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As early as decades ago, China’s manufacturing has become world-renowned. Although most of the countless factories at that time went abroad by virtue of cost advantages, in the global economic development for many years, China was known as the powerful supply chain system behind the “world factory” Gradually build and shape, and lay the groundwork for new consumption upgrades.
Thanks to the strong domestic supply chain system, in each industry belt, brands can quickly build a one-stop service from raw materials to products, which greatly reduces the threshold for the creation of new brands and indirectly promotes today’s new consumer industry. A hundred flowers blossom.
A diverse and mature supply chain system has become one of the important tools for the industry to measure competitiveness, and it has even been regarded as a “core asset” by some industry observers. It is worth noting that the “factories” in the supply chain of these industrial belts are no longer the “dirty, messy” in people’s inherent impression. Many of them master cutting-edge craftsmanship and exclusive technology. The more high-end brands, the more they leave. Without them, the leading factories can even reversely promote product upgrades and iterations on the brand side.
The leading factories have first-class product manufacturing capabilities, but the traditional product circulation efficiency is not high. From the factory to the end user, there are still a large number of intermediate links that can be optimized and reduced. In recent years, major e-commerce platforms have successively promoted the industrial belt direct hair and C2M/F2C model, which is a beneficial attempt.
On the other hand, in recent years, the media communication environment and public catalyst habits have undergone earth-shaking changes. Especially after 2018, Douyin has rapidly exploded and grown into a national-level platform. Short videos have become an indispensable information form in public life. The path of dissemination and product sales has now been transformed by short video mode and live broadcast mode.
In fact, Douyin e-commerce is indeed rapidly exploring the F2C model based on short video/live broadcast. At present, Douyin e-commerce has officially launched the “Ace Factory” project, uniting with many leading factories in the apparel industry to jointly incubate the “Chinese Quality” project. “Building” the brand, while providing users with high-quality sources and good things, it also promotes these leading factories to realize the branding from 0 to 1, so as to realize the brand transformation of China’s supply chain.
Hidden leading factory
As consumers, the relationship between us and leading factories is closer than expected, and we have used the products produced by these factories more or less in our daily lives.
Behind a large number of well-known brands, the cooperation and support of leading factories are indispensable. This is very obvious in the clothing and textile industry. Many luxury brands involving luggage products have the figure of the times behind them; the main leather shoes products are well-known International brands are also indispensable for the support of Hengyu Footwear; behind the high-end brand apparel, Dishang Group has become a quality assurance…
Most of these garment factories originated and concentrated in the Pearl River Delta and the Yangtze River Delta. After decades of continuous development, they have gradually grown from a small processing factory to an industry giant. Since the processing and manufacturing industry is a heavy asset investment, the barriers to entry are high, the scale effect is obvious, and the industry concentration on the factory side is also high. Therefore, the products of the tit-for-tat brands in the terminal market may all come from the same leading factory. . At the same time, leading factories have absolute advantages in the upstream of the industrial chain, and changes in their production capacity and technology can even directly affect the performance of terminal brands.
Most people’s misunderstandings about factories still remain in the purely labor-intensive industries, at the bottom of the famous “smile curve”. But in fact, while growing together with the brand over the years, the leading factory has gradually built its own core technical capabilities, and can even achieve technical output and reverse assistance for the brand.
The clothing and textile industry is a typical example. Since the clothing and textile industry is a slow technology cycle industry, a large number of innovations and breakthroughs are concentrated in the production process, fabrics and other levels. The continuous breakthroughs in the production process standards of leading factories can help in the opposite direction. The brand enhances the competitive advantage of the product, and even eventually becomes the product standard and characteristic of the brand.
For example, Time Leather took the lead in realizing the industry-leading process of 1 inch 7 stitches in leather processing. This standard has now become the product standard of a large number of luxury brands. It can be said that Time Leather is pushing the product iteration of luxury brands in the reverse direction. Similarly, Hengyu Footwear has helped domestic well-known brand groups develop and build a large number of operating systems to promote the implementation of their standardized systems.
From this point of view, the leading factory is actually on the left side of the “smile curve”. In addition to scale, its product technology and technical capabilities have become core advantages, and have sufficient influence on the entire industry chain, which is the strength behind the terminal brand. Players.
Solving the problem of factory branding
From the perspective of the future development of the industry, factories directly meeting consumer needs will become the general trend under the optimization of industrial efficiency. In fact, this industry chain branding and flexible work is also more suitable for promotion from the upstream ace factory side. For ordinary terminals As far as the brand is concerned, the management radius from raw materials to the sales end is too long, and it is unbearable to get it through.
In the long run, leading factories will face two major challenges: the first is how to deal with the future alternative competition of low-cost supply chains in Southeast Asia, and the second is how to build their own brands. This seems to be a problem for the factory, but in fact it is also a big proposition under the background of the transition from “Made in China” to “Made in China” and “Made in China”.
