Business Tycoons Accelerate The Layout Of The Manufacturing Industry, Quality Clothing Factories Were "Mad"!

The electricity supplier factory is a form of integration of the Internet and manufacturing industry.

In the case of the overall retail downturn and the peak of the electricity supplier flow, the e-commerce platform is expanding outwards and will pay more attention to the upstream industry chain.

Under the education of electronic business platform, it is widely accepted that the direct connection factory can eliminate intermediate links as far as possible and bring benefits to consumers, and even become another expression of "cost performance".

However, the fault between the Internet platform and the manufacturing plant is also inevitable.

The first phase of rebuilding factory is in trouble.

Talking about the electricity supplier factory, NetEase can not be closed.

In 2016, NetEase was born in a strict election. It is known as "the first ODM mode supplier in China". It connects directly with the big name manufacturers, and eliminates the premium and intermediate links of the brand.

Because of the similar style of products with MUJI products, the NetEase has been on the line for a long time.

To a large extent, the success of NetEase's strict selection owes to the "leading aura" of value marketing and foundries. It brings the information of ODM OEM and big name foundry to the ordinary consumers for the first time, and reduces the trust cost of consumers by the concept of "big name factory", and also highlights its core competitiveness.

The following were Ali and Jingdong, which launched Taobao's heart election (May 2017) and Beijing Construction (January 2018) respectively, and Amazon's own brand is parasitic on the platform.

Domestic supply capacity exceeds demand, and the representative factory can achieve the differentiation of different brand products through modular design and production.

In short, in the face of foreign trade blockage, overcapacity and the collapse of the electronic business platform, relying on the "strong manufacturing and weak brand" supply chain of the domestic electricity supplier factories, it is widely accepted as a commercial mode to eliminate intermediate links and bring benefits to consumers.

But there are more and more similar businesses, and the problem of NetEase's strict selection is gradually emerging.

NetEase's strict selection of product design is simple, so it is difficult for consumers to have the desire to repeat purchases, and the rate of repeat purchase and the slow growth of new users will inevitably lead to large inventories, though the product life cycle is long, which will hinder the development of new products.

Last year, NetEase's strict selection began to enter Tmall, Jingdong and even a lot of spells, and because of the vigorous promotion, the gross profit margin of NetEase electricity supplier continued to decline.

The reason is that NetEase's strict selection is too heavy, even heavier than the traditional enterprise mode.

From the information of tiger sniffer and high street, we can see that NetEase's strict selection of departments, product development process, contract with suppliers, and the formulation of account period have not gone beyond the framework of the same market brand.

From the business model alone, NetEase's strict selection has limited breakthrough.

In order to cooperate with quality manufacturers and ensure quality, NetEase's strict selection and suppliers are directly signed three to seven years' strategic cooperation agreement. However, it is the core value of buyer's +ODM mode to deal with market demand quickly and flexibly.

From "going brand" to "creating brand"

So NetEase electricity supplier came to the second stage: NetEase koala factory store.

The NetEase koala factory store started in September 2017. It is a brand incubator made of high quality, guided by data to plant design and production, providing nanny service and brand building for manufacturers. Its global cooperative factory has more than 200 factories, mainly covering 9 categories, including clothing, home, personal care, food and so on.

NetEase's Yan Xuan and NetEase koala factory shops are very similar to NetEase's strict selection positioning. They also choose 1 to 2 excellent factories in each category. However, compared with the strict selection, the Kola shop has solved three problems.

1. inventory problem.

The right of goods belongs to the factory rather than the platform.

2. consistency of interests.

There must be a trial and a game between the brand and the factory, and the foreign Internet Co may not be able to find the problem of production.

When the factory is the main body of the sale of goods, the interests of both sides are consistent, and that factory is the manufacturer is also the brand side, reducing the intermediate circulation.

3. space for development.

NetEase koala provides platform resources for warehousing, distribution, operation, customer service, IP design and content for the factory, avoiding NetEase's strict selection of heavy assets and diseconomies of scale.

There are also Taobao hearts.

