Interview With Du Tingguo, Korea'S Clothing House: Brand Upgrade Is Imminent

"A lot of times, the pformation and upgrading of enterprises are not only to meet the needs of development, but to survive."

Du Tingguo, co founder of Korea's electric home business group, said in an interview with the media.

In his view, after extensive growth, the electricity supplier will inevitably enter the era of brand development, or be eliminated by the market.

"A lot of times, the pformation and upgrading of enterprises are not only to meet the needs of development, but to survive."

Du Tingguo, co founder of Korea's electric home business group, said in an interview with the media.

In his view, after extensive growth, the electricity supplier will inevitably enter the era of brand development, or be eliminated by the market.

Quality and service are the two wings that support brand development.

As the chief designer of Du Tingguo's flexible supply chain, he can use his professional perspective to analyze this change: small and beautiful brand means "small single quick return mode" support.

This requires suppliers to create a product line suitable for small bills under the premise of ensuring quality and reducing costs, and create a fast response production rhythm.

This means that the upgrading of enterprises must be the simultaneous upgrading of the industrial chain, which is about development and more about survival.

Du Tingguo, the co-founder of the Korean home and the name of "long song", received an exclusive interview with reporters.

The upgrading blueprint of flexible supply chain is launched here.

Only change can survive and develop.

Reporter: Hello, general manager of the Chinese clothing industry in Ji'nan this January 11th.

In the forum session, you mentioned "innovation" and "upgrading" more than once.

You have said, "in the fierce market competition environment, not to advance, to retreat, enterprises want to continue healthy development, the pace of innovation can not stop."

Excuse me, what kind of industry judgment are you based on, and feel the urgency of the enterprise's innovation and upgrading?

It should be said that the pressure of innovation and upgrading comes first from Han Du Yi itself.

There is a data that we can see that in 2015, "double 11" and Han dresses sold 284 million yuan in Tmall to win the title of the Internet apparel brand.

In the category of Tmall, including millet, HUAWEI, Haier, Nike, ranked 20.

At the same time, the flagship single store of Han dresses is ranked the second runner up of the National Women's wear, the Internet women's wear champion.

People who are concerned about the Korean clothing house may still remember that in 2014, "double 11" and Han Du Yi house won the championship of women's clothing. The overall trading volume of the group ranked sixth in the overall category of Tmall.

You can say that Han Du Yi house has fallen from sixth to twentieth, but we think it is a great progress to enter TOP20.

This is because in 2015, the traditional big names were "touching the net" in the form of "Internet +".

That is to say, the Korean Korean clothing house, which has grown up on the Internet, will compete with the big brands on the same line.

The enterprise is wired and offline, but the brand is not.

Facing the traditional big cards that have accumulated for decades, we only have to innovate and upgrade to survive and develop. This is the pressure.

Reporter: will this competition form the so-called "encounters"? Or in this competition, whose advantage is greater?

Chang Song: the traditional brand of the company has a complete system under the online operation.

Online operation must follow the rules of Internet operation.

In my opinion, online brand is "small and beautiful".

This is the demand of consumers in online stores, and is determined by the characteristics and advantages of Internet sales.

When the traditional brand touches the net, it must coordinate the relationship between the two systems.

This is somewhat like the "left-hand circle and the right hand drawing" in martial arts novels, which requires strong skills to achieve synergy.

At the very beginning, traditional brands rely on the offline supply chain system to provide products for the online industry and attract consumers through their own brands.

But it is not enough to make the Internet a channel and move it offline.

But I think these traditional big brands will find a way to balance the online and offline routes. It's only a matter of time.

After 10 years of operation, Han Du Yi house has gained a lot of experience in online operation.

Through the analysis of big data, we came to the conclusion that online shop sales must be multiple, small, multi batch and quick return.

Use new styles and faster tempo to impress consumers.

Reporter: does this mean that the electricity supplier can rest easy in a short time?

Chang Song: he must not be carefree. On the contrary, there must be a sense of urgency.

