To Promote The Pformation And Upgrading Of Online Apparel Market, Jingdong Handed Over Such A Reply.

Array, alliance, empowerment... Although Jingdong has been engaged in fashion industry for many years, this time it is still unprecedented.

This year is the 40th anniversary of reform and opening up. The 40 years not only witnessed the flourishing development of Chinese private enterprises, but also witnessed the leap of people's income. Nowadays, the number of middle class in China has increased from 0 to 230 million, which is more than that of most developed countries in the world.

Chinese dress has changed from blue pants to today's fashion, and China is the largest luxury consumer market in the world.

In 1992, Louis Vuitton opened the first store of luxury brands in China at Wangfujing hotel. With the maturity and maturity of consumer groups, luxury brands entering the electricity supplier have become an irresistible trend.

It can be seen that in this huge Chinese apparel market, the necessity of using technology to empower fashion to help brands achieve all-round digital pformation is increasing irreversible. The technology industry and fashion industry are merging with unprecedented openness and speed.

Among them, Jingdong is an active participant and practitioner.

In the past two years, the layout of fashion industry is already the strategic focus of Jingdong group.

Since 2015, the Jingdong has almost completed all the preparations at the marketing level from sponsoring Milan design week, London Fashion Week and various fashion independent designers and fashion media.

Now, it has entered a new strategic stage. It not only wants to persuade more businesses to enter and consume, but also has more substantive measures at the operational level.

Hu Shengli, President of Jingdong fashion lifestyle group

Jingdong's new leadership and new layout

Behind the new strategy is a new leader.

In just four months as president of the Jingdong fashion lifestyle group, Hu Shengli said he had lost eight pounds. He was busy visiting businesses, making strategies and becoming familiar with new businesses.

The Jingdong executive was 3C's chief executive, but after nearly 20 years of electronic products, he has become a key player in the future of Jingdong's fashion business.

What exactly does Jingdong want to do with the fashion business? This problem has finally got a more comprehensive answer under the new organizational structure.

According to Hu Shengli, the five major strategies of Jingdong fashion are divided into platform ecological strategy, platform operation empowerment strategy, technology empowerment strategy, WeChat operation empowerment strategy and the whole network traffic ecological strategy.

The key words are not difficult to extract, that is, "ecology" and "empowerment".

Through thousands of thousands of faces, content marketing, intelligent supply chain and unbounded retail and other paths, Jingdong hopes to get rid of the old obsolete e-commerce platform thinking, and establish a closer cooperation relationship with the brand of clothing, shoes and bags, and at the same time, gather resources in various fields for their growth.

The reason for this is due to the difference between the fashion products and the 3C operation mode, and the two is the size difference.

After the "switch" fashion, Hu Shengli found that: "most of the fashion businesses are mainly based on POP mode, but 3C is a proprietary mode, and the number of fashion businesses is very large, and the scale is unprecedented. To make fashion better, we must conform to its business model."

POP model is simply an open platform, and different from electronic products, fashion brands will be more likely to open online stores on their own business.

And POP model is divided into three kinds of SOP, LBP, FBP, the main difference is that the business is responsible for logistics or the platform is responsible.

But as we all know, Jingdong is self-employed, and also won by self operated e-commerce and self logistics. However, compared with the risks existing in the opening of the third party platform, the boundary of the open and self operated platform is obviously more profitable. It will undoubtedly greatly expand the overall scale of Jingdong and bring more substantial traffic to it.

Hu Shengli said: "if you want to do a good job, you must abide by the fashion rules."

If you want to build a fashion ecosystem, you need to figure out what is needed in this ecosystem.

For Jingdong, today, winning more fashion brands is obviously the premise of its ecological establishment.

Since the second half of 2017, there are two choices in the electronic business platform.

In May 8th, when Jingdong released its first quarter results, Liu Qiangdong said at a conference call that it had a short-term financial impact on Jingdong. The company CFO Huang Xuande also revealed on the phone that Jingdong clothing category was weak in the first quarter and the overall clothing category did not grow.

