The Future Of Hai Lan'S Home: Migration Of Stores

According to the world clothing shoes and hats net, in December 9th, Hai Lan's home Under the banner of AI Ju rabbit KIDS online offline low-key synchronous opening, which is also following the acquisition of Ying Shi baby in October 9th, Hai Lan's family officially in the children's clothing market, with Semir, Mei bang and other early layout of the confrontation.

　　 Children's wear The weight in Hai Lan's home is negligible, but it does represent a possible future. The decision-makers who are accustomed to the "big money" Hai Lan's home, and the upstream and downstream suppliers and franchisees are now at the crossroads of decision making. What will you do if the future is predictable but the direction is blurred?

They have thrown out the sieve and all the chips in their hands, and Bo is the younger market and "little Jay Chou".

"National Men's wear brand" is the value concept pursued by Hai Lan's home. But with the gradual purchase of "middle-aged people in the workplace", the family and wife and children, Hai Lan's home is also active or passive, from the "men's Wardrobe" to the "wardrobe of the whole family", women's clothing, children's clothing, daily household and so on. brand Shops should be opened.

In this way, the idea of "two times a year to visit the home of Hai Lan" seems to be impracticable.

The migration path of stores is becoming more and more clear to the future of Hai Lan's home.

Thinking of inventory: Disputes and Solutions

Zhou Jianping, the founder and chairman of Hai Lan group, created the clothing kingdom of Hai Lan's home. The first domestic menswear brand, once dubbed "local ZARA", has a very high density in the three or four line cities and county level. Up to the three quarter of this year, the number of stores was as high as 5608.

Clothing business, how to clean up inventory, is a big problem, many brands have been pressed to breathe. The unique management mode of Hai Lan's home seems to have found a way out for it: upstream, buying goods on credit from suppliers, settling monthly payment of goods and loans, reducing the purchase of terminal funds, and signing with suppliers a return clause for unsalable goods, spanferring the risk of tail cargo.

Downstream, actively attracting franchisees, franchisees own ownership of stores, but do not touch on specific operations. Hai Lan's home is responsible for the internal management of stores, and sales settlement is commissioned by consignment models. Franchisees do not undertake the risk of unsalable inventory.

That is to say, Hai Lan's home is responsible for brand reputation, commodity supply chain management and sales management. Franchisees bear the cost of joining the operation, suppliers provide products, and the three become the interest community.

This has made the home of Hai Lan, but it has also been controversial. In theory, Hai Lan's home has no inventory risk, everything is spanferred to the supplier, but in fact, the home of the Hai Lan has set up 100 Shun Zi company, through the two purchase of goods, the initiative to share the pressure of supplier funds and management pressure.

This game and balance made the home of the sea, and also brought potential pressure - when can the high stock be eliminated?

On the Shanghai e interactive platform, Hai Lan's home has recently been asked by investors about inventory problems for the two time.

Once, the clothes of Hai Lan's house were sold on the stalls, and investors questioned whether they belonged to official inventory. On the other hand, they were directly asked about the way of stock sales.

This background is, as of the end of the three quarter of this year, Hai Lan's stock up to nearly 9 billion yuan, an increase of about 360 million yuan compared with the beginning of this year.

Hai Lan's home resolutely refuted the first question: "brand products are sold only in the official channel of Hai Lan's home." For the handling of inventory, it is explained that part of it is handed over to the subsidiary company for sale, and partly returned to the supplier.

This is the consistent management idea of Hai Lan's home, but it is an indisputable fact that the growth rate of earnings continues to slow down.

According to the results of the financial report, Hai Lan's home business income in the first three quarters of 2017 was about 12 billion 480 million yuan, only 3.40% higher than that of the same period last year. During the reporting period of the main brand Hai Lan home, the growth of the main business revenue was only 1.24%.

In the past three years, the overall revenue growth of Hai Lan home has also been slowing down. In 2014 ~2016, the annual revenue of Hai Lan's home was about 12 billion 338 million yuan, 15 billion 830 million yuan and 17 billion yuan respectively, representing an increase of 72.56%, 28.30% and 7.39% over the same period last year.

