Zhao Yingguang, The Founder Of Han Du, Believes That What Weapon Is The Most Lethal Weapon In This Battle?

This year's double 11, Tmall

Store TOP10 ranking changed greatly, from Alibaba started the Internet.

Only left

For the first time, the family and the company were not on the list.

Not in the list is not necessarily without strength.

But on the list, it is certain that we must play a number of heavyweight rivals to show our heads in the arena.

The soldiers in the camp of the iron camp, which are used to describe Taobao and Tmall in the past 10 years, are very appropriate. In the fast changing environment, it is not easy for businessmen to lead each other for two or three years.

But Han Du Yi house has been founded for 10 years, and has never dropped out after entering Tmall's women's top business.

Especially in the past two years, the domestic and foreign brands are pouring into the online industry, and the Korean clothing house still maintains the "soldier of physical strength". This year, the sales of double 11 Korean home clothing business group exceeded 362 million, and the third place in Tmall women's clothing shop TOP10 China and Korea.

After the end of 2016, fighting will enter a new situation.

In the stage of brand shuffling, scramble for seats and grab share, Alibaba has created a "escape door" for all businesses to constantly upgrade and compete.

In the new war, how did Zhao Yingguang, the founder of Han Du Yi house, understand the true meaning of the new retail? And what weapons did he think was the most lethal in this battle? What would be the ultimate outcome of the cruel fight?

Photo: Han Du Yi she Zhao Yingguang

Reporter: it is not easy to see the final sales figures and rankings of Han Du Yi house.

In several popular categories, Amoy brands are almost entirely behind.

The status of Han Du Yi house has been stabilized. What is the main source of the increase this year? What are the right things and wrong decisions made by Han Du she for this increment?

First, pay more attention to brand building and strengthen Hanfeng label, so that Korea will become Han Feng's brand representative (Hanfeng = Han DU).

To this end, the Korean group has launched 10th anniversary marketing activities such as Hanfeng ten years, addiction ten years, and one thousand faces this year. The whole activity in micro-blog WeChat has read more than 600 million. In addition, it has joined hands with fashion bazaar, and fashion blogger and net red are participating in the fashion week of Milan Paris Seoul, endorsing the brand and lifting the brand potential energy.

After more than half a year, the joint Seoul and Guangming city government and the Korean Fashion Association held the Korean designer competition in South Korea. The South Korean designers participated in the contest. More than 2000 South Korean designers participated in the competition, and 1000 Korean artists and professional designers participated in the selection.

South Korea's KBS, SBS and MBC's three big TV stations combined with the fashion magazine's Bazaar's common concern report, greatly enhanced brand potential and brand influence. The joint venture with Korean famous designers has sold quite well in this double 11.

More importantly, the Korean designer has entered the source of fashion deeply, and introduced a group of Han Feng fashion originators.

Second, continuous pformation of operation to content.

In pushing the new products, we advocate the new theme and content, with the network red, live broadcast, and media dissemination, so that each new product has a natural ability to absorb powder.

This year, there is no obvious policy error. Only because of the consideration of inventory risk, it is slightly conservative in the stock preparation mechanism, while the sales rate has reached 97% in the quarter, and also has lost some sales opportunities.

Reporter: Double 11 that day, you also talked about this year's clothing brand online channel inventory pressure is very big, so UNIQLO and ONLY and other brands this year, double 11 discount strength is also very large.

In addition to the general pressure of inventory, what new changes did you see in the clothing market in 2016?

Zhao Yingguang: the first new change this year is that the proportion of sales of traditional brands on the Internet has increased. The impact of the Internet market on traditional channels has intensified. The share of the offline market has been further reduced, and the business of traditional channels has become more and more difficult. So the stock pressure of traditional brands such as UNIQLO and ONLY has shifted to online. Overall, it seems that the growth of traditional brands in the Internet is fast this year. It is actually the sales growth brought about by the increase in discount caused by inventory pressure.

The second change is the emergence of a number of new content of the net red brand, the essence of the net red brand is the upgrading of consumption, consumers are increasingly seeking products with content and "temperature" brand. In response to this change, South Korea is strengthening strategic cooperation with South Korea in depth, introducing famous Korean designers, Korean net red artists, Korean fashion brands, and jointly building brand power and product upgrading.

Reporter: this year's double 11, have you seen the data of every category of Tmall? What are the new wind directions from this year's double 11 plate?

Zhao Yingguang: from the ranking of the 11 categories of this year, Tmall platform is becoming more and more branding, and the top 10 of each category is brand with strong brand power. For consumers, brand is the most efficient solution.

Reporter: compared with the previous double 11, what do you care about double 11 this year? Besides the sales volume, the Korean clothing house has listed several goals for itself.

Zhao Yingguang: this year's double 11. I am most concerned about the health of Han Du's clothes house.

