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From A Campus White T-Shirt To An Annual Sales Of 2.5 Billion Yuan, To Win The Battle Of "Quality Price Ratio" Of Clothing
"It's not that XX can't afford it, but that XX is more cost-effective." The popularity of this popular phrase reflects a consumption trend in recent years - consumers are unwilling to simply pay for brand stories, and instead pursue more cost-effective goods. This trend is particularly obvious in the clothing industry.
"There is no absolute moat in the clothing industry, especially with the advent of the e-commerce era, whoever can do a good job in cost and quality, and grasp the trend of fashion will have more advantages." Fang Ren, deputy general manager of Pinchuang e-commerce, introduced that Pinchuang has developed into a company with complete clothing supply chain and operation capability since it started to do a simple campus white T-shirt, It has in-depth cooperation with many domestic and foreign brands.
In 2024, based on the development path of "supply chain+brand operation" that has been focused for many years, Pinchuang E-commerce will break 2.5 billion yuan in annual sales by virtue of the advantage of "quality price ratio".
Since its establishment in 2011, relying on the rapid development of apparel e-commerce, the product innovation linkage has conducted in-depth cooperation with multiple brands. The product category covers all categories of men's clothing, women's clothing and children's clothing, with SKU up to one million. More than 10 platforms have been developed online, such as Pinduoduo, Tiaoyin, Vipshop and Dowu.
With the rapid growth of business, the increase of category width, number of stores and marketing platforms, the supply chain management of Pinchuang E-commerce has met great challenges.
In particular, the clothing industry has a strong seasonal characteristics, and with the diversification of marketing channels, various activities such as platform promotions and brand live broadcasts are frequent, bringing about high elastic demand for orders. Under the strict timeliness assessment of the platform, how to accurately produce, ensure the rapid delivery of orders and balance the resource cost input is the biggest problem faced by product innovation. Once the timeliness of delivery and return cannot be guaranteed, there will be customer complaints immediately, which will further affect the store score and the platform traffic tilt.
"Clothing is a fast fashion industry. Most of our partners are brand merchants, who have high requirements for the development, storage and management of styles, and also have high standards for the quality control of goods." Fang Ren said that the company hopes to focus more on the research of market cutting-edge trends and the production management of clothing, concentrate on innovation and research, and if the logistics pressure can be released, The competitiveness of the company will be significantly improved.
For the supply chain logistics management problems of Pinchuang, JD Logistics has created a multi-channel one inventory management solution.
"Previously, we needed to carry out independent management for each e-commerce channel, which resulted in the fragmentation of multi-channel inventory information and the inability to carry out accurate allocation." Wu Zheng, the general manager of Pinchuang e-commerce project warehouse, said that because of the difference in color, size, and shape of clothing, even just one brand, SKUs can easily reach tens of thousands. When the business expands to multiple brands and sells in multiple e-commerce channels, the problem of inventory management will first appear.
In this regard, JD Logistics has established a set of intelligent inventory management system for all channels for Pinchuang E-commerce, which can monitor the sales changes of different platforms in real time, and flexibly allocate inventory according to the order demand of each platform to reduce the daily operational pressure.
At the same time, due to the strong seasonality of clothing, in order to meet the personalized needs of consumers, Pinchuang needs to constantly deepen product research, development and design. In peak seasons, it needs to allocate sufficient human resources, equipment and other resources to complete semi processing production and quality inspection services in combination with customized needs. Based on abundant personnel reserve and site reserve, JD Logistics has flexible production capacity and can provide post finishing services such as label change, quality inspection and printing for Pinchuang E-commerce in peak season.
"Through customization and semi processing, as well as quality inspection services, we can release the pressure of our sales operations and help us turn more attention to the market side and the R&D side." Wu Zheng revealed that the average order processing time of Pinchuang can be guaranteed to be within 10 hours, and the average time of 12 hours ahead of the industry.
After the cooperation with JD Logistics, the error rate of Pinchuang's orders currently remains within 1.3 per 10000, far higher than the industry's 3 per 10000. The overall timeliness has improved, and the overall customer complaint rate has decreased.
"The logistics cost has been reduced, which not only reduces the cost of capital, but also reduces the cost of energy. Businesses will put more energy into product upgrading when they have no worries in this regard." Wan Xianfang, president of Hubei Garment Chamber of Commerce, said that it will replace the quality price battle in the consumer era, and promote the role of the supply chain from behind the scenes to the front stage, The level of logistics management will become an important link in the efficiency competition of enterprises.
At present, JD Logistics has provided a one-stop solution of "zero inventory pressure, omni channel coverage, and high value-added services" for many clothing merchants through intelligent warehousing systems, flexible production capacity, and warehouse network capabilities all over the world. In the future, JD Logistics will continue to deepen cooperation in the industrial belt, help more apparel supply chain merchants transform and upgrade to branding and digitalization, and respond to market changes with a more leisurely attitude.
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