Han Du Yi She: From Internet Enterprises To Intelligent Industry Platforms

It started in the Korean brand clothing house of the Amoy brand, from a few person team to more than 2000 people, from the annual sales volume 200 thousand to 2 billion, took 10 years.

The new 20 thousand models of Han Du Yi house all year round can be compared with the new ZARA of the fast fashion leadership brand, which is 18000 new items per year. Compared with the annual average new quantity of the brand under the traditional line, the new quantity does not exceed 3000. At the same time, because the responsiveness, stability and quality of the supply chain are relatively stable, the average selling rate is 95% (the average level of the industry is 50%).

Far from it, this is the rise of an Internet clothing brand. In the near future, this is a new internal strength - a single product whole operation system centered on "group system".

The introduction of the "group system" has been very extensive on the Internet. Readers who are interested in the detailed understanding please poke here (link 1, link 2).

A simple introduction from the first angle of the small group system is that in the three person group, I have to choose a part of the three parts of the selection process, page production and goods management. All the actions I take are responsible for the other 2 teammates, because the performance bonus of our three people is directly linked to the group income.

In addition to the three roles, service departments include marketing centers, production centers, planning centers, customer service centers, etc., to provide full support for the group; the group can call the resources of these centres for their own use.

It's like the decision of the US special forces to make decisions at the front of the battlefield, and support the satellites at the top of the head and the rear aircraft missiles.

The organizational form of Han Du Yi she can probably be understood in this way, which is the same as the essence of "small front desk" and "big middle stage" proposed by Alibaba.

The emphasis of this article is not simply to introduce the organizational form of Han Du Yi she, but to explore the way of change from yesterday to today, from today to tomorrow. There are two parts: self evolution consciousness and intelligent industrial platform.

Yesterday to today: a prudent sense of self evolution

In April 2018, Han Du she set up a research group on "group system", and the group leader, Dai Wei Zhao, came from the management consulting industry.

In fact, 10 years after the establishment of the brand, they began to systematically examine their organizational patterns and development methods.

Unlike many of the third party analysis cases in the market for the simple attitude of the group system, the ROK research group frankly stated that anything is neither perfect nor fixed.

Although the "group system" is the core organizational innovation to support the continuous rapid development of the Korean capital, it has been evolving with the changing market environment. Especially today, the opponents they are facing are no longer ordinary Taobao stores, but world-class players such as Zara and UNIQLO.

The study group pointed out that the pursuit of their own "maximization of efficiency" of a single group naturally exists selfish departmentalism and herd effect. For example, when they find that a certain group of clothes sells well, they tend to produce a large number of homogeneous products. Therefore, making decisions only from the perspective of group profit does not have a positive effect on the brand and the company as a whole.

In order to control the risk of interior design and provide more decision support for the group, marketing center and planning center collect and analyze the data from the market, and guide the group's behavior.

To some extent, these guidelines have drawn a "box" for the freedom of the group, in order to avoid the shortsightedness of "group wisdom".

Simply reviewing the history, the group system of Han Du she has gone through three stages, from "barbaric growth" to "system empowerment" and now to "Product Co creation".

The 08 year -12 is the brutal growth stage of the group system. It is also the traffic dividend period of the Internet. At that time, the group can decide what to produce and when to produce and how much to sell.

The group system at this stage is mainly to give full play to the subjective initiative of many groups, so that enterprises can get a bonus from the rapid growth of the electricity market.

The 13 year -16 is the stage of "system empowerment" of the group system. As the market competition intensifies, the professional ability of a single group has been unable to meet the competitive needs. At this time, South Korea has gradually established an empowerment system based on several core business departments, such as marketing, planning, production and so on, so that the team can continuously improve the accuracy and execution of decision-making through professional system.

In this process, the marketing center determines the market direction and business objectives according to the market changes, and the planning center acts as the internal development and Reform Commission. The task decomposition is refined to various departments, and is completed through the way of "follow, stare, urge", while the production center helps the team to quickly return the explosive and prosperous funds.

