Aiming At "Z Generation", How Do The Young Birds Of Peace Keep The Peace?

After several years of "closing shop tide", with the clearance of industry inventory, it has finally started to rebound from last year.

But looking back, the pattern of the industry is quite different. Some brands have lost their team and have failed to keep up with them.

The Taiping bird is one of the brands that keep up with the team. This brand has thrown off the original consumer group and aimed at the "Z generation" young people. It is one of the few domestic brands that dare to reposition.

As the first clothing brand to be born in China, 23 years old.

After a generation of growth, it seems that the prime of life is actually facing the "midlife crisis". How can we rebuild our brand image when we embrace the young people?

Several pformation of older brands

In 1989, Zhang Jiangping and Zhang Jiangbo brothers founded.

Today

Predecessor.

At present, Taiping bird group takes the creativity, design and marketing of clothing brand as the core of the industry, diversifying the business of automobile, supply chain, investment and so on. In 2017, the group had over 12000 employees, realizing the operating income of 25 billion 800 million yuan, ranking the top 10 of the national garment enterprises.

The main character of this article is the bird of peace clothing (hereinafter referred to as the Taiping bird), which was founded in 1996. It only made men's clothing at the very beginning. At that time, most of the clothing enterprises focused on business costumes and formal costumes, such as YOUNGOR, Shanshan and Luo Meng.

Zhang Jiangping seeks differentiation, and puts the Taiping bird in the middle class casual men's clothing, which has made a good start for the brand.

Over the past more than 20 years, the old brand has also undergone many changes.

The first is to pform virtual operation from traditional heavy asset management.

To put it simply, the virtual business mode is "putting the two ends together, grasping the middle", with brand, design and marketing as the main business, upstream manufacturing outsourcing, stripping the manufacturing business that requires a large amount of capital and labor input, and downstream franchise chain, and quickly spreading the outlets.

Since Nike has introduced virtual operation into the country, it has been emulating by garment enterprises. Metersbonwe is the rise of a generation of Chinese goods.

Ningbo garment manufacturing industry started earlier, coincided with the 97 financial crisis at that time. Many factories were idle, and many local brands were used up.

Similarly, the diversification of production capacity brought by manufacturing outsourcing also lays the foundation for the development of women's clothing and fashion lines.

The Taiping bird dress was founded in 2001. Ningbo was not yet there.

Soil, but at that time, the channel was king, relying on the advantages of men's clothing channels, the women's clothing extended by the same name brand also slowly gained a foothold.

The dividend of the era has made a number of domestic clothing brands bigger and bigger. Similarly, after the rise of international brands and the development of electric business, Taiping bird brand has begun to age, stores have adjusted, cleaned up stocks, become regular customers of vip.com, and the Taiping birds do not fall.

After adjustment, Taiping bird returned to its vigor and pformed into a fast fashion.

Finally, in January 2017, Taiping bird went public and became one of the brands that broke through the stock crisis earlier.

Take a brief look at the development of Pacific bird in recent years.

As shown above, after 2013, Taiping bird's revenue grew steadily, and gross margins and net interest rates remained stable.

At present, Taiping bird market is worth about 9 billion 200 million yuan. It is listed as the top three of casual wear in the domestic market, together with Hai Lan home and Semir.

From the original men's clothing to women's clothing and children's clothing, and now the main force of the younger generation, the "older" Pacific bird has changed smoothly several times, reflecting the company's ability to respond to the market and brand management.

How to rebuild the old brand?

Many clothing retailers have realized that the impact of e-commerce and the entry of international brands are on the one hand. The biggest challenge they face is not from the electricity supplier, but from various social media channels such as the new era, breaking the information asymmetry, so that consumers can see the new fashion styles more quickly than ever before.

Although Taiping bird has claimed to learn Zara to do fast fashion since 08 years ago, it was not until 2015 that the voice of Taiping bird came up.

Hold music festivals, update brand images, take frequent participation in various international fashion fairs, hold brand fashion conferences, and constantly convey brand and merchandise messages.

