A Self Rescue Sample Of Clothing Brand

Yang Kuntian began to understand the seriousness of the new crown pneumonia. He was in the afternoon of January 21st 2020, and he participated in the TOP10 private partnership of the national menswear brand in the Alibaba Xixi park.

This is the annual convention of Tmall costumes. All of them are leaders of enterprises and heads of electronic business. They are mainly looking forward to the 2020 line business.

Mark Ed Faye, founded in 2000, began expanding business channels in 2008. Now the online business has reached about 1000000000 yuan. As Tmall's super V business, annual private sessions are invited.

A total of more than 20 people arrived on the same day, who planned to meet in the afternoon and have dinner together in the evening. In the afternoon 4:30 meeting, suddenly received Ali's notice: in order to avoid virus infection, more than 10 people's dinner was cancelled, and the meeting was extended to 8 p.m.

"Ali has 120 thousand employees, probably more people need prevention and control, more nervous." A day earlier, Zhong Nanshan visited CCTV to confirm that there was a human transmission of the new crown pneumonia, which did not arouse Yang Kuntian's vigilance. He had confidence in the national epidemic prevention system after having experienced SARS in 2003.

He has not yet realized that Mark Ed Faye is about to face another battle of life and death.

　 2019, "survive like a horror".

If it weren't for the new crown pneumonia epidemic, Yang Kuntian had great expectations for mark Hua's 2020.

Yang Kuntian has long recognized the importance of meeting the needs of consumers and providing the super cool shopping experience in retail.

In 2014, Mark Ed Faye began to test the water O2O. In 2015, the concept of "new retailing" had not yet appeared. Yang Kuntian and CIO Zuo Jingdong saw the value of the data, started the on-line ERP system, invested huge resources to do the digital exploration of the brand.

In 2017, Mark Ed Faye fully integrated the new retail of Alibaba. At that time, he was the only partner of menswear's new retail strategy. On the basis of the existing smart stores, he introduced data bank (consumer data management center), seismometer (store data operation tool using Wi-Fi probe technology), and Tissot store (through payment link to achieve membership and payment through Ali). Eye.

In the 6, 18 and 11 activities of the year, new technology and data management were used to achieve the order growth and delivery efficiency enhancement.

In 2018, combined with the experience of many years of electricity supplier operation and big data analysis, Mark Ed Faye decided to create a "multi artistic tide card" through the younger generation and the trend of the trend to attack the crowd after 90, 95 and 00.

In 2019, in Yang Kuntian's view, it was the first year of brand transformation, but it just ran into the downward cycle of economy. Mark Ed Faye lived in a crevice and survived like a horror.

This year, the clothing industry was filled with grief and joy. Chao chao and Hanfu have grasped the trend of fashion. China Lining went to Paris fashion week. Taiping bird boarded the fashion week in New York.

But at the same time, there was a lot of losses and failures: Metersbonwe's market value was reduced by about 30000000000 yuan, and burshlung lost 139 million Hong Kong dollars. Esprit sold itself to GXG's parent company, mohsun group, and the two sides will set up a joint venture to restart the mainland market.

La Natsu Bell, who was founded in 1998, ended in dismal sales: in May, he sold 54.05% of the controlling e-commerce subsidiary. In December, he sold his home company at a price of 1 yuan, plus Jack Walker, who was bankrupt in October, and La Natsu Bell settled three sub brands in one year.

The economic environment is depressed, consumer demand is reduced, and brand supply exceeds demand, which is facing stock competition. In competition, whoever has the advantage can stand out.

"In 2019, Mark Ed Faye had the first mover advantage of the head brand, and the waist and tail brands were very difficult." Yang Kuntian believes that some of the industry giants collapsed, because they did not realize the changes in the lifestyle of the times and consumers, the products were not innovative, the traditional channel thinking and assets were heavier, it could also be that the diversification was too severe, or the financial leverage was too strong.

Yang Kuntian, who has always kept in mind the focus of his business, insists on not touching the financial leverage of banks, only doing clothing related businesses and investments, paying attention to the aesthetic changes brought about by technology and culture, and actively seeking adaptation and transformation, which has survived in this year.

　　 2020, double pressure.

After the cold winter of 2019, spring failed to arrive.

In January 13, 2020, Mark Ed Faye moved the company from the vicinity of Long Cao Road to Pujiang international science and Technology Plaza. The new office building with a more than 10000 storey three storey building is scheduled to open in February 3rd. To this end, the company planned and ready to open the door before the year.