In order to get out of the predicament, Hai Lan's home offers multiple solutions. Obviously, Hai Lan's home is looking for new growth points in many aspects. But some people in the industry believe that from a global perspective, combing product lines, lowering inventories and creating a benign supply chain are fundamental. However, the commentator also admits that this will inevitably lead to chain reactions of various interest chains. "Flexible supply does not mean that it can be changed, and suppliers have a system of their own." The person stressed.

The ship is in trouble. The adjustment of the store from Hai Lan's home line is evident.

According to the 2016 annual report, one of the key tasks of the Hai Lan family planning in 2017 is to expand the shopping center. Xu Qinghua, deputy general manager of Hai Lan's home, said in an interview that "taking into account the upgrading of consumption, the company is now entering the second tier cities and shopping centers. We will use big data and constantly adjust the layout according to the data."

A senior industry insider, who declined to be named, told reporters that all the initiatives of Hai Lan's home have unleashed a clear commitment to reform. The wave of consumption upgrading has forced Hai Lan's home to promote the layout of the whole channel. As the main battlefield of Hai Lan home, the street market has gradually declined, and shopping centers, which are less affected by seasonal and weather factors and have better infrastructure facilities, are becoming more and more popular brands and consumers. It is imperative for brand stores to migrate to shopping centers.

"The operation of shopping centers is completely different from street shops, and the home of Hai Lan and his interest community need to adapt to this change, but it is really hard for people who earn money to earn their habit to suddenly make him change." The industry commented.

Hai Lan's home clearly understands that they need to "adapt" to this change.

Therefore, although the brand adjustment of Hai Lan's home is in the same dimension as store expansion, brand upgrading, supply chain management, product management, market management, electricity supplier and so on, but as a famous brand of brand management, Hai Lan's home, the big axe of reform now falls on the brand.

According to official caliber, brand image upgrading focuses on "enhancing brand reputation, fashion and youthful".

But all of us are more concerned about the fact that the bull's ears have changed. He is no longer Zhou Jianping, but Zhou Lichen.

Hai Lan's family "younger" 2017

Zhou Lichen was affectionately known as "little Jay Chou" by some people in the industry.

As the son of Zhou Jianping, Zhou Lichen has high hopes. In February 8th of this year, Zhou Lichen, who was only 29 years old, became the president of Hai Lan group. Zhou Jianping wrote his complimentary words "making contributions to the cause". But in fact, before that, Zhou Lichen had been trained in the home of Hai Lan for a long time. Zhou Lichen first worked in Hai Lan group Co., Ltd., and according to the annual report of Hai Lan's 2015 annual report, Zhou Lichen, who was previously added to the board election, served as director of the board. His term of office is from March 2015 to March 2017.

In the past two years, Hai Lan's home has entered the fast lane of brand image adjustment.

In terms of marketing channels, it increased investment in advertising channels such as the subway, local media and the Internet, and cooperated with the popular programs such as "running brothers", "the strongest brain", "the great challenge" and "Mars Intelligence Agency 2" to attract a large number of young people. At the same time, the designers collaborate with each other, and this series of actions will eventually help Hai Lan's home to change the image of "middle-aged people in the workplace" and to "fashion and youth" aesthetic spanition.

On the supplier side, we should control the proportion of the first order products, realize the quick adjustment of the order, and expand the sales channels through the intelligent spanformation of the stores.

But compared to these, Hai Lan's home this year's double 11 gamble seems to be more representative.

The marketing method of Hai Lan's home is simple and crude. The 1000 256GB iPhone X is probably for the brand new spokesperson, Lin Yue's live broadcast on the day, and Hai Lan's home has added 100 units on this basis. According to Apple's official channel pricing, it is a marketing expenditure of about 10 million 660 thousand yuan. By contrast, last year, double 11 of the "top 10 thousand sent 600 yuan coupons" activities were slightly "shabby".

The effect of heavy investment was immediate, and successfully helped Hai Lan's home go beyond UNIQLO, winning the first place in Tmall double 11 men's clothing brand, and the total sales volume was 400 million yuan.

Before the double eleven, Hai Lan's home has attracted Ma Yun's attention.

