Us Chairman: Internet Era, O2O Into Development Trend

Structural adjustment of the origin of "closing shop tides"

Reporter: I think the United States in the industry from the perspective of share price performance is actually not vulgar.

But it was like Baleno, JEANSWEST and YISHION.

They all got caught up in the shop. Before long, some media also said that Smith Barney closed more than 200 stores last year. Is that true? Is the United States now in disfavor?

Zhou Chengjian: about the shop, we have adjusted all these years, and there is no way to renew the contract due to the expiration of the contract. Our large number of properties are rented.

Second aspects also have the relocation of cities, especially in the past five years, China's urban regeneration and pformation, this relocation is very very big, the change is very big.

Therefore, it is not a strange thing to combine a variety of factors and adjust hundreds of stores in a year. We have more than 4000 stores in the country, and about 5% of the shops are adjusted to make improvements. I think it is in a very benign structural improvement.

Of course, I think the development of the Internet over the past few years also needs to be adjusted by some channels. It might have been a very high density shop in the main commercial street. The commercial street with a height of three hundred meters and five hundred meters has three stores and four stores. From today's perspective, the flow of people is gradually decreasing.

Another is that the business circle of the city is constantly adjusting and changing, so that the whole city is shopping at this shop.

Now there are more nearby MALL, the commercial atmosphere of the nearest living quarters.

The flow of people here has been optimized, and originally opened five stores. Now there may be a store there.

You have to turn off a few, or you will lose no profit or loss.

Therefore, this is also a very important issue.

When we talk about business, it is mainly its profit and loss, and no profit or loss will necessarily be adjusted.

There is also how you can better serve consumers. The purpose of opening many stores is to have a very large flow of people. You can't meet the needs of a store, and you need more stores to meet your needs.

Now some people do not have to go to a certain street. They can have new shopping centers or new commercial streets next to their own communities.

We need to turn off the ten of these five stores, but we have to open 5 in other places, leaving 7, maybe this structure.

Therefore, this is a natural and reasonable adjustment relationship.

Local clothing brands should focus on brand building

Reporter: but we do see that in some of the more mainstream shopping streets, such as in Beijing, we take Xidan for example. You can often see that there is a feeling of robbery in the international fashion shop in H&M or ZARA, which is overcrowding.

But it's opposite.

There is a sense of neglect in the lobby. Is there any external shock from these two brands or the international fast fashion brand?

Zhou Chengjian: in my opinion, in the past few years, of course, the competition in the Chinese market is facing globalization. This is an inevitable trend.

Second, I think the location of the store is related to the location of the business district.

You just mentioned Xidan, Xidan before the original Joy City, our position is the best location, the flow of people gathered the most.

With the joy city of Xidan, the flow of people is much more.

It's a MALL. It's a shopping mall.

It's an independent store there.

At different times, the flow of people is completely different. The purpose shopping people will go there, and the non purpose shopping will go to the joy city.

This is the relationship of a business circle. It is not absolute that the brand of American state is not welcomed by consumers. Therefore, fewer people, nor ZARA or H&M, are welcomed by consumers.

Interviewer: but is this the impact of globalization? Is it merely a change in the location of shopping?

Zhou Chengjian: I think there must be some aspects. I personally think that I have been thinking more over the past few years, that is to say, the building of brand power.

We build from brand power, originally limited to a promotion of image spokesperson, for example, it is not enough.

Today, the construction of brand power is related to the strategy of the brand, the positioning of the brand, and even the strategy of the product, the location of the product, including the presentation and performance of the product, including the location of the shop, the location method, including the fine building of the whole shop.

In this respect, I think our brand in China, including myself, is not complete enough in the past decade, and is not professional enough to think about the problem.

Maybe in the past, it was a simple operation aspect and felt that operation represented the whole brand building.

Today we look at the first is brand building, second we build from product strength.

We are relatively young from the original product strength construction, from our own innovative and creative team building.

In recent years, we have introduced some talented international talents to join the team, plus our focus on internal training.

In this aspect of innovation, the original design is more internal and terminal, it is the relationship between B2B, not B2C.

Now, our product innovation, the information acquisition and pformation, should change from the original B2B relationship to the direct B2C relationship, so that our designers should communicate directly with consumers.

Consumers' information and customer information are directly needed to let innovators know that this innovation needs to be further strengthened. This is the second level.

The third level is the operational capability level. Our original operation capability is in the aspect of thinking.

China is an opportunity to grow up businesses. 20 years ago, we could have the courage to do things and have the courage to make money. Relatively meticulous management is not enough.

