Forced O2O traditional clothing brand does not show weakness

O2O is undoubtedly one of the hottest keywords in the Internet industry since last year. Apart from Baidu, Alibaba, and Tencent being deployed in the overall situation, brand merchants have also accelerated their follow-up. In 2014, O2O in the Chinese clothing industry is no longer just a concept, but an actual action.

Recently, Yang Xun, vice chairman and general manager of Rising Sun Group Co., Ltd. disclosed in Beijing that in 2013, Jeanswest’s sales in China was 5 billion yuan, and its online shop sales were 260 million yuan. Although online sales accounted for only a little more than 5% of the total sales of Jeanswest in the Chinese market, e-commerce has developed very well. In the next three years, Jean-wests e-commerce will still maintain a continuous growth of 30% to 50%. In terms of e-commerce development, Jeanswest plans to implement the O2O model in the next step, achieve online and offline resource sharing, integrate a large entity sales network with an online sales network, provide customers with a diversified shopping experience, and allow customers to enjoy free and independent Shopping methods.

No inventory pressure

In order to adapt to consumers' personalized, fast-paced spending habits, apparel brands must provide more styles, more categories, and faster epidemic cycles, which also lay the hidden danger of high inventory. In recent years, many clothing brands have been dragged down by high inventory and lost in losses.

However, Yang Xun said in an interview with reporters that Jeanswest’s inventory was lower this year than last year and there was no inventory pressure. This is due to the fact that Jean-Swiss adjusted its market strategy in a timely manner based on market changes. With the increase of store rents and workers’ wages in the core business districts of the first and second tier cities, the cost of store sales in these areas will increase significantly. And in these places, the impact of international fast fashion brands on Jean-Czeis is huge, and the sales and cost of Jeanswest in these urban centers are not linked, and some central stores in Jeanswest have suffered serious losses. Faced with this situation, Jean-westers is taking a pragmatic initiative to close the store. While evacuating the first-tier cities, Jeanswest extended his reach to second and third-tier cities and achieved better growth in the second and third-tier cities.

In addition, Jean-westers also implements the online and offline shared inventory principle to reduce inventory pressure. After the line shop generates sales, according to the preset standard inventory, the system automatically replenishes online inventory from the offline inventory. This kind of way of supplementing sales to ensure that the logistics center's merchandise inventory flows to the most favorable sales channels and perfects the distribution of goods between physical stores and online stores.

Connect online and offline resources

Jeanswest Garments (China) Co., Ltd. was established in 1993 and has a comprehensive layout in various provinces and cities in China. There are about 2,700 existing stores. The rapid development of the Internet has changed the way people consume. In order to cater for changes in consumer spending habits and widen sales channels, Jeanswest entered the e-commerce business at the end of 2009, opened the first Jeanswest online shop with Taobao, China’s largest e-commerce third-party platform, and established an independent company in July of the following year. The e-commerce department is transformed from a purely physical store operator to e-commerce. According to Yang Xun’s introduction, currently, Jeanswest has set up 8 online stores in Tmall Mall, Taobao, Jingdong Mall, Vanke Mall, No. 1 Store, and Dangdang.com.

In order to avoid the "conflict" between online and offline stores, Jeanswest built its own ERP system. After acquiring online orders, the system can determine the customer's address and send the orders directly to the 18 branches of nearby customers for shipment. The nearest shipment, at the same time, sales are also included in the branch offices. Under this model, the Jeanswest E-Commerce Division has become a “single puller” for branches and physical stores around the country, resulting in an “optimal collaboration” model that effectively coordinates the impact of online sales on offline channel sales. .

At present, many clothing brands are testing O2O. However, Yang Xun believes that for apparel brands, the general direction of mobile O2O is to improve the competitiveness of stores, make full use of the interactive advantages of the mobile terminal, and increase the frequency and conversion rate of users to store consumption. Mobile is a tool and retail is an essence. The combination of the two is the core of future clothing brand e-commerce.

In terms of e-commerce development, Zhenweisi plans to implement the O2O model in the next step, achieve online and offline resource sharing, integrate a large entity sales network with an online sales network, provide customers with a diversified shopping experience, and allow customers to enjoy free and independent shopping. the way.

Through the self-built official mall platform, Jeanswest plans to launch a service model of online payment and offline store pick-up, which will make the network a “front-end” for the real economy extending to the virtual world. This mode of picking up at stores can increase shop traffic, allow customers to experience the professional services of shops, try clothes on the spot, and increase shopping experience.

At the same time, Jean-westers also plans to provide Internet access in physical stores for customers to visit the official mall. When a customer purchases a product with a color code out of stock, or fails to purchase a suitable product at the store, the customer can visit the official shop of Jeanswest to purchase the desired product. After completing the online transaction, the customer can provide the store to pick up or express delivery service to meet the shopping needs of the customer. This model effectively solved the problem of insufficient store inventory, improved store usage rate, and improved the customer's shopping experience and the convenience of purchasing goods, and gave full play to the business philosophy of the "Just because of value for money" brand. .