First, the gorgeous transcript against the trend.
The market value of Haicang House has exceeded 60 billion, surpassing world famous brands such as Coach, Prada and Burberry! In the environment where the performance of apparel companies has been cold, the Haishu home of A-share listed companies has become “alternativeâ€. According to Standard & Poor's “Top 25 List of Luxury Apparel Luxury Products in the World's Market Valuesâ€, Haishu House from China ranks 14th with a market value of US$ 9.498 billion. The top ranked list is the luxury goods giant LVMH, with a market value of 80.7 billion US dollars, and the market value of Haishu House is equivalent to 1/8 of LVMH.
With the trend of online shopping becoming a trend, the business of the physical store in the clothing industry is becoming more and more difficult. In recent years, the tide of physical store closure has become more and more fierce. Many offline retailers feel the pressure, often doing online sales, or developing the 020 model. In the tide of closing the store, Haishu’s home has opened the store in a frenzied manner. In the first three quarters of 2016, there were 972 new stores, which is equivalent to an average of more than 100 stores per month. At the same time, the revenues in the three quarters exceeded 10 billion. Ranked first in the total revenue of listed companies in the national apparel retail industry in the first three quarters of 2016. Undoubtedly, in the case of the industry facing the cold winter, Haicang House has surrendered a gorgeous transcript! In addition to the brilliant sales performance, in the brand communication, for three consecutive seasons sponsored the title "Running Brothers", the exclusive title "Guinness China Night", sponsored "Best Brain" and a series of domestically influential programs, The brand influence of Haishu Home has been effectively improved. The “men's national brand†is deeply rooted in the hearts of the people, and the “men's wardrobe†is more familiar.
Someone asked Anta's founder Ding Zhizhong to survive the huge impact of the Internet, who can survive the retail industry. Ding Zhizhong said that in addition to himself, he also said a brand: Haishu House. Zhou Jianping, founder of Haishu House, said: We are not a clothing company because we do not make a difference. Then, Haishu’s house is not selling clothes. What is it?
Second, the analysis of the retail model - the business model canvas of Haishu House.
Behind the business performance, there must be a constant profit logic as a support. What advantages does Haishu’s business model have over other peers? Business models describe the fundamentals of how companies create value, deliver value and gain value. The author uses the Swiss Business Model Expert Alex Osterwalder's "Business Model Canvas" to describe and analyze the retail model of Haishu House. The nine modules of the business model canvas answer five questions about what the company offers, why it is offered, how it is offered, how it benefits, and how it costs.
Haicang House Business Model Canvas
1. Clear value proposition: Men's overall solution for dressing.
Men's shopping habits are quite different from those of women, and their consumption behavior is more purposeful. They hope to achieve the set goals in a quick way. Haishu House offers a total solution for men's dress, helping customers to reduce the time and dress time. Existing clothing categories include suit suits, casual suits, jackets, coats, down jackets, sweaters, sweaters, shirts, T-shirts, trousers, casual pants, jeans, underwear, etc. Accessories, belts, ties, scarves, Socks, shoes, etc., the clothing needed for adult men is here. The products cover everything from head to toe, from the inside out, from winter to summer, from formal wear to casual wear. Each store displays a wide range of men's products, and consumers can buy a full set of clothing, fully catering to the consumption habits of Chinese men, saving time and simplifying decision-making.
2. Accurate customer segmentation: urban white-collar men.
For a clothing company, in general, it is impossible to occupy the entire market share, but only on the basis of market segmentation, select several markets as their target market. Haishu's target customers are men aged 25-45 and with annual income ranging from 50,000 to 100,000 yuan. This is the “blue ocean†market with relatively small competition in the men's clothing market but a large market share. Reasonable pricing of products, to adhere to the normal profit as the pricing target. The price of each suit is only between 480 and 1680 yuan, which is much lower than the price of similar brand suits in the same grade, which perfectly realizes the brand ideal of “high grade, medium priceâ€. Based on the customer segmentation, the “high-end mid-price method†can accurately target the brand's target market, develop the middle and high-end market with a positive attitude, strive to expand the market share at the market level, and shape the long-lasting logo of the company. Image.
