Photo and text: Han Chong CEO

Han Clothing House CEO Chong (Sina Science and Technology Han Lian/photo) May 2011 from 10 to 11th by the consultation sponsored by the third China Clothing Electric Business Summit held in Hangzhou, Sina Science and technology live the conference.　　The picture is the chief executive Chong of Han's clothing house.　　I am very happy to share with you here, my side of the sharing is a case-sharing, basically data and patterns of the description.　　First of all, a simple introduction, Han is a pure electric company, and the traditional industry has no special relationship, the company is located in Jinan, Shandong, Taobao two shops, mall store is the Golden Crown, the market shop five crown, from last July the entire focus of the business conversion to the mall store. Taobao flow of the situation, now every day is 300,000 uv,150 million PV. Sales, the daily sales in Taobao is about 600,000, 4,000 single, our own flagship store completed 75%-80%, through the distribution of about 20% to complete. External network sales of about 20% per day, including in Kyoto, V, Macaulay this platform, including white, about 1300 per day. Company Department staff has 20 departments, 600 people. 2011 Sales target is to complete 300 million sales, the hope that the number can reach about 1000 people. Hope to reach 2000 people next year, 600 million sales.　　We have finished our plans for the last three years. Korean Clothing house organization structure. I am the general manager, in charge of five departments, marketing, distribution, technology, security and our South Korea branch, I have five deputy vice president, there is a vice president of the Product Department and the department of Photography, there is a female vice-president, in charge of the guest, South Korea, logistics and Finance department, and another vice president responsible for human resources, administration, training and so on. Han are the first is our team, the second is our model, I think more than the pure electric dealer out of more features. Our team is younger than the traditional brand core team, because our biggest 70, the smallest 80, we in Amoy brand inside we belong to the middle, very special is ten years old friend.　　This is the situation of the departmental structure. Company from 02-07 years is a part-time, is purely from the grassroots to do, there is no special clothing support, the entire investment in 02 to cast 200,000, the middle once again voted 600,000, a total of 800,000 dollars, really began to operate from March 08 to do Korean clothing homes, because 07 I resign from the company, I worked in a company for 15 years, since 08 resigned to do the Han clothing house, after a year to the end of about 50 employees, 08 sales are 3 million, 09 we have to buy the team model, is 200 employees, sales 13 million, 10 focus to create supply chain production this piece,　　By the end of 2010, about 400 employees, sales is a billion, 2011 focus on brand building and corporate culture construction, because more people, this is the basic development. The value of this company is actually a problem, we have always said that Korean version is good, Korean fashion products are good, but how to bring South Korea fashion productionProduct into the Chinese market, there are some problems to be solved, in this process, there have been three models, the first fashion uprising, it is early, fashion uprising is the mode of purchase, the second model is to sell the model, is the Chihiro network, was later acquired by Kyoto, the two purchasing model has three major mishap, The first mishap is the waiting time is too long, the second is frequent broken goods and out of stock, the third is unable to return goods, and four is not cost-effective.　　After the team discussed the integration model, is the buying Team System.　　There are now about 8,000 items online, these 8,000 daily basic is this number, the real library is 2,400 variety, virtual library is 6,000, accounting for each quarter in the quarterly sales to maintain around 1000, which each day on the new 100, the real library around 40%, virtual library is about 60%. Below I briefly share the business process, at present we are selected, trial, production, distribution. We currently have 40 buy-hand groups, they choose the money every day, after the election, we through a number of community research, based on the results of the study to judge the pre-sale and then quantitative production, through the test of the process volume production, may be the test test is generally 500 or 1000, if the sale of good words volume production may be larger,　　The mass production carries on the relatively good, after the market monitoring style will carry on the distribution. I would like to talk about buying a group system, may have some lessons for everyone, because no matter big companies or small companies can basically use this way to solve the problem of style update fast and many styles.　　Our buying team is composed of 5 people, one of their old electoral division, he has an assistant, we have a special product production, the fourth is a purchaser, he placed an order, and then a librarian, he has a clerk, flexibility is relatively large. Once the buyer group is formed, the initial amount starts from 08 each person gives 20,000 dollars, that is to say this group has five person group only to give 100,000 yuan, the choice group's eldest brother, designs oneself or chooses what style, then originally starts to order quantity exactly how many, which color, which code, then is your price, how to promote, How to choose the goods basically by this group boss. So at the beginning the group level and vision is limited, so the money is very limited.　　But by the end of last month, our most powerful team was 5, and the group's monthly sales have exceeded 2 million. Another is the use of funds, its use of the amount is last month's 70%, such as selling 2 million, the use of this month is 1.3 million, 4-6 months of the group gradually diminishing to 70%. Why is 70%, it has a process of reckoning, the rights of this group just now, the company will set a minimum pricing standard, We're now pricing at 2.5 times times the lowest rate, that is to say, after the production of your clothes is at least 2.5 times times, but the price of clothing is flexible, if you think 3 times times can sell 3 times times, but at least not less than 2.5, because now began to pay taxes, less than 2.5 can not afford. So the number of products, dozenAll promotions are set by the group. Each group is a company, but we examine its index is two, the first is its gross profit, you actually earn how much money, is 40% or 50%, you can discount, hit to 10% also line, that you only 10% of gross margin, earn less. The second is inventory turnover, if the inventory is slow, it will also affect your Commission.　　