Exclusive View] Left Hand New Retail, Right Hand Consumption Upgrade

If you want to buy a lingerie, what do you want for it? If you ask 70, 80 and 90, you will get a different answer.

Their answer is: the price is right, brand goods, wear comfortable, good-looking, sexy.

The change of underwear consumption is being guided by price.

Steering oriented rational sense of comfort, which directly led to the escalation of the underwear industry consumption.

According to statistics from market research firm Euromonitor, the size of China's underwear market will exceed 170 billion yuan in 2017, with an annual growth rate of 15%~20%.

As a personal product, it has recently gained the reputation of "gold medal industry". However, in recent years, many anti routine phenomena have broken out. Underwear brand, an Li Fang, lost 51% of its profits in 2016, and its profit in the first half of 2017 also declined; underwear brand city beauty 2016 profits decreased by 55%, and 2017 rebounded; underwear manufacturer Hongkong virgin Ni declined in 2017, and pre tax profits also dropped sharply for the first time.

In the past, the brand that was bombed by TV commercials, relying on the brand of product packaging, and after the homogenization of products, marketing and channels, the market was plunged into a disorderly price war, a large number of stores in the terminal market began to close, the price difference narrowed and the product itself was short of bright spots, consumers began to return to rational consumption, and the choice of body feeling experience was greater than the temptation of marketing.

Underwear War: innovation vacancy, homogenization serious

The conventional underwear is mainly made up of three categories: pure cotton, blended and modal. Although these three kinds of fabrics are widely used in the market, they have few disadvantages:

L cotton products, water temperature above 35 degrees washing shrinkage (national standard shrinkage rate of 9% in the qualified).

L blended products (such as nylon + modal + cotton) are easy to pilling.

L modal fabric will become larger and thinner after repeated washing.

Not long ago, the United States blocked the resurgence of China, behind which is the lack of research and development of China's communications infrastructure.

As one of the pillar industries of the textile industry, domestic enterprises also have to pay a large amount of royalties to patent holders every year.

Statistics show that in 2014, the patent application of textile industry accounted for only 1.74% of the total, which was far lower than that of communications, medicine and other industries. From the perspective of patent application data, it could not match the status of pillar industries.

This means that China's textile enterprises lack core intellectual property rights. Although there are complete industrial chains and numerous textile enterprises, OEM is the main factor. Technological development is mainly followed by imitation, and the ability of independent innovation is weak.

In recent years, with the rising price of raw materials in textile industry, low cost has been unable to become the competitive advantage of domestic enterprises. Many enterprises have fallen into the awkward situation of "selling more and losing more".

A lot of peers embrace the idea of "going faster than others", copying by imitation, homogenization of products in the terminal market, homogenization of stores and homogenization of store styles. The idea of shortsightedness and quick success and instant benefit directly blocks the enthusiasm of product innovation, which has led to the fact that the underwear industry has never been able to compete with international brands and products.

New opportunities for consumption upgrading

With the further acceleration of the urbanization process, the new technology change represented by the Internet is driving the pformation of China's economy to the digital economic era. With the rising of the emerging consumer groups, there is a deviation between the traditional product, marketing and brand adjustment and consumer demand, and the product value and emotional bond become the focus of attention of the new generation of consumers. The upgrading of consumption requires redefining products and redefining marketing.

After 1995, China was born with a population of 2.5 billion yuan, and after 95, the generation of consumption power can not be underestimated.

Compared with the millennial generation, after 95, they are called "Internet aborigines". The data of Witop consulting company's survey data show that the average monthly cost after 95 is 1314 yuan, which is close to the national average monthly income of 1830 yuan per capita in 2015.

This generation is rich and well educated in its growth, and its consumption concept and brand awareness are quite different from those of the previous generation.

The lingerie brand of the older generation can not attract the attention of 95 people. They are more capable of accepting new brands.

From the upstream perspective, with the upgrading of industrial structure and the decline of foreign trade orders, many factories have begun to look for new ways. Before they only received large orders, thousands of pieces or even hundreds of small orders were also willing to meet. This is a good opportunity for small batch quick response innovative brands.

From the perspective of underwear manufacturers, the marketing of underwear products in China is mainly based on celebrity endorsement and advertising bombing. Terminal products take price war as the main competitive means, resulting in the profit becoming thinner and the quality of products is poor.

At present, underwear manufacturers aiming at upgrading their consumption can be roughly divided into the following categories:

L private Customization: one person, one edition, volume volume + consultation + depth nursing service.

L special functions: body sculpting underwear, developing underwear, heating and keeping warm;

L niche: no steel rim underwear, no mold underwear.

L new fabric: volcanic polymer fabric, ultra-thin fabric;

L fashion: underwear wear

In the future, human beings are more free, more tolerant, feminine neutralized. Male skin care will become a neutral word with "beautiful guns" and "old fashions". The "leftover" and "leftover" women do not need to receive unusual attention. People will no longer feel embarrassed by spending beyond the old boundaries, but will regard themselves as a trend.