Jingdong hopes to win the business back, and it is also one of its aspirations to build the ecosystem, of course, this is also based on its understanding of the pain point of the industry.

After conducting in-depth research on more than 60 merchants, Hu Shengli realized that fashion as a industry that also relies on online and offline markets has many years of grading tradition. The demands of first tier, second tier and three line brands are different, and the definition of luxury, designer brand and fast time is also different.

"Therefore, I find business layering is an effective way."

Hu Shengli said.

After two months of discussion, Jingdong

It is decided to make precise "layering" on labels based on labels, and establish a horse racing mechanism within the company, and implement rebate incentives to ensure that the brands can compete fairly at their respective racetracks.

At the same time, Jingdong will also form a formula based on the brand sales ratio, the year-on-year, and the time of the store, so as to give the merchants the actual incentive according to the three grades of 10%, 20% and 30%.

For example, a brand store stays in the first gear within a month, and it can enjoy a discount of 90 percent off.

After completing the calculations for men's clothing, women's wear, bags, jewelry, sports, underwear and so on, the incentive mechanism will be tried out from women's wear and children's wear, and will gradually expand to other brands. In doing so, businesses can both soft landing and Jingdong's own experience and iteration.

"What is the biggest demand of a businessman? First, understand what the rules are; second, your rules are not suitable for me to play; three, what kind of tricks can I play?"

Hu Shengli also said that the goal of the layered incentive method is to set up a set of industry rules with Jingdong characteristics in one to two years.

To achieve all this, Jingdong is also carrying out reforms in infrastructure construction. The first thing to do is to pform the fashionable SKU products into SPU, so as to change the problem of unstable search flow, waste of resources and good workload.

At the same time, Jingdong will also change the problem of not enough marketing products on the operational side. In 2018, Jingdong will make more innovations on dozens of marketing products such as super brand day, big spike day and so on, so as to integrate resources of content, daring, scene and traffic.

This means that Jingdong, which started selling electronic products, has begun to adjust its thinking in operation, trying to get closer to the fashion industry in business mode, not just at the marketing level.

Technology can empower fashion, so that we can grasp the market longer.

However, in today's era of reshaping retail technology, the electricity supplier also has many absolute advantages and needs to stick to it.

As a technology company, Jingdong, Alibaba, vip.com and other enterprises are pforming the fashion industry on digital pformation.

Jingdong has also set up a fashion science and Technology Research Institute recently. It will integrate AI platform and research department, big data platform and AR/VR business department to promote the landing of technology in fashion retailing, and let virtual fitting rooms, size assistants and 3D products enter retail stores as early as possible, so as to enhance the conversion rate of users.

At present, some technologies have been implemented, for example, AI technology has allowed businesses to automatically generate posters or panoramic master maps, so that the brand can not only save the cost of hiring graphic designers, but also speed up the speed of content marketing.

But in Jingdong, the idea of technology empowerment is concentrated on the proposal of "unbounded retail", which seems to be a positive confrontation with Alibaba's "new retail" term.

Of course, nowadays, almost all the electricity suppliers are offering energy, but they are still exploring how to do it.

At present, the mature logistics system of Jingdong is a great advantage of its smart supply chain, and it also increases its potential to expand 2B business in the fashion industry.

Traditionally, warehousing and logistics are the key to clothing brand and even the whole consumer category. In order to reduce inventory risk, the fashion brands that favor the long tail merchandise are mostly used in the past.

Traditional costumes

In terms of digitalization, the pformation is slow, and the structure of talents is also adjusting and adjusting.

But big data can solve the problem of not knowing what consumers want, what goods they are not in, what manufacturers do not know what to produce. This shows that in addition to adding an online channel to traditional clothing brands, what is needed is a partner who can help it integrate with the information age and have the ability to build infrastructure.