The brand itself has no line offline, so brand building is imperative.

In addition, consumers will have more choices when online volume increases.

At this time, the South Korean clothing house must give full play to the advantages of the Internet so as to remain invincible.

Without rapid development, we can only be submerged and eliminated. This is the Internet. This is the situation we are facing.

Changes in the electricity supplier affect the industry

Reporter: according to your words, "change" is urgent.

I want to know what upgrade has been made by Han Du Yi house in 2015.

Long song: the enterprise upgrading must be a comprehensive upgrade rather than a single business point or business line upgrade.

Since 2013, Han Du Yi house has established a fashion brand incubation platform, which has increased its operating brand to 28 by means of self incubation, joint venture cooperation and generation operation.

According to the data of 2015, there are nearly 30 thousand new products in the Korean home group.

These need to face a huge challenge for the flexible supply chain.

This requires upgrading of IT system and upgrading of cooperation mode with suppliers. It also needs our warehousing system, customer service system, marketing system and other departments to achieve synergy.

Reporter: from this point of view, the Korean clothing house is no longer the original Taobao shop, but a huge system.

What kind of effect can such an upgrade bring?

Long song: Han Du Yi house created a myth of 97% sold out and 7 inventory turnover in 2015.

I think this is a good proof.

Reporter: focusing on the production process, how to describe this upgrade?

Chang Song: the upgrading of the supply chain is divided into two parts: the internal and external upgrading. It started in 2015, and started upgrading and upgrading from product planning, development, material preparation, production, marketing and so on.

In 2016, the internal upgrading will accelerate and deepen.

In 2015, "double 11", we launched a flexible supply chain plan.

With the support of big data, we can accurately predict the demand for return of a certain color model product in a certain brand, which can reach the factory within 2 hours and arrive at our warehouse for 7 days.

This is not what we can achieve after upgrading a certain business department, but the upgrading of our entire group and the entire supply chain.

Reporter: This requires that this upgrade must be directed towards the outside and upgrade with suppliers.

Chang Song: Yes, yes.

The development of enterprises is necessarily phased, so different stages will have different goals and different priorities, which will have different needs for our suppliers.

The construction of our supplier team has gone through three stages.

Before 2011, we mainly looked for suppliers who accepted the mode of electricity supplier order, which we call the "yes" stage.

In the past 2012~2013 years, suppliers will not be willing to do so. If we want to train these suppliers, we must first meet the "quick return order" of the electricity supplier under the characteristics of fixed production. We call this stage "fast".

In 2014, we decided to be a year of quality. No product can be sacrificed at any cost. In this year, we focus on quality control, and call it "good".

In 2015, we put forward a new innovation to optimize the functions of the entire supply chain. At the same time, we also call it "high" in terms of quality, delivery, production cycle and cost control.

So, this year, in 2016, we formally proposed upgrading, that is, we should make meticulous cooperation on the basis of 2015 and raise the level of cooperation in an all-round way. That is to say, this is a stage of "going up and going up".

Synchronous upgrade needs five passes.

Reporter: we know that China's garment industry, whether in the era of planned economy or the order of foreign trade, is winning by mass production.

Even the clothing industry has a large number of genes that are planned to be produced.

The electricity supplier creates a "small and beautiful" brand, and proposes multiple, small, multi batch, quick return orders. Can the supplier accept it? Is this a difficulty?

Long song: actually, the garment industry is aiming at pformation and upgrading of clothing business operators, and industrial process pformation is only one of them.

In our actual operation, we need to pass "five passes".

First, the concept must be upgraded.

In the pformation and upgrading of enterprises, the pformation and upgrading of ideas is the most difficult.

In the Internet era, it is impossible for another product, technology or mode to last for more than a decade. Therefore, we must break the old conservative concept and add a new element of innovation.

The second pass is the upgrading of value creation.

First of all, we need to understand the relationship between value creation and making money. Making money does not always create value, but creating value will definitely make money.