Facing the rise of Southeast Asia and other manufacturing industries, leading factories still have technical advantages and process advantages to achieve cross-dimensional competition. Therefore, more challenges lie in brand transformation. Most of these leading factories were established dozens of years ago, but it is no longer the time when products were in short supply when “wine fragrance is not afraid of deep alleys”. Therefore, traditional business thinking and manufacturing 2B operation experience often fail to help factories achieve brand transformation. , It is more difficult to form a rapid feedback loop between consumers and product development, and there is greater resistance to the promotion of flexible supply chains.
Traditional offline channels, such as order fairs, investment promotion meetings, and agent recruitment, have long links and high costs. However, the popularity of emerging media and content forms represented by short videos has given factories a rare branding opportunity. In addition to the quick and accurate connection between merchants and users online, product advantages can be displayed more intuitively and truthfully through short videos and live broadcasts. This also means that the entire product sales link is being “de-packaged” without the need Relying on the e-commerce selling method of traditional graphic detail pages, but letting good products speak for themselves, it greatly reduces the merchant’s marketing threshold and traffic operation threshold, so that factory merchants and brand merchants are on the same starting line, and everything is based on product quality. weight.
The “Ace Factory” project of Douyin e-commerce is based on this insight. Through various support programs based on short videos/live broadcasts, it helps the Ace factories to transform their brands, bring high-quality goods to consumers, and form an increase in consumption. . It is worth noting that Douyin e-commerce has strict invitation access standards for ace factories. At present, only ace factories that have the top market and have real product manufacturing advantages can be invited to participate. In addition to B2C interest e-commerce, Ace Factory can also expand B2B online sales growth through the Douyin e-commerce platform, which not only opens up the branding channel of Ace Factory, but also opens up diversified growth channels for Ace Factory.
Exploring the road of “Clothing Intelligent Manufacturing”
The combination of short video and live broadcast methods and e-commerce can reorganize business logic more efficiently and promote new development of the industry. The collective access of the ace factories in Douyin e-commerce can form a win-win situation for multiple parties. Users get high-quality goods, apparel manufacturing factories realize brand transformation and diversified growth channels.
Douyin e-commerce has a large number of user interest tags and a rich ecology of talents, which can efficiently match between “people and goods”. At present, Douyin e-commerce has introduced about 200 ace factories in the apparel, footwear and bag industry to participate in the project, including Shandong Dishang, the leading apparel manufacturing company in China, and Times Luggage, one of the world’s largest luggage manufacturers. The leader, through the docking of B-side supply and demand merchants, Douyin e-commerce can also realize the construction of the B-side two-way supply and demand platform field.
According to the Douyin e-commerce company, the platform will use six point-to-point support measures such as self-broadcasting plan, master broadcast, front-end identification, traffic support, one-to-one operation, and marketing activities to help the ace factories to achieve from 0 to 1. , Brand building from 1 to 100. In the coming year, the “Ace Factory” project will introduce big-name manufacturers and help multi-dimensional growth as the goal, such as improving the operating capacity of brand official stores, accelerating the growth rate and scale of GMV, and creating millions of single products and tens of millions of single products, etc. Finally, it helps manufacturers to achieve brand promotion and incubate their own brands.
Before the official launch of the “Ace Factory” project, Douyin e-commerce has already achieved certain results in helping manufacturing factories and manufacturers. In terms of self-broadcasting and delivery of goods, Guo Changqi, chairman of the clothing manufacturer Xiahu Family, said that only 6 Within a month, the total GMV of the brand’s official Douyin live broadcast room has exceeded 100 million, achieving a leap of nearly 80 times, and the number of fans has also increased from 200,000 to 2.5 million, achieving an exponential increase.
In terms of delivery of goods on behalf of the Internet, according to Douyin e-commerce, a leading silk manufacturer in the industry has achieved a sales of 6 million in a single field of goods through a master’s proxy, opening up new growth channels, greatly exceeding The company expects that the company is now determined to start the operation of the Douyin e-commerce platform. Based on the current development speed, the online sales of the Douyin e-commerce platform in a year from the ace factory will most likely surpass the offline sales of the current factory. The sum of the amount.
In addition to the “6 help”, the Douyin e-commerce “Ace Factory” project will also regularly organize offline activities, inviting the Douyin e-commerce e-commerce learning center to conduct training and lectures, cultivate self-broadcasting of businesses, and produce short videos of popular styles, etc. Platform operation capabilities, and through exchange meetings, product selection meetings, etc., build a supply-demand docking and communication platform between merchants and merchants and between merchants and talents.
In just a few years, short videos have changed the lifestyles of mass entertainment and information reception. Now they are also gradually changing the business operation methods of major industrial belts, transforming from “Made in China” to “Made in China” and “Made in China”. In the context of the “Ace Factory” project, Douyin e-commerce is exploring a new model for the upgrading and transformation of the apparel industry’s supply chain and the growth of independent brands. Or, in the coming years, we will find that Douyin e-commerce has become the “new starting point” for the branding transformation of the apparel industry’s supply chain.