The New Retail Model for INMAN

Fang Jianhua is the Group CEO, INMAN brand founder, its famous clothing brand. Recently, Fang Jianhua received an interview with the knowledge news studio, shared his understanding of the new retail mode.First to say, Fang Jianhua is how to understand the new retail. He believes that the new retail has three key words, that is, integration, experience and efficiency. The essence of online and offline integration, but also focus on consumer product experience, the ultimate goal is to improve retail efficiency.

To improve the retail efficiency, we must first focus on the development of physical stores. Huimei Group's most well-known brand INMAN, is a start from the Internet of cotton and linen women's brand, was the 2013 lynx two day one day women's clothing sales champion. But Fang Jianhua spent a year and a half, in the country opened nearly four hundred physical stores. Why open the store? Fang Jianhua said, because on the one hand, the traffic costs are getting higher and higher, pulled up the cost of online stores, online and offline costs have been basically flat, to a critical point, fight is efficient, to see which channel efficiency high. On the other hand, the online has been a high growth period, the original growth rate can reach 100%, or even 200%, but last year the country's online retail share growth rate is 25.5%, the growth rate is slowing.

So, online and offline under the two channels, which should play the main one? Fang Jianhua that the future line and line sales should be half of the line sales accounted for even more, may be accounted for 60% line, online accounted for 40%. For the garment industry, if not line line integration of this road, will be abandoned by this era.

However, the traditional clothing store there are several drawbacks, will become obstacles to development. First, the traditional clothing brand more use of layers of distribution system, to go through the rate increase. The rate increase may be five to ten times the cost, resulting in a high price. The second is the order system, the distributor only after ordering, the brand can order, that is, you want to give me the money, I can send you the goods, which led to the backlog of inventory, terminal dealers and franchisees pressure Very big. The third is the traditional clothing retail industry is difficult to flexible growth, which is not flexible enough, not in time to sell the goods back to a single. The fourth is the traditional clothing brand members are online and offline fragmentation, can not get through. This is because more franchisees and agents, customer information will not be shared with the brand.

In view of these drawbacks, Fang Jianhua designed a set of easy to use, you can quickly copy the shop model, called "INMAN model", specifically four points. First, the offline store using the form of experience shop, do not need to order and bear the inventory, the store only a kind of clothing and a small amount of cash, so there is no problem of stock surplus. Second, the use of flexible supply chain, which is the use of online sales of data, test which models to sell, ahead of a single, fast replenishment. Like Yemen from orders to clothes shipping, T-shirts generally take 7 to 10 days, shirts and pants need 10 to 15 days in the apparel industry is relatively fast speed. Third, open up the membership mechanism, membership on the line, line can use.

At the same time open up the interests of the distribution mechanism, the customer as long as any experience in the terminal store registered members, then regardless of his last online or online days cat, Taobao, only goods will purchase these shopping platform, he initially registered members of the store can enjoy The same income. Fourth, online and offline with the same price, improve retail efficiency.After finishing the INMAN model, Fang Jianhua also shared the entrepreneurial process stepped on a pit. He opened in 2011, similar to the new retail store, the store set up a person so much touch screen, the customer touch the screen to see clothes, still pay on the touch screen. But at that time the smart phone is not popular, not today's WeChat, Alipay mobile payment, but also binding online banking, but also very convenient, so although also opened a dozen stores, and finally stopped the project. This lesson to his inspiration, is to continue to try, in order to explore a successful business model.

The Development Trend of The Global Media Industry

Many people say that because of the impact of the Internet, the traditional media has declined. But from the current situation, the digital platform is not everyone imagined so smooth sailing. For example, in 2015, more than 10 million US dollars financing Internet news site Mashable, announced in 2016 to layoffs; Facebook algorithm has also been a lot of journalists practitioners accused. So in 2017, the media industry will face what development and challenges? Not long ago, the UK's largest news agency, Reuters released a "2017 global media industry ten trends" annual report. We selected four of them, to give you a quote.

The first trend is: digital media will explore more sustainable business model, the original "pay wall" model will become a "membership fee" model. "Pay wall" is from 2009 onwards, many newspaper sites on the online content of the paid reading mode, like the "New York Times", "Wall Street Journal", "Guardian" and so set up a pay wall. But the report found that almost all the media now feel that finding new sources of digital revenue is very important. Many have now practiced digital media, intending to pay more attention in 2017 to allow readers to pay directly, and charge membership fees. For example, last year the British "Guardian" began to invest a lot of manpower, material resources to reposition their own business strategy. This year, the Guardian will increase revenue by expanding the size of the world's membership. "The Wall Street Journal" also said that their main development strategy is a membership fee system.