Therefore, we should further strengthen meticulous management, which should be considered in several dimensions.

In the age of opportunity, you will become 70 yuan, no matter whether you turn these 50 dollars into 60 yuan.

Therefore, we have said that in the past decade or so, how can you grow 20% or 30%? Now, if you fail, it will become a negative growth. In recent years, we are also in the depth of adjustment.

Therefore, from the scale of sales is also shrinking, this contraction we have passive response on the one hand, also have the initiative to deal with.

Passive response, such as our work is not done well, in terms of brand strength, product strength, and meticulous management in operation has not done well.

Those who have responded passively and have initiative to deal with them are unreasonable in some channels. Through such a decomposition analysis, their profits and losses may not be enough on the one hand, we must give up.

This is called active contraction scale, to ensure that our profitability and business ability are positive.

This can be seen from our financial statements. Our cash flow is gradually improving and gradually improving. This is called active response.

Our scale is shrinking, there are active components, and many of them are passive components. We have not stepped up management.

Therefore, this is the next step to ponder.

The fourth aspect is channel strategy.

From the channel strategy,

It's too rich, with 50 square to ten thousand square feet.

This strategy is not comprehensive in our original strategy.

For example, you just lifted these foreign brands, the standardization level is very high. Basically, for example, between 800 - 1500 (square meters), the error will not be too big. It is impossible to have Metersbonwe 50 flat to many flat, which is more complex than them.

The second complexity is our first-line market, for example, to Xidan, Beijing, to remote Tibet, and even to the prefecture level cities and county-level cities below Xinjiang.

The scope and breadth of our channels also become more complex, which will increase the difficulty of our product development in all aspects.

But we have not done enough in this aspect in terms of planning and standardization in the past.

There is a Chinese saying that in the early stage of reform and opening up, the first generation of entrepreneurs first started shooting and then aimed at them, that is, to develop first, and then slowly standardize them. We have been doing this in recent years, which is also active and passive.

China market digestion year 3 billion inventory is easy.

Reporter: when it comes to this management problem, actually in 2012, at that time,

One news is about its inventory.

At that time, Shenyin Securities issued a report that by the end of 2011, Metersbonwe's stock had reached 2 billion 500 million.

How is the inventory digested now? Is there any way to solve it effectively?

Zhou Chengjian: I think the peak time reached 2 billion 900 million, and now it is around 1 billion 300 million. I think the current section is very reasonable.

This change just now I said, the original bad result is formed passively, today turns into this result is we take the initiative to improve.

This initiative improvement is what I have just done, improving from the perspective of brand power, product strength, operation capacity and channel.

In the past few years, we should enter a deep adjustment, actively respond to the challenges and opportunities of the Internet, actively respond to the challenges and opportunities of globalization in China's retail market, and gradually turn ourselves into a new brand that adapts to global competition and adapt to the Internet pformation.

Reporter: but the clothing industry has its own characteristics. The fashion of every season is different. Will your inventory be out of date next season?

Zhou Chengjian: of course, our past inventory digestion is a better way through more extensive channels.

In China, 1 billion 300 million consumers, that is to say, there is a vip.com in China, which sells stocks and sells three hundred or four hundred billion a year.

Inventory from 2 billion 500 million to 1 billion 500 million, the middle billion, the ratio of 100 billion and 34 billion is still very small, indicating that the diversity of China's market demand is still very, very large.

So, we sell these historical stocks to consumers who need this, and at the same time, how we manage today without producing inventories is a very important issue.

Two years ago, I said a word, I said: "today's inventory of any enterprise static is not a fatal challenge for enterprises, more than 3 billion, the Chinese market is huge, and it can easily be digested in a year."

The biggest challenge is, first, do you have the ability to manage no longer generate inventory; second more importantly, its brand power.

If the brand is not strong enough, you won't have an inventory of consumers today.

Therefore, I think that the core of a brand is a comprehensive ability. What constitutes competitiveness is the most important one.

Interviewer: can you make it out of stock today?

Zhou Chengjian: I think from today's report, I think it is healthier and more benign. I can't say that I guarantee that one stock will not be generated. This is unrealistic, because after all, clothing.

What you said just now, the diversity of interests, what he's innovative is said to be OK, some people say it's not good, you always have some tail goods.

How do we digest these goods? We need to use reasonable channels and reasonable ways to digest and serve consumers. This is also a problem we need to think about in terms of operation.

"Customer to factory" personalized customization or apparel industry trend

Reporter: you have mentioned the word "channel" many times. There are also reports on the Internet that you have also made an appointment with Ma Yun to travel to friends to learn the way of electric business.

