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Rapid expansion in 2014

Caught in the dilemma of declining performance, after a year of "scraping the poison" type of internal adjustment, coupled with the experience gained from other Amoy brands, this ten year old

Want to lead the industry and recreate the glory of that year.

This is a brand once regarded as a miracle: it has been awarded Tmall for four consecutive years since 2008.

The sales champion is not only far ahead of the original Internet brand, but also surpasses a series of traditional brands that just touched the net at that time.

For those who are familiar with the history of electricity suppliers, it is easy to think of this brand, ESA.

In the words of founder Zhou Yong, at that time, he was busy with foreign exchange but was negligent in the development of his business. "Every week we have to receive four or five waves to visit our peers."

However, he did not regret it, because it also brought him valuable experience and resources.

After the rapid expansion, Zhou Yong was once trapped in the dilemma of declining performance, and after a series of internal adjustments, he was still confident that he hoped to lead the industry with quality products.

This time, can she return to its former glory?

Confusion in rapid expansion

The headquarters of OSA is located in a factory building in Liantang's Peng Ji industrial area, Luohu District, Shenzhen. The exterior walls are mottled, and many windows are rusted, away from downtown, which makes this place particularly quiet.

This coincides with what Zhou Yong should have in mind.

In 2012, the annual sales volume of the company reached 450 million, with 3 million core users.

Since then, the company has continued to expand and the number of teams has rapidly broken through 600 people. All departments are focusing on the rapid upgrading of sales and the continued expansion of scale. In frequent promotions, the company has lost its way, which is followed by a bottleneck in sales growth, a breakdown of the team, and the loss of a large number of consumers.

Zhou Yong admitted to reporters that 2014 is a double dip in team psychology and sales. He believes that the first problem is the supply chain.

In the cooperation with suppliers, there are some non-standard events. "Rapid expansion, product quality control becomes a problem."

Quality is precisely the core competitiveness that ESA is proud of, which is a major blow to the company.

Another pressure comes from offline brands.

2013, from the beginning, the traditional brands from offline have paid more and more attention to online operation. After the early development, the operation methods of Tmall and Taobao have become very mature, which is more simple and pparent for offline brands, and is easy to upgrade quickly.

By contrast, from the Internet, ESA is going to make up for its shortcomings: brand building, offline channels, supply chain, design, research and development, etc., will take longer.

He recalled to reporters more than five years ago interviewed by the media: "people often ask me, why can ESA achieve the first four consecutive years?" I said at that time, because the competitors were too weak, the traditional brands did not play online, but they had to tell me the unique secret skills of OSA.

Facts have proved that traditional brands do cause some pressure on the brand.

In Zhou Yong's opinion, the performance fluctuation of OOSA is the only way to go, but this does not mean that the "Amoy brand" will continue to decline: "more and more Amoy brands have a lot of innovation, and there will be a brand to kill the siege, not ESA, but also other brands."

Explore route vs search overseas

In the rapid expansion period, she has made two attempts in the channel: exploring routes and seeking overseas routes.

In June 2011, the first offline store opened in Shenzhen, and then opened four stores.

At that time, COO He Zhiming said in an interview that the identification of Internet brands such as ESA is not very strong among consumers. In order to build a brand better, it needs physical stores as a supplement, and on the other hand, it is also a channel to expand. In the three years since then, ESA will conduct online and offline promotions during the double 11 period.

In 2014, she suspended the line shop, and Liu Xing, who was born in the Korean clothing brand clothing and love group, thought that this was a wise move. He thought that offline shop could not really solve the problem of Tao's brand outlet, but in the fierce competition, if she could not find a good focus, it might encounter new difficulties.

Speed sell is another attempt of OSA.

Since its early March in 2014, the average monthly sales of the company on the platform has reached 15-20 yuan from 5000 yuan.

As an early explorer to overseas, she sold some stocks and was approved by a group of consumers.

However, even the European woman, who is famous for her European and American style women's clothing, is also facing the problem of not being convinced.

Liu Xing said frankly, the biggest problem facing overseas markets is products. The trend and customs of every country are different. Language is also an obstacle. The cost of international logistics is higher and the volume of traffic dividends is declining.

Now, she looks back at the most electric business market.

Whether it's social marketing, celebrity endorsement, or the IP cooperation that has been very hot, the pace of Europe's SA is somewhat slow. However, the team soon realized the problem and was trying to patch up the short board.

Next, she will continue to invest in brand building.

Refocusing products

In retrospect, in 2014, when ESA did a lot of promotional activities, the company began to stop focusing on products and customers, prompting Zhou Yong and his team to reflect on it.

As a result, Zhou Yong made a bold decision: in 2015, all Tmall promotions except for double 11 were suspended.

He hopes to refocus his team's attention on products. In his view, if the foundation is not played well, promotional activities will not only help the brand expand sales, but will cover up the problem.

This is undoubtedly a "scraping treatment" attempt. Zhou Yong divides it into three parts: personnel adjustment, business contraction and improvement of supply chain.