The report argues that news organizations need to rethink future survival problems from three aspects, the first is how to get income from existing consumers; the second is how to win more new users like their own news content; Three is to find ways to explore new ways of service and profit channels.

The second trend is: the media user's data, will be the digital media era of gold. We know that in the era of large data, is the data in the world. The commercial battlefield is like this, the media industry is also similar. Many media have 2017 as their "data of the year." The report shows that in order to build a more stable user base, media organizations are racking their brains to think, how can those who only browse the pages of the people into a loyal user. They are now using the method there are so few, such as the collection of data for user segmentation, do content recommendations, strengthen the user registration and login behavior.

This sounds, in fact, practice with the algorithm almost, through the data monitoring user behavior habits and preferences, and then develop personalized recommendations. Only understand the user, the media business can be like Facebook to provide personalized user experience, and ultimately into the actual income. For example, in the summer, the BBC BBC will implement the BBC iPlayer mandatory landing measures, through the user's registration pre-landing, it will automatically identify the needs of users to stimulate users to join members and subscribe to content.

The third trend is that news robots have been able to complete part of the work independently, the future news practitioners may face unemployment. We know that robots have now replaced manpower in many high-repeat, low-difficulty tools. The report said that artificial intelligence will not let journalists all laid off, but for journalists and media companies, they can use technology faster and better to provide content. For example, the report mentions that artificial intelligence has been able to independently produce a large number of basic financial news. There is also an intelligent content management system that creates the news that best draws the user's attention and packages the content according to the different platforms. An Israeli news video company, mentioned in the report, can use the artificial intelligence technology and the natural language program to automatically generate video based on news from news organizations such as Reuters.

The fourth trend is that professional news organizations and Facebook will be the same platform, will begin to invest a lot of energy in the network video. In the past few years, we have seen the explosive growth trend of online video, the report said that this trend and the mobile phone HD camera, faster and faster speed, as well as create and edit video of the various tools is not Open Instagram, Snapchat these social platforms, have put the video content on the core of the business strategy. The report predicts that this trend will spread to professional news agencies, they can also enjoy the dividend brought about by the development of the video. But the report also said that now the online video profit model is not yet clear, there is a large part of the video media is not very good to attract users, so the risk of investment video is still relatively large.

The Framework of Distruptive Innovation

Many people think that creativity is elusive, there is no specific rules, so want to innovate, it must be unrestrained, break the original frame, as much as possible divergent thinking. However, the recent "get" App "listen to the book every day," the column tells a book, called "micro-innovation." This book presents a subversive view, divergent thinking is not Kaopu, but rather in the familiar field with a fixed method, you can get more exciting thinking than divergent thinking. Why is this? I'll give you a quote.

First to say, why good innovation is coming from within the framework. What is the framework? Is the problem you want to solve the problem itself, and its surrounding time and space area. Popular point that is your side of the resources. Thinking within the framework is to use the resources around to innovate. Those of the best innovation in fact on our side and around, but we rarely think so, always hope in the inspiration. In fact, those divergent thinking, it is easy to lead to inefficiency. Because the idea of ​​passing is often loose and messy, digging the East, the West poke poke, hoping to use this method to solve the thorny problem, is a very small probability of the event.

Of course, we are not saying that divergent thinking is totally unhelpful to creativity, but that it is not really easy to use. For example, divergent thinking in the most typical creative way is "brainstorming." Many people talk about looking for creative time, the first thought is this method. However, there are researchers to study the effects of brainstorming and found that: "brainstorming" this method and their own thinking a problem compared to the effect is almost the same, and many brainstorming ideas come out, bland, nor lack of viable Sex. On the contrary, thinking within the framework of the problem may be more creative.

You may be surprised that we usually restrain too much, no creativity, so to promote divergent thinking. Why do you say that innovation is to come within the framework? Because we think in the framework, there are a lot of thinking. The key to creating creativity is to break the mindset and rethink the resources around you. For example, suppose you are now driving in the desert inside, suddenly the wheels into the sand, no one around, this time how do you do? Often, our idea is to call someone outside to help, or smoke to attract people outside the attention, etc., which is thinking outside the frame, these methods will only keep you away from the core of the problem.

