China Version Zara Sells 114 Million New Three Boards Annually

With the continuous development of the Internet and the continuous flow of economy in various countries, Hai Tao has gradually become a trend, and it will become the Chinese version of Zara, selling 114 million annually and listing three new boards.

"Although there are plenty of opportunities in the industry, we need to be cautious and cautious."

In the cross-border e-commerce industry for 8 years, Li Yang has been looking for a way to open foreign women's wallet.

8 years ago, the concept of cross-border electricity providers had not yet been formed, but the team had begun to sell products from the market, foreign trade factories, wholesale glasses and other sites, and built websites on the Internet to sell to overseas markets.

At that time, he did all kinds of "scalping" businesses in China's various industrial belts.

Their activity constitutes the 1 barbaric era of cross-border electricity providers.

Similar

The growth path of Tmall, now, the cross-border e-commerce industry has gradually shifted from extensive development to the mature period of intensive cultivation.

In the big environment, the team also stopped buying and selling small commodities. In 2012, the technology was established.

Relying on the strong supply chain of clothing in China, we choose Choies as the main brand, and focus on fast fashion women's clothing to do "foreign girl" business.

At the end of last year, it chose to become the first cross-border export electricity supplier listed on the new third board. In 2015, the electricity business revenue amounted to 114 million yuan.

While overseas fast fashion brands keep captive Chinese consumers, Choies tries to tell consumers overseas with the same quality products and cheaper prices: Zara is coming.

Is it possible to become a Chinese version of ZARA?

In Li Yang's eyes, despite the "world factory", the real strength of China's supply chain is far from being known to consumers all over the world.

In Southeast Asia, the level of factory management and supply chain facilities can not meet the standards of flexible supply chain, while Chinese factories can.

If the "made in China" in the past was synonymous with cheap and inferior quality, today, this stereotype has the opportunity to be replaced by high quality and cost-effective products.

This opportunity was spotted. In 2012, the entrepreneurial team joined hands with the owner of the Wuxi Yu Chen dress.

With the advantages of OEM factory's supply chain and the team's experience in the cross-border export industry, the team decided to build its own website Choies, trying to create a brand new fast fashion dress brand, called Zara.

The reason why the Group invested a lot of money in building its own website was mainly concerned with the export business environment at that time.

4 years ago, 3C digital standard products flooded the entire cross-border export industry.

At the same time, the third party export platform is very harsh in choosing businesses, and it does not open channels to all businesses.

The same is non-standard products, independent station became the first reference sales method of Choies.

However, it is not so easy to rebuild a brand.

Fortunately, the early operation of small commodity export business has accumulated a lot of technical experience for the team.

These experiences apply to Choies as well.

In the early days, Choies mainly released advertisements through search engines such as Google, Yahoo and Bing to attract traffic directly into the site.

Secondly, Choies has found a group of active people who are active in social media such as Facebook, Twitter and Instagram.

At the same time, Choies has also put a large number of advertisements in the overseas mainstream network alliances such as Commission Junction, Sharesale, CityAds and so on, and gradually penetrated the influence of the brand.

Through vigorous promotion, Choies quickly accumulated 2 million 600 thousand registered users, and its monthly sales exceeded 1 million dollars.

In the export electricity supplier industry at that time, the figure was considerable.

From big to small but fine

Although some loyal buyers were accumulated through pre promotion, the influence of Choies was far from ideal.

With the influence of the three party platforms such as global express, the traffic and business of independent websites have also been affected, and growth has become a bottleneck.

In order to get more traffic entry, it was stationed in the fast selling platform at the end of 2014, and began to operate in multi-channel.

Li Yang admitted: "from the cost point of view, single channel and multi-channel operation investment is almost the same, but the flow brought by multi-channel is what we most want."

Take global express as an example, the investment is only equipped with several operators.

But surprisingly, the combination of multiple channels has brought new discoveries to the team.

At fast selling,

A wider audience has come into contact.

Their buyers are no longer confined to young women aged 18~35, with a large number of users at the age of 40~50.

At the same time, based on the global coverage of fast selling, Choies has expanded its user range from North America to Russia, Spain and other countries.

