On November 29th, at the "New Paradigm" 2020 Billion State Industrial Internet Conference held today, Fang Jianhua, chairman of Huimei Group and founder of Inman, published a report entitled "What Industrial Internet Chassis Is Needed for 100 Billion Brands" Keynote Speech. He pointed out that in the past ten years, many international brands have appeared on platforms such as JD.com and Vipshop. If fashion brands cannot have both online and offline legs, their future development will be very difficult.

　　 "So only these two legs can run fast and far. The brand should be both online and offline, and both legs should go." Fang Jianhua concluded.

At the same time, Fang Jianhua took his brand as an example to say that Inman had made many detours in the past ten years, but in recent years, Inman has figured out how to choose in the future and how the company should go in the future. Therefore, it is based on the industrial Internet. , Stylized category strategy, and offline retail store platform model, Inman’s entire industrial Internet includes digital retail, smart middle-station and smart manufacturing.

“In the future, clothing companies do not look at the number of designers, but the number of engineers. We leave the management of the company to our system, so a lot of effort has been spent on the construction of the system to allow us to improve High-speed matching of downstream industry chains." Fang Jianhua said.

　　 At the same time, Fang Jianhua also raised a question to the guests, "Can China produce a clothing brand of hundreds of billions?"

　　 He also gave the answer-yes. Fang Jianhua said that these hundreds of billions of brands like ZARA, Uniqlo and other brands have "five" characteristics in common: First, they do not rely on simple designers, are cost-effective, and will not sell too expensive. Second, the product has a wide audience, including men's wear, women's wear and children's wear. The third is the direct operation of large stores. There are not too many stores, but they are all core stores. The fourth is the self-selected volume sales style, instead of going to the store to push the match, but free shopping. The fifth is a global operating system.

　　 It is reported that the conference is supported by the Wuhan Municipal People's Government and hosted by Ebang Power. Zall Zhilian is a strategic partner. The supporting units include the National Engineering Laboratory of E-commerce Transaction Technology of Tsinghua University and 50+ investment institutions. This is the flagship activity for 2020 to take stock of reliable business models in the industrial Internet field, launch a basically formed new paradigm, and explore the direction of innovation. Looking forward to 2021, it will endorse advanced productivity of the industrial Internet.

　　 Warm reminder: This article is a shorthand draft, to ensure the original intention of the guests on site, without abridgement or omissions, please understand.

　　 The following is the speech record:

Fang Jianhua: I am very happy to come to Wuhan, a very different city, especially after the Wuhan epidemic this year, after listening to the secretary report the Wuhan epidemic, I fought a tough battle for three months. For our company, I think this year is also A very special year, especially this year, more than 600 offline stores have not opened for almost 2 months.

　　 We used to only pay attention to the inside of the company, but this year is different. We must pay more attention to the environment and the epidemic. So this year's epidemic, all the senior executives of our company were inside the company in the first few months. Just now Shan Shu shared that the size of apparel companies is very large, 2.3 trillion yuan. I can tell you that 2.3 trillion yuan. In fact, if the clothing industry includes some wholesale markets and self-employed individuals, there should be 6 trillion yuan. Market size.

　　As a veteran of the clothing industry, I would like to introduce myself. I have been in factory foreign trade for 10 years. At that time, I was in Jiangxi and Guangzhou, and I had been doing OEM for international brands. I wanted to create my own brand. I didn't know how to do it offline at the time, so I started the branding on Tmall. Some years later, I started to go offline in 2015. As a veteran of the apparel industry, I have been in the company for 22 years. I always do one thing. I don’t do anything except the industry. I only love this industry. Although everyone feels that the clothing industry is very bitter, indeed, any industry is very bitter, as long as you are willing to do it and you like it, I think the more you do it, the more delicious it will be. I bring your thoughts to everyone, discuss with you the future brand enterprises and apparel industry, some of my thoughts as a practitioner.

　　 I would like to share three questions with you. The first is omnichannel online and offline. Yesterday, I communicated with entrepreneurs in Wuhan, Hubei, whether in the future online and offline, will there be a large increase in online or offline? The second is that the apparel industry has such a large chassis, but there is not a big brand in China's women's clothing industry that can become an international brand. Can Chinese apparel companies pass hundreds of billions like ZARA? Third, I communicated with General Wei yesterday. The industrial Internet is always worth hundreds of billions. The most important thing is to see if you have provided a product to customers, whether this product can empower the enterprise and is willing to generate high gross profit for you. So whether an enterprise should be light or heavy, and how to choose between light and heavy.

　　 Everyone sees Internet companies. Inman was born online. To this day, or in the past, Internet brands in the fashion industry, 95% of the brands have disappeared. Mr. Zheng also said just now, let’s look at it ten years ago and see how many companies in the Amoy brand circle are gone. But a well-developed company, with three squirrels, etc., develops very well.

　　 Do online companies have a ceiling? So far, there are companies with more than tens of billions of dollars, and three squirrels can do it. So is it enough to do the online? My point is that if you only make the line, it is like two legs of a person, and only one leg will not work. If fashion brands cannot have both online and offline legs, their future development will be very difficult. So in the future, only these two legs can run fast and far. I think the brand should be both online and offline, with both legs going.

　　 I just talked about the evolution of Internet brands. There are many new species and new tracks today. How can our companies or entrepreneurs grasp the trend? The changes are very fast now in three to five years. How will we seize the track that suits us in the future?

　　 From the perspective of our fashion brand, the most important key is Mr. Xiang shared just now, what is the core essence of a clothing company? The essence is the turnover rate. If your inventory is large, then the cash flow of this company will have problems. Therefore, the key to a clothing brand is to accurately match your products with consumers. In terms of brand genes and commodity minds, let us design products that meet the needs of consumers.

