Millions of merchants, hot war 618

2022-06-06

Compared with previous years, this 618 is a little special. Since the first quarter of this year, affected by the epidemic, many enterprises' business rhythms have been disrupted, and production and logistics links have encountered difficulties. The men's clothing brand mark Huafei, whose general warehouse is located in Shanghai, was shut down for a month due to the epidemic in April. In April and may, there was a sales gap and a large backlog of inventory, which affected the renewal in spring and summer. Some brands of offline consumption formats are facing problems such as a sharp drop in passenger flow and shrinking sales. With more than 600 offline stores, Inman, the founder of the brand, directly complained by sending a document: more than 100 stores were closed, workers could not open their jobs, and they spent 700000 yuan every day before doing anything. For small and medium-sized enterprises, their ability to resist risks is weaker, facing various pressures such as rising production and operation costs, insufficient orders, and difficult payment collection. With the improvement of the epidemic situation, many brands have pinned their expectations on the largest-scale promotion 618 in the first half of the year. Chen Yun, head of markhuafei e-commerce, told 36 krypton that it is very important to participate in this 618, and 618 needs to make up for the business in the first half of the year. "We will give consumers more benefits, strive for more commodity sales, and ensure cash flow to the greatest extent." Helping businesses to resume production and revitalize the market, the significance of 618 is not just a simple promotion Festival. Change to survive, with some hard skills The external environment changes dramatically, and various uncertainties come one after another. Business is difficult to do, which tests the ability of businesses to change and survive. Markhuafei, with a 20-year brand history, has its headquarters and general warehouse in Shanghai. Affected by the epidemic, it began to work at home at the end of March. The general warehouse was closed in April. As the general warehouse undertakes the import and export of the company's e-commerce goods and offline commodity B2B, the shutdown has a great impact. On the one hand, online orders continue to be placed, a large number of orders cannot be delivered, and it is difficult to fulfill the contract, resulting in an increase in the return and refund rates. On the other hand, offline was also affected. April was originally the peak of summer B2B shipment, but all the goods were overstocked in the warehouse, affecting the new goods on the shelves in stores all over the country. During this period, in order to actively save himself, mark Huafei urgently adopted the form of direct delivery from stores, delivered goods nearby through about 1000 stores nationwide, and fulfilled some online orders. At the same time, it accelerated its entry into jd.com. In April, on the basis of the existing pop stores, it launched the mark Huafei jd.com clothing store, giving priority to direct shipment from factories in Guangdong, Ningbo, Anhui and Subei, and allocating some goods to jd.com warehouse. The first batch of goods arrived at jd.com's Wuhan warehouse on April 22 and were shipped from Wuhan warehouse. At the end of April, mark Huafei's general warehouse in Shanghai was unsealed, and production and operation began to recover gradually. The e-commerce team had new thoughts on the supply chain. "In the past, you would think that e-commerce inventory and offline inventory, but in recent years, you have been doing the coordination of goods at both ends. Now, all offline goods should be sold online. At the same time, the goods should be delivered directly to stores according to the carrying capacity, so as to expand the base of e-commerce inventory, so that consumers who are used to online shopping can choose a wealth of goods." Chen Yun said. This year, businesses in all walks of life, including mark Huafei, and even ordinary consumers, have intuitively felt the importance of a stable and smooth supply chain. Chen Yun said that most clothing brands focus on design when it comes to competitiveness, but after this epidemic, competition in the supply chain has become more and more important. "Factories need to have more flexible supply chains. On the one hand, they need to accelerate the continuous production of popular products, and on the other hand, they need to reduce the sales inventory." Guojing, the founder of the shoe and boot brand Wanmi in Putian, Fujian Province, has more than 30 years of experience in the shoe manufacturing field. He made an account with 36 krypton: Assuming that the production capacity of a production line is 50000 pairs per month, the production cycle is often calculated by day and month. Once the supply of raw materials is cut off for a week or half a month, resulting in production stoppage, the staff salaries and other expenses still have to be maintained. At the same time, it also needs a longer time cycle to make up for the losses. In addition, the subsequent incoming orders may be overstocked, and the intangible investment will increase, resulting in the loss of operating costs. "If we stop for one month, a few percent of the profits of this year will be basically gone." Guojing said. In order to enhance the certainty of goods preparation and distribution, and increase the ability to resist risks, during the 618's this year, Wanmi opened a new store in Jingdong clothing in addition to the original Wanmi flagship store, which was connected to Jingdong warehouse. In Guo Jing's view, after the access to JD warehouse distribution, the distribution timeliness, logistics support and the user's purchase experience can be improved, and the anti risk ability of the supply chain is strengthened. "When an epidemic situation occurs in a certain region, resulting in logistics suspension, other adjacent warehouses can immediately follow up to ensure normal delivery." JD logistics has done a good job in pre-sale. During the 618 period, millions of SKUs will be placed in warehouses at all levels closest to consumers. At the same time, some pre-sale goods will be placed in express stations. After consumers pay the balance, JD express can directly deliver goods to customers, giving consumers the fastest service experience of receiving goods at the minute level. Win in stability and prepare for battle Crises and challenges force enterprises to reflect and sort out business problems. Those who make scientific response and take the initiative to change can often turn crises into opportunities and seek opportunities to break the situation. Guojing said, "in the past two years, we have felt that Chinese businesses, brands and supply chains have experienced a trial. We should have confidence and actively solve difficulties. In different times, there will be a batch of elimination, and a batch of new blood will be born." A typical example is that many businesses decided to increase investment in consideration of the deterministic advantages of JD integrated supply chain services. Tianyina, the person