If you think within the framework of the method, it is necessary to look inside, looking inside the car, you will find the car's foot pad is a very good tool, it has lines on the surface, can produce enough friction, as long as the pad Under the wheels, you can open the sand. This seemingly difficult problem was solved immediately. So, thinking outside the framework, will think that only to find foreign aid, and finally solve the problem is very low efficiency; and inward thinking, think of ways to use the resources at hand, it will produce good ideas.

Light know in the framework of breaking the mindset is not enough, but also know that after breaking the mindset to how to do. But also to adjust the way of thinking, from the answer to the problem of thinking. Our usual idea is to first clear the problem and then look for a solution. However, this idea is not good enough. The better way is to turn around, start with an abstract solution, and then think about what the solution can solve.

for example. Suppose we encounter the problem is that the baby is very sensitive to the temperature, the temperature of the bottle is slightly higher than a very hot to the child, every time the middle of the night to get up to the child hot milk, to get the right temperature is very troublesome. A hot child will cry, sleep better, how can we avoid the milk temperature is too high? Looks like a very difficult problem, it is difficult to solve. If we use the idea of ​​"from the answer to the question", and then look back at the problem just milk, I now tell you that there is a baby bottle, the color of the bottle will change with the temperature of the milk changes, then you think this function Where is it? Obviously, you can easily think of, to avoid the high temperature to the baby.

So, the key to innovation is to first find a variety of possible ideas, and then think of this idea can be used where the solution generated by such a method is often very creative.

The Failure of Hot Venture Projects

Most investors in the complex disk, will think about such a problem: the early pursuit of the project by the venture why not easy to run out of it? Recently, the Jinsha River venture capital fund partner Zhu Xiaohu wrote an article, analysis of the existence of such enterprises six problems, the following to tell you.

The first problem is that financing is too easy. This usually means that the business model is very easy to understand, whether it is difficult to operate or copy the difficulty is relatively low. But Zhu Xiaohu found that those who really have the potential of the project, at the beginning often because of another way so that most people can not see the way, so financing is difficult. For example, where to go, founder Chuang Chen Chao searched all the investment institutions on the market, but no one believes in Baidu and Ctrip can also be a platform between. Another example is the drop, most investors are in doubt, Uber in the United States from the car cut, why drop from the taxi began? Another example is the street CEO Tang Yan out of financing when almost all of the investors are questioning strangers dating into a founding.

Zhu Xiaohu said that China's Internet over the past 15 years, any successful business, A round of financing are very difficult and very painful, so these entrepreneurs will not burn money at the initial time to subsidize customers, but rely on a strong Word of mouth to attract customers. Standing in the investor's point of view, they only like a subsidy: this subsidy is not used to obtain the user, but used to clear the field.

The second problem is that the incision is too large or too small. Over the past 15 years, the successful entry point of the Internet start-up companies are actually very small, it is because the entry point is small, BAT these giants can not see, you will have the opportunity, otherwise the giant opportunity, such as today's artificial intelligence, Every giants are doing it. Good small entry point, can contain potential big market, but also plan to get through the big market path. Such as the beginning of the entry point is the taxi industry, from the taxi driver who is very difficult to make money, but through the early bedding, they make money from the car above. Of course, if the entry point is really too small, the lack of ductility, investors will be very cautious. In addition, the initial business is best to do the stock market, do not think about to educate the market and users, any small company, no energy, no qualifications to educate others, the user will be forced to do after the incremental market.

The third problem is fast growth, but poor retention. Six months after the user retention rate, the general can have 10% on the good, if 20% is very cattle. You can spend money to obtain the core user, but must be concerned about long-term retention, six months to start retention rate will be more stable. Of course, very few APP have tail effect, like a drop, the beginning of the user will stay down, until the driver more, the user experience better later, the user will return some of the retention. There are tail effect of APP basic can reach billions of dollars in the market.

The fourth question is to see the wind, do not look at the law. Many people say that I am willing to gambling, in fact, the real outlet is often the law. 05, 06 years when a number of Internet companies, such as 58, where, when the penetration rate of China's PC Internet is 20%; 11,12 years when there have been a number of mobile Internet companies, when China Mobile Internet penetration The rate has reached 20%. The law is: the market penetration rate of 20% to fire up. For entrepreneurs, at least to the penetration rate of 5% -10%, entrepreneurs have the opportunity. Be too early to become very martyrs, and even if you come to the outlet, you start thinking, the gene may not be suitable for this outlet.