Because the value created is your competitiveness.

For example, you can provide goods or services that others do not have, or you can provide better products or services that are more efficient than others.

Then, just like our clothing suppliers, I can provide the sample development service which is obviously superior to others. Then you create value. I have more effective and safe quality control than others. Then you create value. I have better raw material channels than others, a more sophisticated management system, and I can provide products with higher cost performance, so you create value.

Reporter: concept and core competitiveness are abstract, but they play a decisive role in operation.

Long song: Yes.

The next related part is what I call the third hurdles, the importance of data analysis and application, or upgrading to the height of enterprise development strategy.

Now we have entered an era of Internet, but have we ever thought about what the Internet is? The Internet appeared in the 90s of last century, but at that time it only connected people with people, people and machines, machines and machines.

Today's Internet has become a strategic infrastructure for our enterprises to collect precipitation data. So good facilities have been allocated. If we think about it, how much do we need to use it? How will it be used in the future?

Traditional enterprises and

Where is the essential difference? That is data.

Take our clothing enterprises for example, who sold the traditional clothing brands and products? How many times did he buy them? When did he come? How did he feel? These data were hard to grasp.

And clothing business operators, these have data records, and most of our suppliers can also be found, such as customer evaluation, sales of each product, suppliers can see at the same time, so as a result.

We should also learn how to use these data to guide management direction.

Reporter: This is the concept of big data in the industry to get through.

Chang Song: this needs a process, that is, we need to pass the fourth pass, keep pace with the times and advance with demand.

That is, I have just talked about the corresponding needs of different stages of the enterprise.

The fifth is the upgrading of management mechanism.

In the various management mechanisms of suppliers, the most important and top priority are quality management and control mechanism, personnel training, job placement improvement, operation process optimization, responsibility and rights clearly, and assessment system improvement.

These are included in the directory of management mechanism upgrading in 2016.

Reporter: upgrading management mechanism.

Should we also have embedded coordination?

Long song: we are demand side, so upgrading the quality control mechanism must be upgraded by our help.

But in the later stage, garment manufacturers need to complete independently.

South Korea will uphold the concept of mutual participation in cooperation and share experiences with you to help you achieve rapid upgrading in this regard.

Earlier, some suppliers would rather idle their machines worth hundreds of thousands of dollars, or be willing to invest hundreds of thousands of dollars in the construction of management mechanisms.

I think the management mechanism is like a piece of soil. The order of Han Du Yi house is like a seed. If the soil is not good, we will never dare to seed the seeds; if there is no quality control mechanism, we will never seed.

Sharing the feast of the Internet Age

Reporter: crossing the five barriers and coming to the future! I can see that the upgrading of the flexible supply chain you are leading is seeking the upgrading of the whole industry.

Can you describe the blueprint depicted by both Korean suppliers and suppliers?

Chang Song: first, look at Han Du Yi house.

By 2015, Han Du had formed seven public service systems based on brand incubation, service and promotion.

One of the most important ones is our flexible supply chain system, which has been open to the outside world through our own practice and inspection.

Since this year, we have built an industry level, professional and empowerment Internet brand ecosystem in the form of "Han Du Yi she +".

In January 8th this year, one of the main platforms of the Internet brand ecosystem of Han Du Yi house, the Zhihui blue ocean Internet brand incubation base, was unveiled at the Dragon Olympic building in Ji'nan. The flexible supply chain system we build with everyone will become the core support resource for the incubator base, which will undoubtedly open up a new development space for all Korean suppliers.

The biggest feature of the Internet age is collaboration and openness. Only when we cooperate and open up can we give full play to the greater value of our flexible supply chain.

Since 2016, Korea hopes to join hands with suppliers to create greater value and share the heyday of the Internet.

Reporter: Sheshedu always outlined such a bright future, so that Han and his suppliers can share the feast of the Internet age with suppliers.

It can be said that in 2016, the clothing industry is brilliant.