3 Cases To Understand How Fashion Brands Accelerate "Green Circuit"

In May 2005, when GE CEO Jeff Immelt launched the new business strategy of "green innovation", no one thought that it has made great progress and considerable profits since then. At present, its "green" income has accounted for nearly 20%. They believe that as long as we manage the commercial value of green technology, environmental protection can also become a brilliant business strategy.

Looking back at the impact of today's epidemic on various formats, we also pay more attention to the harmonious co-existence of man and nature. This also forces us to calm down and think about the way out for "sustainable development" in the future.

　　 First, a new trend of retail industry: green consumption or popularity.

We look at two aspects:

Consumer level: green consumption has been increasingly sought after by the younger generation. According to the latest Jingdong's "2019 green consumption trend development report" released by the Jingdong, there are more than 100 million kinds of "green consumption" products. The growth of sales volume is more than 18% of Jingdong's total station, and is constantly infiltrating into the low line market.

Ali platform also shows that the green consumer group is growing exponentially. From last year's Tmall double 11 shopping trend, 90% of consumers accounted for 41%, becoming the main force of "environmental protection shopping".

Enterprise level: head enterprises have taken the lead in the green circuit. We have found that Nike, ADI, UNIQLO, H&M and others have achieved good results.

According to Nike released the 2019 financial year Nike impact report 2019 fiscal year, 76% of Nike's footwear and clothing used recyclable materials, an increase of 3% over the previous fiscal year; through the signing of factory recycling or energy conversion, 99.9% of Nike shoe products in the manufacturing process of waste material has been reused.

Another example is the use of water saving and environmental protection technology by the fast selling group's UNIQLO and high-end jeans brand JBrand, which can save the water consumption of 99% jeans during the washing process. In 2020, they planned to use the new manufacturing method to produce 40 million jeans, which are expected to save 3 billion 700 million litres and fill up 1500 standard swimming pools of international large swimming events. UNIQLO will also sell recycled polyester garments and recycled down garments.

Green consumption will become a popular trend, which will lead to the new form, new mode and new economy of Commerce. How do retailers think about sustainability in the future? There are two meanings: one is the sustainable development of the format, and the other is the sustainable competitiveness of the enterprise.

In the book "strategic management", Miller pointed out that fast response has become a new competitive advantage in today's rapidly changing competitive environment. In different competitive environments, there are different manifestations of differentiation, cost leadership and quick response.

Through our insight into the green consumption market, we find that although green consumption has been accepted by most people, more consumers are unwilling to pay higher cost for environmental protection products. In the case of fashion retailing, more than 80% of consumers expressed no willingness to pay more for sustainable fashion.

That is to say, the core issue before the business is: how to achieve environmental protection, and low cost / customer price, while still making profits?

　　 Two, how do they do "green driving" when studying these benchmark cases?

Today, we tell you 3 cases. They are all through the concept of green development, not only win word of mouth, but also win the market. There is a green track in the Red Sea competition.

We have observed that the key to realizing the "green drive" is to work hard on the "product power". Its core code is to introduce green consumption into the whole life cycle of products.

　　 Helly Hansen

Helly Hansen, an outdoor retailer for more than 130 years, is an old brand name. From its birth, it will spend more time to innovate and find new materials and technologies to maintain green environment.

It is the persistence of this core competitiveness that made it a world-famous brand of environmental protection. After entering the Chinese market in 2010, it has achieved good results.

Helly Hansen, a long-distance runner, has also achieved digital transformation, which has further led to its exponential growth. With its Centric PLM, it has unprecedented traceability and visibility in the product development process, as well as the ability to handle larger workloads faster at higher quality.

Its CEO once said: "the secret behind the success of Helly Hansen brand is through the efficient operation of the entire value chain, the unique design, and the marketing investment that can stimulate the brand's enthusiasm."

