The 7th China Online Retail Conference was held in Chengdu today.
The following is the speech of the customer CEO Eslite.
Aging: Thank you all, thank you host, everyone, a long time did not come to participate in billion state power meeting, and I was very excited to participate today, just when preparing the guest, can even say when the guest has not opened yet I remember very clearly that at that time I had participated in a meeting of the Yibang Power Company, which gave me a lot of confidence at that time. What is the tone of your speech when I asked the National Day? I hope that what I said is consistent with the National Day. I just listened to it. He said that today's tone is that everyone should do their own thing. Do not want to dominate the world or the dominance of a single family. This is also the time or the past. One year I look at the Chinese e-commerce market, especially the B2C platform, which I am thinking about.
B2C platform has not yet formed its core competitiveness
In 2000, when we just started doing Joyo.com, there was an idea of â€‹â€‹how to make China's Amazon. I think this expectation has been for 10 years. From the eyes of investors in 1998 there was such a myth. When can we create a company like the Amazon in the United States, but in the past decade or so, indeed we have not seen too many clear paths to the original expectations.
Some time ago, I told others that it is possible that this market in China is difficult to create such a company, or to form such a pattern, in the past ten years, my own feeling is that from the B2C platform, my own feelings I said that I might say that I would offend China National Day. My feeling is that companies on the B2C platform have not formed their own core competencies. If they have formed their own core competencies, the whole change will not be so fast.
The beginning was from 2000 to 2004 when it was remarkable and well-done, and soon after it came out of Jingdong, we recognized Jingdong in 2005, 2006, and 2007. At that time, when we thought that this pattern had almost appeared again, starting from last year, we came out with Tmall, and then Suning appeared again this year. This change is very fast. There must be reasons behind this change, and this pattern is very easy to change. I think Behind these competitors, there is no real core competitiveness in this process.
I recently thought of a question. What exactly is Amazon's core competitiveness? I think that Amazon's core competitiveness in the United States is the US market. It is the big environment of the US market, not how amazing Amazon itself is. The Chinese market is indeed very competitive, and all of them point to the imagination or expectation of everyone more than a decade ago. It is said that China has an Amazon that has unified China and the United States. I have recently been intrigued by Hu Huâ€™s thinking about this issue. The true core competitiveness of the platform may not be formed. This is my opinion on this matter.
Maybe we base ourselves on the Chinese market and we look forward to the complete imitation of this route by the United States. This may not work, but if this idea is established, it may give investors a big question.
We now see that the competition of the entire B2C platform is still stuck in a very, very simple price war. Whether or not you want to admit it, you actually stay on the price war even if the lively double 11 and double 11 are discussed. At its core, is Tmall's win not a price war? Is there anything worthy of careful analysis of our core competencies? Of course there is Tmall traffic in it. This is very simple, it is flow plus price war. Therefore, if we say this, it is true that we do not see what the core competitiveness behind the B2C platform deserves to be shared by us today.
The Internet can definitely be born into a scale brand
Next, I would like to say that the topic that Zheng Min gave me is that today we must talk more about the brand. We have been doing guest business since 2007 and we have been doing it for five years now. Five years ago, no one believed on the Internet. It is possible to build a brand that is completely brand-free and completely on the Internet.
In the past period of time, we have repeatedly confessed that we could not have imagined what we would be like five years ago. In any case, five years later, where the customer at least proved one thing, that is You can create a brand on the Internet.
How did this five years come? I think the product actually came from the product. When we started shirts, we learned PPG. When PPG didn't work, we started to explore. We started slowly expanding our product line. In the process, Every step in the development of the customer is inseparable from finding the right product, such as our shirt at the beginning. Later we went to POLO in 2008 and we made casual trousers in the second half of 2008. Everybody mentioned this may feel very boring and feel that every customer What is the secret behind it? I think secrets are products.
We have two product T-shirts and canvas shoes. We have completely changed the customer layer of Vanke Eslite. The biggest change is that we originally imagined the main user group is 30 to 40, or 35 to 45. The group was modified to be under the age of 30. Our main user group is now 20 to 25 years old. This change is related to the younger products that T-shirts and canvas shoes were trying to do in 2010. We divide the guest into layers:
The first tier is the service system. This is the lowest level. This tier may be similar to the e-commerce vendors discussed today. The B2C platform has the greatest correlation, because the entire operating system, the entire service system and the traditional B2C platform do not have The difference is too big.
