Xia Guoxin'S Speech At The 2019 China Fashion Conference -- Value, Retail Experience

Value, a new retail experience.

Xia Guoxin, chairman of Shenzhen grace Clothing Co., Ltd.

Good afternoon, leaders and colleagues. I am delighted to be invited by the China clothing association to make an annual view here. It is also a reflection on the annual viewpoint release. What is the most important thing in the year? I can't escape from this question: what is the driving force for sustainable development of enterprises? Through this year, we should say that more than this year, thinking in recent years, every day we are thinking about a problem, that is, innovation. How to make innovative enterprises continue to bring innovation to meet the challenges of today? Just now, chairman of ROC talked about a lot of things and told me a lot of things that I would like to talk about. First, the times are changing. This change includes technology transformation, consumption change, consumer change, and the unprecedented changes. In the face of this change, this theme is also facing new changes and heading for high. quality How to face directly? The only thing that depends is innovation.

Now, innovation has become a top priority for enterprises. We often see that some enterprises may have done very well in the past few years, from five hundred million of profits per year to last year, which brought losses. Why did the previous success turn into a current loss? It is because when the environment changes, if we can not innovate, if we can not use new ways to change the original thinking, it may be that the original success has become the trap of failure now.

There are at least four major changes in the environment: the transformation of the economy and rapid changes in technology. Recently, Ma Huateng said, the next 5G plus AI will bring unprecedented changes in the industry. 5G combined with AI, as well as the trade environment and the changes in the political environment, in fact, has brought many changes in the original mode.

The old road is impracticable. Drucker put forward two functions of enterprises in nineteen fifty five, one is marketing, the other is innovation. These two functions, in fact, innovation is the eternal thing, and enterprises are always satisfied with the new changes of consumers, using innovative means. The two functions are new. We see that some enterprises are falling down in this environment and some enterprises are thriving. The chairman of Dapeng just mentioned that Anta is a company that is very proud of our clothing industry. Now I have looked at the market value of HK $about 190000000000, and went to Anta last month. They talked about their situation in the first half of the year, which is very commendable and bought (Ya Mafei). Such enterprises are in the wind and waves, some enterprises are falling down, the core reason is innovation, do enterprises have the soul of innovation?

Here we report on the situation in the past few years, we listed in 2015, the data in 2016 is 198 million yuan net profit, net profit to 2018 is 365 million yuan, in the first half of this year is 180 million, four years or maintained relatively stable and rapid growth, we still have to pursue quality growth. It should be said that it is not good enough, there are still many needs to learn and accelerate the change.

First, let's go our own way. I think this is a very important thinking for innovation and greeting the new environment, that is, we can not follow blindly, we can not see others succeed, or see which foreign brands succeed, directly imitate, we can learn and learn, but we must not imitate, we must go our own way. In the face of innovation, blindness is a very big obstacle. I want to tell a story that rats are very strong in reproduction, and can be regenerated after 20 days after birth. When they gather, they expand very quickly. More and more mice are likely to cluster. So the other mice run in this direction and run in this direction. At this time more mice follow blindly, so that all the mice run together. When the other mice saw it, they joined their group and ran together, then they ran to the sea and then ran forward. The same is true for us, that is, it is easy to imitate others, and others may be right to do so. This is wrong. How can we overcome our blind obedience and take our own road? This is very important. Including China's four confidence, road confidence, system confidence, self confidence and cultural confidence, it is also our way to go our own way. If we say that from clothing, from the perspective of business management, we can not simply imitate the West. One of the biggest characteristics of Europe is the design director responsibility system. All of them are the design directors. The design team is almost all assistants. The design director has the final say from beginning to end.

We compete in different groups, and create the design team and go our own way. Because I think that in China, a person has the final say, culture is not feasible, we are not talking about heroism, and we do not limit or contract labor law contracts. Europe can not sign a contract. China is different. Any contract with the company can be left at any time, you can not fire him. Personal heroism does not work in our industry. We have always been designing teams.

Our strategic objectives, after being listed in 2015, have identified new strategic objectives and must become an international competitive high fashion brand group.

Second, the thinking about innovation is to set up the brand division. Now there are six international brands. We have founders of international brands, some of them work together, and there are corresponding shares. Every brand we want to become an independent business unit, to maintain its gene and innovation vitality, become a self-organization, self-organization is that we can make decisions, I think this is very important, the soul of innovation lies in enabling him to develop himself, and this enterprise innovation is continuously.

These brands give you a look at the pictures. This is Germany's Laurel, capable workwomen, Ed Hardy is the tide card of the United States, and now it is also developing well; this is France's IRO, it is a romantic and sexy style with rock music. This is the Vivienne Tam of the United States, and this is the minimalist style of the Belgian designer, the Self Portrait of Britain. The designer is very gifted, and the brand is developing very well in the world.

All of our brands are building independent business units. They do not have a great unity within the group. Most of them are independent, ensuring that they are innovative and able to make their own different costumes. In my opinion, in the process, each brand leader has competitions, data and results. Internal competition promotes development, promotes innovation, and learning from each other. We can exchange experience in all aspects of our internal experience exchange. Through this kind of internal experience exchange, we can enlighten people that we could do this in the same way.

