Yintai CEO Daniel Chan Reports On New Retail Pformation Results After Joining Ali

Annual cloud habitat conference is a grand gathering of the Internet circle, but last year, there appeared an "outsider", a department store.

Participate in the Internet technology festival.

This is the first time.

In last year's cloud habitat conference, intime first reported to the outside world the new retail pformation results after joining Ali.

In May 2017, Yintai business was delisted from the Hongkong stock exchange to complete privatization.

Privatization is regarded as an important node of Yintai's new retail Transformation Road, and the lack of "shackles to investors" is bound to be more positive and bold on the road of "old city pformation".

According to the world clothing shoes and hat network, as of last September, Yintai department store sales increased by 18%, the highest increase in 10 years, and before this, Yintai was once in negative growth.

At the same time

CEO Hu Xiaoming revealed that the new business of intime department store has been running in Ali cloud. In his view, intime has become an "Internet based department store".

New retail is CEO project.

The building near the Wulin store in Hangzhou is located in the office of Yintai department store. At noon, there is much lunch break. Most of the employees are still busy at work stations. The dense positions are all young faces. This is not the same as the traditional department store industry imagined by reporters. This team and working rhythm are more like a Internet Co.

Shuttling in the big and small meetings is the daily routine of CEO Daniel Chan, the intime business group. After entering the Ali system in Yintai, Daniel Chan not only had the title of Huang Lao Xie and the vice president of Alibaba group, but also entered the rhythm of "711".

Daniel Chan hardly ever left the office before 9 or 10 o'clock, and for a long time, he had set his bed in his office.

In the stage of innovation and pformation, high-speed operation is unavoidable, and physical retailing is too small and workload doubled.

But what pleased him recently was that his office finally pulled out the bed and restored the conference room.

When reporters saw Daniel Chan, he just finished a meeting and hurriedly ate a lunch box, which was different from that of many companies that had taken the main direction. CEO was so small that Daniel Chan would take part in the product.

"We heard that Lao Wang recruited new retail vice president, and we all laughed after hearing it.

New retail is a top priority project. Too many retailers are looking for a VP who understands the electricity business of the Internet. How can vice president plate with CEO, who doesn't know the Internet, and do not work with small partners? "

In an "Internet technology department store" and "Internet based department store", Yintai chose the latter.

If the former is to use technology as a tool to assist the development of main business, the latter will take technology as the underlying logic of the company and then build business.

Today, intime department stores have basically built all the store businesses on the cloud. According to Daniel Chan, the fluctuation of the network will have an impact on the normal operation of the business.

What the outside world sees is the special shop navigation shop, the interactive large screen goods selection, and the "new retail standard" for payment of the brush face payment and the electronic Mini ticket. What is invisible is the digitalization of the members, goods and scenes of Yintai department store.

In Yintai department store, when entering stores, shopping shops, walking into counters, going up and down, or even leaving the scene, customers are identifiable, guiding customers' decisions through the consumption trajectories, moving lines and thermodynamic charts produced by customers, and the ultimate goal is to achieve accurate matching between people and goods and enhance efficiency.

If we regard the Internet as a tool, we should use it; if we regard the Internet as the essence, we should build it in this essence.

In Daniel Chan's view, these two different ideas are not absolute good or bad, only the choice is different, and Yintai chooses the latter logic. "I think the Internet is the foundation of completely changing the original business ecology, and its foundation has changed. If you only regard it as a tool, it may not be enough in some respects."

In a few months ago, the double eleven, Hangzhou Wulin Yintai main store hit a record high of 250 million over the same day, with an average daily delivery volume of over 3000, which is completely beyond the support of Internet technology in the past.

"Without the infrastructure of the Internet, or the bottom of the technology, it would be impossible for us to rely on the traditional way of doing business.

It takes 290 traditional department stores to get all that money from busy early to late.

No rookie electronic surface list, so many express delivery is also unable to deliver.

Everything starts with "digitalization".

As the largest department store chain in Zhejiang, we can see the novelty and thinking of Zhejiang merchants in Yintai.

