In The Next Three Years, GXG Will Buy The Brand Of Women'S Clothing In China.

O2O mode has become the past. GXG group is entering the new retail gateway through the integration framework and Alibaba alliances.

GXG group was founded in 2007 by its parent company, zhe Mu Shang, Ningbo. Since its entry into Shanghai, Beijing, Wuhan, Tianjin, Nanjing and other tier cities in 2009, it has more than 2100 stores and nearly 4000 employees in China, and owns three brands including GXG, gxg.jeans and gxg.kids.

GXG group has opened the market in the field of men's wear by virtue of the unique electricity supplier route. It has five of the top eleven men's clothing sales annually, which not only brought more than ten billion revenue, but also attracted the attention of investors.

It is understood that in 2013, Semir group and GXG group's parent company zhe Mu Shang was approached for the acquisition, and planned to buy 71% of China zhe Mu at a price of 1 billion 980 million to 2 billion 260 million yuan, but the two sides finally did not reach a paction due to price differences.

In 2016, GXG group's parent company finally got the LCattertonAsia investment from the well-known luxury group LVHM's private equity fund.

Although LCattertonAsia has not been directly involved in the management level, it has brought more resources for fashion and channel.

In June 2017, LCattertonAsia's sports brand 2XU was brought to China by GXG group.

After being recognized by the capital market, GXG group also opened its IPO market.

In September 3, 2018, the parent company of GXG group submitted a listing application document to the HKEx to be listed in Hong Kong in the near future.

In China, GXG group's main competitors include Taiping bird menswear and CABBEEN menswear. The latter two have been listed in A shares and Hongkong respectively.

However, with the bonus of the electricity supplier reaching its peak, GXG group and other retailers are looking for a new way out.

GXG has publicly stated that the integration of online and offline channels has become a past tense, and the integration of internal structure is the real factor that determines a company's new retail pformation.

The electricity supplier will no longer be a department's existence, but will become a universal tool. The online and offline teams will merge and return to the essence of retailing.

At present, the essence of GXG group is new retail.

After formally entering the new retail track, it also found its ally, Ali.

Before the GXG group's many new retail layouts, Tmall appeared.

In recent years, the GXG group has used Tmall's new retail system in more than 30 stores nationwide, bringing 5%-10%'s same store sales up year-on-year for its offline stores.

In November 2018, GXG group's first new retail experience shop with Tmall was officially opened in Wanda, Jianye, Nanjing.

Wu Lei, vice president of GXG group, said frankly that Tencent and Alibaba have the same strength in infrastructure and infrastructure.

But Ali's commercial gene is more powerful, Tencent's technology gene is stronger, Tencent is selling more money through this data, Ali is to turn more brand lines up, and finally grasp the whole business link.

Choosing Ali as the most important ally on the new retail Road, GXG group is based on its own reality: "we want to cooperate with Alibaba to make public domain traffic and to tap into customers.

Incubating more brands. "

Wu Lei told reporters that he also said that this is the most important reason why most brands choose to cooperate with ALI.

Before cooperation with ALI, GXG group mainly through private sector traffic, that is, the 10 million member sales in the platform.

But GXG soon discovered that the width of men's clothing is not enough. It needs to widen the width of the brand's entire customer flow with new categories such as women's clothing.

After working with Ali to get a wider flow, Wu Lei revealed that GXG Group intends to hatch more brand names, not just men's clothing: "I hope you can tell me that after the private flow has been thrown to you, this customer will buy your children's clothes besides buying your men's clothes, he has two houses, and he can buy your home clothes in the future, so he is your potential customer.

With the application of these data, GXG can also become a small ecosystem, so that we can hatch our women's clothing, tide Mens, children's wear, home clothes and so on.

Wu Lei revealed that in the next three years, GXG will buy the brand of women's clothing in China.

Together with ALI, "playing" new retail business has brought more possibilities for the future of GXG group, but before finding this matching ally, GXG group has gone through many detours.

Before the Alibaba formally proposed new retail, GXG group has begun to think about how to integrate different channels on line.

As early as 2014, GXG group began to try O2O. Today, the group has shipped more than 300 million yuan in O2O business, accounting for 20% of total GMV.

Although the effect of O2O is obvious, Wu Lei gradually discovered in the process of O2O pformation that O2O is not very high in technology content. It only carries a cargo pass problem, which can not rise to the digitalization, efficiency and new retail scope of the whole system.

Realizing that O2O is actually only one part of the new retail business, GXG group is trying to build a cloud storehouse to realize the pfer of goods between stores and stores.

But Wu Lei doubted whether Yun Cang is suitable for the clothing industry.

In Wu Lei's view, the mode of cloud storage and GXG is not matched.

