The digital economy has become a global consensus and has a broad and profound impact on the industrial landscape. The OECD report shows that in 2019, 93% of enterprises in OECD member countries have access to broadband connections.
In 2020, under the combined influence of multiple factors such as the effective prevention and control of the domestic epidemic and the introduction of consumption support measures in various places, online innovation has become an important way to release the potential of domestic demand. According to data from the National Bureau of Statistics, from January to November 2020, the national online retail sales of clothing products increased by 5.9% year-on-year. In October 2020, the turnover of women’s clothing, men’s clothing, children’s clothing and home textiles on Taobao and Tmall platforms were 36.80 billion yuan, 18.53 billion yuan, 8.43 billion yuan and 4.21 billion yuan respectively, with year-on-year growth rates of 32.5%, 35.1% and 32.2% respectively. and 34.2%.
In recent years, clothing brands have merged and collided with new models, new technologies and new forms, and they have become the vane leading the transformation of traditional industries into the Internet. However, in the symbiosis and co-prosperity of clothing brands and e-commerce platforms, there are inevitable stumbling blocks. In the rapidly developing Internet era, what is the relationship between the two? Which direction will future cooperation take?
To this end, the reporter interviewed a number of clothing brands and industry experts, and listened to their stories about the “love and death” between the two…
Promote industry iterative upgrading
As the earliest entrants to e-commerce platforms, apparel companies have grown together with e-commerce platforms. Nearly 20 years later, both sides have undergone tremendous changes. The new scene created by the integration of online and offline interactions brings unlimited possibilities for new consumption. At the same time, the in-depth interaction between e-commerce platforms and clothing brands helps domestic brands establish emotional connections with the new generation of consumers, creating It has launched a new generation of national brands and helped traditional brands complete iterative upgrades.
In the winter of 2020, Bosideng down jackets sold particularly well. During the “Double 11” period in 2020, the Bosideng brand ranked first in the entire apparel industry in the self-broadcast ranking of Tmall apparel merchants. At the same time, Bosideng is focusing on online outlet channels and taking advantage of online price advantages to accelerate destocking. Today, Bosideng’s image as a “national down jacket brand” is even more deeply rooted.
In fact, this honor also existed during Bosideng’s peak period. At that time, one-third of the world’s down jackets They all come from Bosideng, which is unprecedented in scale. However, by 2013, Bosideng’s revenue began to decline sharply. The huge inventory backlog caused by the battle in the mid- to low-end market once made it difficult for Bosideng to breathe. Gao Dekang, chairman of the company’s board of directors, chose to cut off his arm to survive. According to financial report data, he closed nearly 9,000 retail stores in five years, an unprecedented effort.
In recent years, the Bosideng brand has made a strong comeback with the aura of a national brand. Gao Dekang admitted that he had found a new key to breakthrough development: new retail based on digital and mobile technology.
Online sales are an important marketing and user feedback channel in Bosideng’s digital transformation process. In the past ten years, Bosideng has continued to develop e-commerce channels and achieved stable growth in online sales. In January 2019, Bosideng joined Alibaba’s A100 strategic cooperation plan. With the help of Alibaba’s commercial operating system, Bosideng began to fully cover from front-end sales to back-end manufacturing, transforming the entire supply chain, and effectively promoted the online and offline full network and omni-channel Fusion.
From fiscal year 2018 to fiscal year 2020, the compound annual growth rate of Bosideng’s down jacket business online revenue reached 44%, and the current channel revenue accounts for more than 20%; in the first half of 2020/21 In the fiscal year, the online sales revenue of all Bosideng brands was approximately 540 million yuan, a year-on-year increase of 76.4%.
Gao Dekang said: “The future of digital transformation has come. The real 5G era is an era of interconnection of everything, an era of digitalization of all businesses and commercialization of all data. Bosideng is in the field of digital transformation The exploration and practice of digital economy is just a small step towards new growth and new peaks of the digital economy. We plan to use about four years to promote the implementation of digital foundation, data governance; digital application, operating system; digital-driven business model innovation; digitalization Business intelligence. Build the capabilities of Bosideng’s digital transformation team to move from ‘data governance thinking’ to a new height of ‘digital management decision-making thinking’, achieve comprehensive digital goals of the whole business, the whole process, and all touch points, and truly become the leader of digital operations Enterprise.”
Coincidentally, on January 12, 2021, Peacebird released a performance forecast stating that it expected to achieve a net profit attributable to the parent company of 700 million yuan in 2020, a year-on-year increase of 27%. The relevant person in charge of the company said that it is mainly due to the company’s e-commerce channel reform and high goal traction that the company’s profitability has been continuously improved.
In fact, with the exception of Bosideng and Peacebird, many local clothing brands have experienced changes in the external environment and deep changes in themselves. , is once again sought after by the market. E-commerce channel providers are increasing their support and empowerment for domestic brands to help them rise, and the rapid development of emerging e-commerce channels is the key to local brands achieving overtaking in corners. </p�Thinking.
The so-called public domain traffic live broadcast means that enterprises and brands have not established relevant user links and do not have their own private domain traffic pools, so they need to rely on third-party platforms to complete live broadcast; private domain traffic live broadcast means that enterprises and brands Relevant user links have been established, or user links have been established through APPs, mini programs, and WeChat groups, forming a private domain traffic pool based on links. Compared with public domain traffic, which can obtain customers as long as the budget is sufficient, private domain traffic does not require payment, and can directly reach users at any time and any frequency. It is obvious that private domain traffic occupies a larger share on a certain basis. Advantage.
So, the challenge lies in “traffic”, and the opportunity still lies in “traffic”.
In July 2020, Outlook Think Tank held an online closed-door seminar to conduct special research on the major changes that live broadcast has brought to the economy and society. The study believes that from the perspective of IP e-commerce, some large IPs tend to be e-commerce, which is conducive to the production of some personalized and aesthetic products, and is also of great significance to the transformation of industrial structure. Furthermore, fans and anchors are expected to form a fixed relationship, have positive and regular interactions, and ultimately achieve a cooperative relationship. Under this relationship, the anchor can guide the manufacturer to produce some personalized products for consumers and fans. Manufacturers can also obtain sustained benefits. This is of great value to our consumption upgrade and increased product added value.
In fact, many anchors have begun to look for their own production factories and have linked to the upstream production links. It is not just a matter of purely controlling sellers, but also in product design and production. The entire industry chain such as TV, services, etc. has been branded as anchor. This is a new phenomenon worth noting. It is estimated that this year and next, a large number of products focusing on personalization, high added value, high quality, and strong experience will appear, which will largely promote the development of the entire industry chain such as product production, marketing, design, and scientific research.
When talking about the current development trend of clothing brands on e-commerce platforms, Sun Guoqiang also talked about the development trend of all categories. The most representative one in the industry is the Nanjiren brand. In recent years, Anjiren has begun to equip the entire market with products through licensing. In fact, this is similar to Xiaomi’s ecological chain. Although this method is more difficult to control in terms of quality, it also represents another development trend of current clothing brands. Xiaomi started with mobile phones, and now it also sells bags and washing machines… And clothing companies are actually starting to think about what else they can provide consumers in addition to clothing.
Of course, whether online or offline, the continued upgrading of consumption will bring more opportunities to clothing companies, and digital levers are everywhere. We must be good at using big data to identify and gain insights. , accurately reach and serve consumers, and ultimately establish emotional links with consumers. </p
