For most manufacturing companies, inventory management is the key to affecting their profitability. However, inventory pressure is often affected by some uncertainties, such as the cancellation of overseas customer orders, the misjudgment of product market sales by enterprises, and the speed of product iteration is too fast. Therefore, how to quickly and efficiently solve the inventory pressure has become a major pain point that most manufacturing companies and brand owners urgently need to solve.
It is precisely in view of this market demand, in order to help manufacturing enterprises and brand owners reduce inventory pressure, Gides (full name: Shenzhen Jedes Supply Chain Management Co., Ltd.) team since its establishment 7 years ago, through the integration of upstream and downstream industrial chains to empower the brand, and build an inventory optimization platform "Kuyu Electric Warehouse" (launched in 2021) to help brand owners affected by inventory, agents, chain retail and foundry manufacturers to solve the problem of slow product sales and capital liquidity.
At present, in terms of business model, Kuyu Electric Warehouse mainly helps customers reduce inventory pressure through models such as agents and channel providers. Kuyu Electric Warehouse strictly follows the agreement stipulated by the customer, avoids the customer's main market, and distributes to the national and regional markets that have not yet been covered through agents or channels to ensure that its price and agent system are not affected. For example, a company's products are mainly focused on the European and American markets, and Kuyu Electric Warehouse opens up new market directions, such as Southeast Asia or the Middle East. For local agents, selling in the local market at ultra-low prices, agents can enjoy more lucrative profit margins.
In order to speed up the digestion of inventory and avoid the risks caused by inventory backlog, Kuyu Electric Warehouse has built a complete, efficient and three-dimensional sales system, which reduces the loss of the factory while rapid shipment. In terms of sales model, Gides adopts a combination of online and offline agency mode, online through private domain traffic, such as community communities, new media live broadcast channels, etc., offline for enterprises, to provide collection business, employee welfare, gift customization and other services to protect the price system built by the brand side. In terms of customer groups, B-end customers are generally the main ones, and they buy a large amount at one time in the form of wholesale.
Kuyu electric warehouse
In terms of supplier product screening, G&D has established its own set of standards and processes. When there is a backlog of inventory, the company will provide a product list to G&Dez, and Gedes will comprehensively evaluate the product from multiple dimensions.
First of all, Gedes will comprehensively consider its products in various platform markets at home and abroad, such as analyzing its sales on Amazon, JD.com, and Tmall platforms; secondly, it will pay attention to the overall manufacturing process of the product, if it is an electrical appliance, it will evaluate the internal component structure and related technologies; and finally, it will evaluate the premium space of the brand. After the evaluation, a cooperation is reached, and the one-time purchase method is adopted or the sales are sold as an agent of the enterprise. Zhang Meng, general manager of Gedes, told 36Kr that in fact, most brand owners have inventory pressure, not because of quality problems, but by many uncertainties, such as product development iterations. "For example, a brand designed and produced 20 Bluetooth headsets in one year, but 17 of them are very popular, and the remaining 3 products are less popular in the market, and it is inconvenient for brand owners to make greater discounts in their own price system, otherwise it is easy to impact the profit margin of their genuine products." Therefore, brand owners urgently need Kuyu electric warehouses to help digest inventory pressure," Zhang Meng said.
In terms of product types, the current cooperation with Kuyu Electric Warehouse covers a wide range of products, involving mobile phone computer peripherals, 3C digital, beauty and personal care, IP tide play, living appliances and daily necessities and other fields. Among them, there are many well-known brands at home and abroad.
Kuyu electric warehouse products
In the process of cooperation, to win the trust of brand owners, mainly rely on G&D's strong sales channels and performance capabilities. Zhang Meng revealed that several companies have reached many cooperations within a year, and even reached as many as 13 times a year, all because of the strong performance ability of G&Ds, which also ensures that the company's own price system is not affected.
In terms of team, the current number of Kuyu electric warehouse personnel is about 30 people, and the main personnel include procurement, sales and operation promotion personnel. And with the strong support of the parent company Brocade Group (full name: Shenzhen Brocade Supply Chain Management Co., Ltd.) and the perfect supply chain supporting service system, it provides high-quality services in the fields of supply chain, e-commerce, internal and external trade, gift customization, points exchange, etc., and provides massive customer resources for the purchase and sale of inventory products.
Speaking of the next step plan, Zhang Meng said that Gides will plan to develop an exclusive APP for Kuyu to accelerate the promotion and efficiency of inventory products, which is conducive to expanding popularity, and it is expected to be oriented to C-end users in the future, so that more C-end consumers can buy the most needed products at the most affordable price without pursuing style popularity, so that more inventory products can return to their value itself.