Vanke Supply Chain Road: ZARAor Uniqlo

UNIQLO has always been regarded as a learning and competitor's vanke Eslite, and in 2013 it turned its attention to fast fashion such as ZARA. In the old age, we hope that our customers will create two supply chains that correspond to consumers' demand for a large number of basic models and a small number of fashion models. They will be China’s “UNIQLO+ZARA”.

In 2012, the offline apparel industry as a whole fell into a situation of stagnant sales and inventories. In the first half of last year, the total inventory of 42 domestic listed clothing and textile enterprises, including Anta, 361 Degrees, and Xtep, reached 48.3 billion yuan. Until the end of 2012, Li Ning was still cleaning up inventory, a one-time investment of 1.4 billion to 1.8 billion, to offset the accounts receivable, buy back channel inventory.

After one year of management reforms, Vanke achieved profitability in the fourth quarter of 2012. Old said he suddenly realized that as long as the return to common sense of brand management fashion brand channel common sense, with inventory turnover efficiency to balance common sense of scale and profitability of e-commerce where the customer can get rid of the curse, can have scale, but also Profit.

In the fall of 2012, after a concentrated visit to traditional clothing brand manufacturers such as Anta, Semir, and Jiumu Muwang, Chennian realized the importance of optimizing supply chain efficiency. Soon, the number of customer suppliers was cut from 200 to 100. High-quality suppliers were concentrated in Hangzhou, Guangzhou, and Beijing. At the same time, small suppliers with fast and low cost were added.

Aged that, for a fashion brand, inventory turns is very important, "Even if there are good profits, inventory turnover can not solve this problem is nonsense, this is the garment industry the biggest problem." Where the customer is also the traditional brand The transformation of the operation concept of garment enterprises: effective control of the supply chain, establishment of a data center to establish a circular information feedback mechanism, consumption-oriented, quantitative production based on data, and ultimately to achieve the fastest inventory turnover. This is also a successful model for large-scale fashion apparel brands such as Uniqlo, H&M and ZARA.

On January 21, Vanke Fashion Women's Channel went online. Where the customer past learning object is Uniqlo to produce a large number of basic models garments, while the women's channel learning is H & M, ZARA, TOPSHOP and other international fast fashion clothing brand: fashion design, fast response, a variety of small amount, passenger The unit price also increases accordingly.

Where the customer is trying to form Uniqlo + H & M or ZARA model, focusing on creating two supply chain in 2013: the basic models clothing production-based, low-cost, large-scale supply chain, and to a variety of small amount of fast fashion style clothing production The main quick response supply chain.

Last year, Vanke's architectural adjustments made it possible to quickly establish new models and supply chains. Chen Nian said that 12 divisions are like 12 independent companies. Each division has its own production center and supplier, and it can pull out two supply chains from different divisions and do not have to worry about fighting each other.

Currently, the total inventory turnover days of customers have fallen from less than three months to less than 30 days. In the fourth quarter of 2012, they reached 16 days. It is understood that the average inventory turnover days for domestic garment enterprises is 185 days. To control the supply chain speed, ZARA is known to require about 15 days to complete a supply chain turnover.

Old age believes he has found a sustainable profit model. This model will avoid direct competition with big platforms such as Tmall, JD.com, Suning.com, etc. At the same time, the scale of the platform that was promoted by large capital and a large amount of cheap traffic in the previous period will also boost the volume of its brand. On public occasions, Chen Nian also no longer emphasized that he is an e-commerce company. He believes that Vanke should be the brand company first, followed by the Internet company.

2013, aged again for any customer brand positioning: fashion, cost-effective, good service, on this basis, high inventory turns were the first appeal, and then based on product characteristics, the formation of different supply chain management.