The fifth question is that there is no thing to do each round of financing. Zhu Xiaohu said that each round of financing should have to do. Such as A round to do three things: run the team, to prove the business model, as well as control the good burn. The second round of work is to verify the feasibility and reproducibility of the business model. C round to do two things, one expansion, the second is to fill the short board. Because the early business is to fight the long board, to the C round like to enter the semi-finals, this time to qualify to fill the short board.

The sixth question is only offensive, do not understand the defense. If you do not form enough high barriers to entry, it is easy to be killed by the giant. How to build that barrier? First, depends on the dependence on traffic and cash, rely on content, rely on social media, such traffic is worth and safe. Second, depends on the control, mainly refers to the customer and service control. Such as domestic service class App. Third, look at the battlefield depth. If you and the competitor's user base and business are the same, the same deal, the other to make you more than you, you have no way to defend. Four to see the difficulty of management. US group rapid expansion of two hundred cities when hungry as a graduate of the entrepreneurial team, rapid recruitment, management team pressure is great.

Three New Rules in The Era of Capital Surplus

Over the past few decades, financial capital has been the most valuable resource in the eyes of corporate leaders, and they are trying to make every penny on the most promising projects. But recently, three of Bain's consultants have pointed out in an article in the Harvard Business Review that the scarcity of capital has passed and that we have entered the era of overcapacity. So, in the past, the kind of financial-oriented traditional strategic investment is outdated, companies need to make changes in the way of investment.

First of all, why now has entered the era of capital surplus? As the Bain Macro Trends team found that the growth of global financial assets in recent years has increased from 6.5 times the global GDP in 1990 to 9.5 times the global GDP in 2010, and it is expected that by 2020, The world is expected to GDP about 10 times. There are two main factors: First, the financial markets of emerging economies are constantly developing; Second, the number of "high savings" will continue to increase in the impact of global economic savings factors, The number of people aged 45 to 59 is of the utmost importance. Since the people of this age have already spent the major years of consumption, they have a higher proportion of savings and capital accumulation than others. So the article predicts that this market is in a period of excess capital, too much capital to chase too little investment opportunities, at least until 2030.

Secondly, the article puts forward three investment rules of the era of capital surplus.
The first rule reduces the threshold ratio. At the time of the new investment, almost all large companies will set a threshold ratio, that is, the minimum expected rate of return that the planned investment must meet. Once you exceed this minimum expected rate of return, you can invest. This approach is generally to encourage companies to invest in those who meet the high threshold ratio of "safe project."

But most companies in the past many years, have not significantly adjusted the threshold ratio, which led to the enterprise refused a lot of investment opportunities, but also a significant loss of investment is still reluctant to let go. Ultimately, the company has accumulated a lot of cash is not a good place, most can only choose to redeem the stock. This approach to a certain extent, sent a negative signal to investors, indicating that the management of investment ideas have dried up.

So the article suggests not to invest in long-term large-scale investment projects as in the past, but to invest in small areas in different areas, and should invest in new products, new technologies and new business development. The second rule focuses on growth. In the past, the scarcity of capital, most companies practice is not to develop new business and new capabilities, but continue to fine-tune the existing operations, in other words, is in the investment, more concerned about how to improve profitability, And not pay attention to growth, which resulted in a decline in the innovation rate.

The article argues that the return on investment in terms of growth is so high when capital costs are so low. So you want to be successful, you have to optimize the existing business at the same time, to pay attention to new growth opportunities.

If companies want to change the strategy, pay attention to growth, how to do it? In addition to developing formal processes and encouraging business innovation, the article also recommends that the organizational model be reevaluated or an informal process can be used to reward ongoing business expansion. For example, 3M company to allow researchers to 15% of the work time to do their own want to do the project, without the approval of the company, this individual R & D but to the company to provide a lot of new products.

The third rule is to invest in experiments. When capital is scarce, managers decide to spend money before, to determine the money is worth it, and then decided to start action. But in the era of excess capital, gave us more opportunities to try. The article says that if the company sees the investment as an experiment, it can be freed out to make more investment than the competitor's response, which is very important in a rapidly changing market.

Finally, the article points out that in the new era, human capital, that is, time, talent, employees' energy, and the creativity and creativity they create are the fundamental sources of competitive advantage. Studies have shown that the management of financial capital on the basis of careful and rigorous management of human capital performance of the company far more than other companies. Therefore, some companies should focus on the management of financial capital from the transfer to the time, talent and energy of these really scarce resources management up.