3. Affinity customer relationship: "No interference, self-selected" men's wardrobe.
Men need to buy when they want to buy, buy it when they are fancy, and don’t like someone to follow and stare at it. They keep telling him that this is good and that is appropriate, and people feel uncomfortable. Haicang House abandoned the traditional "man-to-man" shopping guide mode, but provided consumers with a non-interfering, free and comfortable clothing environment. Apparel products are displayed according to the variety, type and specification. Consumers can easily purchase clothes according to their height and size. It is this easy and convenient shopping experience that makes more male consumers willing to come to Haicang House, choose a suit to choose a shirt, choose a shirt to choose a tie, and choose a tie to choose a belt to avoid multi-store shopping. It is cumbersome and has become a one-stop consumption for fashion and convenience. At the same time, to grasp the characteristics of men's shopping directly, do not like too much bargaining, for all goods are a price, according to the label price. In addition, we also insist on not discounting prices and not reducing prices throughout the year to maintain the brand image.
4. Standardized channel access: Managed franchise, standardized operation.
The franchisees do not participate in the store management. All the work such as merchandise launch, store management, and operation mode are all standardized and managed by Haicang House, and even the location of the store is determined by the store. In terms of specific operations, unified image, unified price, unified management, unified procurement, unified distribution, unified decoration, unified recruitment, unified training, unified settlement, implementation of national unified chain management, truly achieve both "link" and "lock", “Lian†lived in the brand, “even†lived in the image, “connected†to the product, “connected†to the service, and “locked†the management, so that each store can operate according to the company’s standardized model. Each department can also serve the store in accordance with standardized business processes.
The indoor shopping environment of Haicang House is the product display environment. The design of the interior space interface is changed from complicated to simple, and the customer's sight is transferred to the display itself. In the combination design of the space function partition, pay attention to the comfort and comfort of the sales environment, and create a buffer and meditation for the consumers who are tired of shopping. The design of the fitting room creates a feeling of home. The inconspicuous daily necessities on the wall are tools for assisting the fitting. The clothes hooks satisfy the hanging bag and clothes hanging, a pair of slippers, a headgear to protect the hairstyle and makeup. At the same time, it brings convenience to consumers to try on, but also reflects the meticulous care of the business. In the design of the light environment, the lights are gathered on a certain main clothing to guide the attention and attention of the consumers, reduce the excessively strong and changing light, and avoid the tension and disgust of the consumers. The clothing store is the most direct appearance of the sales process. In the commercial environment where the shops are built, the design of Haishu Home reduces the similarity and similarity, highlights the differences and stimuli, and produces a refreshing look when consumers are visually tired. The visual impact of the clothing brand's style and personality.
The standardized management and user-friendly design of the store creates a comfortable environment for consumers to make the entire experiential shopping process enjoyable and relaxing. Zhou Jianping, president of Haicang House, once said two small stories: "There is a franchisee who wants to make a fortune cat on the counter. We can't say it because it doesn't match the image of Haicang House. There is also a franchisee to the salesperson. The ability is not at ease, every day I move a small bench in the store to supervise the battle, and I sat in less than a week and walked away with confidence."
5. Key cooperation of high viscosity: the joint mode of “offline milletâ€.
The supply chain management model is a bit like Xiaomi. There is no factory in the upstream. It is OEM, and all the clothing design and style are provided by the designers of the suppliers. They are not directly involved in the design. However, after the design of the supplier is completed, the headquarters of the Haishu House will be selected and reviewed by the designers at the headquarters. The designers at the headquarters will evaluate which style designs may be sold according to the current trend of fashion, and then place orders. Behind the close cooperation between the Haishu home and the suppliers is the benefit-sharing mechanism. The combination of post-sales payment, slow-moving goods return and secondary purchase combines the interests of suppliers and brands. There is a “returnable joint venture†relationship between the company and the supplier, and two products that are still unsalable after the market can be returned. In this way, suppliers are no longer simple OEM manufacturers. In order to improve the sales rate and profit margin, it is necessary to understand the market trends and seamlessly connect with the brand Fanghaihao home to produce marketable products. Of course, Haishu’s home is not a “hands-on shopkeeperâ€. It is necessary to help suppliers improve the sales rate and improve the efficiency of the store. Through the establishment of a benefit sharing and risk sharing mechanism, suppliers, franchisees and brand parties will be formed into a community of interests, and all aspects of the industry chain will be fulfilled, and each will benefit and develop together.
