What Did Zhou Jianping, The Home Of Hai Lan, Do In The First Place Of Clothing Industry?

A few days ago, China's investment bank club led the "2019 China's richest 2000 people and families" released. The list shows that Zhou Jianping, the national brand Hai Lan's boss, ranked the first place in the domestic apparel retailing industry with the fortune of 40 billion yuan, forty-eighth of the total list. Ma Jianrong, Shenzhou knitting boss, ranked second in the industry with 31 billion 500 million yuan of wealth.

"2019 China's richest 2000 people and families" list of clothing industry, 56 of the rich list, the total amount of wealth reached 384 billion 100 million yuan.

According to the financial data, the total revenue of Hai Lan's home has reached 19 billion 90 million yuan in 2018, and its total market value is 37 billion 305 million.

Although the family of Hai Lan is known as "national brand", it has also been popular among the people of Yin Xiaotian. Since Hai Lan's home is recognized as the "local flavor brand", its annual revenue has increased. Last year it broke through 19 billion and became the first sales of men's wear in China. Why?

At the end of the 20s, Zhou Jianping took the first pot of gold and took over a woolen mill in Jiangyin and began to make a huge demand for the clothing business. When everyone else was doing the woolen business, Zhou Jianping switched to the worsted business. In just three years, the sales of the woollen mill exceeded one hundred million. Such achievements are inseparable from Zhou Jianping's acute courage.

In 2002, Zhou Jianping went to a Japanese expedition and accidentally walked into the store of UNIQLO. He saw that the sales patterns inside were very different from those in China at that time. He thought why he could not have such a clothing store in China, so he had today's Hai Lan's home. In September 2002, Zhou Jianping opened his first store in Zhongshan North Road, Nanjing, and founded the brand of Hai Lan home, displaying its ambition with slogan, which is "broad and boundless and magnificent".

Let alone, Hai Lan's home has achieved great results in the semi self service sales mode. It only opened a store to 50 stores in one year, and its business revenue has reached tens of billions. Such achievements prove that Zhou Jianping's new sales model is successful.

Why did Hai Lan's family achieve such a great success? In fact, it is inseparable from the operation mode of light assets. What is light assets? That is to say, all products are ordered from suppliers, product design, clothing production, transportation, distribution and other links in the form of outsourcing, in which part of the cost of the process is supplier first out, and so on.

Stores are open in the form of franchisees. Franchisees only need to invest money and do not have to participate in the specific business management of the stores.

As of December 31, 2018, the total number of all brand stores in Hai Lan House reached 6673 (excluding boys' and girls' stores), including 5097 brands of Hai Lan's home, 1281 brands of AI Ju rabbit, and 295 other brands. Hairang's home business will focus on brand building, channel operation and supply chain management. The mode of joining will prompt Hairang's home to raise a large amount of funds to continue expanding its stores and earn traffic in the form of "encircling the cities in the countryside".

As a result, Hai Lan's home has saved a lot of money from production to shop, and the pressure of funds is small, and money is also made.

The "light assets" mode brought Hai Lan's home to the first place in men's clothing sales in China, with sales from 7 billion 150 million in 2013 to 12 billion 340 million in 2014, 15 billion 830 million in 2015, 17 billion in 2016, and 18 billion in 2017.

Even though the revenue of Hai Lan's home is increasing, its "light assets" production mode has been controversial in the industry. Although "light assets" helped to help Hai Lan's home to expand rapidly and avoid inventory risk to some extent, the disadvantages also appeared over time. For example, if the brand market expands and the demand for products grows, suppliers will not be able to afford large amounts of capital to bear the risk of inventory. Hai Lan's home can only buy goods on its own, and the goods purchased will not necessarily be sold out, which will lead to a backlog of inventory problems.

But where does the earth of Hai Lan's home come from? This is from the endorsement ad in 2009. The spokesperson Yin Xiaotian appeared in front of the public in the form of dancing with colorful clothes. The magic dance matched colourful clothes, and the "local flavor brand" became synonymous with the home of Hai Lan. At this point, the advertising image of jumping in the air is inseparable from the home of Hai Lan.

Even if hahai Lan's family wanted to change such an image, Du Chun, who was invited in 2012, is still in the form of "awkward dance" in front of the public.

But this kind of advertising effect has prompted halang's home to fire up. At least, the public knows the brand of men's clothing of Hai Lan's home. Moreover, the location of Hai Lan's home is clear, the layout is reasonable and the quality is guaranteed. Revenue, profit and market value have slowly increased.

In recent years, Hai Lan's family has been spared no expense in promoting itself, putting in lots of advertisements, sponsoring variety shows, and transacting marketing with entertainment circles. In 2018, the advertising expenses amounted to 627 million yuan a year. Hai Lan's home has always wanted to transform and break through with entertainment marketing, but the effect has been minimal.

In fact, to do so many entertainment marketing, Hai Lan's home wants to throw away the image of "local flavor" and want to further contact with young consumers. The most typical is that Hai Lan's home has found the "nine hundred million girls' dream" star Lin update endorsement. The poster and the advertising video have been upgraded to a different level, and the product style is even more distinctive. People shout "Hai Lan's home, you have changed, is no longer the home of Hai Lan before." Lin's endorsement directly drew the distance between Hai Lan's home and young people, which can be said to be a relatively successful transformation.

In order to catch up with the pace of the young people, Hai Lan's home invested in UR's parent company's fast fashion fashion in 2017 and subscribed no more than 10% of its equity. UR is a fashionable brand with distinctive style, multi category, fast fashion and high performance price ratio. Hai Lan's family hopes to influence the younger generation of consumers through "UR", and then push forward the development strategy of the company to build a fashion industry ecosystem and brand operation platform. In addition, Hai Lan's home has also launched a women's clothing brand, "love rabbit" and "Hai Lan", to diversify and move closer to the younger generation.

The home of Hai Lan relies on its own unique mode in the garment industry. It makes the brand slogan of "two times of the sea Lan House" and "man's Wardrobe" go deep into the consumer's cognition. Even though it has been ridiculed "local flavor" for a long time, it has become the choice of many consumers, and has taken the first place in the sales of men's clothing in China.

What are the expected new trends in the future of Hai Lan's home? In the era of change and consumption upgrading is eliminated or closer? Hai Lan's family is facing many pressures.