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Metersbonway "Virtual Operation"
In the opinion of Zhou Chengjian, who likes tailors since childhood, there is almost no core technology for the clothing industry. Its biggest added value is brand. Only by doing a good job in brand management and clothing design can Metersbonway become a management enterprise at the core of the virtual chain.
Zhou Chengjian, chairman of Metersbonway Group, who came out of Qingtian County, Wenzhou, Zhejiang Province, did not expect that the business model of the clothing company he called "virtual operation" was the same as the case of Hong Kong Li&Fung Group, which was listed in Harvard Business School. Zhou Chengjian summed up his idea at that time as his "brainstorm".
Virtual operation
This "Wenzhou style" entrepreneur with a short temper and only junior high school education, who once worked as a farmer, a tailor, and a clothing wholesaler and started his business before he was 20 years old, now likes to do things with cultural taste. He has just spent 20 million yuan to build a 2000 square meter clothing museum. His other current identity is EMBA of Zhejiang University. In the past 10 years, this outstanding casual clothing company has not produced a single garment, all of which are made by more than 200 domestic clothing factories OME (OEM); The company itself does not sell clothes, but is sold by more than 1200 franchise stores scattered across the country. Thanks to this "virtual operation" mode, Zhou Chengjian has achieved a sales volume of 2 billion yuan. You should know that his brand is a brand of young people, which means that the value of single products is not high, which means that the annual sales of nearly 20 million sets.
This is no different from the world's top brand operators such as Nike.
Li&Fung's experience
The Hong Kong economy from the 1980s to the 1990s also gained new development space due to the reorganization of the value chain similar to that of Metersbonwe.
In the 1970s, Feng Guojing, the current chairman of Li&Fung Group, was still teaching at Harvard Business School, and his brother Feng Guolun had just received an MBA degree from Harvard Business School. The brothers were recalled to Hong Kong by their father to revitalize their family business. Li&Fung Group, operated by Feng Jia, is one of the oldest trading companies in Hong Kong.
Feng Guojing began to advocate what he called "decentralized production". Li&Fung Group is engaged in high value-added businesses such as design and quality control in Hong Kong, and allocates low value-added businesses to other regions, so that its products can truly realize globalization.
The "decentralized production" mode advocated by the Feng brothers has given Hong Kong a new lease of life and transformed the entire economic situation. Between 1979 and 1997, Hong Kong's trade position rose from 21st to 8th in the world. After the production was transferred to the mainland, the service industry accounted for 84% of Hong Kong's GDP.
More and more industries and their CEOs incorporate supply chain management into their strategic processes. What drives this change is the competitive pattern of globalization. When companies only focus on core business and outsource their business, their success depends more on whether they can control what happens in the value chain outside the company.
Management enterprise
Clothing industry is one of the most mature industries to practice this theory.
In the opinion of Zhou Chengjian, who likes tailors since childhood, there is almost no core technology for the clothing industry. Its biggest added value is brand. Only by doing a good job in brand management and clothing design can Metersbonway become a management enterprise at the core of the virtual chain.
As Feng Guojing predicted during the Asian financial crisis, a new corporate model will emerge, that is, like Li&Fung, focusing on core business and implementing professional management.
The IT management system built by the Group with an investment of 100 million yuan has been officially put into operation, realizing the full process "control" of upstream manufacturers and downstream stores.
This set of information platform integrating management, production and sales is officially put into use. The system consists of manufacturer resource management system, group internal resource management system and agent resource management system. Through it, the purchase, sales and inventory status of each franchise store can be grasped in real time, and the production order can be changed at any time according to these figures.
In supply chain management, "striving for soft three elements" is a new profit space for modern enterprises. If the ex factory price of a consumer product is 1 yuan, its retail price is usually 4 yuan. In an era of high competition, it is difficult for enterprises to reduce the ex factory price by even a dime, but it is feasible to reduce the increased cost of 3 yuan in circulation channels.
"The processing cycle of an order used to take 10 days, but now it only takes 2-3 days." Zhou Chengjian said that this is the competitiveness of the enterprise.
Regression entity
When everyone was doing "virtual operation", Zhou Chengjian began to do the opposite.
Zhou Chengjian has recently been busy investigating and selecting sites in the CBD of first tier cities. He plans to open 100 large-scale flagship stores directly by 2010; Within five years, the group will also invest in the construction of a core factory.
According to Zhou Chengjian's vision, 20% of the production capacity and retail terminals will be under their own control in the future.
Zhou's change stems from the sudden changes in international textile trade. In 2005, various international trade frictions caused by the post quota era delayed or even disappeared a large number of export orders, leading to the phenomenon that 20% of China's textile and clothing enterprises were under started or even stopped production. The domestic market began to be re recognized.
At this node, Zhou Chengjian made a move of large-scale brand stores. He planned to open 100 flagship stores of 5000 square meters to 10000 square meters across the country by 2010, and achieve the goal of 4 billion yuan sales in 2005 and 10 billion yuan in 2010. This has greatly stimulated the enthusiasm of manufacturers and scrambled for their domestic sales orders.
Zhou Chengjian has to go further. The capital market will gradually come into his sight. Looking around, there is already a realistic model in front.
In Hong Kong, Xing Li (Huo+Yuan), a self-made man, has developed Sijie from a local agency procurement company to an international enterprise with global Esprit brand through a series of strategic mergers and acquisitions in the past ten years, becoming a rare "Oriental Invincible" in the depressed Hong Kong stock market, and became a blue chip in the Hong Kong Hang Seng Index in early 2002.
