Textile enterprise survival story: The chairman started a micro-business and more than 10,000 employees transitioned to marketing

Change is happening.

On March 11, a person related to Youngor told a reporter from the Economic Observer: “You can check my circle of friends. There are many advertisements selling clothes.”

Due to the impact of the epidemic, this company, which in his eyes “mainly focuses on traditional offline sales,” had to seek marketing breakthroughs that could adapt to the current market development.

A few days ago, Li Rucheng, chairman of Youngor, also posted a similar post on WeChat Moments. Li Rucheng, who is nearly 70 years old, posted product photos and sunflower codes, and added four words: “Handan learning to walk.”

A transformation involving more than 10,000 employees in non-marketing positions within Youngor Enterprises transformed into sales personnel followed the situation.

Not only Youngor, Jiangsu Carnation Textile Group (hereinafter referred to as Carnation) is also making efforts in marketing for all employees.

For enterprises: “Only when marketing is done well can we relax.”

Focus on sales

Li Rucheng understood: “The impact of this epidemic on enterprises is unprecedented.”

What to do? Let all employees work in sales!

Youngor’s internal employees can generate their own sunflower codes in the micro mall for product promotion. The clothes purchased by customers after scanning the codes will be directly reflected in the performance data of each employee. The above-mentioned Youngor related person said: “The whole company is currently focused on sales, mainly through WeChat mini-programs, and push notifications through WeChat Moments, groups, etc. Now more than 20,000 employees within the company are participating. This matter includes salespersons across the country.”

The above-mentioned Youngor related people believe that for Youngor, the first online marketing mobilization meeting for all employees held online at the group headquarters on February 13th completely inspired all employees to work together to alleviate the company’s difficulties. In Youngor’s 40th Never before in history.

At this meeting, Li Rucheng sat alone in a conference room that could accommodate more than a hundred people. He proposed the development idea of ”accelerating online and offline integration” and called on all employees to learn online sales skills and join the sales force.

The reason why we were able to quickly launch all-employee marketing during the epidemic was due to Youngor’s previous layout and planning for online and offline integration.

Since 2019, Youngor has cooperated in-depth with Alibaba to carry out digital transformation, and has started pilot micro-mall operations in Shanghai and Chongqing. However, due to problems such as the integration of e-commerce channels and physical stores, as well as the conversion of consumption scenarios and consumption time, the progress of online and offline integration has not reached expectations.

Without this epidemic, Youngor’s online and offline integration might not have been so fast. A relevant person from Youngor said, “The pilot projects in Shanghai and Chongqing have played a very important role in establishing a certain understanding of this new business model. After the epidemic arrived, we were able to quickly realize online self-rescue.”

Carnation also made the same choice as Younger.

On March 10, a person related to Carnation said: “We are now focusing on sales, allowing all employees to directly participate in sales, such as increasing service capabilities through WeChat.”

In his opinion, the epidemic has had a great impact on Carnation’s reform methods. For example, all employees are much more sensitive to capturing customer needs and sales opportunities than in previous years. He added: “All-employee marketing is no longer simply all-employee sales. It also means accelerating production, support for sales in all aspects such as the administrative department, and the ability to respond to market reactions.”

Inventory pressure

The path to promote transformation is not limited to micro-business, but also online live broadcasts started before the outbreak.

On the Tmall live broadcast platform, more than one downstream company in the textile industry is performing “performances”. An example is Carnation, an e-commerce company established many years ago that is specifically responsible for promoting marketing through live broadcast business.

Except for Carnation, the live broadcast team of Handu Yishe E-commerce Group has resumed work. The current live broadcast popularity ranks first among Tmall women’s clothing.

The above-mentioned efforts are not only considerations for business model transformation, but also one of the means to alleviate the current inventory pressure.

Clothing companies located downstream of the textile industry have a front-end approach to production. Youngor related people said that this means that the 2020 spring and summer clothes have been produced before the end of 2019. Once the spring and summer clothes are unsalable, a large amount of inventory will be generated.

Taking Handu Yishe as an example, the start-up time of the factories of its major suppliers has been delayed, resulting in a certain impact on the production of orders in the spring. The delivery date of some spring clothing new products will be delayed, and the actual production capacity situation in the first quarter is not optimistic. At the same time, consumers’ willingness to buy has decreased, their motivation to buy new clothes is seriously lacking, and sales are very unsatisfactory.

Carnation, which is facing inventory pressure, has not stopped. A person related to Carnation said: “The orders we are making now are some export orders. For example, they were signed years ago and are now being made and delivered.”As for the domestic sales orders, they were placed before the epidemic. Regardless of whether the goods are received or not, we have to make them first. After all, the product has been signed with a contract. ”

At present, Carnation’s new orders are relatively small. The above-mentioned people predict that in the first half of 2020, the company’s order volume may not be able to return to the same period. However, in the second half of the year, with the recovery of demand in the domestic hotel market, it may gradually improve. , and then returned to the same period of previous years.

