Why Is Private Ordering A Trend In The Future?

"For small and medium sized enterprises

Automation is not realistic - it can not afford high costs.

Therefore, it is a preferable way to make full use of existing equipment, personnel technology, low volume and low production, and private ordering.

At present, private customization is also mainly targeted.

Industry, but red collar has begun to cross the border.

"We have gone to the ordering of bicycles, motorcycles, furniture and medicine.

Later, it may cost 300-500 yuan to order the bike that you want.

In the future, we will continue to take clothing as the main force to cross the border in more fields, and from a manufacturing enterprise to a supplier of solutions.

The sense of smell in capital market is always much more sensitive than ordinary people.

Not long ago, private ordering was only a new way of life discussed by people. Before long, it had already been concerned by the capital market and became a hot spot for investment.

In June 17th, in a conference on clothing private custom industry,

The clothing team has launched a deep report on "old wine bottle new bottle, private custom opened 100 billion market", and has made a systematic analysis of the new consumption style of clothing industry.

This is the first time that the investment industry has systematically analyzed the private custom industry system.

Ms. Zhang Yunlan, President of the red collar group with more than ten years of operation experience and the leader of the custom industry, was also invited to attend the meeting. For the first time, it explained the development status and future of C2M Customer-to- Manufactory mode for the first time for two level market investors, and explored the investment opportunities of the industry.

Market scale of "102 billion 200 million"

The report points out: Recently, YOUNGOR and other garment enterprises began to layout in the second tier cities throughout the country to expand the customized market. In 2015, YOUNGOR's revenue in private subscription business was 28 million, an increase of 35% over the same period last year. In November 2015, Fosun Group spent 3 billion of its investment on the private leader's Qingdao red collar, and Yi Bang people received support from venture capitalists. In the United States, custom made clothing is also a hot business in Silicon Valley.

The report concluded that at present, the customized clothing market is still a blue ocean.

Why is private ordering a trend in the future? According to the report, we have found changes at both ends of supply and demand.

On the demand side, the rise of the middle class brings about the upgrading of consumption, and the trend of consumers' pursuit of personalization and fit is obvious.

For example, fitting is a basic requirement for clothes, but now, for many obese people, it is extremely difficult to get a good fit.

The report estimates that the men's clothing with a unit price of 500 yuan and a price of more than 2000 yuan for a suit is a relatively high profit and a relatively high consumption threshold.

The main target customers of tailored clothing are middle class and affluent people. At present, a total of 50 million families in China meet this requirement.

The report also calculates that 25% of households will be ordered, of which 35% of obese people will have greater demand for customization.

"Assuming that the cost of clothing customization per person is 7000 yuan per year, the potential market space in China is 102 billion 200 million yuan, and it is expected to reach more than 200 billion yuan in 2020.

Therefore, we believe that the clothing custom market is still a blue ocean.

On the supply side, the pain of traditional customization is that the cost is too high and can not be mass produced, so the cost can only be compensated by high price.

The result of this high price strategy is that the development of the high-end private orders is not bad only for consumers who are not sensitive to price, but there is great potential for mass customization.

Now, the application of big data algorithm and intelligent equipment makes it possible to produce small quantities and low cost.

Like Qingdao's red collar, a leading enterprise in clothing ordering, they have accumulated data from millions of consumers. After entering data into the system, 5 minutes can be made to fit a certain consumer's clothing.

In production, from tailoring to ironing, automation can be achieved to achieve a mass customization.

In Qingdao red collar, the output of a single production unit can reach 1 million 500 thousand sets.

In this case, it is possible to mass produce private tailored garments.

From the point of view of brand dealers, the production cycle of traditional garment enterprises is relatively long, and the products produced by them may not match the demand of the terminal, resulting in a relatively high inventory in the whole industry. Now, the rapid turnover of red collar through a flexible supply chain partially solves this problem.

It is also necessary to predict in advance that stock of raw materials is unavoidable.

