On-site production on demand, manufacturer counterattack shirt C2M

CNII Network News launched in April this year, the unknown items, in July, sold 1800 single custom shirts, the founder of the quantity, Li Dada confidently said: the total number of transactions in September this year must exceed 10,000.

After the customer makes an appointment through WeChat and the website, the professional technician of the quantity will come to the door to measure the size of the body. After the customer confirms the style of the fabric, collar and button, the manufacturer will place an order for the factory, two weeks. Inside, a customized shirt for each version will be delivered to the customer.

Yes, the product is a customized platform for Internet shirts, but Lida is not from the IT industry, but an "old tailor." After graduating from Shanghai Jiaotong University in 1997, he worked in clothing manufacturing companies until the creation of quantitative products in 2016. In the absence of any promotion activities, the sales of the sales shirts reached a compound annual growth rate of 30% to 60%. According to this speed, the compound annual growth rate is expected to be about 10 times.

Alibaba has proposed to implement C2B-style sales through the Internet many years ago. The necessary shopping malls launched last year are tailor-made to meet the individual needs of the group. In addition to Taobao, Tmall, Jingdong and other comprehensive platforms, the e-commerce that sells shirts has been a popular one.

What is the difference between Lida's quantity and the above e-commerce? How far can I go through C2M and a custom shirt model for each version? In order to explore the answer, on August 16, the reporters of the "People's Posts and Telecommunications" newspaper interviewed Li Lida.

Cross the custom threshold

As a manufacturing and Internet power, Chinese manufacturers and Internet companies have never given up trying to customize their clothing. Li Lida said that he knows that there are no fewer than 200 such companies, but most of them have disappeared.

虞 Lida believes that the key to the failure of custom-made garments in the past is that most of the people who do this are from the Internet, IT or financial investment industries, and they do not have a solid manufacturing background. "They don't know what the reasonable price/performance ratio is, and they don't know how to make a shirt. They know that the money is burning in the market. Many Internet custom companies can use the banner to make clothes by taking pictures. I haven't dared to say it for nearly 20 years. In addition, "Most Chinese manufacturing practitioners are the 'old ox' in the factory, they know how to make a piece of clothing, but lack the Internet thinking and brand operation and maintenance capabilities."

Li Dada thinks that he is fortunate to be "the industry of shirts". He found that in the shirt manufacturing industry, he can transform the business model from production to brand operation, sales to resource integration, financing, and information system management. There are not many people who have reached the link. At that time, 16 college graduates who came to a Hong Kong-owned clothing company with Yan Lida had only insisted on "making shirts" for 19 years. "In turn, this gave me a chance." There are only four factories in the world that have mastered the form-memory and garment-free technology. Lida has 19 years of experience in two of them, and both of them are international first-line OEMs, which is also the product to dare to introduce non-iron customization. The bottom of the shirt.

Li Lida talked about his entrepreneurial experience different from the Internet money-burning model. "We don't dare to melt a lot of money to burn, then have customers, and then smash the market. This is a barbaric venture." He said, "My style of play is to see the next step in the money. Spend the money already."

In the case of Lida, the business foundation is not built by burning money. The first is to do the supply chain system. The personalized, one-to-one front-end customer experience means back-end supply chain transformation and refactoring. This thing seems simple, in fact, it is to change the supply chain model of the apparel industry. The second is to do an IT system. Among them, they will form a database with the size of bust, length, sleeve length, etc. As the data increases and the size of the body is subdivided, a function that gradually becomes more accurate will be formed. When the data is accumulated to 20,000 versions. The accuracy of the algorithm can reach more than 98%. The third is to improve the ability to land services. "In the next six months, the core work is how to do a good job in the offline quantitative system and achieve national standardization." He said, "Only offline service training system is solid, I dare to burn money. Anyone who spends money will However, if the customers who spend money to attract customers can't take it, the satisfaction of the guests will drop and they will be complained every day, that is certainly not a good thing."

Not doing a woman business

Ma Yun, Chairman of Alibaba Board of Directors, said: "I want to tell you about Alibaba's trade secrets. 70% of Alibaba's buyers are women and 55% of sellers are women. This is our main resource." But when will it be? Introducing the issue of women's custom shirts, 虞 Lida's answer is: "I don't earn women's money."

In the eyes of Lida, "Men's custom shirt is a huge pit." He said: "I am a very rational person. I will not listen to what others say. I will analyze the feasibility of doing things." He analyzed: First, the shirts that women like, need to wear the shirt with them. Feeling and wearing scenes have a great fit, which is not easy to master. Second, women's shirts are always a supporting role, no repurchase rate. Third, the current return rate of the quantity is 2%. If it is women's wear, the return rate must be more than 20%. "If I want to do a business well, I am sorry, I only do the male consumer market. The male standard shirt market is the most stable and best market."

Now, the way to buy custom-made shirts is very simple. The customer chooses the door-to-door customization for the first time. In the future, the customer wants to buy again. Just find the person who adds WeChat and tell him the quantity that needs to be bought. It will be delivered to the location specified by the customer.

Although China's garment industry has a large inventory backlog, it is the focus of supply-side reform, but Li Lida believes that not all garments can be customized and zero-stock through the Internet. Products suitable for C2M mode must have three Conditions: First, high gross profit margin. "Our operations are still more complicated. If a product's gross profit margin is too low, we can't do it. Low-margin products are only suitable for platform-type e-commerce sales such as Jingdong and Taobao." Second, there are consumer demand throughout the year. “In China, cotton clothes can't be made into C2M mode, because it can be sold in winter. In summer, this factory has to close. Seasonal goods do not have the conditions to do full C2M, you can do some, reduce some inventory.” Third, there must be High frequency demand. "Customized products use any method, the cost of getting a customer is relatively high. If a customer only buys once, it is difficult to conduct business operations. Why many companies that make suits are difficult to survive in China, the core reason is not those people Hard work, but there are too few Chinese people who often wear suits." In addition to shirts, another category that will be launched next year is men's trousers, which also meet the above three conditions.

First-class fabrics, non-ironing craftsmanship, tailor-made service, minimalist customer experience. The quantity caters to the needs of customers who are upgrading. Although the efficiency is reduced at the manufacturing end, the satisfaction is greatly improved on the client side. Now the quantity has covered more than 30 cities, and the repurchase rate is as high as 65%.

So far, the price shirt has two price points - 399 yuan for the 1.0 version and 499 yuan for the 2.0 version. It is said to be able to reach the quality of the shirt from 1,000 yuan to 2,000 yuan in the mall, and these shirts are fit.

In the supply chain model of the quantity, each customer's data is deposited in the background of the quantity. From the brand to the customer, there is only one agent, and the chain is shortened, which ensures the interests of the participants on the chain. According to reports, under the price system of 399 yuan, 499 yuan, agents can earn 130 yuan on each shirt, and this ratio will not decrease with the expansion of scale.

The Internet C2M brand launched by a manufacturer has been opened, and the customer first pays and customizes, completely zero inventory, which is a revolutionary innovation in the domestic clothing traditional supply chain model. At present, the volume has covered 38 cities and is expected to cover 60 cities by the end of this year. The goal is to produce and sell 20,000 shirts next year.