I look at this problem from two dimensions, one is brand health, the other two is ecosystem health.

We are born on the Internet brand, the time is very short, now facing the domestic big name, the international big card intense competition, in front of them, we are a several year old child and the 30 year old adult competition, the pressure can imagine.

But we must have time to make a brand. We can not disregard the health for the sake of a decent sales volume.

The brand vision must be far away, so I am most concerned about the overall health of the main brand and sub brand.

This year's double 11 situation is not bad, the main brand results are against the international brand, many brands do not vomit blood, but they have over fulfilled their tasks.

In addition, we are building a "two level ecosystem", from simple brand business to "brand business + service provider", so that group operation will become ecological.

The ability to serve as a service provider depends mainly on the health of our main systems, such as business intelligence, customer service, storage and pportation, Korean capital manufacturing (flexible supply chain), and Korean capital operation. If these nine aspects do not lose their chains and do not fall ill, our ecological strategy can be supported by nine aspects.

Now, the health score is high, the first order is issued in 186 seconds, the 2 million plus parts have been successfully sent out in 3 and a half days, creating the record of the electricity supplier enterprise; the customer service has responded to nearly 200 million passenger flow and the direct inquiry of millions of people; in the supply chain, double 11 day, the first order was caught in 7 minutes of opening, and on the same day, 289 people were caught up.

These highly effective synergies are the support of our business intelligence system.

Our intelligence system is one of the top brands in the Internet brand business.

Photo: Han Du electricity supplier's two level ecosystem

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Reporter: this year, Tmall double 11 highlights internationalization. In many categories, international brands are generally faster and feel that Tmall will become a gathering place for world brands.

What is the long-term impact of this change on international brands and domestic brands?

Zhao Yingguang: this year, the international brands of 11 and all kinds of purposes are generally faster than others. This fully confirms the view that "the Internet will become the main position of the brand".

However, Internet operation is actually a very complex system engineering. More and more traditional brands will have higher requirements for professional online operators. This is precisely in line with the strategic direction of the Korean two level ecosystem.

The world today is an open world. The Chinese market, as the largest independent market in the world, must also be the arena of global brands.

For the domestic brand, it is also a good thing in the long run. It is also helpful to the growth of self standard with the top line players. Only in this way can Chinese brands own the world market.

The difficulty is that in the initial stage, the pressure may be greater and more challenging.

The common challenge is how to adapt to the new business civilization or the future trend of "new retail".

Reporter: Ma Yun said in this year's double 11 speech that the biggest opportunity and challenge lies in the combination of online and offline. We also found that this year's international brands such as UNIQLO, this year pays great attention to online and offline play together.

Han Du has said that they will not open the line, but will they enter the line under other forms? Do they cooperate with the small and medium brands to do their online business? Do they start merging online and offline?

Zhao Yingguang: our judgment is that the Internet will be the main position of the brand, which is directly related to the development of consumers' shopping habits.

The integration of online and offline is a macro concept. Specifically, we will not enter the line under the traditional physical store form, but we will maintain frequent interaction with consumers through offline brand activities and offline media advertising.

The core of brand is not the form, but the core is the building of brand power.

We believe that brand is the biggest flow entry, and building brand power based on digitalization is the essence of "new retail".

At present, the offline brands of our partners are moving from line to line, naturally combining the offline with the online. Some of them are closing down the counters, but the online brands have not yet come to the line.

I believe that everyone is paying close attention to the future trend. We are willing to explore the future development path with us.

Reporter: you said that the integration of online and offline new retail is probably not what we all imagine.

What have you done to think about it? Describe what you can think of online and offline.

Zhao Yingguang: as I mentioned before, I think the integration of online and offline new retailers is not based on the establishment of a physical store to achieve integration. Opening a physical store is an old-fashioned and traditional way, which can not solve the fundamental problem of consumption upgrading.

In the future, the brand will become more entertaining. Shopping Mall will pay more and more attention to the interactive experience of eating, drinking and playing. The offline will be a place for consumer entertainment and experience instead of the main shopping place. Offline entertainment online shopping will be the normal life of the mainstream customers.

The brand should take offline as an important marketing channel, maintain high frequency entertainment interaction with consumers, and take the online as the main channel of paction.

Reporter: what is the overall survival situation of the women's clothing brand line this year? Has the Korean brand's online business been growing particularly fast?

Zhao Yingguang: this year's growth in Tmall platform is fast. Apart from traditional brands, there is also a clear, small and beautiful waist brand.

There are several main sub market brands in Han Du, which are growing very fast. For example, the diary of Nana, the main girl style, has increased by 300% over the same period last year. The children's clothing of the main Korean style and the European and American wind has increased by 80% compared with that of last year. Han Fengzhong's elderly brand dienna has become the first brand of the middle and old age category.

Our cooperation with offline brands is very shocking, and the growth of double 11 brands is very obvious compared to last year.

