The Drastic Change Of China's Garment Industry Has Become An Important Way For O2O To Break Through.

Today, we have encountered a lot of development bottlenecks. The whole market has seen the serious situation of "homogenization of products, discount of sales, rapid increase in inventory, failure of small businesses, and dramatic decline in performance of large enterprises". The fundamental reason lies in the development pattern of our garment industry "guided by its own interests", without considering the interests and needs of consumers. To completely change this situation, we must set up the management idea guided by the interests and needs of the customers. We should change the business mode with the demand of agents and distributors as the guidance and Brand Company as the leading mode, which requires the garment enterprises to take the development mode of "meeting and creating customer needs". O2O business mode is one of the important ways for garment enterprises, especially large garment enterprises, to get out of the bottleneck of development.

I. current clothing The nature of the industry

1. there is a serious mistake in the judgement of the general trend of market demand.

(1) erroneous judgement of the aggregate market demand, optimistic that the market is still in a period of rapid growth.

(2) the cognition of consumer psychology has shifted from "brand demand" to "individuality", and product development is still stuck in the original train of thought.

(3) the influx of many international brands has changed the thinking of consumption, forming a great pressure on domestic brands in the first and second tier markets.

2. to achieve the goal of marketing management led to a large number of inventories.

The apparel industry has shifted from seller's market to buyer's market in recent years. Most of our garment enterprises still maintain their original marketing oriented management ideas, and fail to realize the impact of serious problems such as the overall market coverage, market saturation, and the decline in quality of outlets.

3. the supply chain system aims at completing the order task, resulting in huge waste of resources.

In the process of implementing target management in many enterprises of garment industry, there is a lack of sensitive response to changes in market sales. No matter whether the product is selling well or unsalable, the production has been completed according to the order task before the season, without considering the market factors, such a supply chain system will inevitably waste a great deal of resources on the market when the market exceeds supply.

4. the focus of solving sales problems is focused on product promotion rather than value chain integration.

Under the premise that the supply chain produces the products ahead of time, the focus of the enterprise is spanferred to the direction of selling the products in full force, and the best efforts are made for the unsalable products. And for the best-selling products, basically no good response to the market should be satisfied. On the one hand, the terminal node has already completed the order target and task can not be added to the enterprise order production, on the other hand, the enterprise supply chain has also completed the order task goal, also has no such idea.

5., the enterprise lacks the idea of "win-win" and only has the idea of "I want to win".

At present, the mode of business operation is still centered on Brand Company rather than the whole supply chain. Therefore, the bargaining between the upstream and downstream is natural, and negotiations end up with a strong brand position. This "I want to win" - the idea of "I win alone" will naturally occur: dealers can not replace distributors, agents can not replace agents, factories can not replace factories, suppliers can not replace suppliers, and there is no win win mentality. Naturally, there is no deep thinking on how to integrate the value of the overall supply chain.

Two, what is the O2O business model?

1.O2O is Online To Offline "online (order + payment) + offline (experience + receiving)" want to integrate the commodity trading mode.

(1) online: order and payment. It refers to the order and payment on the Internet (including mobile Internet).

(2) offline: experience and receiving. Refers to customers in the physical shop fitting experience and the designated place to receive goods.

2. the main feature of this mode is to separate the three links (experience, payment and receipt) from the spanaction, so that it can be implemented in different time and space through Internet, offline and off-site.

(1) to achieve centralization of spanactions and deliveries.

First, the implementation of centralized trading services by professionals on the Internet can improve spanaction efficiency and reduce spanaction costs.

A entity network spanactions must achieve "one to one" service, service personnel invalid working hours wasted.

B. Internet spanactions can achieve "one to many" services, and the effective working hours of service personnel can be significantly improved.

C. from the overall perspective, Internet spanactions can significantly reduce the invalid working hours of spanaction service personnel and service personnel, thereby reducing spanaction costs.

The two is to reduce the logistics links by entrusting the third party logistics delivery and reduce the circulation cost as a whole.

A. traditional goods delivery process: Factory - to the brand store - to the agent (Branch) warehouse - to the dealer warehouse - to the store - the store delivered to customers, there are five links. The five links are completed in different independent economies and the delivery is extremely complicated.

B. commodity centralized delivery process: Factory - to brand store - to customer designated place, there are only three links. These three links are concentrated on brand dealers, and delivery is relatively simple.

(2) realize the professionalization of experience service.

The function of entity network service has been further simplified. Its main duty is to provide experience service, and the duties of spanaction and delivery are spanformed to online and off-site. Therefore, they can concentrate on providing more professional experience services to customers.