The capital market has provided ammunition for Xing Li (Huo+Yuan), and has also contributed to the global integration of Esprit? script src=>
Zhou Chengjian, chairman of Metersbonway Group, who came out of Qingtian County, Wenzhou, Zhejiang Province, did not expect that the business model of the clothing company he called "virtual operation" was the same as the case of Hong Kong Li&Fung Group, which was listed in Harvard Business School. Zhou Chengjian summed up his idea at that time as his "brainstorm".
Virtual operation
This "Wenzhou style" entrepreneur with a short temper and only junior high school education, who once worked as a farmer, a tailor, and a clothing wholesaler and started his business before he was 20 years old, now likes to do things with cultural taste. He has just spent 20 million yuan to build a 2000 square meter clothing museum. His other current identity is EMBA of Zhejiang University. In the past 10 years, this outstanding casual clothing company has not produced a single garment, all of which are made by more than 200 domestic clothing factories OME (OEM); The company itself does not sell clothes, but is sold by more than 1200 franchise stores scattered across the country. Thanks to this "virtual operation" mode, Zhou Chengjian has achieved a sales volume of 2 billion yuan. You should know that his brand is a brand of young people, which means that the value of single products is not high, which means that the annual sales of nearly 20 million sets.
This is no different from the world's top brand operators such as Nike.
Li&Fung's experience
The Hong Kong economy from the 1980s to the 1990s also gained new development space due to the reorganization of the value chain similar to that of Metersbonwe.
In the 1970s, Feng Guojing, the current chairman of Li&Fung Group, was still teaching at Harvard Business School, and his brother Feng Guolun had just received an MBA degree from Harvard Business School. The brothers were recalled to Hong Kong by their father to revitalize their family business. Li&Fung Group, operated by Feng Jia, is one of the oldest trading companies in Hong Kong.
Feng Guojing began to advocate what he called "decentralized production". Li&Fung Group is engaged in high value-added businesses such as design and quality control in Hong Kong, and allocates low value-added businesses to other regions, so that its products can truly realize globalization.
The "decentralized production" mode advocated by the Feng brothers has given Hong Kong a new lease of life and transformed the entire economic situation. Between 1979 and 1997, Hong Kong's trade position rose from 21st to 8th in the world. After the production was transferred to the mainland, the service industry accounted for 84% of Hong Kong's GDP.
More and more industries and their CEOs incorporate supply chain management into their strategic processes. What drives this change is the competitive pattern of globalization. When companies only focus on core business and outsource their business, their success depends more on whether they can control what happens in the value chain outside the company.
Management enterprise
Clothing industry is one of the most mature industries to practice this theory.
In the opinion of Zhou Chengjian, who likes tailors since childhood, there is almost no core technology for the clothing industry. Its biggest added value is brand. Only by doing a good job in brand management and clothing design can Metersbonway become a management enterprise at the core of the virtual chain.
As Feng Guojing predicted during the Asian financial crisis, a new corporate model will emerge, that is, like Li&Fung, focusing on core business and implementing professional management.
The IT management system built by the Group with an investment of 100 million yuan has been officially put into operation, realizing the full process "control" of upstream manufacturers and downstream stores.
This set of information platform integrating management, production and sales is officially put into use. The system consists of manufacturer resource management system, group internal resource management system and agent resource management system. Through it, the purchase, sales and inventory status of each franchise store can be grasped in real time, and the production order can be changed at any time according to these figures.
In supply chain management, "striving for soft three elements" is a new profit space for modern enterprises. If the ex factory price of a consumer product is 1 yuan, its retail price is usually 4 yuan. In an era of high competition, it is difficult for enterprises to reduce the ex factory price by even a dime, but it is feasible to reduce the increased cost of 3 yuan in circulation channels.
"The processing cycle of an order used to take 10 days, but now it only takes 2-3 days." Zhou Chengjian said that this is the competitiveness of the enterprise.
Regression entity
When everyone was doing "virtual operation", Zhou Chengjian began to do the opposite.
Zhou Chengjian has recently been busy investigating and selecting sites in the CBD of first tier cities. He plans to open 100 large-scale flagship stores directly by 2010; Within five years, the group will also invest in the construction of a core factory.
According to Zhou Chengjian's vision, 20% of the production capacity and retail terminals will be under their own control in the future.
Zhou's change stems from the sudden changes in international textile trade. In 2005, various international trade frictions caused by the post quota era delayed or even disappeared a large number of export orders, leading to the phenomenon that 20% of China's textile and clothing enterprises were under started or even stopped production. The domestic market began to be re recognized.
At this node, Zhou Chengjian made a move of large-scale brand stores. He planned to open 100 flagship stores of 5000 square meters to 10000 square meters across the country by 2010, and achieve the goal of 4 billion yuan sales in 2005 and 10 billion yuan in 2010. This has greatly stimulated the enthusiasm of manufacturers and scrambled for their domestic sales orders.
Zhou Chengjian has to go further. The capital market will gradually come into his sight. Looking around, there is already a realistic model in front.
In Hong Kong, Xing Li (Huo+Yuan), a self-made man, has developed Sijie from a local agency procurement company to an international enterprise with global Esprit brand through a series of strategic mergers and acquisitions in the past ten years, becoming a rare "Oriental Invincible" in the depressed Hong Kong stock market, and became a blue chip in the Hong Kong Hang Seng Index in early 2002.
The capital market has provided ammunition for Xing Li (Huo+Yuan), and has also contributed to the global integration of Esprit? script src=>
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