　　 Let’s look at another question. Can China produce hundreds of billions of clothing brands? The answer is yes, and there is a very clear path globally. What are the common characteristics of these hundreds of billions of ZARA and Uniqlo? First, relying on design ability and high cost performance, the product basically has a price increase rate of less than 5 times, and it will not sell too expensive. Second, the product has a wide audience, including men's wear, women's wear and children's wear. The third is the direct operation of large stores. There are not too many stores, but they are all core stores. The fourth is the self-selected volume sales style, instead of going to the store to push the match, but free shopping. The fifth is a global operating system. It is not enough to do a good job in one country. It is necessary to seize the global market.

　　 So everyone can take a look. I have a list here. ZARA's fiscal year 2019 revenue data reached 220.7 billion globally. The country where Spain has a small consumer population can give birth to the world's number one fashion leader. HM 160 billion, Uniqlo 120 billion, GAP 100 billion. Why Uniqlo can play the model of direct-operated stores to ***, the most important thing is to achieve high floor efficiency, labor costs, and inventory turnover.

In the past ten years, we have made many detours, especially in the last few years, we have figured out clearly how we should choose in the future, how the future direction of this company is going, we are based on the industrial Internet and stylized category strategy. And the offline retail store platform model.

　　 In summary, our entire industrial Internet of Inman includes digital retail, smart middle office, and smart manufacturing. This is what I especially want to share. In Wuhan, we have a store owner who used to be an investment manager in the Hubei branch of PetroChina. He is a loyal fan of Inman. Now he has opened an Inman store, which can reach 1.8 million in the epidemic. I think it’s pretty good. He felt that only after the epidemic, although there were many tests, there was no hurdle to pass.

　　 What is the difference between the Inman brand model and traditional retail stores? First, Inman was born online. We were able to set pricing, whether online or offline. Although there are differences in some categories, we are determined to unify online and offline prices.

　　Secondly, offline retail clothing stores have high rates and high demand for goods. The most important thing for clothing stores is that they are afraid of selling goods. The threshold for starting a business is very high. It may take hundreds of thousands to start a business. However, in the entire offline store of Inman, all product inventory is borne by the brand owner. We just let the associates find their own local resources and stores for review, but all the goods are borne by the company and do not need to bear the inventory. This is us Different from traditional retail stores***.

　　 The third is the entire digital middle station, which allows the shopkeepers who helped us to quickly use the system and realize their entrepreneurial dreams through our empowerment in just three months from childhood.

　　 Mr. Xiang said that the key to clothing enterprise security is inventory. What is the key to inventory security? The ability to flex the supply chain.

　　 If you still want to buy 10,000 or 20,000 items, it will be over. The design of the enterprise cannot be improved, the turnover rate cannot be improved, and the future cash flow will soon have problems. Based on our important thinking about turnover rate, the most critical point is the flexibility of the supply chain. We have achieved 30% of the first order of the goods, 70% of the goods are sold according to various channels, combined with the best sellers to return orders, which can greatly reduce in stock.

　　 After the store closed for 2 months this year, online and offline sales have exceeded 90% of sales. I saw that the BI data actually reached 95% yesterday.

　　Inman is based on digital retail, smart middle-station and smart manufacturing. We integrate the closed loop of the entire factory and the closed loop of sales with our retail.

In the video just now, we invested in a smart factory in Yudu, Jiangxi. We spent a long time building a smart factory to build a fast-return demonstration benchmark, so that all suppliers can see what the core essence of traditional factories and digital factories is now. The sales data of our factories and our brands are effectively linked, instead of passively waiting and signing contracts, our reaction speed is slower. Only in this way can we drive the fast return speed and flexibility.

For the fashion industry, the most important are the three characteristics of the Industrial Internet. The first is to rapidly improve production efficiency, speed up our fast return, and use our network and digital collaborative technology to make our upstream and downstream resources to Seam and docking can promote the transformation and reorganization of internal and external processes and production factors, forming new industrial synergy, resource allocation and value creation, and finally greatly improving commercial and retail benefits.

　　What is the difference between the consumer Internet and the industrial Internet***? The consumer Internet is the data of consumers. The industrial Internet is the ecological chain of the entire industry. Enterprises on the ecological chain are equipped with products faster and better. This is the difference between the consumer Internet and the industrial Internet. Therefore, the three most important key elements of the industrial Internet are management efficiency, long-term growth and demand matching.

　　 I think the three most important indicators for apparel companies are premium rate, repurchase rate and recommendation rate. We have a small dream. The positioning of the company this year is to transform from a clothing company to a fashion technology company. In the future, clothing companies do not look at the number of designers, but the number of engineers. We leave the management of the company to our system, so a lot of effort has been spent on the construction of the system to enable our upstream and downstream industries High-speed chain matching.

　　 Let me summarize, no matter what time, no matter what the wind, any difficulty or any epidemic, the only way for a company to strengthen itself is to relieve growth and anxiety.

　　It is not easy for entrepreneurs. The most important thing for entrepreneurs is the founder. Under the epidemic, only the founder has the spirit of not afraid of death. To break through, success or failure often depends on the leader. In the end, a company does not grow or fails, and it depends on the CEO. If the CEO does not improve, he will be eliminated quickly, so entrepreneurs must have the spirit of not being afraid of death.

　　Finally, any of our entrepreneurs have to smash the product. If you don't pay attention to the product, it will be a waste of water in the end. We think that we have to kill the product, but we must do every little thing well at any time. If the company talks about strategy all day long and chooses the right strategy, but the company cannot do every small thing well, it will eventually fail.

　　 I want to take this opportunity to join the majority of entrepreneurs. At any time, we must not only talk about growth, but also the health and benefits of growth. Only when our products are done well, I believe time development is not a problem, thank you all!