The second layer is a cost-effective, cost-effective product, this time should also be no special difference with the traditional B2C platform, but there is one thing out of the second floor, the products we sell are our inventory, we Our own products, our own inventory, in fact, this is also the biggest challenge for branding.
The third level is the degree of fashion. Since we have to do these products, the degree of fashion should be very important.
The fourth level is brand attitude or brand spirit.
Sometimes we say it in reverse. Let's talk about the brand spirit, fashion, cost-effectiveness, and finally service.
Then I talked about this. We know each other layer by layer over a period of five years. We sum up the layers where the guest is a brand, and the most surprising thing is that there is a very important degree of fashion here. , I just mentioned that our T-shirt is also a good product for canvas shoes. Its core competitiveness or the most attractive function for users is the degree of fashion of this product. Inter-connected brands are actually closely related.
We think about it. In the first year of our T-shirts, we made 100 patterns. In the second year, we made nearly 1,000 patterns. This year we made nearly 2,000 patterns. This pattern is standardized, and This pattern is not displayed in traditional brand stores. They do not have such a large area to display these products.
We know that in terms of the degree of fashion in T-shirts, the global brand is relatively good to do with UNIQLO. However, if you look at the UNIQLO store, you will find that in fact, the main display of each store can only be part of it. The styles, but on the counter, the use of the user group on the chaos, in all passengers even if the two thousand models do, because of the advantages of Internet display, so it can also allow users to see the pattern of a particularly clear degree of fashion.
I don't say canvas shoes, so if there is anything new to tell you today, what I want to say is that if you want to be a brand on the Internet, how does the Internet better show fashion, this is an interesting topic.
Before this, when we looked at Taobao sellers, we could also see that when Taobao sellers showed the details of the products, it was indeed more than a traditional shop and it was also used. Internet brand advantages.
The biggest difficulty is the inventory problem
I just mentioned the issue of inventory. After five years of service, the biggest challenge we face is how we can become a fast fashion brand based on the degree of fashion. The core of fast fashion brands is, of course, the rapid supply chain response. In the past five years, Vanke did not do well at this point. This is one of the things that I particularly troubled in the recent period. We are thinking, where The response of its data is every minute per second. Can we apply this rapid response to the planning and design of our products, especially to the supply chain?
In fact, this is very bad for passenger transport. That is to say, in theory, such a rapid data response should be better applied to the entire value chain process of the entire customer base. However, from now on, it is still necessary to achieve this. Very difficult. The most difficult part to achieve this is the early planning and distribution of the flexible supply chain. It will take a while, and it will take one and a half years or even three years to complete the quick response on this supply chain.
Once completed, Vanke, as an Internet brand, has formed another core competitiveness of the company, which is the core competitiveness of the flexible supply chain. But on this point, we are really eager for today, and we can do a lot with this aspect. Researchers, especially those outside the guest, and the Internet research outside the clothing industry, have formed methods such as the methods of these systems and theories as well. They hope to discuss with these researchers.
Some time ago I heard that someone was doing the work in this area. I particularly hope that through this meeting of the China Online Retail Annual Conference, I hope to understand the people who are doing research in this field, and the process of planning, designing, and creating flexible space for Internet brands. This process is What else do we need to do? We now think that we still have a lot of work to do, and the thinking is not clear enough. This is a puzzle, but if we can solve this confusion, it is also a very important core competence that we can form as an Internet brand.
If you say branding, I wonder why in the past five years, especially in the past two or three years, everyone has seen that the development of the guest is very clear, but in this process, the company following Vanke is not formed. This is a question that I have recently pondered, but I have no answer today.
We can only say that the five-year guest proves the possibility of these things, but at the same time, we may have experienced the difficulties that we have as an Internet brand in the recent period of time. The most difficult problem is the inventory problem, from the traditional Whether the industry is good, traditional brands are good, or Internet brands are good, no one can. Perhaps it is not the flexible supply chain that I just talked about that can completely change these situations.
Of course, what I'd like to tell you is that in this process, it may be the operation methods of some futures systems that include the traditional brands in the past that may create the biggest problems in inventory. I don't know whether or not you know that the traditional clothing brand is a complete futures system. Therefore, this year it will be necessary to do a good job for next year's clothing. This is the biggest problem that has overwhelmed traditional brands.
Here I can see some observers saying that where is the problem here, I think that maybe we can't figure out the path taken by traditional Chinese brands in the past decade or more, but this is a particularly long-term topic. This will not be explained here. However, as an Internet brand may encounter problems, but also I am particularly curious, I also particularly want to study with you.
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