Lang Xianping Interprets Shoe Enterprises' Countermeasures In The Era Of Big Data At Summit Forum Of Wan Shoe Yun Merchants

Lang Xianping: how to face the age of big data in shoe enterprises?

The advent of the Internet age has deconstructed the living environment of traditional industries, leaving traditional enterprises with no knowing where to go.

The industry is one of the most representative industries.

China is the biggest shoe producing country and exporter in the world. There are trillions of output value every year. However, a series of representative shoe brands such as BELLE, 361 degrees and so on have been slipped down every year in the whole country. What has happened to the shoe industry and how to get out of the cold winter? Lang Xianping, a famous economist in China, has made the following wonderful analysis recently in the summit forum, "breaking the Bureau - how traditional enterprises embrace the Internet", which is hosted by Wan shoe and cloud merchants.

First, the traditional industries hit the cold winter.

The railway freight turnover in the first half of 2015 decreased by 11.5% compared with the same period last year; thermal power generation decreased by 3.1%; industrial electricity consumption dropped by 0.8%; the number of retail sales of all the major large retail enterprises in China increased by only 0.9%, the lowest in previous years; the number of key retail enterprises in the first half of the year reached 240, a record high, such as Tesco supermarket, bu bee lotus, ocean department store, Parkson Department store and so on. At the same time, sales of high-end consumer goods such as luxury goods and automobiles also plummeted.

The economic downturn has become an indisputable fact.

Two. Analysis of the existing 6+1 industry chain in shoe industry

Affected by the economic cold wave,

There is also a wave of collapse.

At present, there are four industrial clusters in China. They are coastal Wenzhou, Taizhou, Quanzhou, Jinjiang, Guangzhou, Dongguan, Chengdu and Chongqing.

Why is it that the traditional shoe industry is so stagnant as a large population consuming country? Professor Lang attributed it to the "6+1 mode" of the 99% shoe industry chain in China.

The traditional footwear industry "6+1 mode" for product design, raw materials procurement, warehouse pportation, order processing, wholesale business, terminal retail + manufacturing.

Its disadvantages lie in:

1, product design: homogenization is serious, followed by imitation, lack of originality.

2, warehouse pportation and order processing: pportation needs a long cycle, headquarters product warehouse - third party logistics - regional distribution centers - sales outlets, unable to respond quickly to order needs; high inventory, 400 billion yuan a year, shoes and clothing inventory to be cleaned up.

3, manufacturing links: high cost of labor, Dongguan enterprises survival report survey shows that 150 enterprises, nearly 90% of the cost of employment of footwear enterprises are rising, nearly half of the respondents' employment costs rose in the 10% to 30% range.

The profit of the enterprises with a decline in orders is 69.34%, and 32% of the enterprises are losing money.

4, terminal retail: shoes prices are high, profits decline.

The cost will increase by 1 US dollars, and the retail terminal will rise by US $4-5.

Daphne's profit fell 95.4% in the first half of 2015.

On Saturday, the net profit fell 18.91% in the first half of 2015.

To sum up, the original 6+1 industry chain makes the shoe industry into a dilemma and needs to seek change.

Three, where is the way to digest inventory?

1, reduce inventory invalid.

In 2012, Li Ning Co began to clean up the stock, "crazy discount", inventory began to decline: ordinary shoes 50 percent off, new shoes 12% off, outlet shop 2 fold, but in 2014 the stock is once again high.

2, do electricity supplier to inventory invalid.

The major brands use the network platform to carry out inventory clearance, but the result is not ideal.

For example, Daphne began to set foot in 2006.

Market, Agel Ecommerce Ltd started in 2009, but the company's e-commerce has been mediocre.

In 2014, Daphne laid off nearly 300 employees at Shanghai headquarters, and 3 directors of the electricity supplier department were laid off.

And in June 3rd of this year, Taobao opened the "China made" sales venue, and set up a selling platform for the high quality international high-end foundry's own brand.

The sale period was closed in only 3 days. The ten traditional footwear manufacturers in Dongguan who participated in the "China made" activity sold only 30%-50% stock, and sales were far less than expected.

Four, how to break through? Take BELLE as an example to see whether it is feasible to optimize the 6+1 industrial chain.

1, take BELLE as an example: BELLE constantly optimizes the 6+1 industry chain, for example, design is in line with international standards, brand leads fashion, highlights comfort, fashion and diversification.

For example, BELLE introduced Spanish technology in 2003, by changing the center of gravity of the sole of the heel, reducing the pressure of the forefoot and increasing the comfort, so that the high heeled shoes are no longer painful.

Each of its own brands will launch more than 1000 new shoe styles every quarter to meet diversified needs in a large number of ways.

The procurement of suppliers was quantified, and the five suppliers accounted for 56% of the total purchases, reducing raw material prices and raising gross margins.

2, manufacturing: electronic shoe last design system, automatic production shoe cutting style, small batch production, 20 days listing.

3. Warehouse pportation:

4, order processing:

Even though many efforts have been made, the performance of BELLE, the leading shoe company, is still declining.

It can be proved that the traditional 6+1 industry chain patch is not enough to reverse the decline of the whole industry.

Five, why? The importance of brands continues to decline.

The January 20, 2015 Bain consultancy report shows that Chinese consumers' preferences for luxury goods have changed, and consumer groups have been significantly less loyal to brands and fanaticism. They are no longer superstitious in advertising, endorsement, etc., and pay more attention to user experience and word of mouth.

Nowadays, consumers have the following characteristics: first, younger.

Pay more attention to design sense, fashion and trend.

Second, mature.

Brand preference is diversified, exclusive, and does not require obvious brand identification.

Third, specialization.

More and more consumers are seeking a full range of experiential luxury goods, such as products that are collaborated with designers.

Six, the future direction: big data era, personalized customization, "6+1 mode" into "4+0 mode".

The original "6+1" mode has been pformed into order processing, product design and manufacturing, raw material procurement, terminal retail, removing warehousing, pportation and wholesale operation, and integrating design and manufacturing is the way of pformation.

1, order processing: ten thousand shoe merchants use 3D foot type measuring instrument to collect large data. According to different types of feet, the company produces different shoes of last shape to match the demand of local population, so that users can dress more comfortably.

In addition, Wan shoe merchants are testing a private custom system. Users only need to leave 3D foot data, and they can choose their own fabrics, outsole, color, shoelace, special logo, etc.

After receiving the order, the system will pmit the personalized demand to the factory and upload it to the cloud as the basis of consumer preference, so as to facilitate the factory to design a more fashionable and popular style.

2, product design and manufacture: after receiving the order information, the factory can design electronic shoe last according to the 3D data of each foot, and it will be shaped at one time.

3, raw materials procurement: Wan shoe merchants through the integration of the industrial chain.

Shoes, hardware, accessories and other large quantities of procurement, to achieve low-cost procurement, control costs.

4, terminal sales: entity experience shop for experience rather than sale, offline experience, online order, through mass products F2C (factory to consumer), cut off the intermediate links, ensure product high performance price ratio, and the realization of big data personalized customized shoes are equally quality and price, close to the people.

The essence of Internet + is to make inefficient links efficient and unreasonable parts become reasonable.

Professor Lang firmly believes that traditional industries can only have a way out by greatly reducing costs and improving efficiency through Internet tools.

The pformation from "6+1" mode to "4+0" mode has put forward high requirements for the innovation of traditional industries, and has important reference significance for other industries.