What is more obvious is that since 2015, Taiping bird has launched a joint product. Its cooperation with PepsiCo, Coca-Cola, playboy, dragon ball and other IP has been very good.

"Nowadays, the breadth of information obtained by consumers is very large, and the speed of iteration is very fast. Therefore, consumers' concerns are scattered and interest points are relatively crossed.

So in this case, we will actively try to interact with the information points associated with some customers.

Taiping bird CEO Chen Hongzhao said to tiger sniffing, who to join, and what products to do, as long as consumers feel the same feelings for your partners.

The phenomenon of homogenization is also very prominent in the mid-range casual wear market of Taiping bird positioning. Joint name is a convenient way to borrow. Through joint name, brand can inject more fashionable new elements, enhance brand image and attention, and also break the homogenization and create a sense of scarcity.

Chen Hongzhao told tiger sniffing that you should add content to the brand constantly, so that you can increase your added value and consumer's liking.

Manufacturing differentiation also gives consumers a reason to choose more.

In the earnings report, Taiping bird mentioned the new media and content marketing in the left. Chen Hongzhao said that the brand of Taiping bird was more cautious, because the cost would be attached to consumers. "Now the direction is all in to 90 and 95, what the young people will look at."

This year, Taiping bird launched its brand cartoon image, which marked the beginning of "IP". Chen Hongzhao said, "just like Nike, it will always become a brand that a young man wants to have in his mind, because it always stands on a young stand."

We are also very firm to see this. "

What supports the high margin?

As mentioned above, the gross profit margin of Taiping bird is maintained at 50%, and the gross profit rate in the industry is relatively high.

Hai Lan's home is the largest clothing company with A market value at present. Its market value is about 42 billion 800 million yuan, and Jiangnan Buyi is the leading designer brand group in China. Its market value is about HK $6 billion 700 million.

The gross profit margin of over 60% of Jiangnan Buyi is in the front line of the industry. From the chart, we can see that the gross profit margin of Taiping bird is about 53%, while Haolan's home is lower, about 40%.

Though the gross profit of Taiping bird is higher than that of Hai Lan, it does not mean that money is much more. The net interest rate of Hai Lan's family is almost three times that of Taiping.

However, the gross profit margin is consistent with the market positioning of the three brands. The more popular the brand positioning is, the larger the market scale is, the smaller the vice versa, but scarcity and fashion degree bring a higher brand premium.

From the comparison of three brand data, we can see two industry phenomena:

The design will make products more alienated, relatively scarce, bring higher premium, and the consumer market will also be small. Therefore, many brands need to be used to cover the market.

The higher the gross profit margin and the larger the gross profit margin, the higher the gross profit margin will be.

Making faster and more fashionable designs and doing more direct stores are also one of the directions that many players in this industry are doing, or they are learning from Zara, though they have been talking for many years.

It seems that the best of the three is Harean's home, whose basic brand does not have obvious brand positioning, and has a wider audience. However, it also faces the competition of homogenized products. Before the tiger sniffed article, whether the consumer demotion would induce "downgrade" brand?

Basic funds are like "waiting for a rabbit". Inventory risks are low, but they rely heavily on channels. Tiger sniffing articles have talked about Hai Lan's home mode, and leverage investors' money to add leverage to their own, which is more similar to channel brands. But now Taobao Jingdong and other e-commerce platforms have begun to make their own channel brands. After two or three years, the "basic fund" market may be a new sight.

Returning to Taiping bird, as with many garment enterprises, Taiping bird is also introducing subdivision brands to achieve more accurate customer positioning and product publicity to expand market share.

Taobao apparel leader has said to tiger sniffing that Taobao is more and more acceptable to consumers at the expense end of personalized and niche products, and the differentiation of businesses has not started enough. This is also a portrayal of the whole consumer market. With the increasingly personalized and differentiated consumption concept of young consumers, the market will inevitably be further subdivided.

At present, the core brand of Taiping bird is PEACEBIRD (men's wear and women's wear), and its growth and profitability are better. New brand Lok ting (women's wear) and Mini Peace (children's wear) are growing rapidly in the development stage; cultivating brand MATERIALGIRL (women's wear), Betty sweet (children's wear) and Taiping bird nest (home) are positioning the market with great potential.

