In The Most Traditional Industries, Zero Fashion How To Seize The 100 Million Middle Class

China's one hundred million new middle class is rising, but this big cake is not easy to eat.

Female sex

Chain brand "

"Entrepreneurship" has tried many new ways in the past 3 years, and it is worthy of reference from the vast number of traditional brands and entity shopkeepers.

In the past two years, Wu Xiaobo, a famous financial writer, called on many occasions that the pformation of Chinese traditional enterprises must seize a major opportunity: one hundred million, the rise of new middle class.

The new middle class is mainly born after 80 and 90, and has a good educational background. It also pursues a life of quality and attitude.

Looking at the data, according to the 2015 Global Wealth Report released by the fifth largest consortium of the world's Credit Suisse, the number of middle class in China is the largest in the world, reaching 109 million people. Its total wealth is 7 trillion and 340 billion dollars, second only to the United States and Japan.

Credit Suisse also predicts that in the next 5 years, China's wealth will continue to grow at an annual rate of 9.4%.

In 2016, Wu Xiaobo was called "the first year of China's new middle class consumption".

But this big cake is not easy to eat, to satisfy the fastidious new middle class in China is a technological activity.

Female fashion buyer chain store

"Zero fashion" entrepreneurship has tried many new ways in the past 3 years, which is worthy of reference from the majority of traditional brands and entity shopkeepers.

New opportunities and old pain points

Zero fashion enters the garment industry and avoids the traditional red sea market. It wants to seize the emerging fast fashion market.

The so-called fast fashion market, that is, 25~40 years old, light mature middle-class women.

The original three mainstream clothing formats can not meet their new consumption needs.

On the one hand, they generally experienced promotions and pay increases, and their spending power increased significantly. They began to pursue individuality and quality. Most of them were unwilling to continue to consume fast fashion brands.

On the other hand, after their fast fashion training in 5~10, their personal taste has been promoted, and it is difficult to accept the traditional feeling of mature women's clothing in the mall.

Most of the existing shopping malls display their favorite brands from more than 10 years ago to more than 10 years ago. These brands do not dare to change, they will lose their original customers when they change.

This leads them to keep up with young women who embrace the Internet and follow fashion frontiers from girlhood. Most of them think that shopping malls are too old to buy.

Then pure electricity providers can not meet their needs.

According to statistics, 80~150 yuan women's clothing accounted for about 70% of the online women's clothing market share, the price and quality is relatively low.

Middle and high-end women's clothing that new middle class women need is not the mainstream product of pure electric business.

Moreover, the high-end clothing for women as a non standardized product, on-site fitting experience is a necessary consumer link, which is pure electricity providers can not meet.

Under the above background, the buyer's shop, which specializes in serving new middle class women, has been developing rapidly in recent years.

Buyer shops originated in Europe. They target customers' unique fashion ideas and tastes as the benchmark, and carefully select different brands of commodities to blend together. Their characteristics are brand complexity, but aesthetic taste.

Most of China's new middle class women's clothing and accessories consumption needs are released in these emerging entity buyers.

Since so many high quality consumers are buying in entity buyer shops, do they live in a particularly healthy way? Actually, they are not. These buyers have inherited many pain points in traditional stores.

1. product integration is difficult.

They are all small single stores, and the wholesale market is very energy consuming, and there is no bargaining power at all.

2. inventory pressure.

Buyers shop slowly, but for women's clothing, new is a must. If you want to be quick, you will have to stock up. It's easy to generate inventory. The money earned by the shopkeeper is completely changed.

3., it is difficult to expand the market.

It is difficult for a small entity shop to expand the market. There is no energy and lack of methods. The market coverage can be a few nearby communities.

4. customer maintenance is difficult.

The store sends a micro letter to the customer or makes a phone call. Let's take a look at it. This way of maintenance is too traditional, and there are too many stores and lack of attraction.

All kinds of difficulties make the entity buyer shop very difficult to manage, and the shopkeepers are deeply troubled by their difficulties.

The founder of zero fashion has a friend who once opened a small buyer shop in Dalian, doing well, earning one hundred thousand yuan a month.

But she didn't want to do it, because she had more than 20 days outside a month, even if he was pregnant for eight months, he needed to go to Beijing to buy goods. After entering the goods, she kept on communicating with all the customers on new information, and then handled some miscellaneous things, which was very tired.

Zero fashion also wants to seize this blue ocean market. The mainstream price of its products is 500~1500 yuan, higher than fast fashion brands, lower than luxury goods, which is more suitable for the psychological price of new middle class women.

At the same time, it develops a solution around the pain points of the buyer's shop.