In December last year, Zhang Di, general manager of Taobao general election, said that Taobao's intention to hatch a manufacturing retail brand was also an open realization of operational capability and platform resources after trial run.

A "double brand" is in the factory.

Tiger sniffer high street to the NetEase koala cooperation factory visited the factory workers to understand that this factory for luxury goods to do cashmere apparel foundry signed a long-term cooperation agreement with NetEase, launched on the NetEase koala private brand will be exclusively for koala channels, but the factory's own brand, not only in other channels also operate other brands.

Another "double brand" is reflected in the retail end.

The popularity of factory brands is low, and consumers' purchase intention is largely from the endorsement of platform brands. The design and price of factory brand products are all affected by the platform. As with channel customized products, these factory brands are more dependent on the e-commerce platform than the "brand".

Obviously, factories do not put eggs in one basket. Their core demand is lower cost, higher price difference and larger market. The fundamental reason for their cooperation is the order brought by the electronic commerce platform.

Electricity giant to accelerate the layout of the factory

C2M, that is, when consumers come to the factory, they will directly connect customers and manufacturers, cut off the intermediate links as far as possible, and respond to customized needs quickly and cost.

Electronic business platform holds big data of consumers. If we can get through with the data of manufacturing end, can we realize C2M to solve the inventory that has plagued the retail industry?

"Spoil factory" VS sells every day.

Inventory is generated by uncertainty in demand.

Through the delayed delivery of the consignment group, many products are put together in a similar way to lock a relatively definite commodity demand. The factory then makes large-scale production to reduce the cost, and sends the shortest path and time to the consumers, thus forming a new commodity circulation mode and trying to become zero inventory.

In December of last year, many new brands were released, which showed that the factories would tilt the traffic volume and recommend bit resources to a certain extent in order to increase the exposure of commodities and support their brand building.

In many ways, the factory will also introduce a visualization platform to join the "new brand plan", that is, to open up the information flow between the production end and the demand side through live broadcast, and plan to support 100 "spelling factories" in 2019.

From the ToC side reverse integration factory, and complete sales, Ali's C2M project and spelling a lot of similar, at present, it is more like a part of the defense system.

Last November, Taobao's daily specials announced that it was upgraded to a daily sale, and the IoT digital pformation of small and medium-sized factories was carried out. It was said that the factory capacity data would be connected with the online stores, and how much the front end would sell and how much the back-end could produce.

Many companies and Ali emphasized that the factory capacity can be visually visible online, and it will be connected with the platform sales data in real time.

But the reason is clear that how to pform the factory is another matter.

Compared with many spells, Ali's pformation program is more mature: through visual recognition to achieve factory production pparency and productivity digitalization.

Ali provides cameras, switches, edge servers, gateways and other supporting hardware to the factory. The cameras equipped with various algorithms will continuously scan the production line, and the video data will be calculated cooperatively on the local and cloud sides, and then the structured core data will be uploaded to the cloud, so as to further achieve real-time connection with the platform.

Amoy factory ToB, small step jogging

Because of the platform seller's demand for OEM and ODM OEM, Ali contacted the foundries earlier.

The "Amoy factory" was born in 2013. It is a matching B2B platform built between the seller and the factory of the 1688 division of Ali, which quickly matches the seller's orders and factory capacity, and helps sellers respond to the needs of consumers quickly.

At present, the number of factories on the "Amoy factory" is around 3, and Ali hopes to build the largest apparel supply chain service platform in China with the help of the natural advantages of the business ecosystem on the platform.

And Ali's new manufacturing exploration is also from the "scouring factory" quality cooperation factory started.

Transformation project by Ali cloud, daily sale cooperation, Ali cloud IoT program leader Zheng Xu has worked in the "world's largest foundry enterprise" for more than ten years.

Zheng Xu told tiger sniffer Gao Jie that his team focused on the pformation of textile and clothing, machinery processing and other manufacturing industries.

The goal is to provide low cost, quick deployment and easy operation and maintenance of digital solutions for light factories, build platforms from 0 to 1, and cooperate with partners to serve 80% of China's small and medium-sized enterprises to achieve more factory access.