The first step is to oversize the overstaffed team. He has re sourced the core business of logistics, customer service and other non core businesses, focusing on supply chain, design, R & D and other core businesses. As a supplement, she has introduced a large number of outstanding talents under the traditional brand, whether internal personnel, management capabilities or external suppliers are approaching the traditional brands.

Starting from the creation of the brand, Zhou Yong's wife Tan Fei served as the design director of ESA, but in this round of adjustment, she was no longer responsible for product design, but from a higher level to observe the entire company's business chain.

Zhou Yong believes that the founder's own ideas may not match the brand's development.

He told reporters that the founder of the "Amoy brand" was willing to act on their own at the beginning, but after the company grew, the founder had to pform from the general at the front line to the marshal who grew up in the background training team.

If the founder fails to make the pition, the brand will disappear. If it can be completed, it will help the company to become more handsome.

Zhou Yong said that it is a great pleasure to do business with enterprises.

Han Du Yi house, Yin man, rash and silk, seven Ge Ge and Ge Er ER and other "Amoy brands" have maintained close exchanges with OOSA, who broke the news in the interview with reporters, said that Zhou Yong of OOSA, taught the term "cash flow", so that she pformed from a designer to an enterprise manager.

Now, she has reduced the number of team members from more than 600 of the highest peak to 200, and sales are flat three years ago, that is to say, the average output of everyone has increased two or three times, which has proved the effectiveness of the company's internal control.

At the end of 2015, Liu Xing, the incumbent director of operations, came to OUSA, who was in front of him for a year of adjustment.

He told reporters that because of the deliberate delaying of Tmall's business, she fell out of one hundred in Tmall's women's clothing, but it has recently returned to around 35, indicating that the brand still has certain potential.

He thinks that "stopping" is a wise decision for OOSA, keeping profits and stocks. Although the ranking in Tmall has dropped, it is a must for all "Amoy brands". "We have analyzed the composition of many Amoy brands' sales and profits, and the bloated brands will encounter problems, but some brands have not felt for the time being."

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Liu Xing said that this year's goal is to return to the TOP10 of the Amoy brand. First of all, we must ensure that we survive in the fierce competition, we must grasp the big and small, and consider landing the brand on the development strategy, so that we can fully meet the needs of consumers.

"Extreme supply chain" plan

Such brands as Han Dasai, Yin men and rash and silk are all famous for their style, so as to find their core user groups. By contrast, Shenzhen's OOSA is closer to the European and American wind, which is the focus of many high-end women's clothing supply chains.

Sharing the supply chain with the women's brands with an average selling price of 1000-3000 yuan, and through deep cooperation with factories, she can reduce the cost by two to 30% on the basis of maintaining quality. Under such a background, she can achieve better design, quality and delivery time than traditional brand.

In Zhou Yong's view, the advantage of ESA has always been not cheap but focused on R & D and quality control, and the quality of products is relatively stable.

And the competitiveness of the future Amoy brands is products, and the biggest short board lies in the supply chain.

Thus, a plan called "extreme supply chain" emerges. The past supply chain optimization has an inherent thinking that speed, quality and cost are mutually exclusive. And from the point of view of the system, ESA will optimize the supply chain and achieve the simultaneous improvement of the three through standardization and front-end planning.

Xue Xiaosong, head of supply chain, said that a good supply chain should be suitable for the operation of the enterprise, whether it is the process or the distribution of interests, which needs to match the participants on the chain.

During the period of rising development, the funds of the company are relatively abundant, and some part of the deposited funds will be used to prepare the fabrics. Although there will be some convenient advantages, they will generate a lot of stocks.

In 2015, ESA subcontracted the purchase of accessories to the processing plant, that is to say, the management of this part of the process went down. After six months, new problems emerged: as the procurement of auxiliary materials is not controllable, the delivery time of the factory is out of control.

The "extreme supply chain" was launched for this purpose, Xue Xiaosong said. This project allows parallel programs to be parallelized.

At the end of the production line, we hope to achieve this effect: after the order is issued, the surface accessories will be sent to the factory immediately and start directly, so that the actual cost and quality control can be optimized.

In addition, it will also optimize suppliers and processing plants of surface accessories, and phase out enterprises that do not meet the requirements, thus achieving a positive cycle.

To meet the "extreme supply chain" plan, the company has split the original design, commodity, supply chain and other departments into a group. The production time of one style is shortened from 40-50 days to 25-30 days, and the delivery time is shortened by 40%-50%. Xue Xiao Song expects to shorten the delivery period to 10 days left and right.

As a matter of fact, estha had learned the mode of centralized control and control in the early years, and realized the rapid scale. Later, ESA hoped to take a more flexible model and began to adopt the group system of Han Du Yi house. The real "close inspection" was seven grams.

Seven, the operation health of Georgia has been highly praised in Europe. Today, the European Union has not yet fully recovered its vitality, and the former student has become the current teacher.

However, this did not affect Zhou Yong's mindset. "I think making clothes brand is a long-distance race".

He regrets to reporters that ranking is only a temporary honor, and focusing on good products is the only way to win the brand.