For example, in terms of product integration, the buyers of zero fashion can choose from many studios, and then assemble the demand of the 18 direct chain store buyers to make the order, so that the upstream factory price can be reduced by purchasing scale.

Zero fashion talks about more than 100 co operative designer studios, many of them in Shenzhen.

A designer studio may have more than a dozen or so people who can develop hundreds or even thousands of new models every month.

If zero fashion needs three hundred new models this month, its buyers will choose one hundred from three studio designs.

Zero fashion now chooses the designer studio, which requires it to have a cooperative factory.

There are many kinds of workshops, such as knitting and weaving, and different categories will work closely with different factories.

Zero fashion only needs to pick up the money, place a good order, and then go to the factory to produce. Basically, the order can be shipped ten days later.

Zero fashion is quite innovative for the solution of three other pain points in the entity buyer's shop.

Alliances quickly develop market

According to the circulation Blue Book: China business development report (2016-2017) issued by the Chinese Academy of Social Sciences Financial Strategy Research Institute and the social sciences literature press, there are nearly 4000 shopping centers in China and 3 times as many as the United States. Japan and Korea have a median retail area of about 1 square meters per capita, but the average per capita area of some two or three cities in China has reached or exceeded 2 square meters.

And China's shopping malls are growing rapidly: China accounts for 13 of the 20 largest cities in the world, and according to the China Shopping Center Industry Advisory Center, 7000 shopping centers will be opened from now to 2025.

The above data indicate that the situation of insufficient passenger flow in China's physical stores will only deteriorate further.

The strategy of zero fashion is to expand the market through alliances.

There may be many beauty salons near the buyer's shop, which can cooperate, introduce business and share traffic.

For example, the beauty salon has a SPA project worth 168 yuan. If customers buy clothes at zero fashion stores for 5000 yuan, they will send a SPA coupons to help the beauty salon.

Similarly, the beauty salon customer recharge to a certain amount, will receive a 200 yuan zero fashion voucher, you can buy clothes in zero fashion.

Zero fashion has developed App for the buyer's store to expand the market. The alliance merchant first uploaded its picture, address, telephone and store's introduction, which is equivalent to registering on App, then uploading coupons for some services and activities. The coupons can be sent to the App of the user's App in one key - the data of the two App are open.

When the user is consuming, the buyer shop takes the App to sweep, this ticket is recovered.

Those cooperative businesses have also installed the App of different industries, which can sweep the coupons provided by zero fashion.

Zero fashion calls alliances alliance operation user benefits.

Every time the user stores the value in the zero fashion shop, zero fashion will give coupons, enjoy a free yoga, SPA or a beauty and preschool experience.

Users will feel that buying clothes here can give you so many complimentary experiences. It's pretty good.

At present, the 18 buyers of zero fashion are doing different industry alliances. The first users of new stores are often guided by cooperative businesses.

The buyer's shop is just opened, and it is urgent to expand the customers. The beauty salon has been open for 35 years. The buyer's shop can talk about some alliance cooperation when it's open. If you talk about ten, the ten users will enjoy it.

At the beginning, the zero fashion buyer shop still had no business and needed a beauty salon to guide it. What is the motive of the beauty salon's cooperation?

Because when the buying shop opened, it was actually popular. The buyer's shop would bring the experience card of the cooperative beauty salon as a gift. Actually, it helped to publicize it with the help of its opening activities.

In addition, zero fashion stores will also make some relatively large coupons to beauty salons to bring good benefits to their stored value users.

The effect of the alliance is obvious. The new shops of zero fashion can basically make profits in the first month, but usually the new store has to maintain one year.

Therefore, zero fashion buyer shops value and rely on this kind of market expansion.

C2B achieve de stocking

Chain enterprises can be divided into three stages.

The 1 stage is to hang the same signs as chains, but they are actually connected but not locked.

At present, the chain of retailing is the 2 stage, namely, the ERP system, the unified management of products and supply chain.

Zero fashion belongs to the 3 stage, further unified management of users, products, buyer shops and users in the same B2B2C platform to achieve docking: all the buyer shops are unified by zero fashion supply, this is the B2B part of the platform; B2C's C terminal is light cooked middle-class women.

The pre-sale link that looks simple on the platform actually implements C2B.

Before the zero fashion 18 buyers shop is using the more primitive method to do C2B.

When every shop comes to pick up the goods from the fashion platform, they will come with the needs of users. How do these user needs come from?

Stores are sending new photos to their customers in advance a few days. Customers say this is my interest, or that I am interested, stores will focus on order after demand statistics.

Zero fashion thinks that such operation is cumbersome and fragmented, with a relatively centralized platform, so user communication App has been developed.

