Wang Yong, Senior Vice President Of Nan Xun: The Second Half Of The Clothing Business Is Fishing From The Sea To The Pond.

In December 27th, Wang Yong, vice president of South news and editor in chief of customer magazine, delivered a keynote speech at the "new vision, leading the next 2019 apparel business supply chain meeting".

Wang Yong said that the clothing business has gone to the second half, and there has been a slowdown in overall growth and partial prosperity. The specific performance is: intense competition and high concentration of industry capital. The spring and Autumn period of the apparel industry is coming to an end: the stronger Heng Qiang, the weaker the weaker. How to deal with such a stock killing era, in Wang Yong's view, there are eight opportunities: one is to divide the market; the two is to sink the market; the three is to go out to sea; the four is competition efficiency; five is the new planned economy; six is 00, the latter is the world; seven is the operation system of enterprise development from single point to business; eight is pool fish culture.

The following is a transcript of Wang Yong's speech, which is slightly abridged after being reedited.

I am very glad that practitioners and colleagues from one thousand apparel industries across the country are gathered in Shanghai. Today, I share with you some data extracted from the background of our South news system. These data have a meaning behind it, and some of my own thoughts are shared with you.

　 Apparel business overall growth slowed, partial prosperity

The data in Nan Xun SAAS business line system ran around about 50000000000 GMV on the double eleven this year, accounting for 20% of Ali. Most of the 20% of the GMV is the brand of the head, that is, the data from famous brands running out of the waist and below the waist. Although these data are not necessarily the same as those seen in the whole Ali market, I think it is more representative.

We can see that the clothing industry in nxun's clothing industry has increased by eleven in the number of double women's clothing this year, while the whole category has increased by more than 30%, and men's clothing has gone down by 8%. The whole clothing category has been double eleven this year. It can be said that the growth has slowed down. But this year the whole double eleven has 290 or so billion yuan clubs. The former billion club is very rare. Now, the double one billion and one hundred million yuan has become the norm, the more the scale of the head brand is expanding rapidly, the clothing industry has no growth in the whole plate, but some brands are growing rapidly. What is this? This is part of the prosperity. This is especially evident this year. In fact, the business rule of the whole world is concentrated on any industry. For example, in the United States, the top 10 of the industry accounts for about 30% of the industry, almost everywhere in Europe and Japan. But only in China, the top 10 share is only 3% to 5%. Therefore, the trend of the future must be more and more concentrated on the head, the stronger the stronger, the weaker the weaker.

　　 The apparel industry will move towards the Warring States era from the spring and Autumn period.

Today's clothing industry is a bit like the spring and Autumn period of China. There are a hundred schools of thought contending. There are many small countries. Open up Taobao, Tmall, Jingdong, vip.com, and even go shopping center, you will find that there are a lot of brands for you to choose, but in the future, these brands may be less and less. Let's go to Japan. A UNIQLO business in Japan is about 13 billion dollars, and a brand can do 13 billion dollars in Japan with a land area of only 370 thousand square kilometers. In China, more than 30 billion yuan of single brands have been few, and probably one can not finish. From the big trend, small brands become more and more difficult, and big brands are getting bigger and bigger. But please note: it doesn't mean that the big brands that live today can still exist. You see that the beauty industry has come out of a perfect diary. It has rapidly increased to tens of billions of dollars in a year or two. Many of the so-called big brands have basically sunk in this double eleven this year.

Economic industry will enter the stock age

Let's look at these data again, and show that all resources, funds, manpower and consumers are concentrating on their heads. Next, the whole of China will enter a stock age, that is, no increment. In the first two years, I made a speech at a conference of the electricity supplier industry. The theme was called fishing at sea, and today I changed the theme to a few words called pool pond fish culture.

To fish in the sea is to have a huge increment. There are lots of fish in the sea. But when entering the stock age, there are so many fish in the sea. When you go out to sea, you find a lot of boats are fishing. So many fish begin to fight. The increment of the Chinese clothing market has entered a single digit growth in recent years, and basically at three points, increments are getting smaller and smaller.

Where are the chances of survival?

What opportunities do we have in the era of stock killing? I summed up the following opportunities. As the beginning of today's conference, I would like to make a few remarks.

Market segmentation

Consumption upgrading will inevitably bring about the outbreak of consumers' specific needs. In the past, consumers did not pay much attention to a scene of life. Once consumption escalation, they began to pay attention to it. A segmental market might make the volume huge. The upgrading of consumption will also divide the market which may have been flat, and the level will be more and more subdivided. Every level may extend a huge market. This is the first opportunity for consumption upgrading.

Sinking Market

Poverty and wealth limit your imagination. Most of our brands used to focus on the front-line market and the second tier market. They were concerned about the middle class and the rich. But you will find that the market growth that has broken out in recent years is all outside the five rings. In the sinking market, several commercial myths have been spawned, for example, many spells and many social businesses are the logic of the sinking market. Once we exchanged a lot of words, Huang Zong said something very interesting. We think that the past consumption upgrade is from better to better. He thinks that upgrading from scratch is also an upgrade. Most of the initial growth comes from the education of the sinking market, so that consumers in the sinking market know that there is a huge increase in the consumption scenario from the original consumer scenario, and the sinking market is a great opportunity.

