Fierce National Tide: Digitization In The Trend, Trend In The Digital

In 2010, the new edition of the Palace Museum calendar was released. In the past 10 years, the Palace Museum has launched more than 8700 cultural and creative products, with annual turnover of more than 1 billion yuan. Most of the buyers are young people; Cao County, Shandong Province, has more than 2000 Hanfu industry chain merchants and 18000 Taobao stores. It contracts 70% of the performance clothes on Taobao every year, and the sales of original Hanfu accounts for one third of the whole country. Young people fall in love with the products of the 600 year old palace museum. Cao County has seized the 10 billion Hanfu market, which is the tip of the iceberg of the rise of the national tide.

Some scholars call 2018 the first year of Guochao. In this year, the cumulative number of searches for keywords related to Chinese elements on Alibaba platform exceeded 12.6 billion times. Platforms such as tmall, pinduoduo, Jingdong, Baidu and byte hop have successively launched support plans for Guochao. In the past few years, Guochao focused on clothing, fashion and other small categories. In recent years, in addition to the fashion brand bubble mart, There is a trend of "all can tide" in national tide.

"Everything can be a national trend"

What is national tide? It is not the "trend brand created by Chinese local designers and managers" that some people have one-sided understanding. As long as the brands that can integrate Chinese elements and set off the consumption trend, they all belong to the category of national trend.

The rise of new brands, such as "perfect diary", "huaxizi", "liangpin shop", "Yuanqi forest", "Galan" and "ubras", have risen, surpassing the traditional brands in their respective fields; The old brands such as "flying crane", "Li Ning", "bosden", "baiqiling", "Libai" and "big white rabbit" have been transformed successfully and radiated new vitality.

These familiar brands belong to the category of "Guochao". Baidu search big data shows that in 2021, the number of content searches on Baidu about Guochao domestic products has increased by 528% compared with a decade ago. When Guochao is deeply rooted in the hearts of the people, its scope is wider. Besides the traditional cosmetics, automobiles, cosmetics, household appliances, shoes and clothes, and food, the contents of digital, film and television, games, comics, music, literature, cultural heritage, science and technology are more popular in Guochao. The popularity of national products in these fields is far higher than that of "foreign brands".

The most direct reason for the phenomenon of "everything can be trendy" is the upsurge of consumption. People consume more, better and more individuality. Cultural self-confidence is the social cause of Guochao. With the continuous improvement of China's economic status, Chinese people's national identity, national and cultural identity have become stronger. The essence of supporting Guochao is to support local culture and economy, especially the 320 million generation Z users (post-95 and Post-00), who have become the main consumer force, have no worries about food and clothing, have a strong personality, follow the trend, and are confident and independent, When consuming, they pay more attention to spiritual connotation, and no longer only consider function or cost performance. Because of this, consumption upgrading and younger consumption groups are the primary reasons for the surging tide of the country.

Of course, there is not only one reason for the emergence of a consumption wave sweeping the whole society. The supply side reform can not be ignored. In recent ten years, China has actively promoted the supply side reform. In 2014, the state proposed "the transformation of Chinese products to Chinese brands", in 2015, China released made in China 2025 (National Action Program), and since 2017, May 10 has been designated as "China brand day"... The supply side no longer pursues quantity and cost to be a "world processing plant", but increasingly attaches importance to innovation, quality and brand, which provides a guarantee for "Guochao" on the supply side.

The transformation and upgrading of manufacturing end meets the consumption trend of the national tide, and the important direction of transformation and upgrading is digitization. "Luo Chao channel" combed the relevant information and found that there were different reasons for the success of Guochao brands such as Feihe milk powder, bosden and liangpin shop. However, it is their common choice to grasp the marketing combination of young people and fully digitize the management level. There are a lot of research contents about Guochao brand marketing, but the digitization of Guochao brand is a topic that few people talk about, but it is very important to understand Guochao phenomenon.

