Zheng Zheng: Leaders, ladies and gentlemen, ladies and gentlemen, good afternoon. Here we introduce ourselves first. Our company is called Shanghai Daily Broadcasting Industrial Co., Ltd. Our main business is women's wear. I am the deputy general manager of our company. My name is Zheng Zheng. Before I came, I had a communication with the organizing committee of the conference. I also saw that the two guests who spoke after me were successful entrepreneurs and had a very unique understanding of the brand culture. In their speeches later on, they will also focus on analyzing how they draw from Chinese classical culture and modern trends. I would like to change my perspective. Because of the limited time in the afternoon, I would like to stand in the perspective of corporate operations and tell everyone about the history of our company's growth. At the same time, I would like to introduce you to us at all stages. We are cultural innovation, brand innovation and Some thoughts and experiences in managing operations.
Since there are also entrepreneurs and senior officials here today, I think it would be a great honor for me to bring a touch to everyone this afternoon.
So first of all, we come to our own eyes to look at the competitive landscape of the Chinese clothing market. This is our company. Based on our own understanding, we have probably taken China's clothing market to the next level. We are 0 to 600, then double up to more than 9000, which is the unit price. If we don't have the add-on nature of women's wear, such as market segmentation, we generally divide the entire women's wear market in China into several levels according to the average product price. Of which more than 9600 yuan level we call the luxury brand. So now the luxury brand is basically based on international brands, including a series of luxury goods such as Dior and other four major brands in the world. Then on the level of 4800 to 9600 we called quasi-luxury. Well, this place includes a lot, and there are a series of, we collectively call the international second-line, of course, this also guarantees a very small number of international women's clothing. Below 2400 to 4800, this area is called boutique brand. In this field, our Chinese brand is distributed and distributed in the domestic market is relatively more. The same in a price segment, is also the current domestic designer brand, Japanese and Korean brands are highly concerned and quickly enter the market. 1200 to 2400 called small boutique market. So now is also located at this price point. The public circulation brand below 1200 is seen in all department stores. Basically this is the price level, including cities above the first line, that is, brands that are more familiar to everyone, probably at this level. The following 600 yuan are divided into two categories, one is a domestic brand that specializes in circulation, similar to Haizhou. There are many brands not only limited to more than 600 yuan, but this brand is relatively small, some brands are priced at 700,800, but the actual price is 600. At this level, we can see that at this level of each level, we are facing fierce competition from foreign brands. And the above two levels, that is, the middle of the level of luxury goods and quasi-luxury goods really released to China is particularly small, the real release is the boutique level below the market level. The mass market has been hit hard by the brand. In the markets below fine women's clothing, the homogeneity of products is very serious. In addition, there is a relatively concentrated state of the two ends of the customer group, and the center is relatively discrete, that is, the degree of concentration of the luxury brand is relatively high, and the brand circulation in the third and fourth line is also relatively high, but there is no one in the size. The levels are more concentrated.
In accordance with the current level of development of Chinese women's enterprises, the target market we choose the best women's clothing, as well as the circulation of the fine women's clothing market, in this relatively discrete market space of the customer base, we can personalize the brand building and differentiate the construction to occupy A place. Domestic companies may have different options, either taking the differentiated product roads or quickly sinking channels to win a respite. Three-and-four-line brands should have a few years of good prospects, because there are still some time for international brands to enter. This year's Tmall is 19.1 billion, which means that its rapid development has had a great impact on the development of third- and fourth-tier brands. In addition to taking the differentiated product road, there is almost no better choice. So the common problem faced by Chinese women's wear is how to fight. That is how we participate in the competition. Of course, we can also choose a relative blue ocean for Li Zong, but most of us still have to participate in direct competition and how to give a cultural personality to the women's brand.
The second, because we can't make a single volume large, how can the effective city multi-brand operation.