(3) simplifying financial management.

From the overall value chain, financial flows from six economic entities (factories, brand dealers, agents, distributors, stores, customers) up and down and the financial accounting work is simplified to flow on three economic individuals (factories, brands, customers), and complete the financial accounting work within an economic entity (branding).

(4) streamlining personnel management.

With the establishment of O2O business mode, the functions of agents, distributors, stores, merchandise sales and commodity management will be spanferred, so the personnel of these links will naturally lose their necessities. Take one brand, there are 3000 outlets nationwide as an example. There are at least 2 cashiers and 1 storekeepers at each sales network, so there are 9000 employees in the country. If O2O mode is adopted, these personnel can be streamlined. Only the brand operators must increase the demand for these two kinds of personnel because of the adoption of O2O mode. The number of these additional personnel can be adjusted from the streamlined number of agents. Therefore, from the vertical value chain, the enterprise management can be simplified by adopting O2O mode.

(5) simplify business settlement.

The O2O mode enables the business process to be reorganized. Brand business, agents, distributors, customers and so on, the business process of the upstream and downstream business relations will be spanformed into a business process directly established by brands and customers to directly establish business relationships, and dealers will be spanformed into experiential service relationships, providing experiential services for end-users. Agents (branches) basically lose most of their original business (commodities and funds) functions. The O2O mode makes goods and funds have nothing to do with agents. Dealers only play the role of providing experiential service to consumers, and most of the sales functions have been replaced by online services of brands.

3., this mode is beneficial for brand operators to integrate enterprise value chain, realize enterprise value creation, and strive for maximizing customer value.

(1) inventory value

The biggest problem of the traditional order system is the inventory problem of agents (distributors) and distributors. Especially in the market environment where the supply of goods exceeds demand, the problem is particularly prominent. At present, the total inventory of the distributors and brands has reached over 30%, which has greatly weakened the profit margins. The root cause of this problem is mainly the way of ordering six months ahead of time and producing good products ahead of time. Even if there is a large number of closing stores, the new production pressure is not eliminated.

The advantage of the O2O business model is the centralized management and sales of goods. Taking Anta sports 9054 stores in 2013 as an example, a product has 30 orders per store, and the total output can reach 271 thousand and 620. If the product sold at a rate of only 50%, it will produce 135 thousand and 810 items of stock. For example, the O2O mode can take part of the pre commissioning, such as production 50%, and the other 50% parts will solve the market's demand problems in a timely manner according to the market sales. We can only reduce the cost of labor and the waste of manufacturing cost by 40% times of production cost and manufacturing cost, so we can achieve the best inventory value (i.e. product value). Taking the production cost of 150 yuan per product as an example, the company can reduce the labor cost and manufacturing cost loss of 60 yuan per product, which can reduce the inventory value loss of 135 thousand and 810 *60 yuan / =815 million yuan. If there are 100 ways to adopt this mode every quarter, it can reduce 8 million 150 thousand yuan / *100 =8.15 billion loss.

(2) staff value

The business model of O2O is guided by market demand, which will differentiate customer service: Sales Service (online completion), experience service (offline store completion), delivery service (third party logistics), thus simplifying the complexity of service of the terminal personnel, thus greatly reducing the number of service personnel under the line and improving the professional level of experienced service personnel. Taking each experience service network to reduce 2 cashiers and 1 warehouse managers as an example, the average total number of outlets decreased by 3 people, and the terminal experience network reduced annual salary and welfare expenditure by 3 yuan *3500 yuan / month *12 months =12.60 yuan. National outlets can save 9054 *12.60 yuan / home =11.41 billion.

(3) logistics value

O2O business mode has changed the way of commodity circulation: from original factory to brand dealer to distributor (distributor) to distributor to store to customer, from factory to brand dealer to customer, thus shortening commodity circulation time, simplifying circulation link, improving turnover efficiency of goods, brand dealers and customers are more closely linked, reflecting information to the market more quickly, so that brand dealers can effectively allocate and support commodity supply.

(4) financial value

O2O business mode has changed the mode of business cooperation: from the buying and selling relationship between the original factory, brand, agent, distributor and customer to the direct trading relationship between factory, brand, customer, dealer's experience service relationship, and agent's supervision. Therefore, from the perspective of financial value, cash flow turnover is faster, which solves the problem of cash flow and cash flow affecting customer satisfaction. Corporate finance does not cause bottlenecks due to the dealer's capital capability, which greatly simplifies the flow of financial capital and improves financial responsiveness.

　 Three, O2