Itochu Fiber Trading (China) Chairman Otsuka Takeji On Integrated Speech

Otsuka Takeji, chairman of Itochu fiber trade (China)

Otsuka Takeji: let me introduce myself first. I am Otsuka Takeji from Itochu fiber Trading Co. Ltd.

Next, let me introduce the history of supply chain. The sale in 70s is relatively simple. If you make a phone call to the factory to ask for shipment, the factory will send a car immediately. Even if there is an emergency, it will be easier to handle. At that time, only goods can be sold.

But after 80s, with the birth of overseas production, production logistics has undergone great changes.

In 1983, the US (company) pioneered the supply chain, aiming to develop and popularize the use of creative mode XCOR.

Now let me introduce one of the changes in business mode. As our business community used to be a simple paction from left hand to right hand, besides the value added to the goods itself, it also needs the added value of business activities, such as brand business. Its background, quality and marketing determine its productivity. As long as the era of good quality products can be sold well, we need to accurately grasp the needs of consumers and integrate with business models.

The source of added value is the new marketing mode of the company. We first take marketing as the basis to conceive, and then return them to the manufacturer, combining raw materials, fabrics and other links, extensive knowledge, increasing their commodity strength with professional characteristics, and stimulating the market. This marketing concept is the added value of business activities.

From product orientation to market orientation, in addition to the added value of consumers' starting point and the added value in the business process, we will elaborate on the details below.

Let's first talk about jeans. We have gone through 30 years of professional traversing from fabrics to garments. We can buy high priced jeans in Japan. Basically, they are made of Japanese jeans. We are not simply selling jeans, but we are doing the whole business plan and putting the value of commodities into specific products.

I want to join the cattle industry.

Next, I would like to talk about ladies underwear. Today, there are quite a lot of ladies. This is also a complicated question. I will explain it to you now.

Women's underwear is popular, shaping and other functions. High value-added products are highly competitive industries, and the changing trend of the products makes the product cycle very short, and requires accurate market control and precise production management. What should we do in such an environment?

We set out in accordance with the Trinity trade operation form, set up a professional team, set up partner type enterprises, choose the design company, so as to establish a trinity system.

Our nation's largest underwear salesman, who is bold in matching lace, makes gorgeous and fashionable products, and such products even have the function and effect of shaping.

For example, in order to wrap up the chest, we used three different kinds of non-woven fabrics and special steel wires to display the abdomen and back, the overall lacing, the luxuriant feeling of decorations and ribbons, and the careful consideration of body temperature, comfort and style design.

Sometimes more than 50 kinds of materials are used, and each type has a very fine size classification. Production management is very complicated.

In order to solve this problem, the supply chain must be optimized and efficiency is the key.

From 2000 to 2005, it is the important period for retailers to quickly adapt to the changing trend of fashion. The biggest feature is the sales mode from commodity design, proposal to sales.

Since the implementation of restrictions on large-scale retail stores in Japan in 2005, many countries in the country have developed a lot. For this reason, various professional chain corporation continue to open shop, resulting in more and more shops running.

We provide a wide range of services in the design, fabric proposal, style, proofing, production management, sales cycle and price proposal of the various brands, and we have provided a wide range of services.

From the domestic fabric business, and other aspects of the most advantageous production base.

If you find attractive fabrics, you can also reverse the proposal, which is very innovative.

In overseas production, the proposal of using the yarn of Thailand subsidiary to cooperate is already coming into being.

Taking our company as a window, we have a A company engaged in product manufacturing and production in the subsidiary, producing B shoes and groceries, as well as men's clothing and women's clothing companies with their own brands, so that the upstream and downstream businesses can be integrated into one, and the business flow that we cultivate is all used up.

We will combine all the products made in various production sites in China, set up the packaging of different sales shops, and import and export agents will take part in the local legal persons and logistics centers, so as to effectively deal with the defective products.

Japan has created new added value for packaging to Japan.

After the ship arrived in Japan, it could save a lot of expenses, save time and money, and protect the links.

In China, logistics licenses are different in every province, and the rights relationship is more complex, which is more difficult for foreign companies. Therefore, supply chain management is also one of the ways to solve the problem.

Next, we will talk about the change of business mode two. After 2010, we will create new added value and the business model set up by it. We will create additional value on the basis of all sectors of raw materials, garments and brands, and from the powerful force of group enterprises to distributors and many partners.

At the same time, in order to develop business earlier and deeper in domestic and foreign markets, a more solid and colorful value chain has been built.

Since 2010, we have been thinking about how to pform the industrial chain into a valuable value chain. In the middle, there are four ways we should let our customers feel more happy. One is the feeling of great joy, the joy of health, the health care of life, the meticulous service and the quiet time.

In order to be more close to consumers, we are still considering that we can provide consumers with peace and quiet music, cooperate with music producers, and develop music that can help people.

In terms of healthy life and health care, it is embodied in the use of cotton without pesticides and chemical fertilizers to make garments, towels, scarves and so on.

We spent three years in Thailand to help 15000 organic cotton farmers to purchase, from the planning, fabric, processing and composition of value chain, to build a middle and lower reaches of the balance of value chain business model.

In the process of manufacturing this value chain, it took three years to help 15000 organic cotton users to reach the value chain. If it does not take three years, the value chain may also be formed, but the value chain and the supply chain have great connections. We feel that the value we spend on so much time and subsidies will be very worthwhile.

Next, let's introduce the two of value chain construction. There is a process in it. The so-called OEM is the product of the client and the brand.

ODM is capital participation in brand design, production, material proposal, sewing and logistics.

In ODM, we have integrated the concept of FEP, which is the plan of the fashion planet. We push FEP through the cooperation with media partners to protect the environment as the ultimate goal.

Many of the clothes traders participated in the FEP activities, and contributed to the earth's environmental protection through the fact that the carbon dioxide emission reduction project approved by the United Nations successfully completed 20 thousand tons of carbon dioxide emission reduction plan a year.

Japan has 9 companies to participate in this assistance project, sold 3 million 700 thousand tag, really realized the supply chain plus value chain double business mode.

The theory of supply chain management established in the 80s of the last century has also been changing with the passage of time, and has been promoted accordingly.

From the perspective of reducing waste and improving production efficiency, we manage five bad things until the realization of consumers, consumers expect the environment, consumers actively participate, provide consumers with satisfactory products, create a space for consumers' satisfaction, and build the responsibility of an affluent society, which has become the mission of enterprises.

We believe that creating value chain and developing it on the basis of supply chain management is the comprehensive force of the advanced business mode.

Thank you!