An Interpretation Of The Successful Business Model Of Han Du Yi She

In 2014, Han Du Yi house won the "three crown" of Tmall women's "double eleven", "double 12" and the annual women's wear volume.

How did it do that?

Founded in 2008, Zhao Yingguang, founded in 2008, grew up with amazing speed: the initial sales volume was 3 million yuan and the team was 40. In 2014, two figures had increased to 1 billion 500 million yuan and 2600 respectively.

The core supporting force behind the growth of Han Du Yi she is the "single product operation system with the core of the group system", which has been explored by the company for several years.

Multi brand: the necessary option to break through the ceiling

How many sub brands do we need for an online clothing brand to achieve tens of billions of dollars? Four or five or forty or fifty? Zhao Ying's judgment is the latter.

The formulation of "creating a fashion brand incubator platform" was officially announced by Zhao Yingguang in 2014. However, the deep underlying strategy, the Korean brand's way to run a multi brand business, has long been embedded in his mind.

Zhao Yingguang was sent to Korea by Shandong University after graduation from Shandong University, and has been working with Korean famous clothing companies for many years.

"At that time, there were nearly 100 brands of clothing and love groups, including unformed entrepreneurial brands, and operated well."

After many exchanges, Zhao Yingguang came to the conclusion that a clothing company should be bigger and keep growing. Multi brand is the only way to go. After all, a brand can not occupy the position of all the people.

In 2007, Zhao Yingguang returned to China to start his own business, registered more than 20 trademarks in one breath, and began to reserve for the future development of multi brands.

Under the multi brand strategy, there are different ways of playing.

After returning home, Zhao Yingguang went through two major discussions in the domestic clothing business.

First, can the Internet be able to produce the brand? This debate was gradually settled with the establishment of Taobao mall in 2008 and vigorously supporting the "Amoy brand".

Two, how high is the ceiling of an Internet clothing brand? The consensus of the industry is: because there are a lot of personalized positioning, it is almost impossible for a single online brand to achieve tens of billions of yuan, its ceiling is far below the line, so the number of brands will increase significantly.

However, there are different opinions on the specific implementation of multi brands: first, each sub brand is completely independent, with a relatively low degree of correlation except for funds; the two is that the sub brands share the underlying infrastructure services, and their independence is limited. They are separated from each other on the product end and the marketing side, and the scale is relatively small.

Behind the two way of thinking is a different answer to a question: how many sub brands does an online clothing brand need to achieve tens of billions of dollars? Four or five or forty or fifty? Zhao Yingguang's judgment is the latter.

"In 2014, the Internet market is gradually changing from incremental market to stock market.

Especially in the garment industry with a high maturity, the growth rate of several major brands has slowed down significantly, which means that the ceiling is within reach.

It's about 1 billion yuan from women's wear. "

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The strategy needs to be built from internal strength.

In the first few years, Zhao Yingguang rarely mentioned many brands, only led the team to work hard to build the main brand.

In 2011, the sales of Han Du Yi house achieved nearly 300 million yuan on the premise of profitability, and the single product whole operation system with the core of group system was also improving day by day.

Group system: enterprise engine

The dynamic group is like a powerful engine, supporting the high-speed growth of the Korean home, and preparing for its platform development.

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The pformation of brand enterprises to platform enterprises seems to be very small. However, it is not very hard for them to do so. This must be attributed to their internal strength in the past few years: the establishment of a single product whole operation system centered on the group system.

Simply speaking, the system is to break up the traditional design departments, visual departments, procurement departments and sales departments of garment enterprises. The three non-standard parts of product design, shopping guide page production and goods management are assigned by the product group. Each group is composed of 3 designers, page production specialists and commodity management commissioners. The standardized services such as supply chain, IT, storage, customer service, etc. are provided by the company.

The essence of the system is to minimize the operation organization and achieve the relative unification of "responsibility, right and profit". On the "responsibility", according to the resources obtained, each group has clear sales, gross profit and inventory turnover requirements; on the "right", the development team has the final say, which is to develop the styles, how many codes, how much to price, how much to stock, and whether to participate in discounts.

In this way, every product has 3 mothers' attentive care, extremely sensitive to market feedback, high product sales ratio and quick turnover.

More importantly, the system supports fine operation for each commodity, and ultimately achieves single product settlement, making 1 products and 1000 products alike.

In this way, a highly motivated group is like a powerful engine, supporting the rapid growth of the Korean home, and at the same time preparing for its platform development, because "once the unity of responsibility and right is achieved on the smallest business unit, the enterprise becomes a public service platform".

Improving the "input output ratio" of trial and error

The key to the establishment of the panel system is that the Internet provides the possibility of low cost, rapid trial and error.

For offline brands, the pmission of one decision to hundreds of stores is not only slow, but in case of error, the cost is higher; but online decisions can be quickly changed based on data feedback, without geographical restrictions, with higher efficiency and lower cost.

After setting up a group system, it is possible to divide the opportunity and cost of trial and error.

Only 1 hundred million of the trial and error costs that only the boss can afford to be distributed to the 200 group members is only 500 thousand yuan per person. Not only is it more "affordable", it can also replace the growth of front-line staff.

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Fostering future business talents

Zhao Yingguang acknowledged that the traditional department system is more efficient in most cases. Because of its clear division of labor and high professionalism, the decision of the department heads affects the execution of all people. Switching to the panel system will temporarily experience a stage of high efficiency to low efficiency.

However, when the team is divided into teams, each group will become a department head, whose decisions directly affect the performance, so that business decisions and strategic issues must be considered. The result is to train a large number of "small boss" with business thinking, and then make a necessary talent pool for multi brand development and platform expansion.

