Supply Chain, Celebrities and Intelligent Manufacturing, the three bottom cards of the continuous evolution of anchor Sydney| the 2021 Digital Fashion Summit

Lu Yulei, vice president of Chenfan Reds Business Unit

More than two hundred years ago, the British cotton textile manufacturing industry gave birth to the first industrial revolution of mankind, rewriting the global history; a hundred years ago, our first "spring of domestic goods", the light industry represented by the cotton textile industry, gave birth to a group of early industrialists such as Zhang Xiao.

Pulling the time back to a hundred years later, when a new group of smart girls who love to dress, love to dress up, and love to share, enter the clothing industry chain, what splash is being stirred up?

Chenfan E-commerce, which was built around the Sydney brand, is already a multi-brand fast fashion group loved by young people. According to its official website, its Chenfan e-commerce has more than 350 celebrities and covers more than 400 million fans across the network. During the "Double Eleven" period last year, Chenfan's total GMV exceeded 3.1 billion yuan, and its Sydney women's clothing brand XUELI ranked top 1 in the Tao family women's clothing category.

China's Internet celebrity ecology, after more than ten years of development cycle, has had a highlight moment, but also been questioned, the real time test of the reds and their teams, can go all the way to the present, extremely scarce.

Under the prosperity of the industry, new people are emerging, Sydney, as an "early rising star", can still fight, be good at war, and sit firmly in the head red chair, why is this?

After watching Lu Yulei, vice president of Chenfan Reds Business Unit, recently spoke at the 2021 Digital Fashion Summit jointly held by Beijing Fashion Week and Titanium Media, you will find that all this is supported by enough reasons. From this speech, we can also glimpse the underlying logic of the continuous upward evolution of the Sydney brand from a subdivision perspective.

The current status of the garment industry on which Sydney is currently based is that the industry has developed for a long time, which also means that this is an extremely fierce competition, which can also be defined as an industry with serious "inner volume".

In the context of the current global trade, ZARA, UNIQLO and other brands, with the mature system accumulated over the years, occupy the core areas of major offline business circles, and capture the minds and wallets of young people with the characteristics of new and fast.

Insight into the trend, empathy with users, the rapid landing of traffic, and the supply chain binding, this is the current popular practice of most celebrity-driven e-commerce formats, and it is not new.

How to break the game? In her speech, Lu Yulei summed up that she mainly relied on three aspects: strong support for supply chain resources, the red matrix to build a traffic pool, and reverse the promotion of supply chain production and manufacturing, and big data to provide decision-making assistance.

For example, they will rate more than a thousand supply chains every quarter, and independently develop an ERP system to use intelligent manufacturing to further ensure product quality.

On the traffic side, one case is that they cooperated with Yang Tianzhen to test the brand of plus-size women's clothing; after the major events affecting the industry such as Xinjiang cotton, they put the seeds of Xinjiang cotton on the hangtags of 10,000 clothing brands, and the users who got the seeds could also receive a free T-shirt next year with this seed.

Behind these decisions is their deep insight into the changes in the industry itself and the external environment.

The brand and industrial line of large size women's clothing are because they noticed that as early as 2017, the total number of obese women in China ranked first in the world, while the traditional plus size women's clothing is still covering meat and appearing thin as keywords.

In Xinjiang cotton, their approach can not only let users feel from the physical object, more intuitively, how much span there is in a cotton seed to the garment products in our hands, and behind this reflects the heart of industry practitioners, full of sincerity; and, in terms of commercialization, more importantly, this "seed" also lays the foundation for the user's traffic re-acquisition next year, as well as possible repurchase.

And now, the wind of "national tide" has allowed the Sydney team to find the next breakthrough. (This article was first published on the Titanium Media APP, finishing | Li Chengcheng)

<h2>The following is the original text of Lu Yulei's speech at the 2021 Digital Fashion Summit, edited by Titanium Media:</h2>

In the variety show "Promising Me" initiated by Yang Tianzhen, the contestants are all plus size girls, and the previous types of variety shows have made them lose weight and transform, and this variety show is to find the best and most confident plus size girls in all walks of life. They will go through layers of examinations and eventually become partners of Yang Tianzhen PLUSMALL's plus-size women's wear brand.

PLUSMALL already has a partner- Sydney, the chairman of our company Chenfan, and the head of XUELI's women's clothing brand of the same name. Why did Yang Tianzhen choose Sydney as a partner? Let's sell it first.

