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Editor’s note: This article is from WeChat public account “New Retail Business Review” (ID: xinlingshou1001), author Han Yongsheng (Professor of the Chinese Academy of Sciences, clothing supply chain Management expert), editor Li Jianhua.
At present, clothing companies are experiencing a period of change from the seller’s market to the buyer’s market. How to deal with the challenges brought about by this?
Han Yongsheng, a professor at the Chinese Academy of Sciences and an expert in apparel supply chain management, suggested that attention should be paid to the transformation of the supply chain. When the clothing enterprise starts from the customer value, the origin of the entire supply chain will change, and the storefront with the customer contact point will As the starting point of the new supply chain model, it is the industry challenge that enterprises must overcome in the next 3 to 5 years.
01 Why must change?
Traditional clothing companies, design and planning are starting from the order meeting. In the industry, companies plan to develop a bunch of good products, and they are indeed welcomed by the orderers.
But actually, after ordering these orderers, there is never a shelf concept. Never consider where the ordered products should be placed in the store, which leads to the store’s matching with thousands of stores. The “communication” between goods and consumers is expired.
In fact, a product from the clothing company to the customer, through the orderer, sellers and other layers, but whether it can meet customer needs, the source of this supply chain is difficult to perceive. This is the typical characteristic of the seller’s market – just selling it.
Now, the turning point of the transition is coming. Around 2011 to 2017, market supply and demand have changed.
Before this, the industry has been in the era of industrial 2.0 – the clothing market is the seller’s market, what the clothing company produces, what customers buy.
The status quo of the market determines the bureaucratic structure of the apparel industry – from design director, purchasing director, production director, to sales director, they are each responsible for one area, the understanding of customer needs is fragmented, all clothing design, Purchasing, wholesale, and channel store supply models are all extensive, what products are sold on what products; there is no interaction between them, and it is not a community of interests.
After this, the New World-Industry 4.0 era has arrived. The seller’s market becomes the buyer’s market, what the customer needs, and what the clothing company should provide. Studying customer needs is the beginning of adapting to this shift.
In the industry, the best model for the supply chain is the “drinking model”. How much to drink, the last one