Amoy Brand Seven Grid Bold Reform Step Out Of The First Step

In the past year, Cao Qing spent 1/3 of his time flying all over the world, from Melbourne in the southern hemisphere to Seoul in the northern hemisphere.

Out of habit, she visits the local place every time she goes to a place.

Store, collect interesting

Then buy a sample of clothes and bring it back to the company.

It was impossible to leave the company for so long before.

Cao Qing habitually controls all aspects of the company and sits with his employees to supervise the work.

In the early days, this management method worked well: in 2009, it owned itself.

Seven grid was established, two years later, the company has more than 400 employees, with annual sales volume of 250 million yuan.

Before 2013, the news about the seven grid and Cao Qing was overwhelming.

After that, Cao Qing rarely sounded.

All of a sudden, it was founded in the same period with Han Du Yi house, Yin man and broken silk. Once the top of the "one of the most famous Amoy brands" and "the myth of deducing Internet wealth creation", the star brand of the aura disappeared in the public view.

When it was mentioned again, it was early 2015, and the seven grid was bought by La Natsu Bell, a traditional clothing brand, which seemed to have a closer relationship with the capital market.

In 2015, the sales of all brands (including La Natsu Bell) under the seven gage were 1 billion 18 million yuan, the average number of employees was 267, and the annual effect was 3 million 810 thousand yuan.

In July 7th this year, seven Ge held a grand 7th anniversary celebration, and also Cao Qing's 34 birthday.

With her new haircut, she smiles like a flower, laughing at the rise, fall and leap of the seven grid roller coaster.

Without Screenwriter's own script, now it's the epitome of a history of scouring the brand, reflecting the joys and sorrows of too many commercial worlds.

Proud female boss

At the beginning of 2012, Forbes released the first "China's 30 list of entrepreneurs under 30 years old". Cao Qing, 29, was selected as the "seven grid" Taobao owner and Hangzhou founder of Agel Ecommerce Ltd.

Chen Ou, founder of jumei.com, and Dai Yuefeng, the head of Internet cosmetics brand "Yu Ni Fang", are also on the list.

This is Cao Qing's proudest moment.

Over the past few years, the rise of e-commerce has been pushing the tide to a high point.

Starting from a Taobao women's clothing store, Cao Qing set up the seven grid C store in April 2009. In July of the same year, he launched the original brand IAIZO and OTHERMIX, and set up the seven flagship store in July.

As a matter of fact, after 2006, the brands such as Han Du she, Ru Bo and Yin men were founded and settled in Taobao Mall (later renamed Tmall), all known as Amoy brands.

Accounted for the early traffic bonus, seven lattice strong vision packaging, strong brand style, from a large number of brands stand out.

In half a year, the seven grid ranked fourth at the end of 2009.

At the beginning of 2011, seven grid got the 100 million yuan venture capital of Junlian capital (original Lenovo investment). By the end of the year, its total sales volume of 7 brand stores reached 250 million yuan.

In the middle of 2012, the seven grid team continued to grow at a high speed, and Cao Qing began to enjoy the happiness of being a mother. She once wanted to "retire from the rivers and lakes to enjoy life."

She once said in an interview with the media: "now all departments in the company are responsible, and the team is very mature. After that, I only have half a day's work, half of the family and half of the work."

Three years of pain

Contrary to expectations.

In August 2013, Cao Qing had to go back to a company that was in distress.

The first batch of Amoy brand entrepreneurship has a common feature -- husband and wife files, the clear division of labor between husband and wife, the same goal, and the seven grid is no exception.

The biggest advantage of husband and wife business is that early development can be complementary to each other because of different personalities.

This has also become one of the core competitiveness of the early development of the seven grid.

And when the company has reached a certain scale, this advantage becomes a constraint. The difference in character leads to divergence in the future development direction of the brand, and the lack of management experience has become an increasingly obvious short board.

The biggest danger of starting a husband and wife business is to extend from career to life, resulting in double contradictions and become the last straw to crush the company and marriage.

Seven, we have witnessed these typical development trajectories.

Before being able to get a firm foothold in the first line of the brand camp, the seven grid was in the throes of three years because of the contradictions among its founders.