Speaking of PLUSMALL, the brand was online for 75 days, the total turnover exceeded 16.8 million, ten months after the launch, the sales exceeded 100 million, and as of now, the Tmall praise rate has reached 100%, and the number of fans has exceeded 500,000.

In the extremely congested track of women's clothing, why can Plusmall achieve such results in a short period of time?

The first is track positioning. In the field of women's clothing, which has been very white-hot competition, we have found the blue ocean category of plus-size women's clothing. As of 2017, the number of obese women in China reached 46 million, ranking first in the world. However, their clothing needs are easily ignored by the market, especially the demand for fashionable and exquisite clothing for plus-size girls.

Chenfan has now exclusively signed a red matrix of more than 350 people, covering 400 million users, and we stand closest to users every day, capturing their emotional expressions and attitude propositions, and empathizing with them.

This is the user language that has been widely disseminated in the past two years. "You don't care less about beautiful girls", "manage yourself well", we see personalized, confident expressions, and see every girl in the world, no matter fat, thin, tall, tall, and short, eager to be seen, praised, and eager to find their own beauty.

Then what we have to do is to create such opportunities. The essence of branding is the insight of human nature. Before the establishment of the brand, Yang Tianzhen proposed on Weibo that she wanted to do plus-size women's clothing, and fans asked her about her online time every day and left a message with various needs - clothes are no longer just "wearable", but to look good, to be exquisite, to be suitable for attending various occasions. These tens of thousands of fan private messages and messages accelerated the birth of the brand, and also guided the development and innovation of plusmall couture plus-size women's clothing.

In other plus-size women's wear brands, we also promote the keywords of clothes "hidden meat", "covering the stomach" and "thin", taking the concealment of the figure as the key production standard, and limiting the plump girls to uniform, dark-colored clothes, we have successively launched large-size backless evening gowns, slim knitted dresses, silk suits, and even a rare style in ordinary women's clothing stores - the golden sequin cloak.

However, making these plus-size women's clothes is not an easy task, and it seems to be just a larger action. However, the process and design behind it are extremely complex, which requires brands to place very high demands on the supply chain. Why did Yang Tianzhen choose to cooperate with Chenfan? Why do you do this brand with Sydney? It is precisely because we always provide the most solid supply chain support.

Chenfan, as the sales crown of Taoshi women's clothing for three years, has never stopped working in the supply chain, we have independently created a supply chain system, and in 10 years, we have accumulated more than 1,000 supply chain manufacturers with fast reaction capabilities in the country.

This year is the 11th year of Chenfan's development, we have created 15 independent brands, and have also achieved some achievements. Launched in 2011, XUELI Sydney women's clothing is the first independent brand to explore and develop the red e-commerce model; during the double eleven period last year, the net sales of XUELI sydney women's clothing was 130 million, catching up with UNIQLO and ZARA, breaking the monopoly of the double eleven women's clothing TOP1 by the Tmall brand.

In addition to the supply chain, what supports the independent brand business to achieve its current achievements is our red person model. As a "super user", our celebrities are not only a window for outputting content and aesthetics, but also a product experience officer who loves to share their usage feelings. They try various products, continuously output real product experiences and other content, communicate with users, and even lead consumer trends.

In Chenfan's business model, before the product is officially launched, the celebrities will quickly collect feedback while introducing new products on their respective media platforms, on the one hand, they can quickly adjust the details of the clothing during the pre-sale period, on the other hand, they can predict the explosion in advance to be quantitative; after the official launch, each individual in the reds matrix will "connect the dots into a network", and complete the planting, transformation and interaction through multiple media channels and content forms such as short videos and live broadcasts, quickly cover the traffic and achieve conversion.

In fact, in the final analysis, each of Chenfan's brands is based on the redman model and the supply chain "intelligent manufacturing" as the fulcrum, and gradually achieves a breakthrough in sales volume and brand power. The most typical case is the CU national tide series launched by XUELI Sydney womenswear since last year.

CU is the trend culture label we have focused on in recent years, and the main concept of the CU series in 2020 is Chin Unique, which is unique.

At that time, the series of CU T-shirts was launched in the live broadcast room for 3 hours, and more than 690,000 pieces were sold, of which the highest sales of a single model exceeded 30 million. During this period, CU series clothing was delivered in an average of 12 days, and at most, more than 1500 workers were produced online at the same time, with an average of 8W-10W pieces shipped every day. These data of the CU series are very representative of the characteristics of our "super fast fashion" brand, with many explosive models and fast shipments.