Go to sea

I know a friend, a young man in Yiwu, who made an electronic business very early. Almost every time I met him, he disappeared in a few years. Suddenly one day I saw him in the sharing of the forum. He said last year he made 5 billion of the year, mainly by crossing the sea. I asked him why he wanted to go to sea. He said that he could not keep up in the country, but he failed to win the competition abroad. Many of the overseas market opportunities are not seen by many practitioners today, so we might as well go out and have a look. Going out to sea may become the main topic of Chinese business in the next 5 to 10 years. China's brand will also gradually go abroad to become the world's brand. HUAWEI has already brought a head, and China's future garment enterprises will surely generate a number of world-class enterprises.

Competitive efficiency

We see that in the traditional clothing industry, every link of the whole chain has the opportunity to enhance efficiency. For example, today's supply chain meeting, as long as the wholesale market in China still exists, as long as there are wholesale markets in Humen and Sijiqing wholesale market, I believe that the opportunity to enhance efficiency in the supply chain will exist greatly, because this is a very backward and inefficient way, and will be covered in a digital and more efficient way in the future. As for the efficiency of the industry chain, let's take a look at this case and today's modest Ollie has come. A person who produced nearly 3 billion sales in 2019. The 3 billion sales amount is equivalent to the annual revenue of many A share women's clothing companies. Her team estimates that dozens of people are created, and the value created is more than hundreds of thousands of thousands of listed companies, so there will be an increase in efficiency.

New planned economy

The planned economy has been away from us. I was on the planned economy in my last year of University, but the professor told me that this thing no longer exists, and there is no plan economy. But today, the new planned economy is coming again. A friend of mine is doing a rural electric business in Gansu. He has set up a network in every district, collecting the statistics of the consumption of vegetables, rice, pork and other daily necessities in this district every year, and then he arranges the nearest production according to statistics, and then distributes it based on this point. How much do you need, how much do I produce? Ali is making cloud in capacity recently, doing the digitalization of the entire supply chain system. In the future, once every production link of the entire supply chain is able to cloud up, that is, every line of your workshop is on the cloud, you can clearly see the idle state of the supply chain system in China. We can determine when to produce, and where to produce, where to produce and how much to produce. The future is bound to enter a new planned economy, which comes from digital planning.

00, the latter will win the world.

After 00, the state of consumption and the mindset of consumption are different from those of post-90s and post-80s. We used to buy things based on demand, what I needed to buy, but this demand could be a life demand or a spiritual need. But after 00, shopping is not based on demand, it is based on preferences, or based on a certain psychological state at present. For example, when anxiety needs to be resolved through shopping, for example, I like a certain anchor, he is like a pet, like a host, I want to keep buying, let her grow and grow with her, his shopping mindset is different from that of the post-90s and the 1980s. But when this group of people has become the mainstream of consumption in the future, we need to understand him, adapt to him, what he needs, what problems he needs to solve when he is shopping, it is necessary for us to make efforts. The purchasing power of this group is huge and demand is very strong.

Enterprise development from single point to business operation system.

I have just read a news recently, and such a live broadcast team of Wei Ya must change from one person to a platform. In the future, the whole garment industry will form a node based on Digitalized connections, forming a network and finally forming a large system. The upstream and downstream of the system, each link of the system will be closely linked through digital actions, knowing each other what they need, what the other party can do, and then make perfect allocation of all their demand and supply based on the industrial links. This is a great evolution that our industry may accomplish in the next five to ten years.

　 　· Pond fish culture

When we used to do business, we always buy through trains, pull traffic and complete KPI. Yesterday afternoon, a group of electronic business owners also conducted a double eleven closed door meeting here. In the process of communication, we see that the input and output ratio of pull new has been seriously unbalanced. The revenue created by new customers in the process of double eleven is much lower than that created by old customers. You spend a lot of money to pull new ones, but your new customers' revenue is decreasing and their profits are increasing. The benefits of old customers are increasing, but we do not do too much action in old customers. This is a contradiction. In the future, when we are going to the sea to catch fish and see that the sea is full of fishing vessels, we should think about whether the fish that we have to sell is to sell them first or put them in a pool first, so that they will continue to reproduce and produce more fish. This is the next stage in which we should reconsider how to treat our old customers who have already had connection with us, and how to dig up their value and create more value than we expected.

Every era is opened by the innovators.

This is a very interesting era. Whether it is the hand wrist of China and the United States or the recent large-scale turbulence in the world, every turbulent process is a process of upheaval. The process of upheaval may open a new world that we can not judge at present. In the process, there will be a new batch of new brands and new innovators that will lead the world and lead the business. And past history tells us that all new times are opened by those who are brave enough to change. In the collective downturn of the whole year, when everyone feels sad, we should pick up confidence and face the new era with expectations and ideals.