Through a large number of contacts with buyers from all over the world, the team found that the users from the fast selling platform preferred the basic fund, a T-shirt that sold dozens of items on the independent site, and sold it to more than 1000 units on a speed sell platform.

This gives the team an inspiration, which is different from the SKU of independent stations.

According to this train of thought, many shops were opened on express sale, and OL products, campus style, skirt and other subdivision products were operated respectively.

Nowadays, each shop usually has more than 900 products, 2000~3000 multiple SKU, the total customer price is between 14~16 dollars.

The high quality goods based on the supply chain also bring up to 30% of the repeat purchase rate.

In 2015, in the 114 million of the selected revenue, profit from fast selling reached 10%.

Make supply chain more "fast"

With the increasing flow of multi-channel operation, it is the first time that the pressure of supply chain has been felt.

Li Yang felt deeply about this. He believed that the core word of fast fashion women's clothes fell on "fast", and the supply chain that was closely related to the fashion trend of the season was the core competitiveness to support brand development. "If a product is from proofing to production to foreign customers, if the process is over a month, the timeliness of fashion will expire."

In order to make the supply chain faster, apart from its own design, it has achieved long-term cooperation with some foreign trade factories with many years of experience in Guang Shen and Jiangsu and Zhejiang provinces.

For factories, they can sell more products through multi-channel operation, while for the Choies brand, the mode of "self purchase + purchase" can also help the team reduce the burden of the supply chain.

Now, Choies will choose a theme or theme in every season, and organize goods in different styles for suppliers' products to ensure the fast turnover of new products.

After smoothing the supply chain, inventory management was also reorganized.

According to Li Yang, the team now requires every shop operator to focus on customer collection and purchase data every day, and adjust the operation strategy through data feedback.

We also have special inventory management and analysis staff for the warehouse, focusing on the inventory allocation for each quarter.

In the logistics problem of cross border businesses, a variety of modes of pportation have been combined to try to keep the speed of fashion away from pportation.

In addition to the original postal packet, the selection team also used logistics lines, commercial express and other ways to improve the timeliness and stability of logistics.

However, the tax rebate for postal packets is long and slow, which easily leads to poor reviews.

At present, California, Atlanta and other places in the United States are building overseas warehouses.

And building overseas positions has also become an investment in the team's continuous growth.

Where does the barrier come from?

In the vertical cross-border export electricity supplier industry, the growth rate is still very fast.

However, as more and more businesses look at the cake exported across the border, business will become increasingly difficult.

Recently, China's largest cross-border electricity supplier, Shein, has just completed its B round of financing up to 300 million yuan.

The influx of capital reflects the heat of the industry from side to side, and the competition it brings is obvious.

For Choies, building brand barriers has become a top priority.

Li Yang predicts that because other brands are gradually entering the period of rapid growth, the proportion of sales that are still on sale may be reduced this year.

Therefore, the team plans to continue to set up shop in the fast selling platform, including main luggage, accessories and other sub categories.

Through multi store operation to achieve growth, resist the squeeze from peers.

At the same time, Li Yang also clearly realized that cross-border export electricity suppliers had already gone through the stage of heavy operation and light products. In the near future, competition among products will gradually replace the "technology flow" competition.

Based on the judgement of business trends, Choies focuses on improving the design ability of products.

At present, the Choies team has more than 20 designers, many of whom are from the central London School of art and design, Saint Martin, and the cutting-edge designers in the industry.

This year, Choies also plans to sign a group of senior domestic fashion designers to enhance their brand design capabilities.

At the same time, Choies also intends to introduce a number of Amoy brands, on the one hand complement the brand SKU, on the other hand will also integrate into Chinese elements in brand consistent European and American style, enhance brand sense.

In addition to focusing on products, Choies has not let go of the popular Internet marketing.

In the past 4 years of operation,

30 thousand of the red population has been accumulated around the world.

These red men will preheat the brand new and big promotion nodes in SNS, and introduce traffic to stores.

In contrast, Shein and other similar businesses have some competition with Choies, focusing on products, network promotion and other business strategies are basically the same.

With the further maturity of the industry, the next five years' competition has just begun.