Let private customization realize industrial production How Red Collar Group realizes transformational transformation

In the traditional garment industry, one assembly line is considered to be unable to make two different products: personalized customization and industrial scale production are contradictory bodies that cannot be combined with each other. If you want to customize, you will not be able to produce energy. custom made.

In recent years, the clothing industry has been screaming, and the red-collar group in which it has become a hot and fragrant scent, tens of thousands of Chinese and foreign companies are rushing to visit and study from all directions. Ali, Haier, Vanke, Lenovo, TCL and other famous enterprises are its visitors. Haier Zhang Ruimin is a seven-in-one workshop, requiring all management of Haier to go to the red collar to study.

Why is a clothing company so attractive?

Let private customization achieve industrial production

In the traditional garment industry, one assembly line is considered to be unable to make two different products: personalized customization and industrial scale production are contradictory bodies that cannot be combined with each other. If you want to customize, you will not be able to produce energy. custom made.

However, in the factory of the red collar, the products made by one production line are different, and the efficiency is several times that of the traditional clothing method. How did it do it?

Entering the red collar production workshop, you will feel the obvious difference between it and the traditional workshop. It's more like an IT company. Every employee is facing an electronic display and follow the instructions above to carry out his work.

The color, style and fabric of each product on the assembly line are different. They all have their own “ID card”. The workers only need to gently wipe the identification terminal in front of them. The information and production requirements of this clothing are all clear at a glance. .

Controlling all this is the intelligent customization system independently developed by Red Collar. From the initial volume, to single, pattern, tailoring, and finally to the final garment, a set of garments is subdivided into more than 300 standard procedures, how to match the most reasonable, how to cut the most material, all calculated by the system And execute.

In this system, Red Collar has built a number of databases, such as a type library, a style library, a craft library, and a material library. It is said to store billions of large data covering Chinese and foreign clothing. Traditional mass-produced garments generally have only three large, medium and small garments, and no more than ten. But in the red collar database, there are more than 9,000 models of clothes, ranging from 1 meter to 2 meters, tall and thin, and all kinds of body data.

This not only reduces the unsatisfactory rate of customer demand to one in ten thousand, but also greatly improves the efficiency of garment making. For example, the pattern-making process in the garment process. In the traditional way, a senior pattern-maker is required to complete a suit at least one day, but with the help of the red-collar intelligent system, it can be completed in 20 seconds. Relying on this system, 210 employees in the red collar workshop can complete 2000 sets of personalized clothing a day, which is unimaginable in the traditional workshop. The red collar can create such a "magic" factory, relying on the insistence and forbearance of the 12-year-old agent at the helm.

"neuropathy"

Zhang’s clothing business started in the early days of reform and opening up. At first, he was only a self-employed individual who sold clothing. After a few years of accumulation, he accumulated a lot of capital. It was easy to establish Laixi Jiali Garment Factory in 1986 and produce jackets by replicating Hong Kong and Taiwan. Because of the good quality and credibility, Zhang’s clothing factory quickly grew bigger. After 9 years, like most clothing manufacturers, he embarked on the road of OEM and established the Red Collar Group.

In the first few years, it was still quite good, but slowly, Zhang’s agent became two-headed. At one end, the cost of raw materials and labor is getting higher and higher, and the tiny profits are being squeezed out. The other dealers kept returning the goods that could not be sold, the stocks were getting more and more, and the cash flow was getting tighter. In the end, it is equal to busy work. The situation of Zhang’s agent is not a case, but a true portrayal of the entire OEM OEM industry.

There are three main links in the operation of the garment industry: R&D design, processing and production, and brand channel operation. The profit distribution in this value chain is about: R&D design accounts for 35%, brand channel operations account for 55%, and processing production accounts for 10%. This is the smile curve of most manufacturing industries, that is, the manufacturing process is at the lowest end of the price chain, and the return is the least.

For example, the world luxury brand ARMANI (Armani), the cost of a fabric accessory for a suit is only a few hundred yuan, and the processing cost of the Chinese factory for its foundry is only about 80 yuan, but ARMANI gets the price after the garment. However, it is more than 10,000 yuan, and the brand has taken away most of the profits.

Due to the low level of domestic clothing design, the products are difficult to become famous, so a large number of clothing companies can only work for other brands. The owner of a processing company revealed that even the listed company Red Bean Group had OEM for ARMANI. Many of LV's products came out of a workshop with Vanke Eslite.

What makes Chinese apparel companies even worse is that due to the relative lag in design-to-supply chain integration, the lead time in the industry is generally very long (products from design to production, logistics, and sales), and general clothing brands usually need 6- 9 months of lead and delivery.

Because the lead period is long and it is difficult to keep up with the fast-changing market, most companies need to make a gamble. In order to cope with possible needs, they need to place large orders in advance, and once these products are backlogged, they become a huge burden. According to an industry source, the general production and sales rate of domestic brands is around 65%, and some brands in “difficult times” are as low as 35%. According to the industry, even if all Chinese clothing companies stop production, the Chinese do not have to worry about not wearing clothes, because all the inventory of each company is enough to sell in the market for two years.

This kind of situation has existed for a long time. Zhang agent looks in his eyes and is anxious. "Doing business must have profits. How can it continue to develop without making money?" He began to seriously ponder the "sustainable development".

Combining the status quo of the domestic apparel industry, Zhang’s agent traces the source and thinks about the demand and supply: “The profit of the enterprise comes from the value created for the consumer. To create value, it must meet the individual needs of the consumer. The best way to do the utmost is to customize - and sell it first, even the stock is gone."

For the custom market, Zhang agent also has its own considerations. In the United States, the market share of custom clothing accounts for 30%. China is the world's largest consumer of clothing, but personalized customization started late. With the upgrading of consumption concepts and consumption levels, the demand for individualization will become increasingly prominent, and the “short and fast” and “small and beautiful” of the apparel industry will become a new development trend. Based on this regression-style cognition, in 2003, Zhang agent took the red collar to embark on the road of transformation and transformation of large-scale clothing customization.

In this step, Zhang’s agent is not only difficult, but even a little bit shocking. The 7,000-person workforce has been reduced to 3,000 people, continuous capital investment, and the production line has been continuously transformed. Everything has no experience to follow, which is equivalent to taking a factory of 3,000 people for long-term experiments.

Compared with the continuous pressure of hundreds of millions of funds, it is the mental pressure to make Zhang agents difficult. Apart from himself, everyone said that his ideas could not be realized. Whether he is at the factory or back home, he always hears opposition, and many people even say that he is a "neuropathy."

However, Zhang agent has taken a point: "There are business opportunities for things that are difficult to do. It is easy to process the materials and take pictures of the gourd. But everyone will do it, there will be no profit. Do not do others, make good. The business model will stand out." Driven by this idea, he has overcome the difficulties together.

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