Peacebird, which completed its asset-light transformation in 1998. Since the epidemic, by increasing its online business, the average daily retail sales of its entire brand has reached tens of millions, told the Economic Observer reporter that the epidemic will indeed have a negative impact on Peacebird’s spring clothing inventory. Certain adverse effects. However, since the proportion of spring clothing is relatively low, and the company has controlled the initial order volume through flexible supply chain and other methods, some styles can be transferred to winter clothing sales, so the overall impact is controllable. In addition, the overall rhythm of the company’s summer clothing production is basically normal and will not be significantly affected.

Currently, Peacebird is selling seasonal styles through certain discounts and promotions. The above-mentioned people believe that the sales price of this part will fall slightly, but not significantly; of course, the company will also process the inventory of previous years based on market conditions.

A reporter from the Economic Observer learned from Peacebird that from the perspective of the children’s clothing business line, the performance data of Mini Peace and PETiT AVriL children’s clothing owned by it during the epidemic are as follows: Mini Peace’s offline sales exceeded 10 million during the Women’s Day holiday. , Tmall’s online performance increased by 50.8% year-on-year, and the children’s clothing category ranked fourth.

This is also due to the toc flexible supply chain management model implemented internally by Peacebird since 2016, which effectively quantifies production capacity through “sales to determine production”, so that the current production capacity can cooperate with the market for timely and rapid response. A relevant person from Peacebird said: “The sales-oriented TOC management model reduces or increases reserves for each band according to market changes. Under the TOC management model, the goods are not put into production at once, but 50% of the entire retail sales are purchased. %, so as to reserve sufficient space for reaction. ”

Cross-border and expectations

In order to survive better, companies can also choose to develop across borders.

During the epidemic, both Carnation and Youngor chose to produce civilian masks. A person related to Carnation said: “We are in the textile business. This time, based on market demand and our own needs, the civilian masks we produced have entered the market for sale, and medical disposable masks will soon be put into production.”

Not only for textile manufacturing companies, but also for clothing companies, the patterns required for clothing can not only be used in fabrics, but can also cross over to other fields.

Handu Yishe has set its sights on the international market.

For Handu Yishe, it is not only about keeping the company alive, but also about seizing more iterative opportunities in online business, upgrading its own big data-driven operating system, and becoming a better smart company.

A reporter from the Economic Observer learned that as early as the end of 2019, Handu Yishe had already tried to open up the international market. If there had been no epidemic, work would have been fully launched in March. Due to the epidemic, the time will be slightly delayed.

At present, Handu Yishe’s team building, product matching, channel construction, marketing, sales operations, etc. have all been launched in the US market.

The continued resumption of work and production is bringing new expectations to enterprises. Peacebird told the Economic Observer that at present, the company’s subsidiary Ningbo Peacebird Garment Manufacturing Co., Ltd. has resumed work in mid-February and is currently cooperating with the government’s epidemic prevention and control needs to promote the production of civilian masks (non-medical).

A copy of the latest survey results of the China Textile Federation Industrial Economics Research Institute on March 11 provided to the reporter of the Economic Observer by relevant persons of the China Textile Federation, showing that in the past week, the textile industry The resumption of work and production of enterprises in the middle and lower reaches of the industrial chain has further improved, the resumption of work and opening of the textile and apparel professional market has accelerated, and the efficiency of coordinated operation of the entire textile industry chain has further recovered.

Survey data from the China Textile Federation Weekly Report show that currently about 90% of chemical fiber and cotton spinning companies have resumed production. The resumption of work and production in terminal industries of the industrial chain has improved. According to the key industrial cluster data collected by China Textile Federation on March 6, 12 companies including Dongguan, Nantong, Changshu and Haining have complete information. The proportion of enterprises in the clothing and home textile industry clusters that have resumed work has reached 59.3%; among them, the proportion of enterprises in the clothing and home textile clusters that have reported valid data last week, including Nantong, Changshu, and Yudu, has reached 44.1%, which is higher than last week’s survey results. increased by 25 percentage points.

However, the order situation of companies that have resumed work has not improved significantly, the production capacity utilization rate is relatively high, and companies are experiencing increased inventory pressure.

Data from China Textile Federation’s weekly report also shows that among the 228 companies that have resumed work and have effectively filled in their orders, 30.3% of the companies’ orders have reached more than 80% of the normal level, and 40.3% of the companies’ orders have reached 50% of the normal level – 80%, there are still 29.4% companies whose orders are less than 50% of the normal situation, which is basically the same as the survey results of the previous week, indicating that the improvement of the company’s order situation is not obvious.

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