Zheng Xu said, "there are a large number of small and medium-sized factories in China. Only the quantity comes up, the value of the platform can be reflected. Of course, relatively small and medium-sized factories are more willing to access the platform and accept non customized applications."

He said, "the traditional way to do process traceability is usually using bar code or RFID, and camera pformation is a lightweight non intrusive solution, which enables the factory to achieve a certain degree of capacity digitalization, real-time information visualization and interaction."

"The hardware cost of pforming a factory with around 100 people is around 50 thousand."

Zheng Xu thinks that this price can be accepted by most factories, and it can also be expanded by various algorithms.

After the renovation, the efficiency of factory production increased by 6%. The inventory in the entire supply chain can be reduced by 10% due to pparent links and timely production and delivery on demand.

At present, the Zheng Xu team has completed the deployment of 100 "Amoy factories". He believes that the greatest value of pformation is the pparency of factory production, which brings about the improvement of management efficiency and collaboration value.

"Fault" behind the electricity supplier factory

Compared with the manufacturing industry, Internet Co knows better how to deal with consumers.

In other words, the electricity supplier factory should be the electricity supplier service factory and the Internet service manufacturing industry, but in every case, we can see that there is still a natural "fault" between the Internet and the manufacturing industry.

1. supply chain fault

The cooperation between the e-commerce platform and the foundries is not as close as expected.

The core demand of the factory is order and production profit (lower production cost, higher shipment price), but under the pressure of survival, the factory can not abandon the big orders of the brand side, this is their main order source, will give priority to the stability of this part of the order.

Unless the electronic business platform can give enough orders to the foundries, the cooperation between the two sides is lack of protection.

This is also the current close cooperation with the electronic business platform is mostly small and medium-sized factories, larger foundries still choose the form of cooperation, even if the pformation is also a separate production line to try.

2. talent gap

That is to say, there are too few people who understand the Internet and understand traditional manufacturing industries.

For example, Ali, it is understood that although Ali has precipitated the central Taiwan system from its own organization and management, it is rare to understand the industry, understand business, do business dismantling for enterprises and set up talents in Taiwan.

The Internet is far away from the manufacturing industry, so that two industries "language" is different, we all say "product", but it is not the same concept.

The entry of new elements of production will inevitably lead to new production relations, which will involve the distribution of employees' salaries and changes in organizational management.

For the time being, the establishment of the new production line and the running in of the factory and the Internet have already affected the ability and enthusiasm of the production staff.

Adapting to the new production relations requires a new organizational structure, which will be a great challenge to family run private enterprises.

3. industry attribute fault

Last September, Ma Yun elaborated on the concept of "new manufacturing" at the cloud habitat conference.

However, a commentary by the development research center of the State Council said that the new manufacturing made by Ma did not have much new content.

China's new generation of information technology and information talents and resources are mainly concentrated in BAT and other Internet companies. In promoting the industrial Internet, the Internet industry is quite different from the manufacturing industry.

Foxconn, red collar and Haier, which have made great achievements in intelligent manufacturing, are able to break through in a certain field after they have enough industrial foundation and manufacturing experience, and expand their capabilities outwards.

BAT wants to find the common problems of 70% of the industry, and wants to take out the general solution of the industry to promote it in a large scale.

Panorama of Haier COSMOPlat business

Internationally, there are also differences in who dominates manufacturing pformation.

From the information side, the US rebuilds the manufacturing industry from top to bottom through tools such as big data analysis. Germany is starting from the manufacturing industry, using information technology to pform the manufacturing industry's "bottom-up" thinking, and more importantly, the importance of the real economy to the country.

The electricity supplier factory is the "top-down" water trial of the Internet service manufacturing industry. In the present time, Internet Co does not have to tangle the industry capacity. The manufacturing industry in China is characterized by "big but not strong". A large number of small and medium-sized enterprises need the technology that can be affordable and can bring real benefits.

However, 30% of the common industry is the part that decides whether an enterprise can stand out.

Therefore, Internet Co will inevitably encounter obstacles in industry knowledge in the future. If we can not understand the problems, let us talk about solving problems and teach AI to solve problems.

By that time, Internet Co will need to really become a manufacturing industry.