On the morning of January 23rd, Wuhan announced the closure of the city. At this time, Mark Ed Faye's business in Hubei was not affected, and most shops still operate as usual.

Mark Ed Faye has more than 60 franchises in Hubei Province, with sales of about 150 million yuan a year. This figure is above average in the more than 1600 stores of mark Hua Fei, and the 3 billion 500 million sales volume in the whole year.

Yang Kuntian received the first warning that the business will be affected by the epidemic, from the direct store of Shanghai global port, thirty in January 24th. Shanghai world port was declared closed because of a new crown case.

The autumn and winter before the Spring Festival, from nine September to the following January, is the selling season of the clothing industry. Mark Ed Faye's autumn and winter sales account for 60% of the whole year, and the spring and summer season accounts for about 40%.

In January 2020, before the outbreak of the outbreak of the epidemic, Mark Ed Faye's performance was growing well. Both the online and offline targets exceeded the target. "Over the same period last year, the month exceeded 105%, and the line exceeded 120%", but the outbreak ended ten after the beginning of the month. 80% of the shops in the country were shut down. "

Even if there is no income, Mark Ed Faye needs to face more than 3000 employees' salaries, the rent of nearly 1000 stores, and the monthly cost of fixed costs exceeds 50 million yuan.

Yang Kun's cash at most of the company's books can stand for 3 months at most. It means that if the epidemic is not effectively suppressed by May, and the consumption is not fully recovered, the survival of enterprises will be extremely difficult.

Yang Kuntian had already seen this kind of hardship in 2003.

In March 28, 2003, Yang Kuntian led Mark Ed Faye, who was founded only 3 years ago, to participate in the tenth international clothing and Accessories Fair in Beijing. After finishing the show, she fled to Shanghai almost from the panic spread of SARS.

At the end of April, he flew to Kunming, Yunnan and other places to investigate dealers. Although the government did not have a mandatory shutdown, the mall was cold and depressed, and there were only 9 passengers on the return trip.

According to the experience of garment industry, the development and commissioning of clothing products need to be prepared six months in advance. In May of that year, Yang Kuntian had to make decisions on how many products he made in autumn and winter.

When the epidemic trend is not clear, for the sake of insurance, all the competing products are put into operation on the order of 50% or even less. Yang Kuntian decided to go against the trend: "at that time there was no burden. Anyway, left also died, and the right side also died and rushed out to see it."

At that time, Mark Ed Faye had only 100 shops in the country, and the volume of production was small and the risk was small. The team closed the door for 7 days, and finally decided to maintain a 90% order.

Yang Kun fields bet.

In June, the SARS epidemic was brought under control. In July, the economy recovered and consumer demand rose. Mark Ed Faye's inventory sales rate in autumn and winter was over 90%. After this campaign, Mark Ed Faye jumped to become the head brand of men's clothing in China.

17 years later, Mark Ed Faye has 1600 stores, more than 3000 employees, and 90% shops under the Spring Festival holiday have been forced to close down. So far, the proportion of shop sales is only 55%. The competition in the external market is not comparable with that of 17 years ago. In the face of the double pressure of the economic downturn cycle and the new crown pneumonia, Yang Kuntian must make more cautious decisions.

"The key is dynamic decision-making, diagnosis of epidemic situation, weekly or monthly adjustment of business objectives". Combined with the current multi-party information, the team initially judged that the epidemic will recover slowly in March and will return to normal in May.

Therefore, Yang Kuntian's February line business, mark Hua Fei believes that the sales performance that may be affected can only achieve the expected 10%, but it can only rely mainly on micro businesses and new retail sales.

The expected completion of 40% in March, 60% in April, 80% in May, and normal in June, are not optimistic in autumn and winter. This is a more optimistic estimate.

Restricted by logistics, the online business has recovered to 70% in March. It should be 80%~90% in April and 100% in May.

After the expected and business objectives are affected, the dynamic decision results are matched by the strategy of "maximization of sales and cost minimization".

Inamori Kazuo's five countermeasures

It was the party that opened in February 3rd, because the policy of Shanghai postponed to February 10th was cancelled. Yang Kun Tian spent two days writing a more than 5000 letter CEO letter, which was specially sent to all employees in the early hours of February 3rd.

In the letter, he wrote the prevention and control measures of the company to deal with the epidemic, wrote the difficulties of the current business operation, wrote the story of SARS in 2003, and also wrote the implementation rules for the enterprises to save themselves at the moment.

