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#九月每周创作#
Let the increment become inventory, and the inventory produce the increment.
Wen 丨 Chinese businessman Tao Liao Chen Lego
Many people may have heard of the name Jiangnan Buyi, but may not know that brands such as Kuaishou and LESS are also affiliated with Jiangnan Buyi. In early September, the leading domestic designer fashion company delivered its best performance report in its 29-year history.
It's not just good performance.
【Best in History】
The more the macro environment is not good enough, the more it tests whether the company has real skills.
Now it's one of them.
Jiangnan Cloth's 2023 fiscal year performance report as of June 30, 2023 shows that during the reporting period, revenue increased by 9.3% year-on-year to 4.465 billion yuan, and net profit was 621 million yuan, an increase of 11.2% year-on-year.
It was the highest earning year in 29 years.
This achievement is all the more rare considering that it includes performance from July 1, 2022 to the end of 2022, which includes a difficult period of nearly half a year.
The source of growth is the various brands under Jiangnan Cloth.
As a leading designer brand fashion company in China, Jiangnan Cloth has a total of seven brands in three stages: mature women's wear brand JNBY; Growth brands include men's wear, jnby by JNBY children's clothing, LESS women's clothing; Emerging brands Ponma children's wear, home furnishing, ANOTE 73 menswear.
In fiscal 2023, these brands showed varying degrees of growth. The top performers were jnby by jnby and less, which achieved revenue growth of 12.2% AND 14%, RESPECTIVELY.
This is a trend that multi-brand operators are happy to see: emerging brands come out of the incubation period, mature brands continue to grow healthily, and growing brands contribute higher growth rates, making the snowball bigger and bigger.
With the growth of scale, Jiangnan Buyi also has a new bright spot in qualitative change.
When the industry was still discussing the "impact of e-commerce on offline stores", Jiangnan Cloth not only opened 34 new stores in the last fiscal year, bringing the number of global stores to 1,990, and achieving an average same-store growth of 9.1%, and also achieved a year-on-year increase of 24.5% in online channels. At present, its share of online revenue has increased from 16.7% in fiscal 2022 to 19.1%.
The bigger highlight is that Jiangnan Buyi's membership model is showing the "explosive" power based on accumulation.
As of June 30, 2023, the total number of members of Jiangnan Buyi has exceeded 6.91 million, an increase of nearly 1 million over the same period in 2022, and the retail sales contributed by members account for 80% of the total retail sales. Among them, the number of members with an annual consumption of more than 5,000 yuan increased by nearly 50,000 over the previous year to 260,000.
Of the total income of 4.465 billion yuan of the Jiangnan Buyi ethnic group, these 260,000 members contributed 3.54 billion yuan.
【Design Driven】
In early September, some investors asked the company's CEO Wu Huating: Most clothing companies are not very good, why can Jiangnan Cloth do this? What did you do right?
Wu Huating's answer is: do the right thing and keep doing it.
For clothing companies, getting more people to wear their clothes is the biggest right thing. It's not easy to do that. The key is how to "balance" the growing focus on personalization in the apparel industry with the scale required for business growth.
The challenges are clear.
A key indicator of the apparel industry is the length of inventory turnaround time, the shorter the better. The shorter the time, the higher the turnover rate and the larger the scale. But short work often means that the designer's creative cycle and space will be "squeezed", thus eliminating individuality.
But nowadays, products without personality often become products that cannot be sold.
Conversely, if it is too personalized, it means that mass production cannot be made, resulting in a loss of cost advantages and a shrinking customer base.
As a designer brand, Jiangnan Cloth itself is personalized, but from the perspective of its revenue and membership data, it is undoubtedly large-scale. To sum it up, it takes both personality, scale, and quality to be sustainable.
How do these two seemingly impossible things come about? Jiangnan Buyi's answer is: design-driven, taking into account and balancing the characteristics of designers and flexible industrialization.
The most important thing is to give the designer enough control.