After taking the VC, the seven grid invested 7 sub brands at once.

At that time, one brand annual sales exceeded 100 million, and seven times the internal morale was high.

Not only will the company's outstanding talents take charge of the sub brand, but also recruit fresh blood from the outside to form the "dream of the electric business team".

On the other hand, in 2012, the total sales volume of double 11, seven grid reached 40 million yuan, and its brand OTHERMIX ranked eighth in women's clothing category.

Despite the fact that it has already been a little hard on sale, the goal of doubling annual sales is still mentioned.

Beyond the plan, the big wheels loaded with many brands began to roar, but it soon became aground.

Half of the financing has become an immovable commodity in the warehouse.

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In 2013, the subprime brand continued to lose money, and the net profit of the entire company dropped to 1~3%, which did not reach the sales target year by year. Because the sub brand strategy expanded to more than 500 people's team, it was also scattered in the company because of lack of management.

In the stage of immature team and imperfect infrastructure, sub brands disperse their original advantages and resources.

At the same time, the seemingly expanding scale further widen the differences between the two people due to their different personalities.

This divergence intensified. In the middle of 2013, when Cao Qing returned to its peak, it became completely divided into two parties.

"At this time, I belong to the Conservatives, and my ex husband belongs to the radical group. I advocate slow decentralization and intensive cultivation of seven grids. He still advocates multi brand strategy."

Cao Qing told reporters.

The internal fighting, mutual buck passing responsibilities, exhausted in panic, some employees regret leaving, the dream team will be dissolved.

After that, He Shengjie, the seven time founder of the grid, set up another 2 subsidiary companies, so the two founders' relationship was completely broken.

Husband and wife entrepreneurship, career confrontation began to conflict with life and stimulate each other.

Along with the whole company brain drain, inventory backlog, cash flow is tight, in 2014, the seven grid sales overall declined sharply, and the marriage of two people came to an end.

The myth of entrepreneurship between husband and wife is broken.

In addition, the company's relocation has also exacerbated the turmoil.

According to HR sun search, in March 2012, in order to recruit more business talents, the seven Ge moved several departments of the company from the outskirts of Hangzhou to Hangzhou city where the electricity supplier enterprises gathered.

After the company was split, Cao Qing returned to the original company with more than 10 core teams and more than 200 employees.

She was anxious to ask people everywhere. She also tried to bump into the situation.

For example, we should cut down all the loss of sub brands by taking the initiative, shrink the main brand to 3, remove the private board rooms, find factories to cooperate in the production of print, outsource the shooting part, liberate manpower, and simplify the number of single store operators to about 6 people.

"But palliative care is not effective."

It has been in employment for more than four years, said Shen Sanchun, the current CEO assistant.

For Cao Qing, the so-called "cruel fact" is that money has been spent and people have recruited, but the company is not as good as two years ago.

During the 2014 double 11 preparation period, the design director suddenly quit, and the seven grid 11 11 sales eventually reached $35 million.

At this time, the top five ranking of women's clothing category is Han Dou Yi house, UNIQLO, Yin man, Artka and Ou Shi Li. Among them, the sale of flagship stores in Korea is nearly 198 million, and group sales are close to 279 million.

Under the dual attack of Amoy brand and traditional brand, the seven grid is far behind.

At the end of the second day, Cao Qing convened the head of the shop and some of the core staff to hold an emergency discussion.

Everyone is very keen, and how much of the sense of the company's crisis.

But only Cao Qing is well aware of the situation.

At this time, the stock backlog of 70 million yuan goods, cash flow only about 10000000, can also send a few months of wages.

If the sales volume of double 12 is still not ideal, she is basically ready to stop running the company.

"The whole situation is powerless."

Cao Qing needs a surprise of salted fish.

Tearing a crack in the dark

Surprise will not come for no reason.

Sugar and arsenic, entrepreneurs need to take a cool move.

This year, double 12 was inexplicable and more ritual.

Instead of attending meetings or watching other people's work, Cao Qing simply repositioned the visual packaging of the seven grid and studied the styles and CRM that he had never seen before.