Third, how to build a company's continuous cultural shaping and design innovation capabilities. Then I would like to take a look at the development and survival of Shanghai Daily Industrial Co., Ltd. from its birth to its present development, as well as our exploration of this issue at different stages. I would like to share with you and hope to inspire you. Our company was founded in Guangzhou in 1997. It was originally a design studio. It was not registered until the year 99. Before 2002, we had been the establishment period of the company. From 2002 to 2004, it was a rapid development period. 04 to 07 The year is a transitional period. From 2007 to now, it is a period of redevelopment after the transition. Our company has four slogans. In the initial stage of our slogan, in the early stages of development, the slogan of our company at that time was to create fine clothing and disseminate costume culture. In the period of innovation, we put forward the slogan of designing innovative life. Then the development period lasted until Now the slogan of our company is to create the future, which is the topic of my speech today.
Well, I want to show the meaning of our few sentences in stages and some of our mental processes to show everyone. This is the brand name of our main brand. At the same time our brand is called daily broadcast. This sentence comes from the Book of Songs, food is fruit, live is vitality. I peel off the seeds of various crops, and the seeds are full and full of vitality. We hope to gain in the future and gain success. Now we look back at this sentence. In fact, we think it may be named. He is in line with the culture of our company. Dedication, diligence, and value creation are all our development strategies. All of them are closely related, but at the time our desire was very simple, and the spiritual and cultural aspects of things have always been the same strain.
The slogan of our early development is to create fine clothing and disseminate costume culture. Because all three of our founders were painters, they opened clothing stores in their own early days. The earliest studios were established, including registered companies, and brands. Their works have always been unbelievable. Of course, they are also very successful. Jerky, but different. In the year of 2002, we captured the pastoral style on the market. After the product was launched, it was welcomed and loved. By the end of 2002, our store had opened 150 stores. In 2002, we also acted as a spokesperson for the brand. In 2003, we moved to a new factory and later moved into the office building. In 2003, we moved it to Baiyun District, Guangzhou. We built a factory and integrated office, production, production, supply and marketing. At this stage, we created the best service to create a service. From the earliest times, we most impressed me. We are not making clothes. We are only doing culture. Clothes are a carrier. So they used art to reproduce some of the ideas of painting, so the attributes of this culture, including the cultural dimension of the company, have been affecting the present. Until now, there has been a kind of confusion in our company. To an unclear culture, it may seem more relaxed, but the system is relatively tight. Everyone's communication is very parallel, and it may be very relevant to the culture at this time. Then the core concept of this period pursues quality and attention to brand culture. These two things have become the core of our work and are also a core factor for the success of the broadcast in 2003.
Let me talk about the transition period, design innovative life. In 2004, the Chinese style gradually faded out of the Chinese market. Along with other pastoral and ethnic women's brands that we have grown up in the same period, we started the transition with them. In the process, many of our partners beside us have died, and many of our partners have declined. We may become one. We still survive, but we have little influence on regional brands. Our change is also very painful. At the beginning of the transformation, in order to find the market, what the customers mentioned, what the market needed, we provided their products, and we began to chase the so-called popular. Slow channels have also stabilized, and we ourselves have found that our own distinctive imprints have become blurred, so we began to panic. After painful rethinking, Nissan recognises that providing consumers with choice is our ultimate choice. We must adhere to differentiation, must adhere to originality, and maintain a pure land in the fashion trend. In order to keep up with the trend of fashion in 02 years, and in order to enhance our design, we moved from Guangzhou to Shanghai. In 2005, our brand positioning was broadcasted. In 2006, the brand was rebranded with a new name. The brand's overall image was improved. . In this period, we must adhere to the differentiation of products, so that the long-term survival and development of sowing, so design, innovation, and life became the slogan for this period of daily broadcast.
The period of further development is from 2008 to the present. The 2008 broadcast multi-brand strategy was formally implemented, and the positioning of each brand was very clear. It began a trial of multi-brand operation. In 2009, the grand tenth anniversary ceremony was held and a new slogan was proposed at the ceremony. We need to be aware that we are not just designing innovation but the spirit of innovation. The future of creativity will infiltrate the design of product design, channel design, operation mode, and the design of profit model. We really want to broadcast it on a daily basis. It is a culture, an endless innovation culture. The culture includes not only dreams and values, but also the companyâ€™s governance mechanisms, operating mechanisms, and even various systems and processes.