Unlike many companies, the designer department of Jiangnan Cloth is not overly constrained by the retail and supply chain departments. The flip side of continued growth is that companies don't prioritize performance goals, but good products. As for more importantly, founder Li Lin's criterion is: the vitality of clothing brands lies in the innovation of each season.
In order to ensure innovation, Li Lin insists on putting art at the front of the business. "The unlimited pursuit of the highest (commercial) metrics ends up turning into a very boring brand." She has always believed in her beliefs:
"To stay alive, you have to tolerate mistakes. Don't be afraid of inventory, just look good. ”
But that doesn't mean design is "unconstrained" or "going its own way." In addition to targeting different groups of people in brand positioning, Jiangnan Cloth also uses sufficient market insights and data, as well as strong basic R&D support, to co-design help.
This is also the key to being design-driven.
It uses big data to deeply digitize consumer preferences and form scientific and clear labels for clothing styles, fabrics, craftsmanship, patterns and style preferences. These labels and data will become a reference for designers, better finding the greater common divisor between the market and the designer's personality. This is also the basis for Jiangnan Cloth to become a leading designer brand.
Committed to seeking innovation and change from the origin of clothing - fabric, to achieve greater quality and characteristics.
The Jiangnan Buyi people have long paid attention to the diversity and quality of fabrics. In 2014, a fabric laboratory focusing on fabric development was established, specializing in the research and development of special fabrics. To date, remarkable results have been achieved. Different and popular fabrics have increasingly become the factors for consumers to choose Jiangnan Buyi. For example, the "straw cloth" developed and created in 2018 has been highly praised and welcomed.
In addition to establishing its own professional fabric laboratory, Jiangnan Cloth cooperates more extensively with suppliers to create: find suppliers who meet the company's product needs, form long-term relationships, and jointly discover, develop and use high-quality fabrics - such as linen denim, exquisite high-quality fabrics, etc. The texture of Japanese Kameyama cotton and waterproof oil-proof reverse calendered 100% polyester fine canvas are representative classic products.
Open cooperation with the fashion industry and art world, promote "art exploration" with cross-border cooperation, and expand the brand's understanding and design space.
For example, in 2008, he founded the "Imagination Lab" with artist Geng Jianyi, which has funded and curated more than 100 contemporary art events and projects; In 2020, he established "Sesame Lab", dedicated to the re-creation of loose fabrics in stock; In 2023, Jiangnan Buyi will join hands with the modern dance troupe "Tao Body" to contribute a unique modern dance autumn and winter show...
In Building 17, Tianmu-ri, the headquarters of Gangnam Buyi, there is also a well-built non-profit art residency center, including ceramics studios, woodworking studios, printmaking studios and other entities, providing independent works for artists from all over the world. and living space to further cultivate the environment and soil of design, art and aesthetics.
It provides a "weapon" for early investment in design innovation. In the flat knitting pattern room that he helped design, there are 23 flat knitting machines, all of which are the most advanced and expensive models at present, providing a guarantee for "developing the most beautiful and the most difficult". Products. ”
In fiscal 2023, Jiangnan Cloth's investment in design and R&D increased by more than 20% year-on-year, exceeding 160 million yuan.
The combination of these factors gives Jiangnan Buyi a strong ability to promote new products. In four seasons throughout the year, the brand launched about 4,000 styles (SKUs) and 9,000 products (SKCs).
These figures are a product of Gangnam Buyi's design-driven, but they are only the starting point for its personality and scale.
【User Management】
The scale growth of enterprises comes from the growth of stock and increments.
Another secret of Jiangnan Buyi's ability to achieve both personality and scale is that there is a better balance between stock and growth. Supporting its goals is its industry-leading membership model.
From the financial report data, the retail sales contribution of Jiangnan Cloth members has accounted for 80% of the total retail sales. The annual consumption of more than 5,000 yuan of members has reached 260,000, contributing 3.54 billion yuan in income.
This means that its increments are better translating to existing products, and its existing users are aggressively generating revenue increments for it. Such a pattern of increasing the stock is also the unique advantage of Jiangnan Buyi Xueqiu.