As a result, three sales volume ranks first among categories, with a single breakthrough of several million yuan, and cash flow back to tens of millions of dollars.

From the beginning of these goods, Cao Qing personally led the design of the spring style, and also surprisingly gained market recognition.

In 2015, more than 70% of the seven grid products came out of Cao Qingzhi's hands, and gradually began to compete with the company's design team after 2016.

What is even more surprising is that when she first saw the company's earnings in 2015, she found that the net profit of the seven grid could reach 30% at the peak and 18% to 20% a year.

You know, it has never been more than 5% a year.

Seven grid can make money and earn quite a lot.

"This is why I was once again very interested in this industry, and it was also the reason why he later chose us."

Cao Qing told reporters.

After all these experiences, Cao Qing suddenly realized: "a company can not have two directions. Learning from others always leads to management.

Only if you know yourself best, the boss should pass on the idea, direction and personality charm to the staff. The core layer will make up for the short board, absorb the advantages, and concentrate on execution and combat effectiveness.

This window of development pressure was broken, and she was like a coin on the other side.

She moved her office to the side of finance, single room, no longer taking care of staff.

She also made three major reform proposals.

In fact, this plan has become the decisive factor for the return of the seven grid.

Not only did it help the brand that had fallen off the cliff, but it took more than a year, and one of the brands returned to the eleventh place in the women's clothing of the whole network.

First, quality architecture can fundamentally change business efficiency.

Cao Qing reduced the number of employees from 500 to 200, and then divided the organizational structure into three lines.

In January 2015, the first product line took the lead in independence, consisting of production, design and commodity planning.

In the mode of operation, the seven grid tries to change from the supplier mode to the three person group system. As the final demand side, the commodity planner leads the designer, the producer and the assistant to form a common interest community, and the salary is directly linked to the performance.

The whole process is basically the same: Commodity planning makes the needs of category, SKU, style, target price and so on. The designer takes the lead to complete the design, select the fabric and determine the process under the framework, and directly connect with the salesmen, fabric suppliers and suppliers, so as to ensure the typing, sample, feedback, cost price and delivery date.

Then the operation line.

Cao Qing, who was originally not sensitive to data, began to analyze the efficiency of the Department from a financial point of view.

First, she cuts down inefficient channels to improve human effectiveness; secondly, shortens the overall workflow and makes operations more flat.

A comparable data is that the performance of the previous 500 people was not completed. In 2014, 220 people were used, and only 47 people increased in 2015. La Natsu Bell took the electricity business.

At the end of 2015, the per capita GMV reached 3 million 810 thousand yuan per year, and the staff salaries increased by at least 50%.

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The rest is support lines, including finance, information technology, personnel and administration.

Second, we should pay attention to the operation of new media through micro-blog, WeChat and micro Amoy.

In content, the seven grid mainly conveys to the fans the concept of the brand itself, the experience of developing the design style, and the process of the birth of a garment.

It is interesting that Cao Qing has become the brand spokesperson and Ambassador of the brand. Only the clothes she wears and the fabrics she has experienced will be recommended to the buyers.

Third, the brands of many Amoy brands have emerged one after another.

With the increasingly stable capital and team, Cao Qing, who liberated from the first line business, intends to re emphasize the more than and 10 brand strategy.

According to her introduction, by the end of February this year, seven grid had opened 3 new stores, and soon realized profits.

Previously, the seven grid was mainly targeted at 24-30 year old white-collar workers, and the location of the new store was even younger. The 18-24 year old student group was the main group.

In the second half of the year, Cao Qing still plans to open another 3.

In July, she wrote in her circle of friends: "seeing good clothes will still be a hot heart."

Extremely short of people! "

"The overall Taobao competition is increasingly fierce. At that time, the seven grid had no breakthrough in addition to visual and design advantages, such as supply chain, fan management, market flow and global strategy. It became normal to become a second-line brand.

Cao Qing concluded afterwards.

Seven the methodology of lattice

In a year, the turning point has arrived.

2015 double 11, seven grid sales of over 200 million that day, warehousing, logistics and other infrastructure can also respond in time.

It is worth mentioning that La Natsu Bell, the traditional brand under the operation of the company, ranks third in the dark horse.