In 2007 and 2008, we refined the core concepts of our business. One of the values â€‹â€‹we broadcast today is innovation and social responsibility. The vision of the daily broadcast and the mission of the daily broadcast are as follows. Fashion and creativity has become an ordinary life. It has become the world's top asset management group. Social responsibility, dreams, down-to-earth, and earliest spirit are the same. In the organizational structure, we are tangled in the implementation of the multi-brand strategy. Because the human resources at that time were not sufficient, we also designed according to the functions of the headquarters center, marketing center, promotion center, and design center. After we explored in depth in 2007, we felt that we would do something in the future. We set a rule for ourselves, that is, the brand we do afterwards is not a market share. It must be a brand that we insist and advocate. Since it is very distinctive, we say that A brand and B brand are not very similar, and B's no-brand and C brand's operating model may be completely different. So at that time, we set up a back-office operating platform, which was highly concentrated in production and R&D, but the front-end is independent, including a multi-brand operation center, a CRZ brand operation center, and an independent subsidiary company. Guangzhou.
Then our self-employed company is also an independent section, and the network is also an independent company to do independent online business. Until now, we have actually developed an online strategy every year. We hope to make full use of the very large share of the future, but we are still selling branded inventory. We went online in Taobao in December 10, probably this is an attempt, the main purpose is to train the team. The real online specialization will be done from 2012. There is also an independent overseas design department. After adopting this model, we face a big problem that is the problem of personnel. Because every department needs teams, the entire design R&D, product management, access management, and brand promotion management Need an independent team, how to build a team is a big problem, human resources are relatively tight. However, I feel that through our attempts like this, we have gotten some things with little by little. What are we independent of? The first one is our playing card. I don't want to elaborate too much on it. We currently have probably opened more than 2,000 stores nationwide. I will not talk too much about this. Then the sowing of cards is a brand with more artistic temperament and oriental temperament. However, we started this year and the second half of last year, and this year, we focused on the launch of the broadcast image. This was developed jointly with Japanese designers and communicated with the Oriental temperament. There is one thing in the artistic nature. This is our brand. This brand is higher in positioning than the souvenir cards. Its character is more independent and more linear. Therefore, the design is also more sturdy and public. These two brands are positioned in different distribution levels of the market.
In Guangzhou CRZ, our earliest time was to do fashion ideas, we wanted to do underwear series, small jewelry series, inward series, three large series. The extension of the product has been expanded, but its core spirit is to face the future consumers, and after 90 this wave of cultural consumption personality. From these three, it can be seen that the three brands we do have a high degree of divergence in the design and brand positioning of the entire commercial channel. Many companies will ask why you are not like Lexus companies, not like attachment companies. Why do I use the same resources to make more brands in the same market segment? Each company's idea is different because we want to be our own market. We don't just do share and achievement, we do something creative.
Finally, I share some of our internal initiatives. First, an advocacy for innovation at the cultural and organizational level. Do not say on the organizational level, I said the Ministry of Industry itself is a relatively free platform. In addition, we have created a relatively loose organizational culture in the company, which is not without management. On the contrary, I think the internal operating system of our company is still relatively sound. We currently have several large management systems. The first one is called the annual planning management system. . We have a five-year rolling strategy that includes a three-year development strategy for each brand, an operating system for the annual plan, and a system for follow-up every month. We have an overall budget system after we plan. When the budget system works, our company currently has only 70 pens. Our department managers can sign directly and have a relatively high degree of decentralization, but the system must be standardized and there is a performance appraisal system.
Then the second is strategic management and decision-making, because we have adopted a business division system. Instead of adopting business control methods in terms of management and control, we control and control the core strategy that each division finds, and control and control the annual plan. Authorize everyone to make decisions. This system includes reporting systems, including auditing systems. The other is that in the group decision-making, many companies are the boss one person to beat the head, we are a bunch of people beat the head. We have a management committee. There are three people. They are our general manager and me. We also have another vice president, three people and a decision-making committee. There is also a management office, an extension meeting, 21 individuals, senior officials of all senior officials and senior managers of various business divisions. The big thing was made by 21 people to make group decisions, and the most important thing was to vote for three people. Such a mechanism will ensure that no mistakes are made.
