37 years ago, SO NICE founder Li Zhongzhou started by setting up a street stall, and then engaged in clothing wholesale and retail in Siping Street, Taipei City, with the keen eye cultivated over the years, founded SO NICE, nice ioi women's wear brands. In 1996, Xinhong International Co., Ltd. was established to develop new retail business models such as physical stores and e-commerce sales. The company's main strategy is to quickly become popular and reflect fashion trends, so that the brand operation channels throughout Taiwan, China, with 120 retail stores in its heyday, outstanding achievements, and active layout to enter the world.
Not separating stores and e-commerce is the key
SO NICE started as an offline physical store and did not officially enter the e-commerce market until July 2015. Li Youhong said: "Looking back at that time, I didn't understand anything, including planning and salespeople, everyone was blank about e-commerce, and they didn't even know how to set goals. So far, I am very impressed, and the online performance in the first month is only more than 68,000 yuan (unit: RMB, the same below). If you add the return, even 68,000 yuan will not arrive. "This bleak situation lasted for about half a year. However, 30 months later, the online monthly performance has reached the level of more than 2 million yuan. Looking back at the past growth and changes, one of the most critical decisions is that online and offline are not divided.
Earlier, the company divided online and offline into two departments to do it, and it was difficult to avoid the situation of competing for resources from each other, falling into internal consumption, and the inventory and operation of goods would also fall into conflict; In addition, from the consumer's point of view, guests do not care whether you are online or offline, it is a brand. Under the flat company organization, online and offline operations can be coordinated together, and thinking naturally can be more comprehensive, and will not take sides. Therefore, enterprises obey human nature and attribute online and offline performance to store personnel. Even if marketing, planning, design, customer service and other departments are not separated, but the store sales staff is clearly classified as an entity, how can they not be threatened by e-commerce and are willing to contribute to e-commerce sales?
Since the customer is operated by the salesperson and the company, no matter where the purchase is made, the performance should be counted as the salesperson's. Whether it is from e-commerce or stores, the performance split ratio for store personnel is the same. After several years of improvement, coupled with the dismal retail performance of stores caused by the new crown epidemic, online performance has grown highly, store staff can also run the company's online business from home, and the performance is counted on store staff, and the results of offline and online undivided rule show high growth. At present, the performance of e-commerce has reached more than 30% of the total revenue, and it continues to grow at a rate of 10% every year.
The troubles behind the growth
With the high growth of revenue, the ordering of e-commerce continues to increase, the number of goods distributed to individuals has increased significantly, and the sales volume of stores has also continued to increase, making it difficult for the original logistics center to handle the huge volume of logistics operations. If you can't get the product to the front-end store sales or customers in real time, then everything is futile and cannot be converted into sales.
Tang Jingyi, special assistant of Xinhong International Logistics Center, said: Logistics is the logistics unit behind commodity sales, and the company cooperates with 91APP OMO sales system to integrate and manage end customers and store sales. The need for a WMS warehouse management system must be seamlessly linked to the company's business model, not only for easy use by field workers, but also to respond to future market trends and needs. After the recommendation and selection of the company's consultants, a professional company was finally selected for cooperation.
"Most wanted to solve the order picking and inventory problem, the company was able to stand in our company's position, propose the most suitable system equipment according to our ideas, and also tailor the WMS warehouse management system for our needs. They have rich experience, have hundreds of industrial application achievements, can help us solve problems with the most advanced management concepts and smart technology in the industry, and do not commonly develop SO NICE dedicated logistics automation system. Tang Jingyi added.
Introduction of intelligent logistics automation system equipment
Tang Jingyi said that in order to respond to the huge flow of goods to change the category and quantity of new retail products, the system analyst of the cooperative company first formulated the standard process of on-site operation, set the peaks and valleys of logistics volume, and divided the operation mode into to B and to C, introduced an electronic label picking system, and adopted goods-to-person operations through autonomous mobile robots (AMR) in the picking of e-commerce, as well as packaging equipment for e-commerce goods.
SO NICE is sensitive to fashion trends, and the products produced by the design are first stored for confirmation after arriving at the logistics center, and the quality is sampled, and the goods are placed in the picking area and AMR shelves. After the store or online order is placed, it is immediately picked, and then scanned and confirmed and packaged, and put into the shipping temporary storage area, and the online personal goods are picked up through the convenience store logistics system, and also delivered to the home by home delivery by home delivery, and the store goods are delivered through the transportation company to do store delivery.
System device overview
01Warehouse Management System One Set (Capus)
02 Electronic tags 80 (Capus)
03Wireless Handheld Terminal Scanner (Capus)
04 Autonomous mobile robot AMR 15 units
05 robot shelves 294 pcs
06 Robot charging station 2
07 5 robot workbenches
The result after import
SO NICE five-strand DC inventory of about 13,000 SKUs, storage of about 250,000 pieces of clothing, of which the implementation of the automated logistics system took a year, after the introduction of more than a month to make on-site operators familiar and flexible application, the current average daily shipment volume of 800 orders, peak up to 2,600 orders per day, shipment distribution of about 70% of stores, about 30% of e-commerce. At present, the shipping days of e-commerce have been increased from 2.5 days to 1 day, and logistics costs have decreased by 12%~15%. Most importantly, after solving the manpower problem and introducing the logistics automation system, the existing 21 on-site operators can easily operate, fully cope with several times the amount of wave operation, and the operation accuracy can reach almost 100%.
New retail scenario integration platform
SO NICE has a unique management model and can closely adapt to social changes. General Manager Li Youhong said that network marketing is like the Air Force, which can cover all consumers in Taiwan on a large scale and bring new customers; The store is a ground combat unit to help consolidate members, and both sides must fight at the same time. "New retail is our business model at this stage, and the store is used as a customer experience to try on; E-commerce as a new stage for growth. At present, e-commerce has an annual growth of more than 10%, and the retail performance of stores is not too much. ”
SO NICE's virtual and real convergence OMO strategy seems to be a natural fit, but in fact, there are multiple levels of digital layout behind it. Li Youhong emphasized: "In the current epidemic, we must first stabilize the performance of our members, and let 20% of regular customers contribute 80% of the performance. "In addition to usually operating her own regular customer list, SO NICE cabinet sister will also distribute birthdays, gift certificates and other lists to the store staff's intelligent equipment through the 91APP OMO cloud management system "store assistant", so that store staff can view the member data provided by the headquarters at any time, not only can understand online and offline transaction records, but also integrate all consumer online behavior tracks, including community conversations, collection lists, shopping cart open products, etc., to fully see the customer's 360-degree overall view. This is a deep membership operation that could not be achieved by the single strength of the store alone. While the market is talking about the decline in the performance of physical department stores and the difficulty of e-commerce, SO NICE has delivered a report card of more than 20% contrarian growth in the past two years.
Tang Jingyi finally said: "SO NICE belief is: if you don't try, you never know if it's right. In the process of continuous trial and error, the more you will know where the road to success is. SO NICE has embarked on a unique path of egoism. In terms of smart logistics automation, it also takes the lead in investing in the future growth road, the modern supply chain must be fast and accurate, and the goods must be accelerated and fully sold. Logistics needs to be smarter and more automated, and maximum benefits should be exerted with the least amount of manpower. ”