You announced it not long ago.

Strategy, give us a detailed account of what is included in the O2O strategy.

Zhou Chengjian: Metersbonwe does

Instead of copying Taobao's model, it must not copy Jingdong's model, nor copy other Internet based models.

but

The development of Internet based thinking must be considered. This trend is irreversible, and even the space for such business opportunities is growing.

What the United States wants to think about is how you use the knowledge, tools and means of the Internet to make good use of your resources. This is a very important thing.

On the one hand now mobile platforms, mobile development gradually, in fact, we can fully rely on these technologies and platforms.

Better development.

For example, we can make a good APP.

For example, what we are talking about today.

The concept of O2O becomes a broader understanding and understanding. The original O2O is an interaction between online and offline. It is a simple interaction, and we can extend it.

For example, we have five thousand stores in the whole country, the market is so extensive, our commodity richness is very large. We can support all commodity services in any store, or let us have forty thousand employees in the whole country to realize one shop service.

Through these APP can be a store service, this membership type, this WeChat style era, I think these aspects have very very large space, very, very big opportunity.

In the next six months, there will be some achievements in this area, and there will be some good ways out.

But at this stage, we have done a good job in several aspects of O2O.

One is the full circulation. Our five thousand stores across the country have fully supported the delivery of liquidity. That is, any order is launched. If A stores are not available, we can find goods in any shop at B store and C shop, and send them to consumers' homes in time. This is what we call the whole circulation project.

This is our first day of May 1, and the effect is very good every day, no matter whether we join or direct.

The second aspect is that we will launch the cloud shelf next month.

That is to say, there is no goods in your store. As long as all the brands of our company are available, you can support the service consumers.

For example, here is a Metersbonwe store, also through the cloud shelf can support the service Me&City brand.

So, this is what we will use next.

The tools of the Internet enable Metersbonwe to go farther and better in the future.

Reporter: is this cloud shelf displayed in the form of an electronic screen, or what kind of presentation is it?

Zhou Chengjian: I think there are many. Now we are more of an APP operation.

Download a APP, in my circle of friends I serve you, you become my friend, I will tell you.

Today you interview Zhou Chengjian, Zhou Chengjian likes to wear what style of clothes, what you may wear, two people sitting together more tacit understanding, this is one.

The second of you are going on a date tonight, meeting with your new boyfriend, what kind of restaurant to wear, what kind of clothes you can wear, and how to help you.

We are quite a fashion consultant to help you and serve you.

On the whole, I think

There are many challenges and great opportunities.

Because traditional enterprises are

A little scared, a little scared.

We are overthrowing the overturning of the Internet and expanding the influence of the Internet.

No matter from the government, from the society or from the academic circles, we feel that there will be no more Internet in the future.

So, I think in the context of the Internet, we have to help traditional industries, support the traditional industry how to do better, and how to do better.

So, the next thing we can talk about in the future is that C2M can not be done without Internet.

The original C2M we call personalized customization, the original customization I also came from a small tailor, that is the high-end atmosphere of things, tall things, today we can achieve mass.

Today, for example, we have completely

The technology, for example, the two of us take a photo of each other, the basic size in it, immediately through the 3D virtual pictures to know how to match, how to plate, how close, immediately can do eight or nine not leaving ten drawings, eight or nine is not ten away from the plate.

As long as we make a relative comparison with the original database, we can know how a plate is more suitable for you. We can make quick production and meet your needs within a week.

Even through the means and tools of the Internet, we can pform our original manufacturing plant into a mass production pipeline and pform it into a single product production line.

Its production cost is not much different from that of mass production, and its speed is faster. In this case, C2M will become a popular demand.

Therefore, our project can be done in the next six months.

That is us.

Personalized customization makes personalization become popular and popular. This is also the use of Internet tools.

With the new Internet platform, besides

Besides the private brand, we can also connect with the socialized brand in the future.

Because this platform can be completely enlarged. Even the rising designer of China is very good and very young. But he needs a company with absolute supply chain integration capabilities to cooperate with him.

I feel that they can also use these resources and graft them with my resources.

Therefore, I think the Internet can help enterprises integrate the original resources into the larger industrial chain of society.

One of the ideas that Metersbonwe will build in the future is to make consumers experience simpler, more convenient and richer, and make our industrial chain more valuable.

Technology to help our original manufacturers to achieve flexible supply chain capabilities.

This is a big strategic idea for Metersbonwe in the next 35 years. We must make use of all Internet means and Internet tools to integrate upstream and downstream better and bring greater value into play.