The third focus on the establishment of the core team. In the establishment of the business team is very strenuous, each brand's ideas and persistence must have a core leader, it is non-renewable, but if there is one, we call a cockroach, a maternal cooperation, a person must Responsible for the other person to do business expansion and control, and at the same time the company's investment in team development is also very large. In these years our company's staff promotion in the director is 80%, training funds for the manager up to 5 million, last year we sent 20 people went to attend a series of MBA courses including Fudan University and Jiaotong University. In addition, it is an open governance mechanism and a sound operating mechanism. Because we are all under the divisions, the divisions are independent companies, and each company has its own equity institution and bonus distribution mechanism. As long as the senior officials are the core executives of the brand cluster, he can receive dividends for a certain number of years. This is quickly done by the respective modules. Each business module can be relatively flexible, and this can also be more motivating.
Focusing on the creation of customer value, some topics are not extended. The performance assessment of each company is as strict as possible, but this will cause two problems. One is the snowstorm. If we follow this model, Edison was expelled by us for 10,000 times. In the end, we made some reforms. All of our innovation projects are independent brands. We will be managing an independent project area and show our awards. For example, two key projects are illustrated. One is to do online and offline interactions. How to do IPAD online extensions in our retail stores can prevent the impact of online and offline business on the Internet. This is a big one. Innovation and management projects.
The second one was that when he was a good year, he asked his customers to top 20% more. He also made it. He also sold it. Now no one has decided. Our company has been focusing on the exercise of internal strength for the past few years. In the past year, we have achieved more than 30% increase in business per year. The growth performance through the opening of stores is relatively small. Therefore, our customers have a little less performance. For example, sales in this field have been declining this year. However, we have maintained growth. Therefore, our customers can still accept 10%, but this is not a long-term development of a company. We plan to launch a replenishment system next year. This is also a management innovation project. Every year, companies must launch one or two projects that manage innovation.
For design innovation, we emphasize the core position of the design director. We have established close cooperation with consulting companies abroad. Third, insist on originality. The number of pieces purchased for playing one year will not exceed 200 pieces. Basically, the process reference and fabrics will be purchased. There is no need to reprint and the original must be adhered to. The commodity period serves as the backbone product, retaining the right to innovation. A lot of company merchandise department will give a very clear and complete plan to the product planning. Designers are unwilling. He may have new designs and ideas this year. For example, I plan to list 180 products. I demand that the product organization is 126. This 126 must ensure that the new product group is open to the designer. We still received a better result. Our design is also innovative. We think it is a relatively balanced one.
The last one is to ensure the designer's concept of styling. So we have a strict return policy when ordering. Pay attention to the construction of brand culture and pay attention to the construction of the store culture. The brand promotion activities have always been more focused on promoting cultural adjustment.
The photo below is a dialogue of contemporary avant-garde art exhibitions jointly organized by 18 artists and brands in Guangzhou and at home and abroad this month. The following includes our previous catwalks. It is basically a very artistic method. Modern pioneers dance and there is cello music. We invited the Shanghai Light Music Group for the last catwalk show. We attach great importance to the brand's artistic tonality and cultural tonality in all aspects of cultural construction and promotion. This is the idea of â€‹â€‹playing cards.
We also cooperated in commercial cross-border cooperation and did some grounding gas cooperation, including the cooperation of Dong Jie with Dong Jie. She has a series of styles and developments for a week. It also includes the first MV we cooperated with Dong Jie, because the copyright relationship cannot be released to everyone.
In addition, this year's world-famous magazine fashion brand power list, the fashion rights list of awards, do not look at the share of the overall operating status, brand characteristics, the brand's future development is equal to the playing card is one of them, only two brands . This is also our little recognition. In the other month we were also landed by Hyde Land, which is Raffles. A Singapore real estate company has invited 12 of them, of which 8 are brand merchants. They participated in a CapitaLand Global Conference. The theme is the road to design. The broadcast card is also the only one invited brand company in the mainland to make a speech. I regard it as a small reward for our efforts for many years.
In the end, I ended my speech. I think we have a long way to go. We will surely go all the way in cultural construction, design and construction, and innovation. I hope we can bring more interesting, creative, and valuable things to the society in the future. Our dream is not great, but we hope to achieve it. Finally, with Mr. Wang Wendong, our general manager, the daily broadcast is a big stage and we look forward to the wonderful dancers becoming the stars of the future. Thank you all.
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