Nochi "Cloud Wardrobe": Opportunities and Challenges Brought by O2O

Audience scans QR code to enter Nochi exhibition hall to experience O2O convenient shopping

At the annual sales conference of Nokio held in February, its chairman Ding Hui clearly stated that the transition from a traditional clothing brand clothing retail company to a clothing retail company based on internet sales will strive to fully realize the line in 2016. On-line integrated sales, and total online retail sales is not less than the total retail sales. Based on this, Ding Hui proposed a strategic-level project with a transformational significance - "Cloud wardrobe."

This concept can be regarded as another big step taken by the company's transformation strategy for the retail business model, and it also announces that Nochi is fully committed to the development of online and offline integration.

Ding Hui pointed out that there have been several major events in the implementation of the Nochi O2O strategy. Starting in July 2013, he began to develop and build a mobile store app to synchronize sales of goods under the line and maintain the same price. The APP platform was launched on the pilot market in Quanzhou in January 2014 and the results exceeded expectations. In March this year, it entered the WeChat micro-shopping mall and became one of the few domestic menswear brands that has settled on this platform. On both platforms, all products are sold offline.

It is understood that Nuoqi has been preparing for the micro-shopping industry and plans to hold an O2O promotion event covering 100 physical stores in mid-April. "If this event is successful, we plan to upgrade this year's 'Member Shopping Festival' held in May every year to 'Noki's First Member 020 Shopping Festival'. The stores participating in the shopping festival will cover most of Nokia's terminal stores. "Wang Weiwei, head of the Nochi O2O project, said.  

As the first well-known “fast fashion” brand listed on the main board of Hong Kong stocks, Nochi’s every move has received much attention from the industry. Chairman Ding Hui has recently received frequent media interviews. In the interview, he pointed out: In the next three years, the company strives to integrate and optimize its supply chain and reduce its procurement costs in order to realize the products of offline stores, mobile stores and third-party platforms as soon as possible. Price synchronization; At the same time, the company's existing IEAP system is transformed and upgraded to achieve data synchronization and convergence of the three channels, including commodity information, invoicing, orders, customer information, and financial management, to ensure that "cloud wardrobe "The smooth implementation of the project.

020 convenient shopping experience

At the invitation of the organizers, as the active advocator of the “fast fashion” of the domestic apparel market, Nogi, this exhibition aims to show the industry that: the arrival of the mobile Internet era is not the end of the apparel industry but a new machine, and to the vast number of consumers Showcasing the Nogg's "Cloud Wardrobe" project, the Noche Mobile App Store and Noch Micro Shoppers provide customers with a fast and convenient shopping experience.

In the Chinese clothing industry in 2014, O2O will be popular. As an important part of the implementation of the O2O strategy of Noci, the “Cloud Wardrobe” project is currently being promoted in an orderly manner. "Nokie's sales staff, merchandise, stores (ie, people, goods, stores) will be digitally entered into the system to provide online and offline customers with consistent products and services.Noki will use APP, micro-shopping platform to import passenger flow, And using the platform to enhance the user's loyalty and retention rate, together with the mobile payment experience and online customer service, truly create a mobile Internet communication service platform, and achieve effective integration online and offline.” Wang Weiwei, head of the Nochi O2O project, gave Nooch's future O2O development plan.

In 2013, the O2O concept was reheated. Everyone was rethinking the value of physical stores in the e-commerce environment. A store that occupies the geographical core position, commercial capabilities cover the surrounding 1 ~ 3 km, which is "e-commerce" difficult to duplicate resources and capabilities. It is important to make full use of the front office resources of Noch Direct Management to maximize the resources of this “front-end” store. Ding Hui said: “Nokie’s customers can pick up orders from nearby stores through the Nochi APP Store. , Or you can go to the store to try on, then to the mobile terminal orders, waiting for delivery. "This convenient shopping experience, is always affecting this generation of consumer groups.

According to industry analysts, e-commerce has a huge impact on traditional clothing retailers. The O2O model is the trend and trend of the future development of the retail market. With the arrival of the Internet era, this is not the end of the apparel industry but a new opportunity. Clothing and retail industry, such as the re-experienced industry, online and offline are equally important. For traditional apparel companies, the O2O model is one of the solutions to the conflict between offline stores and online e-commerce channels.