To some extent, such guidance will make the working boundary of the team clearer, work more efficiently, and standardize the action into the middle stage, so that the group can focus more on the non standardized product ploughing, and at the same time support the correct rhythm and direction under the support of the central Taiwan, in order to avoid the shortsightedness of "group wisdom".

The 17 year is the stage of "Product Co creation" in the group system. Facing the strong competition of ZARA and UNIQLO world-class players, the group system at this stage is realizing the positive interaction between the group and the energy system.

For example, the new group's new trend tends to be large proportion of long-term development, focusing on new measurement.

But doing so will not only affect the sale of goods in the season, but also get no accurate feedback from consumers on what to wear next quarter. It will also bring enormous pressure to the supply chain when it is centralized.

Therefore, the product center will jointly dismantle the task of joint marketing center, planning center and production center, arrange the marketing and supply chain resources to the group in batches, so as to provide the group with the right guidance for the new rhythm.

Behind the changes in the external and internal environment, changing organizational patterns, creating new roles, and flexibly adjusting the structure of power, I think it is a prudent self evolution ability.

As a result, the whole organization can evolve the ability to adapt to the market, rather than most of the functional departments of the company are always lagging behind the market demand for a long time, thus dragging the development and innovation of the front end business.

One of the performances of every module in the whole organization to adapt to market changes is that some modules of Korea's clothes house can be opened and commercialized independently.

South Korea built a fully online business system around the group system. The system was commercialized and provided to the retail industry. The customer service center set up an outsourcing service base, and Han Du power also provided external operation services for other Internet brands to provide good marketing and operation services.

Besides training their employees, Han Du University also provides training services to incubators and external companies.

To sum up, we can see that Han Du she's prudent attitude towards independent evolution, and truly establish systems and teams, and constantly push forward the reform of the group system and major departments.

Most enterprises do not usually take the initiative to realize that the root causes of stagflation or development are the lack of organizational capability and efficiency.

Today to tomorrow: an intelligent industrial platform that is hidden

Han Du she likes to talk about the word "co creation".

"A commodity cannot be created by a group, nor can it be created by a functional Center - but created by us."

When they first started trying group system, it was hard for them to describe it, because "Central Taiwan" basically did not exist; only with the development of time, the "Taiwan Taiwan" system became more and more mature, and more data and decision-making power were held in their hands.

Moreover, to see tomorrow, this co creation relationship is not confined to the internal group of the company.

Some famous foreign brands are also trying to find help from Korea's clothes house.

Because they have more market data, more efficient and flexible control over the supply chain, and more comprehensive systems than they design, deliver and operate, so foreign brands certainly want to cooperate in their weaker aspects.

For foreign companies, maintaining the independence of design and brand and leaving the rest to Han Du Yi house is the best way to avoid weaknesses.

In addition to participating in the "co creation", the third party can also assume more functions undertaken by the internal staff, such as photography.

A large number of models were originally photographed by professional photographers in the studio and made with professional retouching tools.

But Han Du she recently found that life photos of net red models can promote sales more than professional shooting.

Consumers' pursuit of personalization and lifestyle clothing will, to a certain extent, gradually shift the role of internal photographers to third parties.

The third party may be net red himself, maybe his / her partner or family.

Well, the above two examples will lead to a topic: where is the boundary of CO creation? First, we will explore the direction of "co creation".

In the last section, I said, "to some extent, these guidelines have drawn a box for the freedom of the group to avoid the shortsightedness of" group wisdom ".

So, CO creation is that the middle stage gives a box, the people in the box do what the middle stage can't do - or something that can't be done temporarily.

Looking at the near future, because of the richness of data and the development of AI, the frame rate will be smaller and smaller.

Of course, getting smaller and smaller does not mean that the degree of freedom in the box is reduced, but the reduction of the role richness.

Let's take the familiar map APP first.

The appearance of map APP reduces the threshold for ordinary people to become taxi drivers. Before the mobile Internet, taxi drivers should not only drive, but also memorize city maps and experience the best route to arrive at a certain destination in different time periods.

Now that there is map APP, drivers only need to have driving skills, and other knowledge and experience are APP.

In essence, APP drew a box for the driver, and the driver just did what was in the box.

