What Steps Did Ordos And Liu Wen Collaborate In Speeding Up The Speed Of Light?

The Museum of contemporary art in Huangpu, on the banks of the Shanghai River, has become a showcase for the circulation of light. When the dressed models walk out of the dark, the movie is like the cashmere under the blessing, which adds warmth to the late autumn of Shanghai. On the theme of "Cashmere Power", the brand shows 2019 new products in autumn and winter. And not long ago, the second cooperation series that Erdos and Liu Wen have just launched has triggered a great upsurge in social media and soon been "snapped up".
Looking back to 2016, it was once the task of "warming the whole world". However, a somewhat older Ordos Cashmere Group announced the upgrading of its brand and formulated a multi brand development strategy. At that time, 2 billion 600 million yuan was raised to expand sales channels and brand upgrading projects. Its four brands are more clear: "1436" is the top luxury cashmere brand, the younger brand is "Blue Erdos", "Erdos" advocates the "fashionable cashmere brand", aiming at the young urban customers who focus on quality and fashion, while Ordos 1980 inherits the concept of brand professional cashmere and faces the original loyal consumer groups. Since then, the group has launched the children's wear brand Erdos Kids in 2018.
Building brand with consumers as the starting point
"The most intuitive change is certainly the growth of data," Wang Zhen, the new member of BoF 500 and the general manager of Erdos Cashmere Group, told BoF this year about the progress of multi brand strategy. From the 2018 financial year report, we can see more than three years of changes. The total revenue of the company is 23 billion 858 million yuan, and the main business is divided into two sectors, namely clothing and electroforming. Among them, the apparel sector's operating income in 2018 was 3 billion 356 million yuan, an increase of 17.85% over the same period last year. In 2015, the cashmere business revenue was 2 billion 290 million yuan.
Erdos has become more and more clear about the concept and organizational capability of sub brands' independent operation. Different brands have corresponding market positioning and target customers. Wang Zhen thinks: "precision is the thing that we need to think clearly about making brand now." At the same time, communication with consumers also needs to pay attention to "precision", truly understand the experience, products and even spiritual resonance that consumers need, and build brand as the starting point.
In 2016, the market of cashmere products and young clothing was out of line. Ordos invested in this blank area, and the rise of the concept of new middle class group and consumption upgrading in recent years, the group adjusted "Blue Erdos" and stepped on the market of high quality and cost-effective. When Wang Zhen and the mall talk about other brands, they sometimes hope that the brand will be added to the brand of the young fashion brand. She commented that this is "brand making its own personality", and it is reasonable for the channel business and consumers to recognize it.
The main offline channel that Ordos used to rely on was traditional department stores. After the transformation, Wang Zhen said: "where we are, where we are. "The brand now opens a lot of shopping center stores and brings the new brand Erdos to the high-end shopping centers such as Beijing SKP and Nanjing. In addition, the brand also tries to start a new form of flash shop.
The biggest thing on the brand online channel is "getting through online and offline channels". Although it was the first batch of high-end brands to cooperate with Taobao platform, the early start was an advantage, but there were also some drawbacks. The brand did not take a good grasp of the direction. Tmall had more discount products than the offline channels. And Tmall and offline shopping malls have their own product structure and promotion strategy respectively. After opening up, the advantages of logistics supply chain and distribution of sales benefits are more prominent for both sides.
　　 Opportunities and challenges restructure
However, there will always be problems in the restructuring and adjustment. Wang Zhen said frankly that one of the challenges of the new strategy is the balance between independence and sharing. "If the brand becomes attractive, it must explore its independence and even exclusiveness. Three years ago, she focused mainly on external competitors, trying to provide differentiated and better irreplaceable product services and experience. With the increasingly clear results of the multi brand strategy, she mentioned that there was competition among the various brands. What the group headquarters needed to do was to encourage, protect and demand the independence of its brands. But at the same time to achieve high efficiency, many functions must be shared, that is, to achieve a high degree of standardization. Whether it is production organization, the entire supply chain or financial and brand strategy, and the maintenance of media resources are within the scope of sharing.
Erdos menswear is a challenging part of brand transformation. It is fashionable because of its positioning relationship. The domestic men's wear brand has both genuine fashion, popular with consumers and can sell well. The group needs to analyze how to balance the balance. The market environment of the fashion industry is highly competitive and transparent, and the market can quickly test the brand's exploration effect. Wang Zhen said that this is the biggest charm of the industry, naturally the pressure is not small.
When Erdos decided to split the brand, it divided consumer groups in China according to pragmatic, fashionable, quality, follow and trial types. Cashmere, as the core competitive advantage of brand, plans to seize quality consumers, and then divides them into fashionable, practical or individualistic young groups according to specific consumption habits and scenes. Wang Zhen mentioned that thanks to the early precision planning, the actual customer group and the expectations of the multi brand strategy are highly consistent.