6. Efficient key business: supply chain integration.
In the supply chain management, Haishu Home is a typical SPA (self-owned trademark clothing store) enterprise, that is, it has its own original brand, and realizes its own production and sales. From production to sales, the entire process is managed in a unified manner to reduce intermediate links and reduce costs. For the first time, the new concept of garment production, that is, the development of garments, began with the original wool, and the domestic garment industry took the lead in forming a complete industrial chain from wool to garments. From the pasture to the workshop directly into the store, all use their own resources, without any intermediary participation, effectively control the cost and quality, and directly give benefits to consumers. At the same time, no matter from the design of the layout, fabric selection, quality management, the production standards of the international garment industry are strictly implemented. In this process, the purest circulation is experienced. Haishu's home is a highly flat platform in the entire supply chain. Just like an interface, it organizes various resources to form a unique product and brand. It does not occupy too many resources, but each Resources are playing the most important role in him.
At the same time, Haishu Home constantly expands online traffic, integrates online resources, matches offline pricing strategies that do not discount and does not cut prices, and strictly guarantees the same price for online and offline. And cooperate with Tmall, Vipshop and other platforms to independently innovate and plan store activities that meet the brand's tonality and enhance the influence of the brand online. Enhance the consumer shopping experience with a sophisticated shopping experience and service. In the first half of 2016, the online main business income was 4,169,017,700 yuan, an increase of 99.11% over the same period of the previous year.
7. Core resources: Intangible assets of men's national brands and high-definition offline traffic.
While doing a good job, we will focus on building a brand image. Enhance brand awareness by selecting popular variety shows such as "Run, Brother", "Awesome Challenge", "Best Brain". Increasing the star forest update with the network red trait as a brand spokesperson, consumer interaction improves the stickiness and repurchase rate. Grasp the festivals such as "Father's Day" and "Spring Festival" to conduct emotional marketing, which will arouse the emotional resonance of consumers. Strategically cooperate with Oriental DreamWorks to inject more thematic and cultural connotations into products and brands. Invested huge sums of money in CCTV news broadcasts, weather forecasts, evening news, dialogues and other golden programs. The advertisement of "Haicang House, Men's Wardrobe" can be described as a household name, deeply rooted in the hearts of the people, and also established the status of "men's national brand".
More than 3,000 franchise stores under the Haicang House are located in the core business district with large traffic volume, which brings huge traffic entrance; and the store buyers have higher purchase rates and high traffic rate. Why can a clothing store become a circulation entrance? Clothing consumption is frequent and seasonal, and it is a business directly related to people's daily consumption. Why are shopping centers willing to give good location to famous clothing companies, because they can bring offline traffic, and with traffic, other things are easy to handle. Therefore, Zhou Chengjian said that Haishu’s home “is not selling clothes, it is offline trafficâ€.
8. Cost structure of light assets: low proportion of prepaid goods.
Haicang House is a typical “light asset†model. Most of the production links and some sales channels are outsourced or completely outsourced. The focus of their own operations is on brand operations, terminal channels and supply chain management. Grab the industrial chain, the high point of the value chain, and then weave a smile curve. In the specific operation, the production process of the product is outsourced to the manufacturer by means of labor and materials, while the downstream products are sold through franchise stores, shopping malls and direct stores. When the goods are initially put into storage, the payment to the supplier does not exceed 30%, and the follow-up funds are settled monthly with the actual sales of the goods.
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