In order to further ensure the quality of the product, we have made two actions. First, we have established assessment standards for more than 1,000 supply chains. For the defective product rate, price band, and factory cooperation, the ABCD level is divided, scoring is carried out every quarter, and the tail elimination system is implemented, and if it is not good, it is eliminated.

Second, we have independently developed an ERP system. This system can evaluate whether the order is given to this factory, whether it has the ability to receive goods, the amount of inventory, the size of the factory, the number of lathes, and the number of workers. This can cover the intelligent manufacturing process of the whole chain of procurement, production and transportation.

Intelligent management at the supply chain end, clothing design, we also use the power of "China's intelligent manufacturing". The 2020 CU National Tide series of clothing is based on the 540,000 user data of the previous year, and the version suitable for the public figure has been upgraded and iterated. We use AI custom algorithms to analyze historical sales data, product feedback data, customer purchase data, and fan feedback on various platforms to assist in layout and pattern design.

After last year's CU, fans began to leave messages this spring looking forward to the new season of CU products. So what are we doing in 2021?

In recent years, it is clear that the national tide is rising. However, in the national tide market, many of the constant emergence is only the "formalistic" national tide that extracts the elements of Chinese style. So what is the real national tide?

We believe that the national tide is not equivalent to "Chinese style design replacing Western design", but an insight into the connotation of Chinese trend under the change of users.

So when we launched the CU series products this year, we re-innovated the CU, China Up, which means to refuel the new domestic products, and we use the four major concepts of "national creation, national wind, national tide, and national strength" to promote the transmission of the connotation and brand power of the national tide.

Guofeng - Our CU series and "China Youth Daily", China Aerospace, People's Guofeng, Hu Qingyutang, Arctic Ocean, Dog Buli, Beijing Daoxiangcun and other more than ten Chinese classic IP jointly signed, launched more than 30 kinds of CU T shirts that promote traditional culture, carried out secondary creation of Chinese classic culture, and excavated the trend background belonging to China from China's time-honored brands.

Guochuang and Guochao - In order to deeply explore the charm of Chinese trends in the new era, we have cooperated with more than 10 cutting-edge designers, artists, calligraphers, and more than 10 original Chinese design fashion brands to transform our past cultural memories into inspiration for clothing design. Sydney, the brand manager, also wore our CU T with these excellent independent designers and shot a set of fashion blockbusters. Let the designers go from behind the scenes to the front of the stage, grow with us, and tell those trend stories that are exclusive to China more confidently and more calmly.

National strength - is the foundation of national style, national creation, national tide, but also the embodiment of brand "manufacturing power". XUELI Sydney Women's Wear signed a 500-mu direct supply of cotton fields in Xinjiang with Huafu Fashion, which was the first in China to enter Xinjiang and grow Xinjiang cotton, and joined hands with Ali Rhino Intelligent Manufacturing to empower the manufacturing process with AI big data technology. To bring users first-class Chinese manufacturing, from design to fabric to production, from the core to the outside, to create a real "national tide".

In order to allow users to more realistically experience the "manufacturing power" and brand continuity, we have placed 10,000 seeds of Xinjiang cotton in the hangtag of CU series clothes, and users who buy clothes with seed bags can receive a FREE CU tee with this seed next year.

In the end, our CU series reached sales of more than 16 million on the night of the debut of the new product, of which more than 100,000 people bought the "Double Happiness Plus Body" dress alone.

As a deep participant in China's fashion clothing industry, Chenfan has experienced more than 10 years of development, while promoting Chinese trends through its own brands, it has also continuously cooperated with excellent Chinese brands such as Bosideng and Huili, and used the traffic and influence of Chenfan red matrix and head anchors to help the development of Chinese brands.

Looking back at the outbreak of China's trend in the past 10 years, it originates from China itself, on the one hand, the huge consumer market stimulated by cultural self-confidence, and on the other hand, the greater ambitions and ambitions of a new generation of domestic goods. And the trend is far more than just a person, a business, it is the story of the entire industry "holding hands and going up". Chenfan also sincerely hopes to work with all of you here to promote the sustainable development of China's trend on the basis of China's intelligent manufacturing.