What Kind Of Business Mode Is Hai Lan'S Home?

In April 1, 2019, Hai Lan's family released its annual financial report in 2018.

According to the financial report, Hai Lan's home revenue reached 19 billion 90 million yuan a year, an increase of 4.89% over the previous year and a net profit of 3 billion 455 million yuan, an increase of 3.78% over the previous year.

Hai Lan's home is huge.

According to data released by Hai Lan home, 881 stores were added in 2018, with a total number of stores totaling 6673.

Offline store sales account for 93.86% of total revenue, that is, the brand of Hai Lan's home is sold by stores.

According to the international men's wear market report, Hai Lan's home occupies 4.6% of the market share of Chinese men's clothing and occupies the market share for the first 5 consecutive years.

Solving men's pain, buying clothes is not trouble.

In fact, the impression of Hai Lan's home to the overwhelming majority of consumers is an advertisement "Hai Lan's home, a man's Wardrobe".

The clever thing about this advertisement is that it actually solves the pain point that men buy clothes, that is, "be afraid of trouble."

Men are different from women in shopping. Women buy clothes and enjoy the process of trying and choosing.

And men buy clothes more pursues the result, as soon as it looks right, it will immediately buy, it will not waste time in the selection.

More directly, men buy clothes for fear of trouble.

However, this trouble sensitive personality is more suitable for the straight man's character. Therefore, Hai Lan's home was once labeled as "old man clothing".

In order to get rid of the inherent concept of consumers, Hai Lan's home was forced to embark on the road of pformation.

Because label is forced to pform.

Aesthetically speaking, Hai Lan's house separates man's personality from charisma. It includes not only the business style of successful men, but also the design of young, fashionable, red and ordinary.

The style is more youthful, and the fashion style is promoted every year.

In 2016, Hai Lan's home launched a series of designers, and in 2017 launched the popular cotton and linen style.

On the endorsement, Hai Lan's home has also broken away from its past commercial male advertisement and chose younger movie stars as product endorsements.

Since 2017, Lin was updated as a product endorsement, sponsoring variety shows that young people like, and working with competition.

These are all showing the young vigor of Hai Lan's home.

Hai Lan home's advertising input cost reached 627 million yuan in 2018, accounting for 34.86% of revenue.

The proportion of clothing industry is quite high, almost 5 to 10 times that of men's clothing.

Hai Lan's R & D investment accounts for only 0.26% of revenue.

Why is Hai Lan's home invested so low in the product itself?

Because the operation mode of Hai Lan's home is different, it is called light assets operation.

The production of all garments of Hai Lan home is outsourced to the factory, that is to say, it does not make its own clothes.

The advantage of this model is that there is no risk in itself, and all risks are passed on to garment producers.

Hai Lan's family devoted all their energy to design, operation and store expansion.

In other words, the designers of Hai Lan House visited the world once again and painted the layout design for the clothing factory.

Hai Lan's home only gives 30% orders. If it sells well, it will continue to mass production. If it is not ready to sell, it will be returned to the factory.

No production, only cooperation, quality and style win win.

Hai Lan's home never makes clothes. It's just a porter in the clothing industry.

Because all risks are passed on to suppliers, Hai Lan's home has good liquidity.

Moreover, in terms of quality, manufacturers also have to raise their own requirements, because Hai Lan's home is unmarketable and returns more, which is damaging itself.

Therefore, in terms of quality, Hai Lan's home does not need to be controlled at all.

Manufacturers to control quality, Hai Lan's home to control style, the two combine to achieve win-win situation.

Online layout full channel retail

In order to continue to seize the market share, Hai Lan's family is not only satisfied with the offline market, but also has an online sales channel.

Among them, 3500 stores have entered the whole channel online retail system.

Not only the layout of Tmall, Jingdong, but also on-line small programs, the United States, as long as you want to wear, minutes to deliver to you.

According to online statistics, the total number of retail members of the whole channel registered 13 million 840 thousand, an increase of 28% over the previous year.

In 2018, Hai Lan's home also reached a strategic cooperation with Tencent. Tencent bought 5.3% of Hai Lan's home for 2 billion 500 million yuan.

Hai Lan's home has also gained huge traffic resources from WeChat, so the online layout of Hai Lan's home has been completely covered.

Inventory needs to be resolved.

Although Hai Lan's home has made a comprehensive layout, the mode has shifted the risk to the supplier.

But because of the large number of stores and the number of warehouses needed on the line, the stock of the home of the sea has reached more than 9 billion 400 million yuan, which has increased by 10% over the previous year.

The home of Hai Lan has been constantly arranged, and it is closer to the new group of consumers. This kind of inventory should be solved as soon as possible.

What do you think of the management mode of Hai Lan's home and its earnings?