Digital becomes a hero behind the scenes

After the melamine incident, Chinese people lost their confidence in domestic milk powder brands. Mengniu, Yili, Guangming and Yantang all spent a long time to regain their trust. In this process, flying crane, which focuses on infant milk powder, has unexpectedly risen and become the "first domestic milk powder". In 2020, the total income of flying crane will increase by 35.5% year on year; The owner's share of the annual profit of the parent company increased by 89% year-on-year, which is the fifth consecutive year of double-digit growth, with a compound annual growth rate of 49.47% from 2016 to 2020.

Many people say that it is because the slogan "more suitable for Chinese baby's physique" of Feihe milk powder has achieved good results, which is just the appearance. In addition to the well-known reasons such as "second child bonus", "focus on the screen", "e-commerce transformation", what is rarely known is that Feihe is also ahead of the dairy industry, FMCG and even the manufacturing industry in terms of digitalization, which is an important reason for the rise of Feihe milk powder.

Like all large-scale enterprises, Feihe has an information-based layout for a long time. For example, around 2010, the complex code system for product traceability was launched, which was an information system earlier deployed at the factory side. However, for a long time, the informatization of flying crane has been faced with difficulties: different systems are independent of each other and becoming more and more complex. It is not the system that serves people, but that people obey the orders of the system; A large number of data islands are formed within the enterprise, and the value of data is wasted. ?

In 2018, Feihe made an important decision: with Alibaba cloud, the most important partner in the process of digital transformation, the two sides have gradually deepened their cooperation and formed a "3 + 2 + 2" digital intelligence solution, that is, relying on "3" specific IT projects such as intelligent manufacturing, ERP system construction and intelligent office, and taking "2" middle platforms such as data and business as unified support, To support the "2" core business objectives such as new retail and smart supply chain, this is a complex project that flying crane and Alibaba cloud have participated in for several years. Let's take a look at the key "digital" contents:

1. The data middle platform integrates the data scattered by flying crane in different business systems. Alibaba cloud data center enables data to be "fast, accurate, complete, unified, and accessible", so that flying crane can use data instead of experience and become the "baton" of business decision-making;

2. The re purchase rate of milk powder is high, and the stock management of users is very important. At the same time, users' demand for milk powder is not the same, so it is very important to have insight into the market demand, develop products, layout channels and launch marketing. Based on the user operation platform, Feihe operates users' life cycle, including demand insight, user precipitation, intelligent marketing, etc;

3. In the intelligent manufacturing it project, Feihe supply chain has a total of 8 segments and 25 scenarios, including finished product inventory management, raw material packaging material management and optimization, production and quality management, dealer management, logistics management, etc. based on this, Feihe can timely capture market demand and realize small batch and high-speed flexible production. With the smart supply chain center, the cycle from production to delivery of a can of Feihe milk powder to consumers is shortened from 90 days to 28 days, the inventory backlog is greatly reduced, the capital flow is faster, the freshness of milk powder is higher, and the reputation of users is better;

4. Milk powder has very high requirements for food safety. It is very important to have a trace in every link from milk source to processing to transportation to terminal. The traceability system provided by alicloud allows users to scan the QR code to see the specific production factory, batch, factory production line of each can of Feihe milk powder, and even trace back to the specific pasture and milk source.

Similarly, bosden, whose stock price is close to a record high recently, also relies on digital transformation to "sprout old trees". According to the performance forecast released by bosden, the main financial indicators of fiscal year 20 / 21 may all reach new highs, and the income of down jacket is expected to return to the first place in the industry in the world, so as to be the "world's leading expert in Down garments". The black swan epidemic in 2020 will not only not hinder the rise of bosden, but also further accelerate its digital process.

In 2015, bosden and Alibaba cloud started to cooperate based on the retail system to open up the circulation system of nationwide stores and online goods, so as to realize commodity, inventory and membership. Through Alibaba cloud's "quick stock of global data" solution, "some stores are short selling and some stores are overstocked." This common structural shortage problem in the retail industry shortens the replenishment time of 4000 stores in China from about 4 hours a day to less than 1 hour, which directly promotes the sales performance. The intelligent replenishment system of bosden inventory center reduced the loss of out of stock by 21%, the sold out rate increased by 10% year on year, and the repurchase rate of members reached more than 20%.

