Is The Hai Lan Family, Which Relies On The Light Asset Model, To Succeed In Pition?

Although 2016

The enterprise is howling, but its growth is flagging.

Still maintained more than 5% growth.

According to the world clothing shoes and hat net, in August 25, 2017, Hai Lan's home China Daily reported that its operating income was 9 billion 253 million yuan, and its profit was 1 billion 875 million yuan, up 5.6% and 5.7% respectively over the same period.

However, is this growth sustainable?

In the face of declining growth rate, what should Hai Lan's home do?

Rising from the light asset model

Rely on unique business models to imitate.

In the supply chain system, Hai Lan's home has been commercially successful.

Outsourcing the production and sales channels, focusing on brand operation, the light asset mode of Hai Lan's home has made it expand rapidly, surpassing YOUNGOR and other old clothing enterprises, becoming the leader of the clothing industry. According to the report of Hai Lan's home, the total market value of YOUNGOR is 36 billion 100 million yuan, Hai Lan's home market is rising rapidly with the total market value of 46 billion 320 million, and from the number of stores, they also have 4376 leading stores.

Of course, this is inseparable from the founder's idea.

Zhou Jianping, founder of Hai Lan's home, has a college degree in Jiangyin, Jiangsu.

The concept of his business is very simple, generally speaking, "star endorser + a large number of advertising".

It is reported that Hai Lan's annual advertising expenditure accounts for 4% of sales.

By chance, he had the idea of creating a unique model of Hai Lan's home.

In early 2002, Zhou Jianping, the current chairman of Hai Lan's home, went to Japan for an inspection.

Before leaving for Japan, he probably didn't expect that this time Japan would bring huge changes to the home of Hai Lan.

He found on the streets of UNIQLO stores in Japan that customers can buy the clothes they need at UNIQLO one-stop shopping, from business to casual wear, with all kinds of styles and sizes, which saves them a lot of trouble. And self-service shopping can be done as you please, just like choosing clothes in your wardrobe.

He has never seen such a pattern in China, and he is vaguely aware that this pattern is a great opportunity.

Since then, when Zhou Jianping returned home, the men's clothing brand of Hai Lan's home was born in October of that year.

With its unique retail mode, Hai Lan's home has been rapidly taking root in the whole country.

1 years later, Hai Lan's home has 50 stores in the whole country, with sales revenue of 200 million yuan.

By 2010, Hai Lan's home had more than 2000 stores in the country, and the number of stores has increased 40 times in 7 years.

By 2013, the number of stores in Hai Lan's home had increased to more than 3200.

This comes from the unique management and expansion mode of Hai Lan's family -- the stores of Hai Lan's home are almost all franchisees (only 19 stores are in the end of 2016, accounting for less than 1%).

For these franchisees, in terms of management, Hai Lan's family adopts the direct management mode. For franchisees, they do not charge the franchise fee. Franchisees are only responsible for paying the related operating expenses, and do not have to participate in the specific operation of the franchisees. All the stores' internal management entrust Hai Lan's home to be fully responsible.

Of course, more importantly, franchisees do not have to bear the risk of unsalable inventory. According to public information, Hai Lan home and suppliers can sign a return clause for unsalable goods and do not bear the risk of tail goods.

But on the other hand, the company will repurchase the products through a subsidiary company, so as to reduce the pressure and pressure of the suppliers.

In the advertising campaign, Hai Lan's family developed step by step, and later entered the capital market by shell technology.

In April 3, 2014, keno technology announced the announcement of the change of securities. The company name "keno Polytron Technologies Inc" was changed to "Hai Lan's home Limited by Share Ltd".

The trouble of Hai Lan's home

However, this pattern is not omnipotent.

Because of the need to repurchase inventory, the inventory of Hai Lan's household accounts for a very high proportion. After observing the inventory turnover and occupation ratio of Hai Lan's home market, it can be seen that most of the time, its inventory accounts for more than 35%, sometimes even more than 40%.

Secondly, with the rapid growth of light asset mode, the growth rate of Hai Lan's home has begun to slow. No matter how the mode is adjusted, the pformation of Hai Lan's home is not particularly smooth in the face of the weak demand of the industry and its own development and the fashionable demand of young people.

