNIQLO, "shops are the driving force for the development of headquarters."

Pan Ning said, "UNIQLO's business philosophy has one, goods and shops are our only contact with customers, shops are the only places to create profits."

store information will be regularly feedback to the headquarters, sometimes for a certain commodity, sometimes for the overall service, "headquarters staff themselves can not collect such information, must be through the shop assistant, store manager to achieve."

Pan Ning said.

attending the regular meeting on every Monday and Tuesday is the most important work for Pan Ning and all the middle and high level businesses, and is to discuss what is happening in the shop.

the problems arising from the sales process are collected from the store manager, and then discussed at the meeting in accordance with the order, commodities, marketing, stores and services. The ideas, puzzles and proposals of the store owners will also be discussed at the meeting, such as whether the business is good or bad, why the performance is not up to the mark, how to reach the standard, what the good commodity is and what the bad commodity is.

All kinds of work, no matter how big or trivial.

finally, the conference must come up with a consistent solution and feedback to the store.

"the shop assistant knows how to do the meeting record, how to adjust the layout of the shop, how to configure the goods and make promotion strategies.

From the point of view of management, information is very pparent and open, and it is the interaction between the two sides, and the speed is very fast.

Pan Ning said.

How fast is p? UNIQLO is an example. Whenever a store has a slow-moving product, the store manager will ask the headquarters to apply for a price change.

The proposal will receive feedback in the afternoon, and the sale price will be sold in second days.

The suggestions of P employees often lead to the production of new best sellers.

In the autumn of 2010, after the listing of men's wool coat, the staff of Chinese stores found that S sold out after a week of listing, and the buyers were female customers. This information was sent back to headquarters. Soon, the women's fur coat was quickly produced and put on shelves.

the popular products of UNIQLO are made according to the reaction of shoppers to observe customers and then combined with the opinions of shopkeeper.

After the commercialization of finished products, it improved in response to the actual market reaction in the past second years, and remained the same in third years.

Super Store Manager /p >

On the way of management and control, Ryui Masa completely denied the traditional chain store mode of "headquarters decision and branch obedience". P

The shopkeeper of UNIQLO is given great power. He can decide and adjust the order quantity according to the location and source of the store. He can also make his own decisions based on the display of goods, the way of store operation and the contents of advertising leaflets.

Store Manager LED UNIQLO to control goods from bottom to top and market reaction at present. Instead of top-down, according to the analysis of past sales and fashion trends, it decided to decide the style and quantity of orders. When the latter misjudged, it would easily lead to inventory problems.

"the management and control means of domestic retail enterprises are more administrative instructions. The boss is the decision-maker, and UNIQLO is bottom-up, and the real controller and decision-maker of each store is the store manager."

Cheng Weixiong said.

"The shop manager is the operator. We think so and educate them."

Pan Ning said.

UNIQLO is not a simple store manager, but a knowledge-based manager who can think and act independently. He also wants to broaden his horizons, like challenges, and dare to manage his stores in his own way of thinking.

becoming super store manager is not only several times higher than ordinary employees, but also has greater autonomy and rising channels.

In 2014, UNIQLO plans to recruit 470 college graduates as reserve managers, who are likely to become the shopkeeper of a store. Pan Ning will give them face-to-face training.

For them, Pan Ning's successful experience is undoubtedly the most example.

every day, a target= "_blank" href= "http://www.91se91.com/" > dress < /a > and shout "welcome to come". What is the future? In 1994, Pan Ning, who had just entered UNIQLO internship, thought so. At that time, UNIQLO was still a "township enterprise" located in shamaguchi Prefecture, Japan, and its sales volume was less than 1/3 of the mainland market now. The interview with Pan Ning was the founder of UNIQLO, and now Japan's richest man Ryui Masa.

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After P for half a year, Pan Ningsheng was the store manager.

One year after joining UNIQLO, Pan Ning received a master's degree in business from Nihon University. He formally entered the Xun marketing group and began to intervene in various aspects of supply chain building, market development, acquisition and merger. When he joined UNIQLO for 10 years, he was appointed president of Greater China and managed the mainland, Hongkong and Taiwan markets.

in UNIQLO, more than 95% of shop assistants were trained and selected from shop assistants.

"Generally speaking, the growth rate of talent is about half a year, while the average talent is one and a half years."

Pan Ning said.

There are 16 thousand employees in UNIQLO China, but Pan Ning has to attend the meeting of managers in each month.

"a lot of grassroots employees have rarely seen the boss for many years after they enter the enterprise, and we are actively contacting them."

Pan Ning said.

Every week in Southern China, southwest, East China and North China, there are interviews for new people in four districts. Penning will take turns.

This enables the store manager to see penning at least once every two months.

"Diligence is the biggest influence that Liu Jing is giving me."

Pan Ning said.

in the public occasions or forums that the big guys love to gather, they seldom see the figure of the Chinese trader in UNIQLO, like Pan Ning, Liu Xiao Jing, who is recruiting and training employees in half of his working hours.

"when employees enter the company, they will be deeply instilled into UNIQLO's business philosophy and corporate culture.

Our training for employees varies from person to person, and then we plan to help them grow.

Throw people in the shop every day, let you fold your clothes and fold your clothes, so that you can clean up so that you will not cultivate talents. "

in the labor intensive clothing industry, the high turnover rate of the front-line staff is one of the important factors that affect the management cost and management efficiency of the enterprises, especially the excellent manager level.

"Compared to the domestic apparel retail enterprises, the staff turnover rate of UNIQLO is relatively low, the store manager level is more stable, its incentive mechanism and training mechanism are in place, and the internal organizational system and hematopoietic function are very strong."

Cheng Weixiong said.