What creates this advantage is not only the mass repurchase of personalized products, but also the brand strategy design of Jiangnan Cloth: brand matrix.
Its sub-brands cover more age groups and more styles, creating a diversified product brand series that serves users' lives and families, providing members with diversified products and services, and achieving better solutions between stock and increment.
Jiangnan cloth women's wear brand, the first brand of Jiangnan cloth, is positioned in low-key, high-quality and other values and styles. It has since used this as a starting point to continue expanding its product line in a restrained but rhythmic manner. So far, it has formed a growing brand such as sketch men's wear, jnby by JNBY children's clothing, LESS women's clothing, etc.; Emerging brands Ponma children's wear, home furnishing, ANOTE 73 menswear. and a matrix of brands that cater to consumers in multiple market segments, from children to adults.
Under this matrix, the membership consumption mode of Jiangnan Buyi can be:
A 30-year-old urban woman is a big fan of JNBY and buys several pieces a year; When she develops a preference for Gangnam buyers through the brand, she may make her boyfriend a fan of "Sketch"; WHEN THEY HAVE A HOME, THEY MIGHT GO TO JNBY HOME TO BUY HOUSEHOLD ITEMS. If you have a baby, you can go to the jnby by JNBY children's clothing store.
The child will grow up and the story will continue.
Moreover, Jiangnan Cloth has found a way to achieve this continuation, and has also reached the industry-leading standard: to provide members with professional and value-added services supported by digital technology.
The launch of "BOX + More than Boxes" in 2018 is a successful example.
This WeChat mini program can provide members with a "try before you buy" service with an exclusive combination of the whole brand. Paid users and eligible members enjoy exclusive one-to-one matching, fitting and free shipping 6 times a year.
Through "BOX+ More than One Box", members can select service specialists from the stylists of Jiangnan Cloth at any time, mark their height and weight, upload the desired matching style, desired items and reference style pictures, and then wait for the clothes blind box. Come to your doorstep.
If you don't like the matching clothes, you can return them.
What's more, Gangnam Buyi does not provide regular services. Its stylists do not fully cater to customer stereotypes, but genuinely give customers opinions and professional opinions, encouraging the exploration of new personal styles and creating surprises.
This inclusive service, similar to private haute couture, is extremely important for many users who pursue beauty but have no time to study. The feeling of opening gifts and the breakthrough of new clothing did surprise many members:
"It's not about being surprised by new clothes, it's about being surprised by your new self in the mirror."
According to the financial report data, during the reporting period, Jiangnan Cloth's GMV soared 70.4% year-on-year to 1.11 billion yuan through social retail channels such as "BOX + More than Box", micro mall, and diversified social e-commerce.
Professional dress service is just one of the basic actions of Jiangnan Buyi to win customers' long-term choices. In addition, it has launched a series of diversified and segmented value-added services around new products and user characteristics all year round.
These services have changed the relationship between Jiangnan Cloth and customers, from a clothing seller to a company that provides sustainable clothing services to users. It also turned the Jiangnan cloth that operates products into the Jiangnan cloth that operates the user.
Then the increment becomes the stock, which in turn gives rise to the increment, as well as long slopes and thick snow.
【Long slope thick snow】
At the media day on September 21, what really attracted media attention and made Jiangnan Cloth stand out was not its performance report, but an ESG report.
ESG is an abbreviation for Environment, Social Responsibility, and Corporate Governance. It encourages companies to move away from focusing on a single profitability metric and instead pursue long-term sustainability.
For the apparel industry, environmental protection, waste reduction and sustainable consumption are industry consensus under ESG and a new direction for industry value creation.
This brings us to another "need and need" question: how to achieve business goals and social responsibility?
Jiangnan Cloth's solution is to not only regard ESG as a public welfare responsibility, but also as a way to improve self-efficiency and effectiveness.
For example, improvements in environmental protection are oriented towards material innovation and efficiency gains.