Commission after the distribution by the group leader to decide, such as commission 10,000 yuan, but this 10,000 dollars five people how points, is determined by Laistalles. There is also a measure of reward and punishment, and the top three teams will be rewarded with a special amount because he doesn't have much money, as I said in the 2 million group, the actual amount of money used is nearly 4 million. We will dissolve and then rearrange the three consecutive teams, and we will divide them separately within 6 months and 6 months. A mature group, may be inside some people grow faster, hope the separation, but their boss does not want him to split, how can we solve it?　　If the separation of the people divided, they this group of 5% to the original boss, so the original boss every month to take 5% of the Commission, so the boss is also willing to put the new people out.　　Another group copy, to the Department of Supervisors and managers, of which the sales accounted for only 50% of the assessment, and the growth of the group or the new team to determine the speed of the department head and manager of 50% of the ratio, so he put energy in the backward group they will have a commission, so they are very concerned about this.　　But the group system has the malpractice, has the question, if everybody wants to draw attention to these abuses or is the question. First, in fact, it takes considerable time and practice to cultivate a qualified buyer, investment is relatively large, buying hands is very difficult to develop, we have set up a training department, I just talked about the virtual library, in fact, each buying team we did a work in 08, we put South Korea about 3,000 network brands combed it again, The cost-effective and relatively stable products into our brand library, then from the brand library to choose from five to 10 Korean brands, so in the growth of the Korean brand will become one of his crutches, such as 10 brands today launched 10, he will judge the 10 inside of which three good, can be directly from Korea to buy back, It can be improved, such as South Korea's relatively thin, China prefers a little thicker, it can be changed. But the source of design is from the earliest Korean brands, so that they will quickly start, and confidence. After the second group was more, there was a conflict of interest between the group and the group, if you are naked to tell him who sold more on the Commission, so there will be conflict, but also the interests of the group and the company's interests of the conflict, such as Taobao anniversary, calculated down is basically 50 percent, so that the group's gross profit is not, if the company as a whole, Company said for the brand, in order to customers do not make money can do, but the group is unwilling to do, because the group of old loss of money, the company made customers my money will be lost, there are contradictions, so this middle how to coordinate, so that everyoneIn unison, this need for institutional adjustment, the system has a lot of details of the things no way one by one in detail. Another is the inventory problem, we can emphasize the use of capital inventory and the turnover of funds, which will lead to what problems?　　Buy Hand group orders when the basic amount is not large, so hot selling has broken goods situation, both control inventory, but also see the amount of money, so he will be less.　　Another is the brand image, this point we have a lot of work, because the group after a lot of uneven level, he chose the concept and values are tea, so in order to form a neat and unified brand image, the need for continuous training, communication and guidance. Another is the problem of traffic contention, although our current flow is good, but a large number of new on a daily basis, but the home resource is limited, competition between the group is fierce, so we have developed an ad auction system, our marketing department will also sell to buy hand group, our home page has three parts, the first is more than six months of group, is to spend money to shoot, the second part is six months within the group, they have no money, in order to protect them they go to snap, every Wednesday three o'clock in the afternoon end, who hands on film.　　Third, the overall deployment of the company, supervisors, managers in order to cultivate a promising team or style, managers and supervisors can be approved. The last difficulty is interpersonal relationships, business competition affects relationships, staff management is difficult, if there are new words who first in the system inside the release is who, so they all Rob hair new, so very tired, pressure is huge, in fact, how we adjust is also naked competition relationship, every day is to see sales, you sold 40,000 yesterday , I sold 20,000, the mind imbalance, and the boss of the pressure is huge, resulting in a great pressure under the psychological imbalance. And after a mental disorder, April 27, 2010, the day I drank a pound and a half of white wine, at that time personnel do not wake up, have to thank Taobao, on that day I had a dream, said which staff because of psychological pressure is crazy, all my goods have been deleted, because I have so many goods, I do not know who deleted, Taobao on April 27, 2010 on the online account, so this permission only the manager can get, they are only editing products, but not deleted.　　So system construction, if buy hand to certain degree will face some problems, if want to do everybody must notice. Then is the shop style unification, each buys the hand group to monitor more than 10 Korean brands.　　Store system, we have a unified standard, this is with Taobao learned, and then audit, every commodity on the line to audit. That's it.