For example, CHUU double 11 began to complete the original sales target in 2 hours only, and the total sales of double 11 days was 1.87 times the original target; for example, the sales of double 11 on the double 11 day were over 6 million, an increase of 167% over the same period, and the shop visitors reached a record high.

Last year, double eleven days sold 1 million 700 thousand, and annual sales exceeded twenty million.

In October 10th, the first attempt was made to broadcast live, mobilizing old customers and attracting new customers at the same time, bringing nearly 500 thousand sales, and daily sales doubled 10 times, ranking from fiftieth to fifteenth. Double 11 total sales increased 58.63% over the same period, the depth of visits reached 6.36, 23 districts were Japanese brands, 00:30 sales exceeded five hundred thousand, and the first battle double 11 was sold by millions of sales.

Reporter: now the new brand without foundation is difficult to host. This year, 11 brands of women's wear and women's shoes have been squeezed into TOP10 at some time.

In the field of women's clothing, is the new flow of content marketing the biggest opportunity?

Zhao Yingguang: the essence of content marketing is the upgrading of consumers' needs. Net red just stepped on the outlet of consumption upgrading, thus obtaining the traffic bonus of this part and achieving rapid growth.

Content will become the main shopping path for consumers. Now shopping navigation has changed from traditional shelf navigation to content navigation, which means that content will be the main entrance of consumers. The new entry of content marketing is indeed the biggest opportunity for brand hosting.

Reporter: content marketing is a new card that Ali has played this year. We should make the price war an interesting and quality shopping.

We also looked at the discount and sales situation of some kinds of products. We feel that interesting and quality shopping has not become the driving force of double 11. In fact, consumers still pay much attention to the price.

What do you feel? Maybe it takes a process. How long do you think it will take?

Zhao Yingguang: the logic behind this problem is actually a new retail opportunity brought by the consumer upgrade. Consumers really pay more attention to the cost performance of the product before, but in the pformation of consumption upgrading, more and more consumers pay more attention to the content behind the product besides paying attention to the price performance of the product itself, from consumer price to consumption content is a new direction of the entire retail industry.

As a brand name, enhancing product strength is a basic action. While enhancing product strength, more and more attention is paid to content creation, which will make the brand have a stronger premium capability. The key is to do this to improve consumers' shopping experience.

This will definitely require a process. Now everyone is groping and anticipates that time is the most difficult thing. It depends on the level of brand manufacturing and the intensity of consumer response. I expect that 3~5 years will be more successful.

Reporter: in addition to content marketing, Ali has pushed thousands of people this year to the business.

In the increasingly dispersed flow of the moment, many brands will not spend more manpower in marketing this year, or will they spend more money? How about the marketing cost of the dual 11 of the Korean clothing house this year?

Zhao Yingguang, Han Du clothing house: this year, there are two big moves in the organizational structure of Korean marketing. One is the establishment of a special brand marketing department, the two is the establishment of a special content business department.

The main purpose of establishing a brand marketing department is to create brand power, which has increased much more in budget input than in previous years. The main purpose of content providers is to get more fragmentation traffic through content output.

At present, the establishment of these two groups is very beneficial to Korean brand.

Reporter: this year, Alibaba also pays special attention to the rural market. From the business data of Han Du Yi house, how about the growth of the three or four tier cities and rural areas this year? Will operators do anything specifically for this market monopoly?

Zhao Yingguang, the main customer group of Han Du is located in a second tier city. We have not considered using the brand of Han Douyi to enter the rural market.

But we will also focus on the rural market from a strategic perspective. We will consider entering the rural market with strategic cooperation with other brands suitable for the rural market.

Reporter: in order to grow, Alibaba has new actions every year, such as this year's internationalization, content marketing, rural electric business and so on.

Do you think these points are enough for Ali to talk about next year, the year after next and the year after next? What is the growth point that Han will bring to itself next year, the year after next and the year after next?

Zhao Yingguang, Han Du clothing house: Han Du has been very optimistic about Ali's strategic layout and growth space.

There are three main points for the growth of Han Du's future: first, build the brand power of the main brand, carry out the single brand and multi category, maintain the stable growth of the main brand; second, create the two level ecosystem, become the professional operation service provider of the Internet, carry out the deep cooperation with all kinds of brands of the fashion category; third, the multi brand strategy, at present, the development of the Korean brand is good, the sales ratio of the sub brand is expanding, and the Korean brand will continue to invest in the resources and hatch the potential brand.

Reporter: Alibaba's latest financial report did not mention GMV for the first time. What does Zhao always think?

Zhao Yingguang: This is precisely the reason and sobriety of Alibaba. Ali officials say today that GMV has no practical significance and will mislead the society to recognize the brand of Ali and regard them as retailers rather than basic platforms or builders.

I think Ali's decision is right.