I recall that the same cold winter that Cao Qing and the core team had kept awake for a long time ago was already on earth.

What are the seven methodologies in team building, marketing strategy, supply chain and design after the first step of drastic reform?

First, the further improvement of team building and data based pay system.

After the three line division, in 2015, all seven sectors simulated entrepreneurship, similar to an independent subsidiary.

The main points are as follows:

1 team pay assessment takes sales as the only index; half year's duty review and spot judgement greatly shorten career promotion route; salary adjustment range is not limited to the time limit, and the work result is more important.

2 option plus bonus model.

Take the product line as an example, more than half of the people who get the quarterly bonus have increased the matching of salary and ability.

In the first half of 2015~2016, two of the 100 main employees left.

3 flat organization structure.

A grass-roots employee has a direct superior and has 2 indirect superiors at most.

Daily work arrangements and guidance from direct superiors, when faced with problems that can not be solved, feedback to indirect superiors, or even directly find CEO.

Although flat, each individual business unit has a direct decision of 90%.

Of course, the biggest change is Cao Qing.

"In the past, we should focus on prevention and prevent them from making mistakes. Now we should focus on encouragement, from punishment to reward. Before, we should manage the pressure system from top to bottom, and now we will excavate the original power in human nature."

Two. Change marketing strategies and try to find new sales growth points.

According to Cao Qing, at present, 90% of the seven goods are sold at a positive price.

Since the spring of 2015, the rate of goods being sold is 90%, and the remaining 10% is also a benign inventory. There is no inventory backlog and liquidation pressure.

This is due to the following aspects:

1 bid farewell to high-frequency promotions.

Under the pressure of sales and inventory, a few years ago, Juhuasuan still favored important resources for every business, but the high price and frequent price cuts made the mature consumer group pursue product quality and cost performance.

After that, the seven grid will shift the focus of the entire marketing from intensive discounting activities to expanding the new scale to enhance the stability and stability of the daily sales.

This benign sales mode reduces inventory.

2, it has become the core of store operation. It has been fixed every week to enhance the rate of repeat purchase.

On the one hand, it has increased the sensitivity of users to new products, and on the other hand, has guaranteed the preferential price of the new cycle.

When price hedging became the general recognition of buyers, some of the new products were sold out on the new day, giving the old members a sense of tension and panic buying.

3 natural search is dominant.

Sales continued to maintain stability, and with the corresponding flow of shops tilted and supply tilted, new products began to occupy natural search, to burst.

At the same time, the natural search flow of shops has steadily increased.

As for paid promotion, it played a role in pulling new and drainage, from 15% to 5%.

4 customer experience is the core, and word of mouth brings dividends.

This year, the seven grid has not set a high sales target, but focuses on style development, detail design and fabric application.

Pay attention to feedback problems in the evaluation, and solve them all at the first time.

In response, Zhou Yong, founder of the European Union, told reporters: "the health of the seven grid is highly respected in Europe."

Three. Supply chain that needs time to run in.

In 2013, ye Chang Wei joined the seven grid as a leading designer.

He also remembered that the previous seven cards were more dark, visually rendered and even covered with clothing itself.

Now, "tide" has begun to change gently, aiming at a wider range of young people.

Therefore, Cao Qing positioned the seven grid as "Chao + fast fashion" brand.

Neither the popularity of net red clothing is faster, nor is it more traditional than the traditional brand. The design of the seven grid is more focused on the understanding of fashion and wear.

Secondly, the proportion of net red advance sale is relatively high. Some Amoy brands are similar to the offline practice in mass production. The seven grid first reduces the pre-sale by pre judging, followed by making timely remedial orders, observing the sales cycle and production period on the basis of the first single.

At present, the seven grid has been paid more than 2000 times a year, with the amount of 700 more on the shelves. This spring and summer, there are more than 20 new items on average, with a burst of 3.

In terms of the first quantity, the image amount is more than 200, and the basic amount is 2000-5000. The proportion of the supplementary accounts after the start of sale is about 60%, which can temporarily balance the pre-sale with the inventory.

In order to more closely predict the forecast results through data, in the first half of last year, the seven grid split the independent 10 person data Department to the product line and the operation line.