O2O is the combination of offline business opportunities and Internet technology, making the Internet a "front-end" of offline transactions, and at the same time serving as a promotion and transaction. In addition, from the perspective of another market, online and offline integration, traditional clothing companies can use their physical store advantage to increase consumers' shopping experience, which is a very direct blow to pure online brands.

Opportunities and challenges coexist

According to industry media reports, as the clothing industry becomes increasingly saturated and the consumer terminal is in the doldrums, the apparel industry after 2011 has entered high inventory levels and closed stores. After a round of adjustments, garment brands are throwing away heavy ones. Bao Yan, also has streamlined the huge sales channel, more importantly is adjusts the previous delay order model, with the rise of the mobile internet, the mobile side shopping becomes the trend, the clothing enterprise adjusts the commercial mode to enter this “blue sea” one after another.

Challenges and opportunities coexist. The end of the traditional era indicates that the micro-era has arrived. As of December 2013, the number of Chinese netizens reached 618 million, and the scale of apparel online shopping transactions reached 407.6 billion yuan. Among them, the proportion of mobile Internet users increased from 74.5% at the end of 2012 to 81.0%, and the scale continues to grow. “The Internet is in line with its natural advantages of being on-the-go to meet the fast-paced and fragmented lifestyle of the contemporary people, and it is imperceptibly affecting people’s lifestyle, consumption habits and even values.” said a Noci member. Only previously known to buy clothes on the street, now as long as the mobile phone can buy Noci season clothes anytime.

According to people in the industry, with the gradual establishment of an online-offline linkage model, a large number of members begin to use the mobile client to complete the diversified shopping of “mobile+PC+shop”, and the sooner to embrace mobile Internet retailers and brands. The sooner you will get this mobile Internet channel.

O2O's business model has substantially changed the traditional growth model of branded apparel, and the emergence of e-commerce will change the traditional growth model of “physical channel is king”. In the future, the apparel industry will more and more be a place to provide services and consumer experiences, but at the same time, under the same trend of online and offline prices and O2O, this will also become an advantage of offline brands.

 

Audience scanning the QR code to experience shopping fun

Clothing is a very heavy experience industry. Wearing experience and service directly influences the purchase decision of consumers. However, with the birth of Internet tools such as APP and WeChat, the traditional retail e-commerce model has switched from B2C on the PC side to O2O on the mobile side. The offline high-cost experience and services are no longer the short-circuits of online shopping, but are the basis for interaction with users and bring the distance between companies and consumers closer together. These tools can create a long-term relationship between the two. Seamless communication. In addition, these tools have also contributed greatly to the introduction of traffic to apparel companies offline stores.

For any change, the vision and the formulation of the strategy are all good. Once the implementation is involved, the changes of the organization personnel and the cultural shock that comes with it are the most crucial stages of the transformation. It is also the most difficult stage. In addition, we must also pay attention to industry and social responses , whether it can be recognized by the outside world, and what feedback will be received from society.

The biggest challenge facing Nogg in this transformation is how to truly realize the integrated online and offline sales based on big data marketing thinking, which means that it is no longer just a gang of online operations, a team of offline retailers. How to establish online and offline coordination mechanisms within the company, unified planning, resource sharing, and gradual team integration for the smooth implementation of the O2O plan.

Ding Hui, the chairman of the board, has a long-term response. He said: For the organizational structure, the company optimizes and adjusts, establishes a flat organizational structure, and facilitates coordination and communication among various departments, which is in line with the company's strategic development needs ; and whether it is online or online Under the marketing and service, we are always adhering to the principle of “ enhancing customer experience and interaction ” as the core guiding direction . We set up an O2O leisure experience zone in our stores, and we have established an interactive experience with social networking tools such as Wechat and Weibo. Have a good relationship.

The company will speed up the survival of the fittest and external integration of human resources, increase learning and education, and transition to a complex talent with internet thinking. For shopkeepers, not only is the guidance of words, but now more important is how to use mobile phones, tablets and other mobile terminals to guide customers to download Norwich APP and micro-shopping, to teach customers how to self-order shopping, do not buy can also recommend Give friends and announce new ways of shopping for Nogi.