Of course, it takes time to build trust between the two, which is not only related to the openness and security of data.

After all, some traditional brands have thousands of stores online, and policymakers need to get all the data online and offline.

In order to let more businessmen see the actual case of "unbounded retail", Wenzhou shoe brand "AOKANG" has become the first enterprise to test the water. This cooperation is also the first time that Jingdong has been practicing fashion without borders.

It is reported that AOKANG has undertaken a lot of pressure on other platforms when completing the cooperation.

However, AOKANG, founded in 1988 and 30, has faced rapid changes in consumer behavior and intensified competition in the industry after its traditional channel dividend. In recent years, it is in urgent need of many attempts to pform the scheme.

In 2009, AOKANG set up an e-commerce business, launched the flagship store of Tmall, actively participated in the annual double eleven carnival, and made efforts to adapt to the new industry trend. After 2016, Wang Chen, the son of AOKANG chairman Wang Zhentao, began to serve as the general manager of the electricity supplier, and referred to the more important strategic level of digitization.

According to Wang Chen, all channels, live broadcast and speed are three key words for AOKANG to promote brand upgrading.

In this cooperation with Jingdong, AOKANG took out 1216 stores located in 27 provinces and cities to test the water. Through Jingdong membership code, consumers can complete the online and offline promotional activities under the guidance of the store purchase, thus forming a consumer portrait on the line, and also facilitate the brand to carry out the precise marketing of the follow-up e-commerce, near the store recommendation and so on.

Although on the Jingdong's page, the "AOKANG new season" wheel entry seems to have no new tricks, this time it tried to form a 54 thousand and 800 order between April 29th and May, bringing 80 thousand and 900 people to AOKANG and Jingdong.

"Through big data to wake up the store, AOKANG gave me a part of the label of the member, so as to match my data, I was able to identify potential users in the range of one kilometre of the shop, which we did."

Hu Shengli said to the interface, "of course, I only know part of the user, do not know all, in order to ensure the safety of users."

It can be seen that, in order to break the current situation of the traditional retail industry with fragmentation of information, opening up is the premise, and enabling technology to better empower itself, fashion brands must first have some ability to build their own databases.

Therefore, there is a threshold for unbounded retail, but it also highlights the need for fashion ecology. This industry change is not achieved by the efforts of the brand side and the platform side.

"By building a store value and a clear brand growth path, Jingdong can export services and connect social resources. We will be very concerned about private sector traffic, content and the construction of fans. It will also connect the private sector and the public domain, so that the Jingdong side's empowerment can rise to the eco side of Jingdong and WeChat."

Lin Chen, vice president of Jingdong group and head of platform Ecology Department, said.

As Lin Chen said, Tencent is undoubtedly the most important ally of Jingdong at present, which determines whether it can fulfill the promise of business fans and WeChat's social traffic ecology.

At the end of last year, Jingdong opened two projects in the WeChat terminal, namely, Beijing mall and light mall.

This year, the Jingdong's world's first online shop on the Internet, Audemars Piguet (Audemars Pigeut), is the first online Limited shop in the world. The project provides WeChat small program purchase, phased purchase of Jingdong financial support, jingzun and other services. It is also the first time Audemars Piguet has set foot in the electricity supplier, so Liu Qiangdong has participated in the delivery of the first VIP customers.

In May 8th of this year, Jingdong opened the shopping circle of WeChat and QQ, realized the function of store circle in May 15th, and completed the third party business evaluation award in Beijing in May 27th.

This linkage will run through the whole layout of Jingdong fashion in the future.

Obviously, WeChat's traffic volume is worth nearly one billion in the future. Many electricity providers are fighting for the social traffic of Tencent. Of course, it also benefits Tencent, who is involved in retail business, to speed up its own ecological construction.

Tencent wants to use Jingdong and fight more to compete with ALI. Both of them have won the top prize in the internal horse racing mechanism, especially the latter.