In 2010, Yintai department store on Yintai network should be considered as the first batch of physical retailers on the water line in China.

However, self built

The road is not easy to go. At that time, many retail entities were still thinking of "shop No. 0". That is to set up a virtual store in the air outside the physical store, which is essentially a store in the original store.

The fact also proves that if the self built electricity supplier just wants to rebuild a Taobao or Jingdong, there is no chance.

Physical retailers have also failed to prove that one way to use others' way is to never surpass others.

In fact, the fundamental problem facing physical retailing is not the lack of such a traffic channel.

In the past, relying on stores for physical retailing, it was mainly through the logic of "passing through and passing away" to achieve a paction, and the conclusion of a paction meant that the connection with the customer came to an end.

At the same time, opening up several shopping malls under a saturated market environment has made competition more and more intense.

The limitation of radiant radius based on LBS is a headache for retail sales in the past. But in Daniel Chan's view, this problem is not impossible to break through, because there are still many consumer demands around the stores, which are not fully released.

In a seemingly oversupply market environment, there is still a large supply imbalance, that is, the inefficient matching of goods and goods.

At present, there are still many commodities and brands that can not be fully recognized by people. There is still much room for consumption from the current consumption to the actual consumption power. This is the opportunity that Yintai sees.

If you want to match people and goods, you need to digitize the two, so there are only two problems in front of all retail entities. Do you want to digitalization and digitalization or not?

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On this issue, the answer of Yintai is, it is necessary to do a thorough digitization of the people's freight yard.

The first step for digitalization is to digitize existing members. The second step is to digitize potential members, which is the core reason for Yintai's choice of Alibaba.

For the value of digitalization, Yintai sees clearly that digitalization is the premise of networking, and networking is the premise of intellectualization.

"You may wonder if potential members are not digitalized, but it depends on who they work with, whether you are Alibaba or other big platforms. These two questions must be answered. No one can avoid it. Any shopping mall is the same. If you want to digitalization, you have to cooperate with the Internet platform."

Daniel Chan described this year's choice of Ali's mental journey.

From the construction of a rookie network with ALI, to Ali shares, and then privatization become a piece of Ali eight column.

"Acquisition is a kind of responsibility, and we need to get through blood to produce chemical reactions."

Ali CEO Zhang Yong has explained Ali's acquisition strategy in this way. In Ali's view, it is a necessary prerequisite to completely reform the retail industry, including data and team integration.

For reasons of privatization, Daniel Chan's answer is similar to that of Zhang Yong. After equity relations, the speed of integration will speed up, and cooperation will go deeper.

Return to sale.

Before joining Ali, Yintai, like many retail entities, tried a series of "self rescue".

As early as 2011, Yintai realized that there was a problem in the whole department store industry. Before and after that year, the news of takeover and acquisition continued.

From 2011, the same store sales data of department stores showed a declining trend, and Yintai did not escape.

In 2012, the same store sales growth rate of Yintai dropped to 9.1% from 23.1% in the previous year, and negative growth occurred in 2014.

The whole industry is still in the winter. The report from "Lian Shang net" shows that in 2017, 55 well-known department stores in key cities nationwide were shut down.

For 6 consecutive years, the Japanese department store has been losing, the Hong Kong and Taiwan departments are fading away, and the state department stores are declining.

The situation of foreign department stores is also not optimistic. Data show that in recent years, the United States has closed more than 800 department stores, and the Ping efficiency has dropped by 24% compared with 10 years ago.

For the current situation of the industry, Daniel Chan once predicted that in the traditional department store logic, the recession is not cyclical, but permanent.

In the era of consumer sovereignty, department stores that do not change their minds will no longer enter the "round table".

On the other hand, the shopping mall is crowded with people in the shopping mall, but there is once a shopping mall that will replace the pessimistic voice of department stores.

Before and after 2012, intime department store also significantly accelerated the expansion of shopping centers, and began to gradually remove the "department store", which belongs to the 80 and 90s old names.