After digitizing the store's purchase, sales and storage, bosden, with the help of Alibaba cloud, has comprehensively transformed its production line and rebuilt its logistics intelligent system. Now, a logistics center with 3 million pieces of clothing employs less than 100 people, and even replaces the forklift shift with warehouse robots.

Whether it is the digitalization of stores, warehouses, factories or logistics links, the bottom layer is the data center jointly built by bosden and Alibaba cloud. In April 2020, bosden and Alibaba cloud joined hands to achieve the strategic cooperation of "digital intelligence transformation fashion pioneer", and jointly built data center. In December 2020, bosden data center was launched, becoming the first manufacturing enterprise to complete comprehensive intelligent transformation in China's clothing industry. Bosden data center integrates online and offline data scattered in warehouses and stores around the country, and then reorganizes the data to enable bosden to carry out intelligent marketing and on-demand customization based on big data. Through fine operation of users and production on demand, bosden has successfully captured young people, and its proportion in the post-90s consumers of tmall is constantly increasing.

Digital national tide is not just Feihe milk powder and bosden. Through the keyword search of "Guochao brand + digital", we can find that every successful Guochao brand, new or old, has a down-to-earth digital practice

• Guochao beauty Jialan construction data center has successfully carried out digital transformation, and has been able to provide accurate insight into users' media, products, channels and marketing preferences, and formulate targeted strategies. Launch a new product, reach 40000 retail terminals within 24 hours, and deliver all retail contacts within 36 hours;

• In 618 2020, small appliance giant Jiuyang launched precision marketing based on the data center built by Alibaba cloud, and launched a new and more fashionable IP series. The ROI increased by 322%, Gmv doubled, and the proportion of users under the age of 27 increased by 10%;

• Founded in 1994 with 20 + brands, Liby group is China's largest and the world's fourth well-known household cleaning and washing brand. In recent years, we have vigorously promoted the transformation of digital intelligence, ushering in the second spring, and the sales volume will directly double in 2019. After participating in an activity in Ali in 2018, Liby decided to upgrade the IT department into a "Digital Intelligence Center" and upgrade digital intelligence into a company strategy, forming a roadmap of "single point digitization module digitization whole chain digitization ecological digitization". Based on the insight ability of data center, Liby launched condensed bead explosive products for laundry, and promoted organizational change through Liby's exclusive nail "Dudu" Build a digital intelligent supply chain to reduce costs and increase efficiency.

• ……

There are numerous digital cases of Guochao brand. More and more brands are using digital technology to leverage the dividends of new consumption.

Global digital consensus

Because of the differences in business model, industry characteristics, enterprise's own situation, especially the level of informatization, different brands face different problems in digitalization, but their overall ideas of digitization are similar. Whether new players or old giants, Guochao brands focus on the following directions when digitizing:

The first is the digitalization of enterprise management. Everything depends on data instead of experience decision.

Today's market is full of opportunities, but the environment is also unprecedentedly complex and changeable. Consumers are very picky, loyalty is declining, attention is lax, and channels are fragmented. All these are challenges for brands. Guochao brand is facing the most difficult to obtain Z-dimensional consumers, the above problems are more serious. Because of this, Guochao brands are building a data platform to integrate the data scattered in different scenarios, then sort out the application, and guide the selection, design, packaging, marketing and channel based on big data.

This is the reason why a large number of Guochao brands have cooperated with Alibaba cloud to carry out digitization. The ability of Alibaba cloud data center to make data "fast, accurate, complete, unified, and accessible" can break the "data chimney" in the traditional informatization of enterprises and form a digital base. Based on this, enterprises can no longer be empiricism, but data thinking + industry experience to operate enterprises, better insight into market demand, and take targeted business strategies. Guochao brand is facing a new generation of users. To seize them, we should pay more attention to the precise positioning of products and personalized services. All of them are user-centered, and digital technology is the key to achieve these.

