In 2014, the rapidly expanding Osage was caught in the dilemma of its performance to stop growing. After a year of internal adjustments, and the experience gained from other Amoy brands, this 10-year-old Amoy brand wanted Leading the industry and recreating the glory of the year.
This is a brand that has been regarded as a miracle: since 2008, it has won the Tmall women's sales championship for four consecutive years, not only in the Internet original brand, but also beyond the traditional offline brand that just touched the network. .
For electric merchants who are familiar with that history, it should be easy to think of this brand - Osage.
In the words of founder Zhou Yong, at the time, Ou Sha was busy with foreign exchanges but was neglecting the development of his own business. “We will receive four or five waves a week to visit our peers.†However, he does not regret it, because this is also He brings valuable experience and resources.
After experiencing rapid expansion, Osage was once caught in the dilemma of losing performance. After a series of internal adjustments, Zhou Yong was still full of confidence and hoped to lead the industry with high-quality products.
This time, can Oscha reproduce the glory of the past?
Confusion in rapid expansion
Ossa's headquarters is located in a factory building in Pengji Industrial Zone, Liantang, Luohu District, Shenzhen. The exterior walls are mottled, and many windows are rusted. It is far from the downtown area, making it especially quiet. It seems that Ossa is not like A typical Internet brand is more like an offline clothing brand.
This coincides with what Zhou Yong should have in his heart. In 2012, Osage's annual sales reached 450 million, with 3 million core users. Since then, Osage has continued to expand, and the number of teams has quickly exceeded 600. All departments are focusing on the rapid increase in sales and the continued expansion of scale. In the frequent promotions, Ossa lost the direction, followed by sales. Growth has fallen into a bottleneck, the team has fallen apart, and a large number of consumers have also been lost.
Zhou Yong told reporters that 2014 is the double low of team psychology and sales. He believes that the problem that led to the growth of Osage is first of all the supply chain. In the cooperation with suppliers, there have been some irregular events. “After rapid expansion, the control of product quality has become a problem.†Quality is the core competitiveness that Ossa is proud of, which is a major The blow.
Another major pressure comes from offline brands. Since 2013, traditional brands from offline have paid more and more attention to online operations. After the early development, the operating methods of Tmall and Taobao have become very mature, and it is simpler and more transparent for offline brands. It is easy to improve quickly. In contrast, Oscar, which started from the Internet, has to make up its own shortcomings: brand building, offline channels, supply chain, design, R&D, etc., will take longer.
He recalled to reporters the scene of interviews with the media more than five years ago: “I am often asked why Ossa can achieve first place for four consecutive years? I said that because the competitors are too weak, the traditional brands are not online. Play, but they have to tell me the secrets of Osage. It turns out that traditional brands have put some pressure on Amoy brand."
In Zhou Yong’s view, Osage’s performance volatility is the only way to go, but this does not mean that “Amoy brand†will continue to decline: “More and more Amoy brands have a lot of innovation, and there must be brands. It’s not Ossa, it’s another brand.â€
Exploring the route vs. finding the way overseas
During the rapid expansion period, Ossa made two attempts in the channel: exploring the route and finding the way overseas.
In June 2011, Osage's first offline store opened in Shenzhen, and since then four stores have been opened. At that time, He Zhiming, a COO at the time, said in an interview that Internet brands such as Osage are not well recognized among consumers. In order to better build a brand, they need a physical store as a supplement, and on the other hand, an expansion channel. In the three years, Osage will conduct online and offline promotion activities during the Double 11 period.
In 2014, Osage suspended the offline store. Liu Xing, who was born in the Korean clothing brand Yilian Group, thought it was a wise move. He believed that the offline store could not really solve the problem of the Tao brand, but in the fierce competition. If Ossa can't find a good point of focus, it may encounter new difficulties.
AliExpress is another attempt by Osage. Since entering the overseas market in early 2014, the monthly average sales of Osage on the platform has reached a scale of RMB 1,500-200,000 from RMB 5,000. As an early explorer to enter overseas, Osage is exporting some stocks and has been recognized by a group of consumers.
However, even Ossa, who is known for her style in Europe and America, has encountered the problem of acclimatization. Liu Xing admits that the biggest problem facing overseas markets is products. The trend and customs of each country are different. Language is also an obstacle. The international logistics costs are high, and the flow dividend is declining. A series of factors have made Europe. Sha's overseas business is not so smooth.
Now, Ossa is refocusing on its e-commerce market, which is the most watery. Whether it is community marketing, celebrity endorsement or the current hot IP cooperation, Ossa's footsteps are slightly slow, but the team quickly realized the problem and is trying to make up for this shortcoming. Next, Osage will continue to invest resources in brand building.
Refocus the product
Looking back at 2014, when Ossa made a lot of promotional activities, the company began to stop focusing on products and customers, which prompted Zhou Yong and his team to start to reflect.
As a result, Zhou Yong made a bold decision: In 2015, all the Tmall promotions except the double 11 were suspended. He hopes to refocus the team's attention on the product. In his view, if the foundation is not well-funded, the promotion will not only help the brand to expand sales, but will cover up the problem.
This is undoubtedly an attempt to “bone the bonesâ€. Zhou Yong divides it into three parts: personnel adjustment, business contraction and improvement of the supply chain.