Innovative "perpetual motion machine"

As the scale of enterprises is bigger and bigger, the resistance that innovation needs to break through will also become bigger and bigger. It is often the boss who calls for innovation all day, but the people below are "guarding the rivers and mountains", and the company's "engine" is on the boss's body.

The implementation of the group system is equivalent to the establishment of numerous engines within the enterprise.

Han Du Yi house ranks the sales volume of every group every day, and achieves its metabolism by encouraging free combination.

Hundreds of teams are always competing to move forward, which will surely promote the capability of enterprises in the supply chain and other aspects, and become the "perpetual motion machine" of enterprise innovation.

Forced public service optimization

The power of the product group is derived from the design of the smallest autonomous business entity, and the driving force of the public service department comes mainly from the pressure of the group.

Zhao Yingguang believes that to improve the enthusiasm of the public service sector, we should give full consideration to two states of mind: first, to benefit from profits, and the company to make proper awards according to their performance, but it is difficult to sustain them for a long time.

It is the focal point of the system design to urge the group to exert pressure on the public sector.

"A group of no more than 3 people, independent accounting, allowing free combinations and many other designs are derived from this consideration.

If you do not give pressure to the public sector, your income, your team ranking and staff stability will be affected.

Zhao Yingguang said, "for example, when the person recruited by the personnel department entered the group after training, he left after two or three months, and the group leader would express his dissatisfaction and ask the personnel department to explain.

Because there are 3 people in the group, the real interests are directly affected.

But if it happens to a ten or twenty person department, the head of the Department may not care too much.

The more than 200 teams are putting pressure on the public sector at all times to make their services more and more optimized, and the foundation of the whole platform is becoming more and more solid.

At present, there are more than 260 teams in the interior of Han Du Yi house, and from the initial barbaric growth to the regular army, each 3~5 group is organized into a large group, each 3~5 large group constitutes a product department, so that it can better take into account the overall interests at the same time of full competition.

"In the future, which enterprise can cultivate more helmsman who can gather fans' personified brand, which enterprise will have strong competitiveness?"

After the platform is completed, the next step is to select the appropriate sub brands to grow on it.

Zhao Yingguang said the selection criteria are simple: there must be a soul in the brand.

"The trend of online brand is to pay more and more attention to personalized marketing, and the soul is to be able to turn a group of people into brand fans.

In the future, which enterprise can cultivate more helmsman who can gather fans' personified brand, which enterprise will have strong competitiveness.

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At present, there are two sources of sub brands on the platform of Han Du Yi house: one is internal natural incubation, such as AMH, Minnie Haru, fan Quinn, Bailu language and so on; two, external takeover holdings, such as plaid and di kuina.

The former mostly follows the brand buying system of Han Du Yi's traditional practice, and is familiar with the group system, and the growth is relatively smooth.

In contrast, most of the latter are

Brand, and from outside, to adapt to the group system, the need to integrate into the larger platform process is longer, whether they can grow smoothly, more test the applicability of the group system and the platform's inclusiveness. For this reason, the South Korean clothing house gradually explored and perfected various mechanisms, so as to enable the platform to better support the development of the sub brand.

Strategic turn to support new brands

Before making a brand Incubation Platform in 2014, Han Du Yi's strategy was to "grasp the big and small" strategy, but did not put too much effort into the brand.

Zhao Yingguang admits that this is especially bad for the growth of external sub brands: "the first sub brand of the first brand has begun to develop more painfully, which is indeed related to our strategy.

If you do not explicitly tell the public sector to foster small brands, they will certainly attach more importance to big brands. After all, the input and output of large brands are higher than those of the public sector, and the real contribution to the company is also great.

Beginning in 2014, Han Du Yi house adjusted the strategy from "grasping the big to the small" to "grasping the small enlargement", and attached more importance to the support of the new brand.

In the first half of 2014, Han Du she set up a brand planning group under the office of the general manager to provide services for small brands with sales below 10 million yuan.

Various support such as trademark application and intellectual property protection.

Since then, the company has set up a "head meeting" with a small brand responsible person as the main member. It is held at least once a month. The sub brand leader turns to be the chairman on duty. At the meeting, various appeals can be made. Any problems on weekdays can be readily reflected to the chief executive officer of the Secretary General of the conference.

Weekly managers will also start small brands to speak first, limiting the time of speaking of big brands.

Stationing "old people" to speed up running in

For the founder of the external brand who joined the platform, they only need to concentrate on designing and marketing, and the basic service is provided by the platform. But because of the unfamiliar heads, the initial communication is often not smooth enough.

In response to this problem, Han Du Yi house will have a deep understanding of the business at the beginning of the new brand.

The "old man" is stationed to help new brands quickly connect with the public resources ports of the platform.

In addition, the brand used by foreign designers often used to be divided into the traditional mode of professional departments. In the process of pforming into a group system, many specific problems will be encountered, and experienced "elderly people" can also make suggestions for them.

"Strategic deficit period"

Compared with the normal growth process, the public services on the platform of the platform are undoubtedly high standards, which is one of the purposes of the platform built by Han Du Yi she.

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Zhao Yingguang once said that at the beginning of development, a brand often had no ability to integrate and drive a large-scale supply chain, only to find the smallest and worst factory service, resulting in "small and beautiful" and "small and ugly quality".

Joining the platform can make use of the mature service provided by the company's powerful supply chain and so on.

High cost basic services will inevitably affect sub brands.

Accounting, Han Du Yi house regards it as a strategic investment, thus setting up a strategic loss period for the new brand.

According to the "three year plan" formulated for the sub brand, the first year allowed a deficit of 10%, second years to achieve balance of payments, and third years of profit. Under this basic framework, the adjustment was made according to the specific circumstances.