He specifically mentioned the influence of Japanese industrialist, Inamori Kazuo, a business philosopher, on his business philosophy.

By the end of 2012, Mark Ed Faye was experiencing a trough after rapid growth. The profit margins had fallen sharply, and executives had left office.

Yang Kuntian happened to read Inamori Kazuo's "great wisdom in the great leap in the depression" in the airport bookstore. Sheng Hefu proposed putting the adversity as a driving force and taking the depression as a leap for further development. At the same time, five countermeasures were put forward: full staff marketing, full development of new products, complete cost cutting, high productivity and good interpersonal relationship.

Soon, Yang Kuntian recommended rice Sheng philosophy and imported amoeba in the enterprise. Amiba is the "amoeba" in Latin. Its characteristics are that it can change with the changes of the external environment, and constantly adjust itself to adapt to the living environment.

Amiba's operation, proposed by Inamori Kazuo, extends to the operation of enterprises. It takes the leadership of all Amiba as the core, formulating plans on its own, and relies on the wisdom and efforts of all members to accomplish its goals.

In the face of the new crown epidemic, Yang Kuntian again borrowed the wisdom of Inamori Kazuo and put forward 6 specific measures to deal with.

1. the Baba Pakistan thought of unification and passed the understanding of "insistence is victory".

2. limit challenge to reduce costs;

3. maximize sales;

4., pay attention to cash flow and work hard to reduce receivables.

5. innovate the way of office and enter the working status as soon as possible.

6. all staff marketing, treasure boys and girls are different.

Among them, the limiting cost reduction includes "streamlining the process, avoiding redundant personnel, promoting the trend of partners, and other mechanisms; offline shops in time to apply for rent reduction or closure".

First of all, all the "faucets" to close, special period strictly control costs, the vast majority of expenditures must be examined by Yang Kuntian himself; secondly, shorten the stocking cycle, the development of products, planning, design and production rhythm from the original four seasons cut into twelve seasons, but also monthly and weekly production decisions and orders, forced supply chain changes.

Maximizing sales means developing online retail and new retail businesses vigorously, looking for opportunities to expand and expand the market.

During the epidemic period, new marketing methods such as micro business, live broadcast, short video service, content co creation and marketing, online and offline exchange of powder suction and diversion, offline scene reconstruction and other new marketing methods were widely adopted. Within a certain budget scope, we accelerated the creation and operation of Mark Ed Faye jitter, fast hand and B station numbers.

For many years ago, the implementation of O2O, landing new retail mark Hua Fei, in addition to the direct store, fully offline online has been because the online promotion efforts too big, too low profits were rejected by the franchisee, this epidemic has become an opportunity, franchisees in order to better sell the background data sharing, achieved 100% of online and offline data to get through.

We should pay more attention to the cash flow and make great efforts in the accounts period. We should reduce the accounts receivable and carry out the "reservoir operation": we should apply for government subsidies, government financial policy support, reduce tax burden, reduce production quickly, reduce inventory and lighten the burden and so on.

Full staff marketing. Yang Kuntian encouraged his employees to become slash young people. He believed that "the whole staff marketing needs the guarantee of mechanism mechanism, not only shouting slogans, but really stimulating the creativity of employees, selling passion, and forming a better link with closed loop".

Data from the end of 2019 showed that 1500 of Mark Ed Faye's 3000 employees registered in the micro mall, and the number of registrations is still rising during the epidemic.

10% sales commission, which started in September 2019, has not been actively implemented at the beginning. With the special situation of the epidemic and policy encouragement, sales are showing a geometric growth. At least 500 single deliveries a day.

After returning to work in February 10th, Yang Kuntian worked in the new office building every day. There is a thorough disinfection every week, disinfection in public areas daily, and three temperature measurements. He respects employees' independent choice and can not come to the office unless necessary.

Interview Yang Kuntian's scheduled time because his extended online meeting was rescheduled for the two time. Because of dynamic decision-making, he needed to maintain instant communication with management. Because I spoke too much, I was hoarse in the interview.

At the end of the interview, we asked Yang Kuntian why he chose "heaven helps those who help themselves" as the theme of the CEO letter.

Heaven helps those who help themselves, and those who help themselves help heaven. Our attitude towards crisis is very important. The attitude towards crisis is to save ourselves. In the era of VUCA, there is uncertainty, fuzziness, variability and complexity. The only thing we can be sure of is ourselves. We must save ourselves and help ourselves out of difficulties and go forward. "