Of course, this box is also getting smaller and smaller. Compared to a few years ago, the APP now will remind you when to turn, advance into which lane, where to cross the vehicle, and where to have speed cameras and so on.

As a result, there is less information that the driver needs to take the initiative to pay attention to.

Similarly, the frame of Han Du Yi house will also be like the map APP - shrinking smaller and smaller.

Artificial intelligence can continuously improve the efficiency of page production and management of goods in the foreseeable future, so that the future group will become an individual or pure design studio under the power of powerful Zhongtai.

They only need to be responsible for using their own unique vision to choose the style, and then the Korean clothing house solves all the remaining problems until the goods are delivered to the consumers.

Even more, today, the supply chain of Han Du Yi house can support hundreds of orders. If the future can support 100 or even less, then the role of design and selection can be played by consumers themselves.

Imagine a "clothing crowd raising" platform. Anyone can submit a design that meets the basic specifications. If it is supported by more than 100 consumers, it can be produced.

Of course, the above is only a very simplified description, and the platform needs more power to support the realization of such a vision; however, it is not far away. AI is sure to show great power in the standardization process with enough data.

So where is the boundary of "co creation"? Where are the organizational boundaries of Korea's clothes house? Now, let's look at what the industry is doing from the perspective of the whole industry.

Under the law of "conservation of attractive profits", when an integrated system is broken, modularized and commercialized, the value of the original system will be reduced, but at the same time, new players will enter the market, integrate other parts of the industrial chain, and profit from it.

With a simple example, it is understood: "in the field of computer hardware, because the microprocessor is not good enough in history, its internal architecture is proprietary and optimized, which means that the architecture of the computer must be modular and compatible, allowing microprocessors to be optimally used.

But in a small handheld device like blackberry, it is not good enough itself, so you can't have a size suitable for all Intel processors inside the BlackBerry. On the contrary, the processor itself must be modular and compatible, so that it can have the functions that different blackberries need, rather than the functions it does not need.

Therefore, one or the other needs modularity and adaptability to optimize things that are not good enough.

When the microprocessor is integrated, the computer is modular, and the processor gains more profits in the industry; when the handheld device is integrated and the processor is modular, handheld devices begin to gain more profits in the industrial chain.

Then, back to the clothing field discussed in this article, is "not good enough" something changed over the past 10 years?

Before Taobao, there were mass garment factories, mass designers, mass marketing channels and massive consumers in the whole Chinese market.

But for consumers at that time, because of the limitation of physical space, the choice of individuals is limited, which is not good enough.

Taobao platform integrates massive channels and consumers, and gets the original scattered profits in the process.

At the same time, around the Taobao platform, other players in the industry chain began to modularized, in order to better promote their own and platform development.

In the sixteenth years since Taobao was founded, consumer demand is undergoing new changes.

Consumers are already too accustomed to Taobao's "everything," and the desire to turn to personalization and customization is not good enough.

This can be seen from the order trend of hundreds of thousands of pieces of Korean clothing house, and it can also be felt by the subscribers from the two years.

In order to adapt to the massive personalized demand, it requires the enterprise to master the user's personalized data, grasp the flexible supply chain and maintain the ability to push new products.

In order to achieve these, Han Du Yi house has effectively integrated massive supply chains and a large number of product selection divisions.

It is a fast fashion company with a small front desk and a large platform.

But I think today's "front desk" will gradually open up tomorrow, no matter to foreign brands or independent designers, and today's "middle stage" will become a platform - the platform of fast fashion industry.

When such an integrated platform is formed, the upstream and downstream industry chain will be like the other players in the market around Taobao modularity - modularized the platform around the Korean home.

Finally, when the platform directly borders on consumers, it also achieves the ideal C2M mode.

This is the dream of many subscription business platforms.

Epilogue

Every company has its own problems, and so does Han Du Yi house. But as a commercial author, I would like to see something that might make some companies and other players have different endings.

There are tens of millions of brand names. Obviously, when you look closely at the Korean clothes house, you will no longer feel that its bright spot is just that the brand is doing well and the flow is going to play.

A prudent sense of self evolution can not only help Korea's rise in the past 10 years, but also lay the foundation for the future becoming an intelligent industrial platform in some sense.