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The price of customized garments is very high.

Qingdao red collar was originally a traditional clothing enterprise. Since 2003, it has been pformed into a customized enterprise, and has been working with some American enterprises. Through the deep integration of information technology and industrialization, the contradiction between customization and large-scale production has been solved.

For custom clothes, typing is a difficult part.

In the past, it was manually operated by a volume master. A teacher died several times a day, and the efficiency was very low.

Years of data accumulation have led red collar to find a unique way to design models directly in the system and fully automate them.

Now the red collar system will automatically arrange, automatically cut, automatically calculate and integrate the boards.

We have truly realized "online" work rather than "on-the-job" work.

At first, the red collar could only produce 1 sets of tailored garments a day, and now it can produce 3000 sets a day.

"What we are doing is a C2M ecosystem.

C, that is, customer, consumers, consumers first put forward their personalized needs at the terminal, and then convey information to the factory, to meet the individual needs of each consumer.

Zhang Yunlan said.

In traditional clothing enterprises, there are more channels in the middle, resulting in a higher price to consumers at the end. Even the cost of electricity supplier channels is higher and higher.

And private customized clothing, take the C2M mode, can achieve direct docking between consumers and producers, consumers not only directly to the factory order, and even participate in the design of products; after receiving the order, and through the logistics company delivery, precisely matching demand, saving channel costs.

Take Qingdao red collar as an example, according to Zhang Yunlan, more than 90% of the red collar market is overseas, mainly tailoring shops in North America.

"When consumers buy clothes, the American front tailor is the size of the tailor, but the producer at the back is Qingdao red collar.

That's how we connect with consumers.

Zhang Yunlan also illustrated the cost performance of customized garments with examples.

"We launched a product this year, privately ordered a suit, less than 1500 yuan, but in the market, this grade of clothing, the price is 5000 yuan.

And the price of this 1500 yuan, our profits are still very high, and there is no problem of inventory.

3000 yuan, you can buy customized clothing for imported fabrics, so the cost performance is very high.

Factories have enough profits and consumers will benefit, which is the characteristics of C2M industry.

"What are the barriers to the clothing industry? If I want to make a custom tailored project, how difficult is it?" some investors asked after the conference.

Zhang Yunlan replied, "it took us more than 10 years to explore a good road.

Among them, only trial and error will take two or three years to complete.

To build a database, we must invest at any cost, for example, the cost of templates is particularly high.

In the future, if 3D printing technology is more mature, the cost should be reduced. "

Copy the red collar model to other factories.

A key point in C2M production is that the factory must have the ability to customize small quantities and low production.

In the real business environment, most factories are products of the big industrial era, and can only be reduced by mass production of homogenized products.

Over the past 13 years, red collar has formed a set of tools through the pformation of its own factory, namely, SDE, the origin of data engineering, which can change the existing men's clothing category of red collar, and can also be extended to other factories.

So far, red collar has signed a contract with more than 40 manufacturers to help their factories pform.

Before the pformation, the red collar will diagnose the factory.

"If the factory's basic conditions are too poor, we can't put it into practice.

A category only pforms a factory, for example, shoes, A factory, skirt and B factory.

The upgraded plants are among the top three in the industry, and the quality is guaranteed.

Transformation takes 6-8 months, and costs range from millions to 120 million.

After the pformation is completed, others' factories will be exactly the same as the red collar factories themselves. They will have the opportunity to cooperate with the red collar strategically and sell on the red collar direct selling platform.

Even some small factories that used to be OEM only will be able to produce customized products at low cost and in small quantities, like red collar, and then directly enter the "magic factory" on the direct selling platform of the red collar, and face the consumers in their own name and get the order.

The magic factory is a C2M customization platform that enables users to design their own online, place orders in real time, and directly face the manufacturer directly, so that users can stay at home without leaving their homes.