It seems that there are many brands of Taiping, but Inditex and H&M have more brands, which can meet the needs of consumers by brand characteristics.

As mentioned earlier, the more distinctive the brand is, the smaller the market is.

Of course, only the brand is useless, and there must be a corresponding product design team. Chen Hongzhao said that the brand of Taiping's brand has a total of about 500 product development teams.

But to tell the truth, fast fashion is more like "quick reference", just like the "three percent principles" of Virgil Abloh: it only needs to modify three percent to make something look familiar and fresh.

The key of these 500 people should be to follow the market quickly and accurately and make things that are characteristic of Pacific bird.

We are at the gate shop.

Stores are naturally a good place to run. Although the cost of staff salaries, rental fees, decoration fees and other shop costs will increase, the gross profit margins of Direct stores will be higher. It will also help brands to see the real needs and changes of consumers.

Street stores and department stores were the main selling channels for the apparel industry.

However, the shopping center has sprung up, which integrates many functions such as shopping, catering, culture, entertainment and so on. It can provide one-stop service for consumers, and has developed rapidly in recent years.

The sale of Taiping bird is also obviously tilted to the shopping center. Now it is close to the revenue contribution of department stores. In the past two years, Taiping bird has been working with Yintai, Wanda, Parkson and suning.com to continue its efforts in shopping mall channels.

What is the effect of learning Zara?

But the above brand, design and store and other things are more external, like Chen Hongzhao said, "in fact, all Chinese enterprises are learning Zara early", everyone is changing, bigger barriers in the supply chain behind.

Since 2017, the Pacific bird pformation supply chain has introduced the TOC management mode, which is simply to formulate production plans according to the sales situation, and integrate company data analysis, production quick response, warehousing and logistics, terminal retail capabilities, so as to realize the deep selling of the best seller products and the optimization of the stock sales.

Chen Hongzhao didn't reveal much about TOC mode, but told tiger sniffer that the whole market supply chain foundation was good. Taiping bird brand has been trying it, so it is quite quick to turn around.

Reduce the "commercial pollution" of inventory, stabilize the retail turnover rate of products and seize the opportunity of selling money. In the future, Chinese enterprises will have a unique supply chain system, and the speed will not be lost to Zara.

Although the Taiping bird has 500 design teams, Chen Hongzhao says their principle is "not to judge people."

Starting from two or three years ago, Taiping bird began to do trial marketing, that is to say, before the market needs to be pushed to a large area, the market will be launched in small quantities in advance 2~3 weeks, and it is said that about 80% of Taiping birds will make trial marketing.

Through trial marketing, the products are classified into category A, B and C.

"Trial sale is to quickly identify which explosions, and then the back-end departments to make quick preparations. If the life cycle of an explosive product is three months, when the 3~4 week's goods sold by itself are sold out, its life cycle is still 5~6 weeks, we will be able to respond to him.

Class a products enhance our sales performance.

B products are sold in some stores, and some stores are not sold well. Fast turnover can also boost your sales, because there are regional differences, and there will be differences in sales between stores and stores.

For C category of unsalable goods, no longer replenishment, quick processing.

If these three strategies are carried on, the sales rate will be greatly improved.

Chen Hongzhao said.

In short, the key to the TOC system is to focus on the best selling products, and sell as many products as possible.

Beginning in autumn and winter of 2017, Taiping bird first introduced TOC management mode from men's wear brand to 2018, and promoted it to the whole brand.

However, the TOC model has not shown any significant results.

In the first half of this year, except for the men's wear that had been tried out in TOC mode and the Lok Ting women's clothing that was being withdrawn from the store, the gross profit of other brands had declined year-on-year, which should be related to inventory handling.

Now Taiping bird has launched tens of thousands of colors every year, has a large long tail, and fast fashion products are difficult to deal with in the past quarter, and the price range of inventory is even bigger. H&M, which is deeply involved in inventory crisis, is a typical case.

Although we are looking forward to the innovation of manufacturing industry, we still have a question mark on the supply chain of Taiping bird.