Of course, this also brings competition pressure to Jingdong.

In order to win more Tencent resources tilted, Jingdong online Jingdong purchase business.

To some extent, Jingdong has gained the idea of making up for defects from more complex competitive environment. For it, WeChat is incremental, and it can also convince the fashion brand.

Especially for the high-end fashion category, WeChat small program has successfully pulled into the electricity supplier insulators such as Celine, which did not get into oil and salt. The benefits brought by the alliance are not only operational, but also brand image.

Vice president of Jingdong group, head of product development department of the Jingdong mall, Li Ke Feng has introduced to the Economic Observer newspaper that Jingdong merchants operate on WeChat, which can get online and offline, connect directly with merchandise and inventory, enjoy the operation of behalf of the Jingdong and the global electricity supplier service. "The small program is very strong in the future, especially for the electricity supplier."

In short, it basically focuses on people, goods and markets, breaking the gap between past marketing, logistics, channels, finance, products and consumers.

To this end, Jingdong has also launched many other cooperation plans, including the Beijing strip plan with today's headlines, Baidu's Beijing 100 plan, Iqiyi's kyrk plan, and Sina's Beijing wave plan, etc., trying to cover all aspects of content production, social networking and communication, and further help fashion retailers save costs and improve efficiency and experience.

However, if these allies are brothers, then vip.com is probably an alliance.

As we all know, in December last year, Tencent and Jingdong announced that they invested $863 million in cash in the form of vip.com, and formed a coalition force in the clothing retail business. For Jingdong, vip.com, which accounts for 82% of the female users, has become the focus of its innovation. Among them, 79% are clothing consumers, 86% are cosmetic consumers, 70% are parent consumers, and all are high decision users.

Jingdong and vip.com cooperate in 520 this year.

Sun Gefei, vice president of vip.com, said: "vip.com is also in the pformation of the whole category of platform, is no longer limited to second-hand goods discount, the fourth quarter of 2017 data show that sales of new goods has increased by 40% over the same period last year."

At the present stage, it is exactly the same direction as Jingdong. Even though some businesses overlap, overall, they can make up for each other's short version.

As Liu Qiangdong once said to this cooperation statement, "vip.com has an outstanding management team, which has strong strength in flash buying e-commerce and clothing business.

The strategic cooperation with vip.com will be successful for Jingdong and will create a very good synergy.

This cooperation will further accelerate the pace of our entry into the female consumer market and further expand the breadth and depth of our fashion business.

As of March 2018, vip.com has received nearly 500 thousand fans' attention in the flagship store of Jingdong, with nearly 1000 brands entering.

In this year's 618 Festival Promotion Festival, Hu Shengli even persuaded the team to open up the closing day - 619 days' first level entrance to vip.com.

At that time, people will see vip.com's advertising entry on the front page of Jingdong.

Hu Shengli hopes to deepen the impression of Jingdong in the hearts of fashion consumers.

And this attempt has been done by Jingdong.

Internationally, last November, Jingdong and the American Fashion Designers Association CFDA and Kangtai's Nash group's flagship media brand "Vogue" entered into a partnership to participate in and support the CFDA/Vogue sponsored Fashion Fund dinner.

Before the opening of the London Fashion Week in 2018 spring and summer, Jingdong also reached a cooperation intention with the British Fashion Association.

Now, vip.com has also become the exclusive partner of Chinese fashion week in London Fashion week.

In China, Jingdong also announced the launch of the cooperation plan last month with fashion media "fashion gentleman Esquire". It hopes to release a style guide for the Chinese male interest circles, and cooperate with the fashion bazaar wardrobe in the recent and fashion bazaar style wardrobe, so as to provide consumers with fashion information and consumer guidance by using big data.

In short, Jingdong

The territory has gradually become clearer.

Although Hu Shengli said frankly, Jingdong still has a long way to go, but there is no doubt that the names of local businesses including Jingdong are increasingly appearing in fashion industry activities.