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The final outcome of brand killing

Reporter: in the process of communication with the brand, we feel that marketing is becoming more and more important by brand players, but the quality of products is hard to improve obviously.

And strong brands such as UNIQLO, invest less in marketing, and have more energy to do better services.

Today, with the special dispersion of traffic volume, it is a truth that a popular word "class solidification" is a truth. Is the distance between small and medium-sized brands and first-line brands getting farther and farther away?

Zhao Yingguang, a Korean clothing house: UNIQLO and HM are not investing in marketing, and they are getting bigger and bigger.

There is a phenomenon of Matthew effect in any field, and this phenomenon will also appear on the Internet.

So it's very important for a brand to choose a category that you are good at, and do your best to get the position of the boss as soon as possible. This will always be in the relative advantage position, just like UNIQLO, HM and ZARA seem to have a competitive relationship, but they have established very high competitive barriers in their respective fields, and the key is that there are obvious distinctly in the minds of consumers.

Han Du Yi she chooses the category of Hanfeng. In Hanfeng's category, the Korean clothing house is the boss without doubt, and will strengthen the trade barrier on the category of Han Feng. The Korean super IP is used as the endorsement of Han Du she's house. It constantly builds brand power and strengthens consumers' mental cognition. As long as the position of Hanfeng boss is always maintained, in the new field of Internet, I think that Korea still has a great chance to stay in the top of the industry.

From the data point of view, the average daily visitor volume of Han Du is more than that of UNIQLO and ZARA.

In this double 11, the number of active visitors and the number of active fans of Han Du is more than that of UNIQLO and ZARA.

Reporter: in 2016, as the big BOSS of the Han Du group, how did the energy of Lao Zhao be allocated? What is the right thing to do?

Zhao Yingguang: the core energy of 2016 is still concerned about the healthy development of group strategy and system. These occupy more than 80% of the work energy. Even if I travel, most of my thinking and discussions are about this aspect.

What we must do is to open radish meetings. This is our brainstorming session.

This conference can bring together all the information and problems found by all our directors and directors, and make deep thinking.

In this process, we will understand a lot of important events, make a correct judgement on many things, and quickly divide the work to the level of execution.

Picture: South Korea's electricity supplier system

Reporter: Han Du has been fission for 10 years. In the past two years, have you ever failed to find a sense of direction? Or did you find it necessary to adjust yourself?

Zhao Yingguang: if anyone says that he has always been clear in his direction, it must be blown.

In the past 10 years, we have come through continuous adjustment, exploration and innovation.

The reason is that the environment has changed so rapidly that enterprises will have to adjust to the changes of the environment, otherwise they will have to die.

In the early days of environmental change, we were also confused and depressed, but our team, ability and professionalism were relatively close. They could react quickly and find directions. For example, from single brand to multi brand, to building incubator platform and to building ecosystem, all of them were strategic changes and adjustments.

For example, the creation of flexible supply chain, the construction of intelligent storage and pportation, the construction of Business Intelligence Center, and the establishment of the Korean media are also the major moves based on the strategic direction.

Practice has proved that we want to do the right thing.

From confusion to insight, I often feel that this is also an interesting part of doing business.

Reporter: predict the trend of women's clothing market next year.

Zhao Yingguang, Han Du clothing house: brand power is very important.

Reporter: in the past, there were too many 11 pairs of merchants in Tucao, but I have a thought that double 11 is really no benefit to China's overall business environment? Double 11 has reduced the high profit margins of the past merchants, and indeed sacrificed a number of non competitive sellers in the process, but also made the sellers of Tat sharp become the national mass brands.

And forcing the seller of the spire to make profits, we must improve ourselves from all aspects.

Some businesses say that the double 11 price is cheaper, but the product is also bad, but consumers will not be fooled into one and three more.

Therefore, we can say that double 11 can speed up the emergence of a brand similar to UNIQLO in China.

Zhao Yingguang: I agree with you.

In a large business environment, whether or not there are double 11, the logical nature of business is invariable, and no one can escape the basic threshold of product upgrading and consumer word of mouth.

We recognize this problem earlier, do not take short-term actions, but insist on doing normative actions from the interests of consumers and from the development of brands.

For example, double 11 is every electricity supplier will attach great importance to, but we found that competitors from the Amoy brand gradually become the domestic and international big time, do not put the ranking in the first place, but put the brand development infrastructure construction in the first place.

After ten years of inspection, the Korean clothing house has won the consumers. The upgrading and upgrading in recent years are also very obvious. In the future, we will intensify our efforts in this respect.

I think double 11 is actually changing, and businesses will become more mature and more and more aware of the rules.

This day is a comprehensive arena for businessmen. The play of this day also determines the rhythm of the whole year. Every businessman should not look at this day alone, but should put it in the brand development strategy and the pattern of the whole year's operation.