in charge of Jingdong clothing, shoes, luggage and bags, disclosed that many pop businesses have proposed to use Jingdong's warehouse distribution service system. Many self-supporting brands settled in Jingdong had previously only covered three and five warehouses in Jingdong. Considering the risk of failure to perform the contract in the case of affected shipments in some regions, they all hope to expand to eight warehouses to improve their ability to cope with the uncertainty of the epidemic. Big brands and small and medium-sized businesses are all gearing up to make up for the lost regret in the summer, making the enthusiasm and investment of this JD 618 registration more than in previous years. Mark Huafei is full of fighting spirit for JD 618 this year. The stock volume has increased by 20% compared with last year. Part of it is the inventory affected by the shipment in the early stage. The biggest discount is put in the first wave of 618, and the main promotion is multiple pieces and multiple discounts. "We hope to be the first to 'enclosure' and make a good start in the competition with competing products." Chen Yun said. In search, 618 sales can account for about 20%-30% of the whole year. JD is the main battlefield of the brand. Guo Jing expects to achieve breakthrough growth this year. In previous years, the monthly sales volume of the brand was about 50000 pairs, and this year, it can reach more than 100000 pairs. For this JD 618, about 300000 pairs of shoes have been prepared, which is at least three times that of last year. It is worth mentioning that this year, Putian shoes successfully registered a collective trademark, and 618 was the first large-scale promotion they welcomed, which is quite meaningful. Guojing said that the team is confident enough. In order to successfully complete the task, it has specially transferred manpower from other departments to support the main battlefield of JD 618. For the businesses in the industrial belt represented by gameI, as well as millions of small and medium-sized businesses, facing difficulties, it is the time for policy assistance. Jd.com has focused on these businesses. As early as April, jd.com released 30 "three reductions and three excellence" business support measures, namely "cost reduction, assessment reduction, risk reduction, rule optimization, efficiency optimization and service optimization", hoping to reduce the burden on small and medium-sized businesses to the greatest extent and stabilize the employment of more than 10 million people in the upstream and downstream of the industrial chain of small and medium-sized businesses. Xin Lijun, CEO of JD retail, put forward a quite pragmatic goal, "reduce the impact of the epidemic on small and medium-sized businesses through a series of cost reduction and efficiency enhancement measures, and help them increase the input-output ratio of JD 618 by at least 20%." According to the latest war report, JD is steadily moving towards its goal. As of May 31, the data showed that within 10 minutes after JD 618 made a good start, the turnover of more than 2000 clothing brand businesses increased by 100% year-on-year, covering domestic and foreign Ka brands, small and medium-sized businesses, industrial belts and other clothing brand businesses. This year, nearly 3000 small and medium-sized clothing businesses from Zhejiang, Fujian, Guangdong, Sichuan and other industrial belts participated in JD 618. JD 618 made a good start for 10 minutes. The turnover of Fujian Putian footwear industrial belt increased by more than 3 times year-on-year, and the turnover of top 1 popular casual shoes in the game shop increased by 100% year-on-year. In the following one hour of JD 618, the turnover of more than 800 clothing brands exceeded that of last year. Connecting the preceding and the following, weaving a tough net The more uncertain the external environment is, the more it needs the whole industry to work together. As a new entity enterprise linking the upstream and downstream of the industrial chain, partners, businesses and consumers have turned their attention to JD. How to run this key promotion initiated by JD has played an exemplary and leading role. In 618 this year, JD set the theme of "human fireworks and responsible supply chain". Compared with commercial significance, social responsibility was put in the first place. As Xin Lijun said, JD's understanding of supply chain has evolved into a responsible supply chain, extending from commercial value, industrial value to social value. "JD 618 is no longer just a barometer and weathervane of the consumer market in the first half of the year. It has a new mission and should shoulder more responsibilities." Xin Lijun said. This session of JD 618 is destined to be unusually thick: First, the pressure is heavy, and the epidemic has not yet fully recovered. In the face of severe demand fluctuations, it is quite a test of the platform's ability to respond to emergencies and top-level design; Second, it plays an important role in activating the demand side and rescuing businesses, releasing new economic potential. The public's expectation is to bet on JD, which is good at supply chain. Based on the "responsible supply chain", JD has built a network of "two horizontal and four vertical" to build a healthier, open and orderly new ecosystem. "Two horizontals" represent JD's ability in hard supply chain and soft supply chain, including JD logistics' nationwide warehouse distribution network and logistics infrastructure, as well as JD's ability to fully coordinate and integrate intelligent supply chain and intelligent logistics. Just after 8:00 p.m. on May 31, the first order of JD 618 was delivered nationwide. Mr. Bao, who lives in Glen Town, Xining City, Qinghai Province, received the small household appliances delivered by JD express. At present, with 43 "Asia No.1" large-scale intelligent logistics parks and about 1400 warehouses operating nationwide as the core, JD has built a highly collaborative multi-level logistics infrastructure and warehouse distribution network, which can achieve about 90% of self-supporting online orders on the same day and the next day, as well as 93% of districts and counties and 84% of towns and townships across the country, and become a bridge connecting the trust between the industrial end and the consumer end. "Four vertical" refers to the application scenarios of responsible supply chain, specifically summarized as major nodes, green carbon reduction, consumption promotion and industry promotion. During the epidemic, people can always see the front line of Jingdong charging at many major nodes. Just take the example of supporting the protest and supply guarantee in Shanghai. As of the beginning of May, JD had allocated and transported more than 80000 tons of materials, sent more than 4000 couriers and sorters from all over the country, and built more than 1600 contactless community supply guarantee stations. On the basis of "two horizontal and four vertical", JD cloud, which has built a solid technical base, provides

Edit:Li Ling    Responsible editor:Chen Jie

Source:Bigenguo

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