Although the company has constantly involved the idea of younger pformation, from the spokesperson of the company to the identity of Du Chun, Lin Xin and Chen Xiao, including his recent sponsorship and marketing methods, we can see its obvious intention:

"The company speeds up the promotion of brand, starting from brand demand, pursuing the best combination of hot resources and cost-effective, enhancing brand reputation, fashion and youth.

The spokesperson invited Wang Likun, the goddess of color, to represent the brand of love rabbit, to deduce the fashionable temperament of the product and win more attention. With the attention and hotspots of the most popular variety shows, such as the strongest brain, the great challenge, the masked guessing and the Mars Intelligence Agency 2, we strengthened the connection between the program and the brand, communicated with consumers effectively, realized the pformation of the attention of the program to the brand cognition, carried out deep cooperation with the international IP resources, joined hands with the Oriental Dream Factory, the top domestic art and design resources, played the Chinese style, and joined hands with the new designer Zhou Xiangyu to create a limited cooperation series to inject more thematic and cultural connotations to the products and brands, highlighting the national brand style. The popularity of star Lin has been upgraded to the brand of Hai Lan's home.

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Hai Lan's home 2016 annual report shows that sales expenses including advertising expenses are 1 billion 423 million yuan, an increase of 5.63% compared with the same period last year, with an increase of 75 million 880 thousand yuan.

Among them, the cost of sponsoring a program on the Mars intelligence agency just on Youku is tens of millions of magnitude, which does not include other variety shows such as the strongest brain, the single war, the masked singing and so on.

However, its cost is so great. However, the acceptance of its brand image among young people is always doubtful.

"My father likes to buy clothes at Hai Lan's home. The price is not expensive and convenient, and it's not very old."

Considering that her father is a 60 year old man, compared with the young people, Hai Lan's home is undoubtedly slightly old.

One of the main reasons for the "old spirit" is that the updating of products is slow, and the most direct consequence is high inventory.

In the first half of this year, Hai Lan's stock was up to 8 billion 675 million yuan.

Among them, the stock of goods was 5 billion 792 million yuan, and the amount of goods sold in Zhonghai LAN home was 2 billion 457 million yuan.

As for the problem of slower growth, according to the financial report of Hai Lan's home, its adjustment "as the new retail era slowly opens, the garment industry will face the pressure and challenges of pformation and upgrading such as deeper adjustment and industrial optimization." the other company relies on the "brand + platform" mode of operation, by creating a strategic alliance of industrial chains and building a marketing network of 1000 stores, so that every consumer can enjoy the products and services of high value for money. Through the direct management of franchised stores, we can achieve unified management and rapid expansion of stores.

However, consumers will still vote with their feet in solving the brand problem and solving the problem of marketing, including the unique mode. If the product is not able to keep pace with the times in a drastic changing era,

This is an era of quality products.

As the marketing expert of a clothing industry puts it, "many enterprises, including bosses, started from the focus on products, and then concerned about the brand building, and even became the leader of the industry. However, they increasingly ignored their core competitiveness building product development strategy.

In the early stage, enterprises did not attach importance to quality, and in the later stage they did not care about the needs of customers, thus leading enterprises to stagnate. This is normal.

In February 2017, at an award ceremony, Hai Lan group announced that the young marshal was formally on the front desk for his father. Zhou Lichen was the president of Hai Lan group Co., Ltd., and Zhou Jianping was still chairman of the company.

Perhaps, Hai Lan's home still has hope, at least it realizes its own problems.

For example, in the face of the impact of the Internet business, Hai Lan's home is actively touching the net. In September 2, 2017, Hai Lan's home announced a strategic cooperation agreement with the Alibaba.

In fact, as early as 2011, Hai Lan's home started the business trip, but the online sales volume has not been very high. In 2016, it accounted for 5.17% of the total sales, and the main position of their sales has always been increasing. In 2017 alone, Hai Lan's family planned to increase 750 stores, of which 350 of Hai Lan's family stores grew by 350.

Can the pformation of Hai Lan's home be successful?

More interesting reports, please pay attention to the world clothing shoes and hats net.