Each buyer shop has corresponding online shops on this App.

When each C terminal user registers App, she must choose a shop that serves her.

When users enter the online shop, they can see the new styles of clothes after a few months, and she will give feedback. Some of them praise her, indicating that they have intention to purchase, and some of them directly deposit or pay the full amount.

The buyer shop will also see the new style of clothes uploaded after several months. When a shopkeeper orders a new product, she may be hesitant to enter or not enter. If she enters, then she will make decisions based on user feedback or feedback.

Therefore, buying a shop order to the platform is not blind, it is based on user feedback to order.

The zero fashion system background will feedback the data of users' praise, commentary, order, active caller communication, etc., and use algorithm to calculate. For example, point praise means 5% purchase intention, and positive comments mean 15% purchase intention, so as to precisely guide the purchase amount of the store.

This is like the business consultant of Alibaba sellers center, which will classify users' data very carefully, and then give the seller guidance in business.

In this "platform to send new design, user feedback, buyer shop feedback to the platform order, platform to factory production orders" C2B closed loop, the key is that users need positive feedback, then the buyer shop can order accurately, but we know that most of the App are low-frequency applications.

App is passive, expecting consumers to open the App in a certain frequency and see new products.

This expectation is a question mark, because some people will go shopping on weekends, but they may not be able to visit the App when they are free.

Zero fashion designs a very crucial driving mechanism.

The user of zero fashion is membership system. Now the share of stored value consumption has accounted for more than 60%. If the stored value users charge five thousand yuan, they can get the balance of six thousand yuan, which is equivalent to a discount, so the stored value member develops faster.

This group of users will be looking forward to this App.

Stored value makes passive users active.

If the user just keeps a phone number and a little personal information, the stickiness of the store is not enough in the CRM system, but the user will put the money in the store, so she will take the initiative to consume.

After installing the zero fashion App, users who make active consumption can make an appointment online to make an appointment with the style they want to buy. The store can order her in advance. If she doesn't make a new appointment through App, the spot she sees at the store is not necessarily suitable for herself.

App is not only convenient for new products, but also helpful for users to understand their storage status at any time. Before they can go to the store to check, it is much more convenient to install App.

Other users initially refused to store the value, because she did not know whether the change of storage value was true. Zero fashion could open up the user's balance and App, and they could know their value and coupons at any time, so that they could rest assured.

With these two advantages, the resistance to App installation and usage is small.

In addition, every time the new product is on the App, the buyer shop will call all the VIP members and tell them that they have released the new products, and the stored value members will generally praise or order the App.

The key link of C2B has gone through this way.

The ultimate goal of C2B is to minimize the inventory as much as possible.

There are four ways to reduce inventory in addition to giving customers feedback and placing orders.

1. order the order once a month according to the user feedback, so that even a miscarriage of justice will not form a large inventory like an annual or quarterly purchase.

If you order once a year, it means that the franchisee may order thousands of items at a time.

There is another advantage in every month. The conversion rate of zero fashion stores has increased from 15% of the surrounding stores to 45%, because zero fashion stores have many new products every month, which is a particularly important way to stimulate users to pay.

2. Limited sales, only new monthly, will not produce the same goods last month.

Zero fashion headquarters summed up shop orders, then production orders, no pressure on goods, is completely out of stock.

The significance of Limited sales of women's clothing is that if users want to get this dress, they must pay the order first, so as to make sure that they can get the clothes, because by next month, zero fashion will sell new models, and the old ones will be gone.

This mechanism can guide users to pay more in the pre-sale link, not a point of praise, indicating that the intention is over.

Users from the point of praise or comments into advance payment, can further improve the accuracy of store purchase, thereby reducing inventory.

3. full network distribution.

Zero fashion stores purchase every time, most of them are collected demand, and part of them are not sure the owner's stock.

For example, the store ordered two hundred pieces for a particular style, and the last twenty or thirty were sold. At the same time, several stores were out of stock, but they did not want to sell it, because they could not replenish the platform.

Stores can open these twenty or thirty stocks to the whole network, and the buyer's shop with demand will distribute it.

4. zero fashion will turn the accumulated data experience into algorithm.

For example, there are some practices that surpass the normal rules and business experience in the stores. The salesmen in the system will prompt the shopkeeper. If you do so, you may cause inventory risks. Please pay attention to circumvention.

C2B personalization

As mentioned above, Ali is a business consultant, and Taobao is more of a consultant to the seller based on products and sales orders.

Zero fashion, because there are stores and App, can restore the user portrait as much as possible through multi-dimensional data, so as to provide more accurate suggestions to sellers.