The second is the digitization of commodity production. In the digital stories of Guochao brands, there are concepts similar to intelligent supply chain, intelligent manufacturing, intelligent factory and so on. In essence, they are all talking about the digitalization of commodity production. This is the end of the digital process, the most difficult to handle, but also the most valuable.

If we can build a real intelligent manufacturing capacity, on the one hand, enterprises can greatly reduce costs and efficiency, and at the same time better ensure the quality of goods; On the other hand, intelligent manufacturing is more flexible, which can truly realize flexible production. In a shorter time cycle, small batch or even single customization can be made possible. For example, Jiuyang can provide more diversified IP customized small household appliances based on intelligent manufacturing capability... These are the charm of intelligent manufacturing. ?

For Guochao brand, the ability of intelligent manufacturing is more important, because the needs of users are personalized. Only intelligent manufacturing can better meet the needs of "small batch" customization, limited edition and private customization. In addition, since "tide" has the attribute of transience, the consumption cycle of a new product of Guochao brand is not very long. Based on this, it is very important to respond quickly and immediately. To achieve this, we still need intelligent manufacturing.

The third is the digitization of commodity retail. There are two things that are very important for a product to be sold: one is marketing. Whether it is advertised or boasted, it is necessary to communicate with potential consumers in a more appropriate way to persuade or influence their purchase. One is the channel, that is, the goods are put in the most suitable place, offline is to ensure fast transaction, online is to ensure the delivery time in advance.

To achieve the digitization of commodity retail, we must rely on the new retail capacity. The combination of the new retail capabilities of Alibaba cloud and Ali, as well as the resources and capabilities of Alibaba ecology, has become a cross-border ability that understands both digital technology and new retail. Based on this, the retail industry solution can really help Guochao brand solve practical problems. For example, the above mentioned only helps bosden solve a "structural shortage" problem, There are a lot of systems engineering, only enterprises that really understand retail and technology at the same time can do well.

In terms of marketing, Alibaba cloud data center can help enterprises achieve full link precision marketing. On November 11, 2020, through Alibaba cloud data center, Galan has achieved remarkable results in global marketing and accurate market insight. The number of fans in tmall flagship store will exceed 20 million, the number of Omni channel members will double to 43 million, and the number of fans will reach 350 million, increasing 10 times; In 618, 2020, through quick audience, one of the core products of Alibaba cloud data's Taiwan retail industry solution, Jiuyang analyzed and operated the brand's own information in the past two years, and described a more accurate target market, so as to make the whole marketing link and data closed-loop more complete.

It can be seen that Guochao brands are making all-round efforts in digitalization, from the management of store's purchase, sale and storage, to the "man-machine material method" of production, to the retail channel / marketing / logistics, and to all aspects of enterprise's operation and management, all of which reflect the development direction of digitalization of all enterprises After many years of "local" digital stage, the enterprise's digitization will usher in "fragmentary". Only comprehensive, thorough and continuous digitization can we truly achieve data integration, business and innovation and management upgrade. No matter it is enterprise management, product production, marketing, channel management, partner cooperation and so on, no matter what business, it is inseparable from digitization.

Global digitization is the common choice of Guochao brands, and will also be the direction of enterprise digitization.

The rise of the national tide phenomenon is of course important for the patriotic plot of Chinese people, cultural confidence, and the rise of Z generation, which has brought huge consumption demand and formed new consumption trends: trend consumption, personalized consumption, affordable substitution, etc. Digitalization on the supply side is also indispensable. Guochao brand can not do without digital means to capture the changing needs of users and make targeted response; If the manufacturing industry wants to respond to the changing market rapidly and launch products with both product competitiveness and price competitiveness, it must rely on intelligent manufacturing.

Mr. Gao Dekang, chairman of bosden, said: "if a traditional enterprise engages in industrial Internet, it must be a" top project ". You may not fully understand it, but you must be superstitious." Nowadays, more and more Guochao brands are aware of the value of digitalization. Taking advantage of the favorable policies such as vigorously promoting the construction of "Digital China", they seize the digital technology dividends spillover from platforms such as Alibaba cloud, and compete to become digital in the trend, making digitalization a new trend.