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Ni Yun, deputy director of product planning and product line, has worked in many offline apparel Brand Company for many years.

Compared with offline, online brand inventory is faster and needs to be adjusted in a timely manner.

So every day, she will see which items should be cleared in different channels, and decide whether to make up the bill according to the stock and sales volume of the new products.

Once, the weakness of the seven grid in the supply chain was repeatedly criticized.

After the double 12 in 2014, the strength of the supply chain gradually matched the fast growth of sales volume.

On the one hand, we should foster suppliers with good technology and good quality, and on the other hand, ensure good payment conditions.

Seven, there is a strict rule in finance, strictly in accordance with the contract, allowing advance payment, and absolutely prohibiting delay.

In 2016, the seven grid shortened the supplier payment cycle by half.

At present, there are 2-3 suppliers of long-term cooperation in the seven grid, accounting for at least 60% of the order. In order to ensure the freshness of the supplier pool, there are 15-20 relatively stable generation factories, and the remaining 10 are rolling cooperation.

In order to ensure the uniqueness of quality and style, seven of the 70% or more styles will be made of custom fabrics, and a part of the basic fabric will be prepared. The fabrics will be ready in June.

Among them, there are about 4 T-shirt knitted fabric suppliers and 2-3 printed fabrics.

The new supply chain system is also being built to achieve the rhythm of the supply of goods sold in factories.

Chemical reaction to capital

One day in January 2015, Cao Qing, who was busy preparing for spring clothes, met Xing Jiaxing in Shanghai, the founder of fashion group Shanghai La Natsu Bell dress Limited by Share Ltd.

Because they shared their capital with each other, they knew each other as early as 2009.

This time, Junlian capital made a matchmaker again, hoping that the two families could learn from each other's strengths.

At that time, both sides had their own concerns.

Many years of electricity supplier experience made the seven grid short of time, gasping from the Waterloo style drop, but not stronger than the formulation of direction strategy and company management. Although he was strong in line, La shellfish has not seen any improvement since it launched the electricity supplier business in August 2014.

"Hit the nail on the head."

It was finalized at the end of January. On Valentine's day in February 14th, La Natsu Bell announced that 200 million yuan would hold 54.05% of the seven grid.

In fact, when Xing Jiaxing gave all the decisions of the electricity supplier to the seven grid, Cao Qing's heart was very fierce: what kind of chemical reaction would be produced by putting a brand with product endorsement and strong line capability into seven grids?

It only took more than a week to complete the visual orientation of La Natsu Bell line on the seven grid, extending the experience of running fans and shops, and the average monthly sales revenue, profit margin and repeat purchase rate of online shops increased significantly.

Double 11 in 2015, La Natsu Bell's single store sales exceeded 100 million, ranking third in Tmall women's clothing companies.

In March of this year, the seven grid expanded its logistics and warehousing capacity by 3 times, and fully accepted the logistics part of La Natsu Bell.

Xing Jiaxing's management of the seven grid is quite relaxed, and Cao Qing meets once every quarter, basically is to eat.

As for the way of settlement of related party pactions, the payment is seven grid operation fee.

At the beginning of this year, Cao Qing also tried to open a line shop, but in addition to the profit during the new year, the rest of the time was in a loss.

"We will never do it ourselves."

She later thought that instead of distracting energy from doing something that was not good at, it was better to develop new brands online, or wait until the strength was strong enough to open a shop by La Natsu Bell's offline ability.

Once, the seven grid is a typical case in the industry. After 2012, she declined to voice because of declining performance.

Naturally, there are many negative voices, such as bankruptcy and operational difficulties.

"You obviously did well and lived well, but you were misunderstood because you were far from the media and unwilling to go public.

I asked you if you were unwilling? "In April this year, Xing Jia Xing asked Cao Qing in person.

We can let you know the current situation of the seven grid, and we can do more with the help of the capital market.

Cao Qing, who had never thought of going public, shook.

At this time, the Korean capital has already submitted the application of the new three board listing, and the company has submitted the prospectus to IPO.

Amoy brands have started a new era.

Will the seven grid be the next one?