He thinks this mismatch is reflected in two aspects: first, first physical stores are different from the online store, so what are the products to do? Second, the online flagship store wired all the goods, consumers only need to go to the online flagship store to buy, why do we have to open so many stores to see it once again? Wu Lei mentioned that GXG is thinking about whether there is an updated mechanism to do it, rather than through cloud storage mode.

In these not successful attempts, GXG group gradually realized: O2O and cloud warehouse are only one of the small links, and the new retail pformation is systematic.

At the end of production, it is not just a matter of setting up a warehouse, but also needs to pform the deeper and heavier links of factories and other supply chains.

Enter the factory side, through the technical pformation plant, so that all the production capacity is fully technical and pparent, through the C end to drive the pformation of productivity.

Wu Lei judged that there will be C2F model factory in the future: "Alibaba is already doing this."

Before that, one thing that domestic brands often do is OEM.

He takes a brand as an example. The brand is sent to the factory to make OEM and sell it to the dealer after buying the version in South Korea, and the dealer increases the price of 5 to 10 times to sell to the consumer.

In this mode, the brand will carry out the business of these OEM products by offering various subsidiary companies, and the cost of the operation of the company will also be greatly improved after the establishment of a large number of subsidiaries.

And in different channels, we need to earn some profits, so this means that consumers have to bear higher costs.

Wu Lei believes that whoever solves this problem will stand at the forefront of China's industrial chain and solve the problem from the front end of the industrial chain to the consumer side: "otherwise, you are very tired today. Today, if you make a Tmall as a Taobao, you will still be held up by a brand dealer. Who will manage you today?"

After confirming the pformation route, GXG group is facing new difficulties: how to solve the problem of benefit sharing in the process of new retail pformation.

The insight into this problem mainly comes from the consideration of consumers' needs and cognition.

Wu Lei feels that nowadays when consumers are in touch with a brand, they do not care whether the sales channel of the company is online or offline, but they are regarded as GXG brand.

Consumers often consider the question: I bought a piece of clothing, can I buy it online and return it?

For the brand, this problem is actually how to achieve the same price under the online and offline.

Using new retail technology to talk about is to open up channels and digitally upgrade.

But behind this technique, there is actually a game between various stakeholders.

Wu Lei believes that "how to share benefits" is a big problem for brands to do new retail.

Offline channels not only have agents, but also various channels of management, and marketing, shooting and other work are not in the same channel.

Therefore, Wu Lei believes that when considering the new retail system, it is necessary to clarify the internal system and make clear the internal organizational structure: "when I was working with ALI, I said I would not do that with you.

The so-called behavior art is that China has a lot of brands to make a regional store, and then to tell you what new store it is, and then I tell you that I am new retail. I think this is a problem.

Therefore, in Wu Lei's view, the core of setting up a new retail line experience shop is that GXG group is trying to open a new link.

For example, smart fitting, cloud storage, such as paying the bill, then do related sales, the introduction of Tmall data, some game interaction to generate interest promotion and so on.

After we have completed the work, we can gradually implement the accurate expression of effectiveness, the self mentioning of stores, the random return of all channels, the planning of commodities, the flexible supply chain and so on.

The new retail experience store opened in Nanjing is an experimental field. In the future, GXG group will try new store technology and mode in such stores. Once it is successful, it will be copied to the existing offline stores.

The brand's second new retail experiential shops have also been identified for location in Chengdu.

Based on the above considerations, GXG finally identified the strategic layout of new retail:

The first step is to create a backstage store for business staff to digitize goods and stores, such as the layout of the sky eye system, and label RFID for all goods.

In Wu Lei's words, "move the backstage of Tmall and Taobao to GXG stores."

The second step, organizational structure integration, in addition to the channel operators to divide the sales and management of the channel into two teams, all groups of groups will be integrated into a team, including brand marketing, CIM, information technology center and even the HR department.

The third step is to launch the new retail experience store and try different information flows to get through the retail link.

According to Wu Lei, the GXG group's new retail business has just gone to the stage of "quickly completing the infrastructure construction of hydropower and coal."

Many industry insiders told reporters that at present, the cost of doing new retail is very high. If the brand wants to do this thing, it needs sufficient cash flow to support it. GXG group is nothing more than that.

Wu Lei also revealed that one of the important layout of the group after listing is to spare no effort to invest in new retail, and most of the capital raising will also be put into this business.

In addition, GXG group will also set aside funds for brand integration acquisition and incubation, such as children's wear and women's wear.

11 years after its establishment, GXG group has been called "the most profitable menswear brand in China" by virtue of its unique electricity supplier business. However, when it comes to the retail industry pformation node, the business line is not enough. The GXG group also needs to adjust its strategy to embrace the new retail business to maintain its leading position.