The first is the user's body data, which can be obtained through a test software; the second is the behavior data such as commentaries and commentaries; the third is the user's paction data, such as how many clothes she has bought over the past year, how much amount of consumption she has bought, the frequency of consumption, the customer price per time, the fourth is the wardrobe data, the user uploads the clothes in the wardrobe to the App after uploading it, and their shop will analyze their shopping habits and psychological appeals.

The longer users spend in zero fashion shopping, the more data they accumulate.

After collecting these data, users can restore user profiles even if they can not see them.

These data and user portraits will be given to each store, and stores can more accurately grasp the user's personalized needs.

The zero fashion is the choice of the buyer first, and the user feedback C2B mode can further evolve to improve the level of personalized service.

For example, if a user sees a particularly beautiful dress, she can upload photos to a section of App and quickly be praised by other users. The minimum size of the zero fashion is 50 pieces. If the number of the clothes is 50 in a few days, the designer of the zero fashion will quickly design and place the order, and it will probably be on the market in a week or so.

This C2B mode is called crowd raising in the Internet field.

In the future, very important styles of zero fashion will come from users themselves.

Personalized service is a good selling point, which can enhance user stickiness.

The wardrobe function on App is not used by all users, but it is fun after use.

Zero fashion survey found that many female users like this function, at least she can easily know how many clothes they have now, and do not have to lie in the wardrobe every day.

In addition, the buyer shop used to call the customers to make a new call. Now when they communicate with users, they will take this wardrobe to do something. We can help you sort out the wardrobe and make some matching for the clothes.

This is to provide professional services to improve user experience, instead of just greeting at festivals.

At present, there are users in the market who help her to make wardrobe, so it is very time-consuming, and will affect the privacy of users, while zero fashion online can provide users with services, thereby reducing the difficulty of user maintenance.

The alliance can expand the market, C2B can go to inventory and maintain customers. What is the specific effect of these strategies?

A 50~80 square meter zero fashion shop can sell about 150 clothes a month, and its sales volume is around 130 thousand yuan, which can generate thirty thousand or forty thousand yuan profit.

The start-up cost of a buyer's shop is 200 thousand yuan, and 90% of stores can reclaim all investment in 6~8 months.

This is a good operation result in today's general downturn.

Rebuild the most traditional industries with the most advanced ideas and tools.

The role of App developed by zero fashion is to get data from local users, buyer stores, and alliance merchants.

As a regional operation center, the buyer shop operates local businesses and users.

The zero fashion buyer shop is essentially different from the traditional entity store.

The above mentioned personalization, inventory and alliances are all based on the premise of data.

For example, after the platform has data for every user and product attribute, it can truly achieve precise marketing and personalized push of products. Users feel that the recommendation of the platform is very much liked by her. After wearing it to herself, it is also very beautiful. If we rely on traditional methods, it is impossible for users to feel this way.

It can be seen that although zero fashion is in the most traditional industry in China, it is good at using the most advanced ideas and tools to improve productivity.

Take a look at the specific case, zero fashion in its ERP system built in artificial intelligence fashion matching function.

When editing the new product, the platform editor will explain its collocation properties, which is suitable for this garment, what style it fits, what kind of style it is suitable for, and what kind of scenes it is suitable for.

What kind of logic is used to develop this smart collocation?

The two founders of zero fashion are all from science and engineering. They use science and engineering thinking to form the four step of this traditional business.

The first step is to study users, classify users' temperament, shape and characteristics, and achieve user data.

The second step is to make data for single products and extract attributes, such as upper, lower, inner and outer.

The third step is to make a matching algorithm between single product and single product.

The fourth step is to develop algorithms to match single products with different people.

After the completion of these four steps, we can achieve more precise intelligent matching.

In the future, zero fashion may be based on these user data, single product data and algorithms developed to automate or semi automatically design a garment for a person to meet her personal needs such as body shape and seasonal demand.

Smart collocation can solve another important problem besides satisfying users' individual needs.

In the actual management process of the buyer's shop, if there is no intelligent collocation function, the store will have a high degree of dependence on salesperson's ability. They have to recognize the user's characteristics on the spot, and have professional knowledge of aesthetic experience and clothing collocation.

With smart matching, the store's dependence on salesmen is greatly reduced, because smart collocation can remember all products and give all reasonable matching.

Looking back at the past three centuries of global business history, we can see that "steam engine +" and "power +" have made countless traditional industries into new industries, and a large number of outstanding entrepreneurs have emerged in those who take the lead in eating crabs.

Today, zero fashion's positive attempt to "Internet +" and "Ai +" is an important way for the vast number of enterprises to meet the consumption demand of the one hundred million new middle class.