In the spring and autumn and Warring States period, I was more like the culture of war in China. Our most important thought, you said Confucius, Mo-tse, Legalists and so on, were all in the spring and Autumn period and the Warring States period. Why? It lies in the competition between the spring and autumn and Warring States countries, the competition between brands and brands, and the lack of unity. personnel It is mobile. Shang Yang can go to the Prime Minister of Qin state. There is no concept of the motherland, the state is competitive, and the people are mobile. In the process, new ideas and methods have been tried to bring so many brilliant ideas. Why did not the real masters and ideas come out in the two thousand years after the great unification of the Qin Dynasty and the Han Dynasty?

Third, empower, do not put monkeys on their own body, this is very important. If we allow the organization to innovate, we can not has the final say. Centralization is a person's innovation, and empowerment is a group of people in innovation, which is completely different. In a centralized organization, innovation will eventually become no more, and no one dare to think about it. Only after empowerment, you can see that a variety of ideas have emerged.

In this process, we should pay attention to the result rather than the process. For leaders, we should empower, do not think everything is done according to their own way, do not think about the process of doing is not right, the most important is to test the result, we are ultimately concerned about whether the brand is good or not, the process is not important, and the most important is the result. Often my feeling is that empowerment is very important for innovation. Don't talk in a word, encourage people to say different things. Ren Zhengfei said HUAWEI was the one who wanted to hear the cannon. It is only in the first line that he knows what the newest thing is, that he can use flexible tactics to fight.

In the organization, we should avoid the words of leaders. We often think about how to make people dare to speak, but often we dare not to think about how to delegate people to dare to think about it. It is very important for the organization to innovate continuously. Kevin Kelly said in a runaway view that the more you want to control the world, the more you can't control it. It should allow the organization to develop itself. What is called chaos, chaos, competition on the surface and conflicts, but on the contrary, it brings an order in competition. This is very important for innovation, and I think it is very important to delegate.

Fourth, let the bullets fly for a while. In the enterprise, we often have all kinds of strange ideas. Sometimes when you come out, you think it is unthinkable. When you come up, you will ask a hat to buckle. When you have strange thoughts, don't worry. First, look, this will bring the ultimate innovation.

For example, when we listed on the Shanghai stock exchange, we took a show on the stock exchange and walked a fashion show when the bell struck. This is said to be the first time in China and around the world, behind which is the bell of the big screen. How can a team bring up the stock trading site? Later, I tried to find the Shanghai stock exchange. The leaders of the exchange just started to panic. How could they walk on such a serious occasion? They listened very fresh. After the communication, they had to set up the stage of the lighting stage. The leaders of the exchange were very supportive. They said that you should take a plan and make it step by step.

The Ed Hardy recently made a crossover with jeep. The jeep designed the car as our Logo and promoted it among its members. The trend of the jeep and the jeep's off-road vehicle is very ingeniously combined to create a fusion between the two sides, which is very popular. VT also did some cross border design with HUAWEI's glory, and the custom drama of the song, which was broadcast this summer, the 60 episode of the TV play, the song's implantation, although the plot is not true, but the name is Song Li Si, also is the Chinese company's purchase to France, the competition between the two garment companies and so on. At that time, it was also a kind of innovation, that is, deep implantation, customized play. These are fantastic ideas. Ed Hardy is going to carry out a nationwide tour. It can be disassembled and assembled, and a city and a city will be visited. There is also media preview. All the brands of our group are put together to rent a venue in Sanlitun, Beijing to decorate, invite all the media, and stars, brokers, stylists and so on. Once you have finished watching the costumes, you should wear your costumes to your stars. This is also the pioneering work of the group. This is the exhibition of buyers and designers who have just been held in Shanghai fashion week. We should not go, but the organizing committee invited us. We also went there, because many buyers did not have shops in many parts of our country. We bought them back and put them in the collection store. After we attended the exhibition, the cost would not be spent, and the buyers would make a profit.

In the endless stream of new ideas in the enterprise, we believe that we should encourage him to let the bullets fly for a while and try to do so.

He stressed that the value of different opinions within the enterprise must be encouraged to say different opinions. Everyone has said that consensus making is a big misunderstanding, and most people have said so. I have said that. Drucker said that no decision is not a real decision, so we often use it after the study. We agree that no one is against the right side. Instead, we put it down and wait for anyone to raise objections. If there is any argument, we will make a decision later. If everyone has the final say, it may be a mistake in consensus decision making, because most people say that they do not want to say anything. Fifth, the power of different opinions, the power of dissident, is the author of this book devoted to the study of organizational behavior.

The sixth, first is wrong. This is a plaque in my office. It means that many things are not absolute. Everything you say is absolutely wrong. You put it in different time, place and environment. It's wrong. It's right at the end. It's wrong. I put it on the wall behind me. When the staff member came to the office, they said, what does this mean? Or talk less? Later, when I saw no way, I placed it opposite to me. It was for me to see it. As a leader, you should not think everything you said is right. You should listen more and remind yourself of what you say is wrong. This is for yourself. When you speak less and listen more, you bring diversity of thinking, and innovation is possible.

There are many problems in our industry. We can see problems as well as enterprises. We always have opportunities to innovate in the face of opportunities. If there is no innovation, the old ones are going down. So what is this? Innovation. In front of the disease tree, we must make the front sail and ten thousand wood. In the last sentence, this is what I often remind myself. William Taylor, author of subversive innovation, says that if you want to do something that has already been done, that is, what you want to do has already been done, then what you want is what you have already obtained. We hope that our colleagues can work together to make thousands of sail. (according to the 2019 Chinese clothing convention, shorthand arrangement, without my own review)