Whoever can seize this wave of consumption upgrading will become a new generation of underwear leader.

A piece of fabric or changing the industry

The position of DuPont Co in textile fabrics is close to the location of Qualcomm in the mobile phone chip. If DuPont Co stops cooperation with Chinese enterprises on fabrics, many domestic high-end garment enterprises will have no clothes to sell.

Lao Zhang, a textile technician, graduated from the textile engineering major of Jiangnan University in the early years, worked in various processes of textile and clothing, later worked in a professional brand planning company, and later founded the Jiuxi garment factory.

Clothing people generally pay attention to the style, craft and marketing innovation of clothing itself, while Lao Zhang begins to innovate from the front end of textile, trying to change the industry from the upstream of the industrial chain.

Because Lao Zhang knows that the real core competitiveness of clothing brand lies in whether there are new breakthroughs in textile materials, whether it has independent intellectual property rights, and whether it controls the source of the industrial chain.

In 2015, Lao Zhang and his team invested millions of yuan in the technological pformation of the equipment. After 3 years of painstaking research and development, a new volcanic rock polymer fiber material was born, and volcanic polymer knitted underwear fabrics were developed successfully.

It is light, thin and warm. When it is hot, it will completely say goodbye to the cold feeling on the traditional underwear. At the same time, it has both skin and humidity. It is a skin care product worn on the body.

The patented technology, by combining nano scale particles of volcanic rocks with organic plant carbonized materials, syntheses the structure of polymer chains, reconstructs fibers and reconstructs their functional properties to achieve the purpose of pforming fabric properties. Volcanic rocks contain large amounts of minerals and trace elements, and have a large number of micro pores, thus giving them no shrinkage (shrinkage rate of 1%), antistatic, unidirectional moisture conduction, antibacterial, odor removing and self heating.

This is another important application of volcanic rock in restaurants and cosmetics.

In the fabric material room, we randomly sampled 2 sets of underwear for testing the fast heat and unidirectional moisture pmission. The data are as follows:

You might as well imagine that in winter, in your underwear, you can take a short walk and open your cell phone to refresh the steps of your friend's circle. At this time, the sweat and sticky clothes on your body cause your body to be hot and dry.

If you are wearing underwear made of volcanic polymer fabric, moisture and heat can quickly pfer air contact layer from skin contact layer to rapid evaporation, so that you can enjoy the fun of sports.

This is the opportunity for fabrics to change the industry.

In 2016, Lao Zhang chose 100 consumers in the market to conduct warm and softness blind measurements, and received 100% satisfactory feedback, which changed the knowledge of chemical fiber products.

At present, many sportswear enterprises, underwear and children's clothing enterprises cooperate with volcanic polymer fabrics of Jiuxi.

In October 2017, two regions of Shandong and Sichuan tried to sell Jiuxi's own brand JMi musculo volcanic underwear, which was highly recognized by the first-line market.

Marketing upgrade: explosive + new retail

In the explosive strategy, we call the pain point rule, the burst point rule and the squeal rule as the explosive Golden Triangle rule.

A year's shipment of more than 200 million Apple mobile phones, queuing to buy Tesla cars, are representatives of explosives.

Back to the underwear industry, airtight, pilling, shrinking, and static electricity are all the pain points of consumption. It is possible to find the way to solve the pain points and create the possibility of explosive products. The explosion point is how to cater for the consumption changes and upgrade the consumption when the emerging consumer groups are rising. Screaming points are good consumer experience or cost-effective products, allowing users to get value for money, forming word-of-mouth, triggering mass communication and producing brand self flow.

The Nielsen consumer product market report describes the image of the current Chinese consumers: they are a group of extroverted consumers who want to share with others and hope to be recognized and appreciated by others. They are fond of some brands and focus on the quality and taste of brands. They are more willing to try various kinds of purchasing channels.

Such a group is being upgraded in an all-round way, and this force will stimulate the upgrading of China's consumer market.

The high underwear of Myer volcanic rock has made a simple and easy use of "1234 terminal selling mode of new retail mode" for the terminal retailers all over the world.

1 refers to an explosive product, that is, JMi Muscule volcanic rock polymer underwear, which is an excellent single product; 2 refers to 2 stores, one of which is 1 square meters solid store smart shelf, for offline product experience and retail, a virtual cloud shop for online sales and fans sharing, the whole network is the same price, hit the offline offline different consumption scenarios; 3 refers to each shop to cultivate 30 gold medal pushers, through fans sharing communication, marketing fission, accurately cover the user relationship chain; 4 points from products, inventory, supply sources and new retail training four aspects of all-round landing guarantee, form a terminal sales chain closed loop.

The upgrading of consumption is the upgrading of consumption concept, from price driving to value driven, and by users.

It is better than advertising and packaging; consumption upgrading is the upgrading of consumption scenarios, from shop operators, electricity suppliers to offline integration of new retail lines, good marketing should open up different scenes of consumption; consumption upgrading is the upgrading of consumer groups, from satisfying a group of people to satisfying another group.