Liu Wen endorsed Ordos for ten years, adding a lot of fashion sense to brand recognition. In 2018, the two sides launched the Liuwen * Erdos joint series. Wang Zhen seems to have accumulated many years of cooperation and has become a testing field for many new methods of the group. Through the online pre-sale, the brand can see the order situation, start the flexible supply chain mechanism, and quickly arrange the production line, which can substantially reduce the inventory. Wang Zhen said: after the series started "grabbing empty", the production line is being reacted quickly to continue to meet the enthusiastic demand of consumers. At the sales terminal, Erdos and many young fashion brands also offer limited time shops to enhance their offline shopping experience.
The most advanced cashmere brand 1436 is similar to luxury goods. Wang Zhen does not think luxury is a derogatory term. She said: "luxury is ingenuity. (another expression), in such a fast world, how long do you want to spend on carving a thing, because time is of great cost, huge investment represents the difference of positioning."
The advantage of ultra high end 1436 lies in the preciousness of raw materials and the brand story behind it. But at the same time, it is also active in innovative technology in the development of new materials and top-level technology. The group thinks that 1436 positioning is very clear, and it does not require quick success and instant benefit, and keeps the pace of steady development. It may take longer time and effort to get broader consumer recognition, but Wang Zhen is sure: "we have great confidence in her."
Weaving sustainability into strategic restructuring
In the same year, when designing and reorganizing multi brand strategy, McKinsey's advice to Erdos is to position "Blue Erdos" as a cost-effective brand. However, Wang Zhen gradually realized that if the brand needed a lot of cashmere resources, if it was driven by low price to accelerate the growth of cashmere, it would cause irreversible damage to the environment and industry. Wang Zhen was a little excited and said, "we are the biggest cashmere manufacturer. If the grassland is broken, can we be good?" Finally, the "Blue Erdos" is adjusted to the cashmere brand with a younger design and a sense of design. The price performance ratio is still very high in all the brand sequences of the group, but the price is in a reasonable range and can not be lower than the cost of raw materials.
Although Erdos has been holding simple and sustainable ideas and practices, Wang Zhen was honest until 2018 when the group really launched a sustainable development strategy project and formulated the "Erdos Way". This Ordos methodology clearly expressed 8 development initiatives. One of the most important driving forces was picking up from raw materials, such as 1436 delineating two raw material base protected areas in the main producing area of the EBUS and the nearby areas, and protecting the sheep from distant hybridization, so as to maintain the quality of cashmere.
In addition, the group still focuses on communicating with the consumer terminals to convey sustainable ideas to them. They used to cooperate with Shun Feng express to use recyclable logistics boxes. 2019 the autumn and winter series has introduced the "SH N N series" with sustainable fashion as the core. It includes recycled cashmere, whole cashmere, yak velvet for Tibet pastoral area, and four lines without dyed series. Wang Zhen's explanation is that a separate series is to build and spread the brand through systematization, so as to better understand and practice the sustainable concept of consumers.
"I am very proud of our Erdos Way, which is not a commodity name or a marketing strategy. It embodies our overall vision of the enterprise, that is, to make everyone happy to do sustainability, rather than talking about environmental protection." Wang Zhen said in the forum of Yehyehyeh innovation society's "good advice: Innovation in the era of crisis": "how to convey this idea to forty thousand employees and finally get their approval and support, Erdos Way has become a program of the whole group, surpassing a beautiful commodity category."
From brand building to helping changing industries
In addition to its own brand building, Ordos is committed to promoting the concept of green manufacturing to the whole industry. The group's products and their production process have been certified by the Ministry of industry and information technology "green design products", "green factory" and the "international confidence textiles" and "Made in Green" certification issued by the Swiss environmental textile inspection association.
Wang Zhen said: the group has held seven international cashmere technology seminars, and domestic and foreign industry experts to enhance the accuracy of the monitoring of villus. Since it became the accreditation Laboratory of CCMI (American Camel velvet Association) in 2009, it has detected the velvet velvet and analyzed how to detect and eliminate the wrong labels. At present, Ordos has officially issued 3 international standards and 20 national and industrial standards.
Because of the geographical environment and climate, about 70% of the world's cashmere comes from China, and over 50% of the quality cashmere is produced in Inner Mongolia. Wang Zhen explained that many people have some misconceptions about their environmental protection and animal Humanitarianism: "cashmere is a natural shedding fiber, which is absolutely not environmentally friendly. Erdos should consider sustainable development of resources, and through the cooperation with different brands, it can extend to more aspects of life through technological innovation as well as the combination of outstanding international creative talents.
Although Wang said that he hoped to make a difference in the global fashion industry, he even became the best brand in his field. Erdos is not worried about internationalization, and now focuses more on the domestic market. The new brand strategy has been implemented for three or four years, and the team needs to be polished. Brand channel needs to maintain stability in the general direction, and will not blindly cater for market changes. The group has been laying the whole industry chain, and it is necessary to adhere to the sustainable strategy.