Fast Fashion KM Development Strategy Exposure In The Next Three Years

In recent years, Apparel retailing industry The big shuffle and the closing of shops and waves have made waves. The old clothing brands in the provinces and cities of China have been unable to make any exception. The sales performance has been cut off by Cliff style. Most of the sales are related to stores, losses, difficulties, acquisitions and so on. At the same time, the era of foreign luxury brands in China "closed their eyes can also make money" quietly ended, they adopted the strategy of store contraction, and even closed the sales network in China. According to incomplete statistics, last year, 3000 factories and small and medium-sized enterprises went bankrupt, and domestic clothing profits fell 27%.

It is well known that there are few fast fashion brands that survive and live well in the apparel industry. As the most powerful black horse that the garment industry has killed in 2015, VC sees the largest fashion retailer in China, the designer fast fashion brand KM, accurately grasp the pulse of the industry development, with the slogan of "no confrontation between fashion and price", and continuously introduce high-quality and preferential products, and successfully stimulate young people's fastidious and fanatical desire to buy. With the speed of unimaginable shop opening, more than 200 new stores were opened in a year, from 40 teams to 37%. There is no doubt that KM has made a lot of money. At the beginning of this year, the company announced that it planned to complete 2000 stores goals by 2018, and received numerous admiration, exclamation and amazement. And unavoidable prying.

How to make the people outside the circle feel the KM's popularity too? Here I find an interesting evidence. To see which brand is the hottest in China, it depends on who is the most rampant in Shanzhai. At the same time, KM quickly opened stores, and a batch of "Shanzhai stores" had been wildly duplicated in the country. So KM became the most popular clothing brand so far. Of course, this is a trouble and a mixed blessing for any enterprise.

April 10th, designer Fast fashion brand KM held the annual meeting of the "2016 KM+ annual event", and the founder Chen Hao delivered an opening speech at the meeting. He said that in 2016, he would make steady layout, practice hard work and add 300 stores to achieve the overall layout of KM in China's main business circles. And will build the country's four major logistics centers, further reduce costs and speed up the turnover rate of goods.

KM founder Chen Hao

According to his description, China's economy is down now. Under the double attack of electricity suppliers and foreign brands, serious brand homogenization, overcapacity and high inventories have led to an unstoppable trade closet. Today, with the coming of the consumer era, we only have to conscientiously make products and have the future. Everything is what customers say. If you are not good, we will not buy your products.

Chen Hao disclosed that if we copied the development model of traditional clothing retail brands in the past, we could open 500 new stores in 2016 by virtue of the huge brand fans foundation. But considering that blind expansion is more harmful than profit, I only increase 300 houses, steady layout, and continue to elaborate the operation system. KM

The following is a record of Chen Hao, founder of KM:

Distinguished guests, friends, honorable partners, KM colleagues and family members, good evening! Today is a special day and a milestone for our KM company. Here I would like to express my heartfelt thanks to all of you for your support for KM over the past year, and to thank our partners for their trust and support. Thanks to our colleagues for their hard work and hard work in the past year, you have made KM a smooth step in the country. Thank you.

A way out of the clothing industry.

In February of 2015, we formally opened the first KM fast wear men's wear brand in Guangzhou. After 2 months of testing, we made a short-term strategic plan. As of the end of 15, we opened nearly 200 stores nationwide.

I remember that at this time last year, the headquarters of Guangzhou was about 40 people, and all the work was difficult. We faced great challenges because we had to form a team in a few short months, integrate the supply chain, and lay out the whole province in the provincial capital cities and occupy the key market.

OK, I want to talk about how we thought about what we did.

In such a depressed environment of clothing industry, how can we reposition the strategic development of our company? The serious overcapacity of domestic garment industry, the fierce competition of brands, and the number of listed companies exceed 20.

We ran around the global market and found a problem. Although the domestic garment industry is a very mature market, it is facing serious structural problems, such as brand aging, and 99% of the companies are wholesale agents.

Over the past 20 years, due to the imbalance between supply and demand and the huge domestic market, most companies have been roping around and occupying the market. There are few companies that really want to make products, and there are few companies that have one price per cent. I wonder if we can introduce a foreign Brand Company to jointly launch a fast fashion brand with good product, good price and vertical mode. Thus, KM opened its first store in China and won unforeseen results.

Some of our colleagues hate us because we have moved their cheese.

But for consumers, we are doing valuable things. We prefer to be close to consumers and study their preferences.

In just half a year, dozens of peers are imitating us. We have become one of the most frequent clothing brands in the clothing industry. We must understand that in China, this is normal, but these cottage brands will not live long enough, because apart from simple imitation, these brands are not genetically correct and have no roots. Although they are easy to get started, they are hard to master.

The market now needs only one KM, no 2,3,4, no 2 UNIQLO, no 2 IKEA, and no 2 ZARA. Each market segment, consumers can only remember one brand.

The important strategy for 2016: let the bullets fly for a while.

First key word: robust layout

To achieve the overall layout of the major business circles in the country and add 300 new stores, although we can make 500 or more, but in the long run, we need to proceed steadily and steadily. In 2016, KM will build 4 new logistics centers throughout the country to reduce the cost of goods and improve operational efficiency.

Second key words: hard work and internal strength

We must answer this question if the industry is so competitive and how best we can do it. For me, seriously, I think we only scored 50 points. So this year's work is to focus on key business, consolidate the backstage major operation system, ensure adequate supply, realize comprehensive information construction, and establish a big data retail system. It will further optimize product, image and service, and provide better and more anticipated terminal experience.

Third key words: team integration

The most important thing is the internal team. The biggest challenge is team learning and synergy. How to use force together and form a joint force to create common guiding ideology is the watershed of company development.

Our vision: to become China's largest apparel retail group.

In my opinion, in career, except for the first place, it is equivalent to failure.

KM will continue to adhere to the principles of the five carriages: the first-class golden section, the forced shop environment, the professional and sincere service and the expected cost performance. fashion Good quality products. Do all these five things, and everything else is coming. In addition, KM also striving to build a positive and progressive organizational culture. The team must have the spirit of striving, cooperate with others, and have a temperature. No one likes a cold environment.

At the same time, with this opportunity, I want to tell all young people that we must have aspirations and goals, believe in the power of dreams, and believe that every effort you make will not be wasted. In 2016, let's work together to fight for "Tao".