The deployment of these online platforms is the basis for the construction of the Noci "cloud wardrobe" project. In order to ensure the smooth implementation of the “Cloud Wardrobe” project, the company will also gradually adjust and optimize its compensation system, information system, product research and development, supply chain management, and channel distribution.

In January 2014, Nochi conducted APP trials at four stores in Quanzhou, and the results exceeded expectations. Consumers reacted enthusiastically. Noch Mobile Mall offers users a smooth shopping experience through simple design, anywhere, anytime, finger touch, more styles, more offers, more convenient shopping experience, allowing users to easily buy and offline Synchronized fashion apparel.

The mobile consumer era has already arrived. One consumer said that this was the first time he had bought clothes. “I tried it at the store, and I scanned the QR code to download the Noch App. I didn’t expect much more in the clothes. There are also suggestions for collocation. I bought three clothes at once. I didn't expect delivery on the next day, and it was really convenient for the province to go shopping!

The Nochi “Cloud Wardrobe” project is committed to creating an integrated online and offline sales and profit sharing model, allowing the apparel industry to transform and grow in the mobile Internet era, triggering a new model of profitability in the industry. In the era of internet, Noch kept up with the international fashion trend with extremely fast update rate, and combined with the needs of local consumers to bring the freshest international fashion trends to consumers through online and offline channels .

What are the advantages of "cloud wardrobe"?

The concept of “cloud closet” can be regarded as another big step taken by the transformation strategy of Nokia’s retail business model, and it also announced that Nochi is fully committed to the development of online and offline integration.

From the off-line to the off-line, Knoch moves frequently. "Noki's online and offline channel's product information, merchandise inventory, order information, customer information and financial information can be integrated and shared. Sharing and cost accounting are unified to realize the enhancement of consumer experience and sales promotion. According to Wang Weiwei, the leader of Nochi O2O project, the launch of Nochi “Cloud Wardrobe” project will break the tradition and all products can be opened without having to open an order. The company's distribution and management, in accordance with the demand for sales in a timely manner to make up for a single, all the goods inventory borne by the company, to take the common funding, sales sharing model, improve the return on investment.

“ Noki is planning to open an experience store in a city and take customer resources in the city. For Noki’s franchisees, this is a huge positive news. It will share the profits of the city’s customers’ online shopping and open up O2O’s. Joining a new era, the company adopts a direct management model, and manages and takes charge of all aspects including store site selection, store renovation, store operation, personnel training, merchandise management, and marketing planning, and solves the terminal operator's operational management problems. "A person in charge of Norwich said:" With the popularization of mobile apps such as Noki APP and micro-shopping, it is possible to achieve online sales around the clock, break the restrictions on business hours and space, and increase sales opportunities. Adapt to changes in the future consumption habits." This is undoubtedly a bright spot in the industry.

Audience pays attention to Noci “cloud wardrobe” project

Ding Hui said that Nochi's deployment of O2O has many advantages that clothing brands do not have: "Our consumer population is young and middle-aged 25-40 years old who are pursuing fashion. This group of people is already the main force of O2O shopping, plus the product price is very high. It is suitable for simultaneous online and offline pricing.Secondly, all of our terminal channels adopt direct marketing management, strong store execution, sales accounting and profit sharing, which are much simpler than the development of agency franchise. This has cleared a lot of obstacles for project promotion.In addition, the company has always paid attention to member database marketing, more than 90% of the company's sales are from members, over a million member database resources and rich data marketing experience, is the deployment of O2O Strong guarantee.” These advantages will make Nochi more prominent in the apparel industry O2O field.

A company's attention is not only about scale, efficiency, etc. Corporate culture is also very important. Chairman Ding Hui recently emphasized that under the wave of the Internet, corporate culture cannot be changed and it is not easy for oneself to conceive, and all corporate transformations must eventually be cured. The culture of the team, because only the cultural transformation is the true spiritual inheritance. Norwich, who advocates "fast fashion," will give us an answer in this regard. It is not difficult for us to know.