In August this year, Ma visited the Hai Lan group, visited the Hai Lan home electric business, Hai Lan home intelligent storage, Hai Lan headquarters own brand store and Hai Lan Ma Culture Museum. "I hope that in the" Internet + "era, we can achieve more in-depth cooperation and win-win cooperation with Hai Lan's home business. Ma Yun said.

Shortly after Ma's visit to headquarters, Tmall signed new retail strategic cooperation with Hai Lan's home. This year's double 11, Hai Lan's family gorgeous data, for both sides based on the new retail store intelligence upgrade to make a good start.

Another significance of winning the championship is that it has finally reversed the declining trend of Tmall's double 11 ranking in the past three years. According to the three party data of the world's Internet business, from 2014 to 2016, Hai Lan's home was excluded from the TOP 5 of the double 11 men's clothing brand.

As mentioned before, Hai Lan's home is expanding its business market in women's clothing, children's clothing, home and overseas.

In August 14th of this year, Hai Lan's home announced that it would take part in the local fast fashion brand UR. Guotai Junan analyst said the move highlighted the fast fashion layout of Hai Lan's home and strengthened its determination in the leisure apparel industry.

In September 23rd, its life class home brand Hai Lan chose to open the living hall, then the online shop went on line.

According to another news, Hai Lan's home is preparing to build a micro mall, and its brand products will be synchronized with the on-line micro mall.

To sum up, the brand upgrading of Hai Lan home is mainly manifested in the following four aspects:

1, develop new positions under the line, and actively enter the first, second tier cities and shopping centers.

2, combined with Internet technology, the existing stores will be intelligently spanformed to open up online and offline channels.

3, develop new brands, promote multi brand strategy; take Hai Lan home as the main body, women's clothing brand love rabbit, children's wear brand love rabbit kids, business professional dress Saint keno, stock handling brand sea family, lifestyle home brand Hai Lan optimization and so on.

4, planning the brand to sea; in July of this year, Hai Lan's first store in Malaysia appeared in Kuala Lumpur. Then in November, the official announcement announced the acquisition of overseas companies EMPIRO MARKETING and MALAYSIA MARKETING.

The curtain of the whole channel around the line has already been opened. Zhou Lichen has taken the baton from his father and deeply branded the brand of his generation.

Store intelligence and channel uptrend

The clothing market is called the vanguard of new retail, especially some fast fashion and parity clothing brands, and consumers have strong desire to purchase online. Data show that in 2016, the scale of China's apparel online shopping market increased by 25% over the same period, and the penetration rate of clothing online shopping was close to 40%, reaching 36.9%. With this year's application of smart stores in more and more brand stores, it is expected that this proportion will continue to improve.

Hai Lan's home has great imagination in this respect. In 2016, Hai Lan's household income from online sales accounted for only 5.17%, compared with a slight increase of 1.37 percentage points in 2015. In contrast, Semir's retail business in 2016 accounted for nearly 30% of the annual revenue and 16.15% of Taiping bird.

Behind these data, there are some common signals.

First, the integration of channels should be strengthened. Online channels are spreading fast and growing into the fourth pole outside the street shops, department stores and shopping centers.

Two, launch a positive confrontation with the Internet brand and international brand in the whole market. Under the overall layout of the Internet brand, the international brands represented by fast fashion also began to settle down from the first and second tier cities. The traditional clothing brands such as Hai Lan home and Semir are also trying to develop one and second tier cities and cut into the shopping center market. In the future, the overlap of multi brands will become more and more high.

Three, store wisdom into standard. Offline store based on O2O spanformation and upgrading from trial to standard, consumers in different scenarios, for the consumption experience of freshness and authenticity put forward higher requirements.

Four, the emergence of younger consumer groups. The new generation of consumers, represented by the post-90s generation, is gradually becoming the main force of consumption in the clothing market. But compared to the past, users spend more time and scenes fragmentation, brand needs to combine user preferences and preferences, and timely adjust the marketing strategy.

From men's clothing to the concept of "home", Hai Lan's home tries to provide new support for brand by using multi brand and multi-channel strategy. If the current multi brand strategy brings more uncertainties to revenue, it is also the key to break through the existing predicament. As an industry person has said, this is the road that Hai Lan's family must take. "Although it may seem that the walking posture is very strange."

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