The first step is to adjust the overly bloated team. Ossa outsources non-core businesses such as logistics and customer service, and refocuses on core businesses such as supply chain, design, and R&D. As a supplement, Ossa also introduces a large number of outstanding talents of traditional brands. Whether it is internal staffing, management capabilities or external suppliers, they are approaching traditional brands.
Since the brand was founded, Zhou Yong’s wife Tan Fei has served as the design director of Ou Sha, but in this round of adjustment, she is no longer responsible for product design, but to observe the entire company’s business chain from a higher level. Zhou Yong believes that the inherent ideas of the founders may not be able to match the development of the brand. Osage needs to hand over the design to more professional talents.
He analyzed the reporter and said that the founders of "Amoy Brand" will be personally involved at first, but after the company's development and growth, the founders will transform from a general who is fighting at the front line to a marshal who will train the team in the background. If the founder fails to transform, the brand will die out. If it can be completed, it will become more talented.
Zhou Yong said that it is a great pleasure to be an e-commerce company and to communicate with peers. Han Du Yi She, Inman, Split, Seven Gege and Goreer have maintained close communication with Osage. The founder of the split, Gale, said in an interview that it is the teacher of Ou Sha’s Zhou Yong. The term “cash flow†transformed her from a designer to a business manager.
Now, Osage has reduced the number of teams from the peak of more than 600 to 200, and the sales volume is the same as three years ago. That is to say, the average output of each person has increased by two or three times. This proves from the side. The effectiveness of Osage in corporate internal control.
At the end of 2015, Liu Xing, the current chief operating officer, came to Osage, and in front of him was a team that had undergone a year of adjustment. He told reporters that due to deliberately delaying Tmall's business, Osage once fell out of 100 in Tmall women's clothing, but it has recently returned to around 35, indicating that the brand still has certain potential.
He believes that "stopping" is a wise decision for Osage, and it has kept profits and stocks. Although it has declined in Tmall, it is a must for all "Amoy brands". "We analyze A lot of Amoy brand sales and profit composition, bloated brands will encounter problems, but some brands have not felt it for a while."
Liu Xing said that Osage’s goal this year is to return to the top 10 of the Amoy brand. First, we must ensure that we survive in the fierce competition. We must grasp the big and let go, consider the brand in the development strategy, and finally fully satisfy the consumers. demand.
Extreme Supply Chain Program
Amoy clothing, Inman and cracking brands are all known for their style, in order to find their core user base. In contrast, Ossa, which grows in Shenzhen, is closer to the European and American style. The concentration of the chain.
With these women's brands with an average selling price between 1000-3000 yuan sharing the supply chain, through deep cooperation with the factory, Ossa reduces the cost by two to 30% on the basis of maintaining quality. In this context, Ossa can Design, quality and delivery are better than traditional brands. In Zhou Yong's view, Ossa's long-standing advantage is not low prices, but focus on R&D and quality control, and product quality is relatively stable. The competitiveness of the future Amoy brand is the product, and the biggest shortcoming is the supply chain.
As a result, a plan called “Extreme Supply Chain†emerged. In the past, supply chain optimization had an inherent thinking that speed, quality and cost were opposite each other, and Osage wanted to optimize supply chain from a system perspective. Standardization and front-end planning to achieve a simultaneous improvement of the three.
Xue Xiaosong, head of supply chain at Osra, admits that a good supply chain should be suitable for the operation of the company. Whether it is process or benefit distribution, it is necessary to match the participants in the chain. In the period of development, Osage's funds are relatively abundant, and some of the funds are deposited to prepare fabrics. Although there will be certain convenience advantages, it will generate a lot of inventory.
In 2015, Osage subcontracted the procurement of surface materials to the processing plant, which is to sink the management of this part of the process. After half a year, new problems have arisen: due to the uncontrollable procurement of surface accessories, the delivery time of the factory cannot be Control will create new risks for Osage.
“The ultimate supply chain†was launched for this purpose. Xue Xiaosong said that this project allows those parallel programs to be paralleled. Osage will move forward the process of preparing accessories and materials, and greatly reduce post-purchasing and procurement through planning on the design side. The time cost of monitoring, when planning, will consciously adjust and control inventory according to sales expectations.
On the production side, Osage hopes to achieve this effect: after the order is placed, the surface materials are immediately sent to the factory and started directly, so that the actual cost and quality control can be optimized. In addition, Osage will also optimize the surface accessories suppliers and processing plants to phase out non-compliant enterprises, thereby achieving a positive cycle.
In line with the “Ultimate Supply Chain†program, Ossa split the original design, merchandise, supply chain and other departments into small groups. The production time of one style was shortened from 40-50 days to 25-30 days, and the delivery time was shortened by 40. %-50%, Xue Xiaosong is expected to further shorten the delivery period to about 10 days. Behind this, instead of reducing the necessary processes, it is achieved by having the processes parallel.
In fact, in the early days, Osage learned the centralized management and control mode of the crack and achieved rapid scale. Later, Ossa hoped to adopt a more flexible model and began to adopt the group system of Handu Yishe. It is seven grids.
The health of the seven grids is highly respected in the European Union. Nowadays, Ossa has not fully recovered, and the students of that year have become the current teachers. However, this did not affect Zhou Yong’s mentality. “I feel that the clothing brand is a long-distance running.†He said to reporters that ranking is only a temporary honor, and focusing on good products is a long-term solution, in order to lead the Amoy brand to regain a new life.
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