　　 Tentree

A group of enterprisers in Canada launched a clothing brand tentree for planting trees, and became a very popular green fashion brand carelessly. It was founded in 2012. The idea is that every sale of a product will grow ten trees. So far, about 35000000 trees have been planted. What is this concept? From its establishment to the present, it has sold about 3500000 products. Tentree also has millions of fans on Instagram, showing consumers' affection and recognition for them. This is very rare for a new brand.

Their goal is to plant 1 billion trees by 2030. To achieve this goal, tentree needs to be efficient from all aspects of product development, design to retail operation. With Centric SMB as the foundation of product development, we can fully understand the product life cycle. Tentree has implemented all product information and real-time data centralization, which can be shared between internal teams and external suppliers, thereby reducing errors, simplifying communication and facilitating collaboration with trading partners, and tracking the impact of the production process and offset of carbon emissions.

Since the use of Centric SMB, tentree has increased its product category by 33%, and its retail sales of more than 1000 stores worldwide have increased by 25%.

　　 Rothy 's

Rothy s was founded in 2012. From material, production to employee health, it adheres to the concept of sustainable development in all aspects of its business. We pay special attention to the fact that Rothy 's makes use of seamless knitting technology to turn recycled plastic bottles into fashionable shoes and greatly reduce waste. So far, about 34000000 recycled plastic bottles have been recovered and used to make shoes. In 2018, Rothy 's shoes sold more than 1 million pairs, earning 140 million US dollars last year. The scale of operations and team size are expanding.

In the face of the continuous improvement of performance, Rothy s has abandoned the traditional "organized chaos" system in product lifecycle management. As they say, modern PLM has been used to store all product data in one place. It is a digital workspace, which enables faster internal and external collaboration, simplifies communication, saves time to search information, and can also be followed. Track and analyze their progress. PLM helps them achieve the power to have every step in the supply chain.

The green strategy is based on the green product. By connecting all links between the people's freight yard, the green consumption is regarded as blood and imported into the whole life cycle of the product, so as to build "green value system". And through big data and consumer evaluation and other insights and mastery of market demand changes, reverse thinking about the development and innovation of green products.

The realization of system tooling helps enterprises quickly connect to the green consumption track. The 3 cases mentioned above have a figure behind it, that is, Centric PLM.

Centric PLM is committed to providing an advanced digital transformation platform for the most prestigious brands in fashion, retail, footwear, luxury, outdoor and consumer goods industries. The key to help green consumption into the whole life cycle of products is to summarize from 4 aspects:

Enhance product traceability and visibility. From the product development process, the traceability and visibility of the whole process can be realized, and the use of all materials and materials can be clearly grasps and the carbon emission in the production process can be traced to meet specific environmental requirements.

From B2C to C2B, the two way rapid response is achieved through contingency planning. Centric PLM platform provides product planning, product development, procurement and quality management functions, which can meet different R & D needs of brands in fast reverse, quick turnover and electricity supplier business.

Improve the efficiency of the business team. Ensure consistency of product understanding from design, production and sales to improve communication efficiency and streamline process. For example, the Rothy s communication approval process has been reduced from 2 hours to 2 minutes.

With the help of innovative technology, we can reduce the waste of resources and time. Through 3D proofing and evaluation technology, the waste of resources caused by multiple proofing is greatly reduced, the accuracy of samples is improved, and the process of proofing and evaluation is accelerated.

　　 Three. Aim at green circuit and get Sina's bottom line.

At the annual meeting of the green company, Ma Yun said that in the last century, we pursued big enterprises. In the 21st century, we must pursue good enterprises. The strength of good enterprises is sustainable.

Why do we have Rothy, s, tentree, Helly Hansen enterprises in foreign countries? But in China, we have few enterprises created by "green consumption" as brand DNA. We know some of them, but the scale is not bigger at the moment.

In our view, green strategy is a good weapon for future enterprises to compete for a long time. Green should infiltrate into every process and role of enterprises from top to bottom like blood. But this track must start from the product itself, and ensure the rapid development of enterprises.