In 2013, it changed from "Yintai department store" to "Yintai business". It was a landmark event. In the month before Yintai was renamed, Suning also changed its name to Su Ningyun business in a high-profile way. The two renamed events were regarded as two banner of entity retail to rise and save themselves in that year.

But interestingly, in early 2018, Suning changed its name again from "Su Ningyun business" to "suning.com", and Yintai shopping center "Yintai city" also began to quietly rename "Yintai department store".

The reason for changing the name is Suning's reason: the company is engaged in retail business, the name "suning.com" can highlight the retail itself, and Yintai has the same reason, that is, return to retail.

Daniel Chan has had an interesting saying before: "traditional enterprises have no" type ", what type do you turn to?

In his view, many retail businesses in the past used the thinking of real estate to do retail, neither receiving nor touching goods, deviating from the nature of retail, and gradually exposed problems under the slowdown of growth.

In others' way, they will never surpass others. This is another insight of Yintai in the past few years.

"The department store business is bad, then everybody starts to change.

Why is shopping center so good? People have good sharing space, so we knock down our own floor and make a middle hall.

Then we say that people have good food and beverage flow, we also get a restaurant, this is Motomai Ki. "

For shopping centers instead of department stores, Daniel Chan does not agree. He believes that between department stores and shopping centers, it is not the intergenerational relationship between BB and mobile phones, but rather the two commercial forms of serving consumers in different ways.

In the future, the department stores are not shopping centers, or department stores are shopping malls. They make department stores make more department stores, and shopping centers do more shopping centers.

So, intime department store is upgrading instead of pformation.

The decline in passenger volume is not a cause, but a result. Behind the decline is the wrong way of offering goods to consumers, the different prices on line and the various kinds of inconveniences, which is related to the digital upgrading of people's freight yard.

In the digitalization of "field", Yintai attempts to migrate the behavior of consumers in the field to APP, and realize the operation of shopping malls, membership operations and global sales on APP.

For example, all marketing information in the mall can reach customers through online mobile APP. Customers can also use APP to find parking spaces, ask questions, save electronic tickets, open electronic invoices and parking tickets.

In addition, Yintai has upgraded some non effective areas to enhance user experience, such as the smart mother and baby room on sofa, baby bed, water heater and vending machine.

In addition to upgrading experience, matching people and goods is also important. If you want to be a good retailer, you can no longer stack up huge amounts of goods in front of consumers like they used to, but match the right products to the right consumers, which not only moves people and goods to the line, but also changes the entire supply chain.

In the past, the department store industry basically made a living by collecting rents, not touching goods or receiving customers. As time passed, they lost the ability to operate commodities and customers, and became more and more unable to keep up with the changes in consumption. The other side was becoming weaker and weaker in the brand business, which brought the department store industry to an increasingly difficult situation.

At the same time, the high cost of the channel and the low efficiency of the supply chain are the common problems in the offline retail industry. From the brand dealers to wholesalers to the agents at all levels, the long chain has greatly increased the cost of commodity circulation and directly caused the price below the line to be higher than that of the online market.

In order to solve the problem that the line is more expensive than the line, Yintai started the trial line 3 years ago and shared the same price at the same time. When consumers find the price of goods under the line is high, they can claim the difference by screenshots.

But this method of self payment is no longer a permanent solution. Only by changing the game relationship between shopping malls and branding can radically change the price and the digitalization of goods.

In August last year, Yintai launched the first paid membership system in China's department store, trying to change the zero sum relationship with suppliers, that is, to give or receive less rents to suppliers in exchange for giving profits to consumers, somewhat similar to the Costco mode.

But Daniel Chan also admitted that this attempt is indeed very subversive at the moment, and whether we can go through it is not known yet, but changing the original supplier relationship is the inevitable direction. "We now advocate the relationship between two party B, that is, I and the suppliers are all Party B, who work together to serve the consumers, so the efficiency will be raised."

The optimization of the supply chain is endless. There is no end to improving the level of agents, changing the settlement mode with suppliers, and getting through with the supplier logistics system. There are still a lot of tedious pformation work to be done.

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