Based on the big data driven intelligent manufacturing system, the magic factory can support users to detail the details of each button and each lace, and truly realize the design and tailoring of "one person, one edition, one garment and one". It only takes 7 days to upload the order data to the customized garment factory.

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"The pformation and upgrading of manufacturing industry must take this road".

Last November, red collar entered Guo Guangchang's "magic eye" and got Fosun's capital injection.

As for the amount of investment, the legend of the outside world is 3 billion, but Zhang Yun LAN rectify the answer in response to a listener's question: "fosstar did not invest 30 yuan, it only estimated 3 billion of investment.

The current account is only part of it, plus a further 3 billion additional investments.

Fosun invested so much money that it hoped that the red collar would copy the flexible solution to all fields and promote the pformation and upgrading of China's industry.

The current private custom is mainly clothing industry, but the red collar has begun to cross the border.

"We have gone to the ordering of bicycles, motorcycles, furniture and medicine.

Later, it may cost 300-500 yuan to order the bike that you want.

In the future, we will continue to take clothing as the main force to cross the border in more fields, and from a manufacturing enterprise to a supplier of solutions.

Why can a red collar complete the crossover? Because the red collar method of making personalized products with the cost and efficiency of industrialization is a completely standardized management idea and standardized operation system. It is a set of solutions and a set of methodology.

It applies to red collar as well as to any manufacturing industry.

Fosun's investment is crucial to red collar.

First, reputation and credit, the red collar itself is a small enterprise, and previously only overseas markets, not much visibility in the country, but through the investment of Fosun, red collar has a relatively large influence.

Objectively, Fosun plays a role of credit endorsement for red collar.

Fosun's investment has an important significance to investors: they integrate the whole group's business resources and docking with the invested enterprises.

What are the needs of the invested enterprises, which can be met on the docking platform through the resources within the group.

This is a very broad space for the red collar.

In the past, some red collar resources were hard to get, but on the platform of Fosun, it was easy to obtain.

Before investing, Fuxing people visited the factory of red collar and did deep communication in many aspects.

At that time, Guo Guangchang, chairman of the red collar company, met with Mr. C2M to talk about the two sides. There was an absolute consensus that the pformation and upgrading of small and medium-sized manufacturing enterprises must take this road.

The main leaders have very similar ideas, which laid the foundation for the cooperation between the two sides.

"For small and medium-sized manufacturing enterprises, automation is not realistic - it can not afford high costs," Zhang added.

Therefore, it is a better way to make full use of the existing equipment and personnel technology and to make small quantities low into local production and private customization. "

Yang Weiqiang, chairman of the chairman of the compound, said that under the C2M model, the M end is no longer a simple concept of the factory, nor is it no longer a specific form of manufacturers, brand dealers and channels, but a combination of various production links (R & D, manufacturing, marketing, etc.).

This is the reconstruction of the value chain. Manufacturing has gone out from the bottom of the traditional smile curve and began to redistribute the value chain.

Clearly, the era of redefining business ecology based on customer experience has arrived.

The red collar provides a good reference for the pformation and upgrading of traditional enterprises through its own practice.

Prior to that, Guo Guangchang also said: C2M will become a new driving force for China's manufacturing industry, and will also generate a number of intelligent manufacturing enterprises with data threshold, quality and efficiency, and they will also be an important driving force for China's pformation and upgrading.

Fosun will join hands in red collar and play an important role in the pformation and upgrading of Chinese traditional enterprises.

Two months ago, on the special occasion of "ten people watching ten years" at the annual meeting of "2016 China Green company", Guo Guangchang talked about his views on the next ten years, with special emphasis on the future of Fosun in C2M.

"Don't separate investment from industry. What I do is investment, but in fact, all I have in mind is industry.

What is the investment of Fosun to whom do we think people can really respond to customer needs? Who can really polish the product and become an enterprise with a screaming product power? Who can be a seamless link with manufacturers and customers in the future? We can create this ecological chain through investment, which is what Fosun wants to do.