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How Did Patpat Children'S Wear Brand Attract More Than 4 Billion Investment?

2022/3/28 19:17:00 0

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"I like patpat's parent-child clothes, so many kinds of clothes to choose from. Adult Khaki alphabet T-shirt is 4.07 pounds for adults and 3.05 pounds for children. 15% discount is available for size 'emma15' Emma Sewell wrote on her instagram. As the mother of three girls, her instagram home page not only has many photos of her children, but also shows patt's clothes and discount codes.

As a DTC children's wear brand founded in 2014 in mountain view city of Silicon Valley, patpat has strong advantages in supply chain management and operation efficiency, and its outstanding performance in consumer insight and brand influence construction is also an important reason why it is widely favored by users and capital markets.

From patpat, we can see that many of the videos released by patpat are pictures of cute babies, or interactive cross dressing between parents and babies. In addition, patpat and patpathaul are also created to attract parents to build brand content.

Just imagine, who doesn't want to show off their own baby, and who will refuse Meng Bao? Based on this, many parents also began to shoot baby drying videos on the tabs. Patpat skillfully grasped the user psychology and let the father and mother become brand ambassadors, so as to attract more target audience to promote their content strategy.

There are many such posts on instagram, with 23W posts under the topic of "patpat". On Facebook, the main camp, patpat has more than six million fans.

Just on July 19 last year, patpat announced that it had obtained $510 million of round C and round D financing from famous VC / PE companies such as today capital, pan Atlantic capital, CDH Baifu, SIG Haina Asia, maxc capital, DST global, GGV Jiyuan capital, etc. Subsequently, on August 17, patpat announced that it had completed the D2 round financing of US $160 million exclusively invested by Softbank vision fund phase II. In a short period of one month, 670 million US dollars (about 4.3 billion yuan) of financing was realized, which broke the largest single financing record disclosed by the domestic cross-border e-commerce industry.

As the world's largest children's wear DTC brand, patpat has covered more than 100 countries and regions.

Although its model is similar to that of the well-known cross-border e-commerce sheen, this brand of mother, baby and children's wear, which has been established only six years ago by several men of science and technology, clearly represents the typical development path of a new generation of cross-border e-commerce platforms.

Beibei net and honey bud baby, which were once popular in China for a time, have inspired Wang can and others. They turn their heads and plunge into the field of infant clothing.

On the one hand, non-standard children's wear is introduced into the market to form dislocation competition with large-scale mature e-commerce selling standardized products; On the other hand, patpat set up a team of people in the United States to optimize the packaging of the product display by referring to the copybooks and pictures of beibei.com and jumei.com.

However, this is only the beginning. For cross-border e-commerce companies which rely heavily on the supply chain capacity, speed, quality and price are the key to the success or failure of a brand. The effect of supply chain management is no more than three standards: quality, cost and delivery time. But at the same time, fish and bear's paw can not be possessed at the same time. "Quality, cost and delivery time are contradictory to each other, and we need to make timely trade-offs.".

For this high-profile cross-border e-commerce brand, the construction of supply chain is still a core issue.

According to patpat's private financing business plan obtained by venture state, at the production level, patpat's average inventory turnover days are 30 days, the average publishing days are 5 days, and the new product development cycle is 7 days. In contrast, its benchmarking brand sheen is updated daily, Zara is twice a week, while the frequency of traditional clothing brands is often quarterly.

In addition, in order to reduce the cost and improve the operation speed, patpat also built its own children's clothing safety testing laboratory, which reduced the inspection time of a single garment from 200-500 US dollars in two weeks to 10 US dollars in one day. According to the business plan, patpat's gross margin can reach 70%.

At present, the company's revenue in 2020 is $200 million, about 1.29 billion yuan. By the first quarter of 2020, patpat has more than 7.6 million registered users.

Supply chain control is a more difficult part than marketing.

As early as 2015, patpat had experienced a supply chain strain caused by a surge in orders and suffered from numerous suppliers and warehouses. Since 2016, patpat has been deeply involved in the domestic supply chain, and has successively set up offices in Shenzhen, Guangzhou, Hangzhou, Foshan and other places.

Then, the team began to focus on strengthening the integration ability of the supply chain, selecting high-quality suppliers, accelerating the speed of product innovation, and trying to make the new product into an advantage. According to data, patpat has more than 800 suppliers in 2018.

Since 20 years ago, patpat has also begun to focus on digital printing, a flexible garment production technology. For patpat, who specializes in children's wear, the color fastness and skin friendly index of fabric printing are very high. At the same time, it should also conform to the characteristics of cross-border e-commerce fast response. In order to meet the two requirements of environmental protection and fast reaction, pigment digital direct jet printing has become patpat's first choice. It is understood that patpat has laid out the production line of pigment direct jet digital printing.

For the future of the supply chain system of cross-border e-commerce, Liu Mingguang, who witnessed the supply chain system of sheen and patpat, once said: in the future, there will be two trends in the whole supply chain of cross-border e-commerce. First, it will become more and more severe. Second, high-quality resources will be concentrated in some giants, forming a Matthew effect.

This is a competition for comprehensive strength. The advantages of capital concern and policy support make cross-border export e-commerce a new outlet to be pursued by the capital market. However, for the real entrants, from local operation ability, marketing level to supply chain control, they are faced with all kinds of tests. Only those who practice both internal and external can laugh at the end.

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