Li Lin, the founder of Jiangnan Cloth, once said, "The clothing industry is very wasteful in some aspects, I have a bit of a fetish, I don't want to throw away the rest of the clothes, so I thought about changing careers." Turn waste into treasure. ”
In 2020, Jiangnan Buyi established the "Sesame Lab", which is dedicated to the creative development and design of stock fabrics, scraps, and even fabrics that would otherwise be discarded into household items, doll ornaments, art installations, etc.
Today, it has evolved into a series of products: rabbit conference bags at the spring/summer 2023 order meeting, "fourteen-piece patchwork bags" sold in bookstores, environmentally friendly tissue boxes and coasters from Jiangnan Buyi stores across the country...
This not only brings about improved environmental protection, but also brings about increased efficiency and effectiveness.
A typical example is the mobile phone bag designed by Jiangnan Buyi.
The development and production of down jackets requires a large number of down sheets. In the past, these materials were destroyed and discarded after use. However, through the efforts of Sesame Lab, down sheets have become the manufacturing material for mobile phone bags, and the straps of mobile phone bags also come from dresses. Scrap.
On April 11, 2023, three woven artworks were exhibited at the Jiangnan Costume Collection Store in Tianmuli, Hangzhou. This is the fabric design work of three students of the China Academy of Art, and it is also one of the important achievements of Jiangnan Buyi's "Fabric Art Large" project.
"Making the most of things" is also one of Jiangnan Buyi's important explorations of sustainable fashion.
Through cooperation with the outside, the details of traditional fabrics and craftsmanship are systematically sorted out and studied, and modern design and advanced manufacturing technology are tried to be combined to allow traditional fabrics and traditional craftsmanship to continue and "make the most of them" to a greater extent.
In addition to this innovation, Jiangnan Buyi also introduces environmentally friendly materials into daily life.
For example, 40% of its recycled polyester is derived from recycled PET plastic. Each 500 grams of clothing made of this fabric is equivalent to consuming 23 less 0.5L mineral water bottles and reducing greenhouse gas emissions by 1.1KG.
At present, Jiangnan Cloth has promised to achieve at least 30% of sustainable raw material procurement by the end of fiscal 2025, and on this basis, establish a circular fashion system through long-term design and recycling. Design exploration.
The clothing industry is a long industrial chain, from raw materials, yarn, weaving, printing and dyeing, to the production, wholesale, retail, consumption of shoes and clothing... In October 2021, Jiangnan Buyi joined the "30·60" Plan (Climate Innovation Carbon Neutrality Acceleration Program for Chinese Fashion Brands)
"Through the coordinated development of the industry, promote the green and low-carbon transformation of the textile industry and help achieve the dual carbon goal."
Behind this is the investment in design, the upgrade of quality control, and even the optimization and reshaping of the entire supply chain. It may mean an increase in costs, or even a concession of short-term benefits, but Jiangnan Buyi takes a long-term view and sees its own greater benefits from a higher dimension. At the ESG exchange meeting of Media Day, Rong Xijie, an expert in the development of sustainable fabrics in Jiangnan Cloth, explained:
"For businesses, profit growth is part of development, but our development must complement the natural and social environment. We believe that the ultimate gain (ESG) is far greater than the capital investment in sustainable R&D, which plays a leading role in the sustainable and common development of the industry, which cannot be measured by value. ”
Jiangnan Buyi's role model for ESG is also being seen and recognized by more people.
In Wind's sustainable business development assessment, Jiangnan Buyi received an A rating; After being selected into the MSCI index, Jiangnan Cloth received a BBB rating and also ranked at the forefront of China's apparel industry.
With the increasing awareness of public welfare, environmental protection and responsibility of more and more consumers, including investors, ESG efforts and achievements are also injecting new value into the brand of Jiangnan Cloth.
Jiangnan Buyi's mission is to "explore a better life with art", which requires both design-driven, user-operated business innovation leadership, and positive social responsibility. This combination of higher dimensions is the real growth of the enterprise. The snow is deep.
-End-
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