Recently, Mr. Jin Ming, founder, CEO and chairman of the board of directors of Winner Fashion, was a guest on Gelonghui's high-end interview “Dr. Glenn Living Room” interview section.

As a leading company in China's high-end fashion women's clothing industry, Winner Fashion owns eight independent brands. The company currently has an annual retail sales volume of about 9 billion dollars, and the current Hong Kong stock market value has exceeded HK$10 billion.

In the interview, regarding the company's operations and thinking about the industry, Jin Ming said,There are many brands that have been leading the industry for three or five years. The reason behind why they are changing so fast is that they have not really enjoyed the mystery of fashion. Fashion is a rotation; transformation is a challenge.

The market prospects of the industry are unquestionable.The key is how to be strong. He pointed out,One billion women's clothing brands are no longer the target, and the fashion industry hasn't had a magic effect in 20 years.

The essence behind the 20-year spell is actually a misunderstanding of the brand, the wrong way to build the product, and not to settle down the true value of the product.

The key is how to be strong

Jin Ming said that since entering the industry in 1999, he has been learning what fashion is. Although I'm constantly learning and updating my knowledge, I always feel like I can't get in.

Regarding these inner problems, Jin Ming said that he will lower the expected threshold and make mental adjustments; if you don't understand something, then don't worry and let go.

When e-commerce was on the rise in 2015, some peers developed very fast and basically did it all in. Some colleagues also ask, do you want to keep up? However, he believes that what he can see will soon follow, but he will think about what he cannot see.

He said that from 2015 to 2020, he spoke at the company's strategy seminar at that time,He still sticks to offline. He's not giving up online, but he won't put in too many resources.

Looking back now, he thinks he was right at the time. He was all online at the time, and the overall results are not good now. Judging from the results, high-end consumption in particular is still mainly offline.

Today, shopping malls have blossomed everywhere, and the number of shopping malls far exceeds that of department stores, but in some categories, department stores are still the main ones.

So now Winner Fashion's data shows that close to 60% of the yearly revenue is still brought in by high-end department stores, then 20% from shopping malls and 20% from Olle. This makes up about 90% of the total, and another 10% is online. However, even if it's 10% online, this category can still rank in the top two on Vipshop.

It is true that there are still quite a few brands that have been leading the industry for three or five years. The reason behind the rapid pace of change is that people actually don't really appreciate the mystery of fashion, and they don't understand how real brands work.

The domestic market now values the commercial volume of a brand. Without size, it is difficult to gain influence, while luxury goods do a good job in this area; they have both influence and this size.

The fashion industry belongs to clothing, food, lodging, and travel. It is a big industry, and its market prospects are unquestionable.The key is how to be strong.

The core needs of consumers - to be “big names”

Talking about the core competitiveness of fashion companies, Jin Ming said that there is actually no fixed model for business operations; this has something to do with positioning.

In the case of Uniqlo, because it is a cost-effective brand, high cost performance must be Uniqlo's core competitiveness. For high-ratio brands, then cost performance is only part of their competitiveness.

He divided commodity power into three:Surface commercial power, middle level commercial power, and core commodity power.

For customers and consumers, this kind of brand with a high unit price, high quality, and high price is definitely not its core product strength. Jin Ming said that he had always been troubled in the past; what exactly is his core commercial strength?

He recalled that when he went to the previous corporate training course in 2004, the teacher said that the reason for the success of an enterprise is that your products or services bring value to consumers.

The teacher divided this value into four levels:Economy, convenience, quality, and high sensitivity.

“He talks about economy, convenience, and quality, all of which are easy to understand, but it's always difficult for me to understand that it's highly sensitive. Because he's combined with my other problem — what exactly is fashion. It wasn't until I targeted luxury goods, that I was suddenly very cheerful.”

Jin Ming believes thatThe core demand of consumers for products is that they want our products to be “big brands.”

“This “big name” is not only a wearing experience, but also includes the overall image of this brand for consumers. Can we take advantage of their consumer mentality like well-known brands? He saw my logo, saw the store, and saw one of our promotional videos.From the inside out, he can truly feel that he is enjoying a big-name product and service. For high-ratio brands, this is our core product strength.”

“Level 1 billion is no longer a goal”

Winner Fashion has three super womenswear brands that have surpassed 1 billion dollars — Coletil, Nars, and Necco. In terms of business models, this is a miracle.

“We often call business managementThree M's: MD, MK, and MG. MK is marketing, MD is product creation, and MG combines MD and MK, called enterprise management.”

Jin Ming said that MG and MK were the companies that previously thought their strengths were MG and MK, and the winners were companies that moved closer to direct management of the brand earlier.

This allows it to respond more quickly to the market and is also more able to hold on. When there are certain fluctuations in the market, dealers may quickly quit or stop. However, direct management has goals, and its driving power and execution will be stronger, so MG, which is the winner behind MD and MK, also did a good job earlier.

Jin Ming said that the company has an internal pricing mechanism, and each department's contribution is relatively visible, measurable, and quantifiable. At the same time, he also learned something very important from Huawei,We must get rich and get together, and we must learn to divide money.

Regarding whether it is possible to replicate another 1 billion brand, Jin Ming said, 1100 million women's clothing brands are no longer a target.The happiest thing now is to recognize that even with a major brand like Coletil, it still has a lot of room to grow.

So, what is the goal set for Coletil nowFirst, we need to overcome the 5 billion hurdle, then we should move towards 10 billion.

The important reason behind this is that he suddenly realized that his brand's products weren't good enough.

Two aspects are not good enough: one is that the brand's products do not leave a deep enough impression on consumers; the second, the product structure is unreasonable.

As an example, Jin Ming said that the company applied high-end materials such as silk, wool, and cashmere to dresses very limited. What's the reason behind it? Because it is a high-ratio brand itself, once you use good materials, the price of this garment is skyrocketing.

So why are consumers buying you? How much do luxury goods cost? Your brand isn't as good as the big names, and the stuff is still that expensive.

“So I realized that our products aren't really good enough; our price-quality ratio is too low; we use too few good materials; all of these are things we need to adjust. Once we have these things in place, our market space is actually huge.”

There is no magic effect for 20 years

Regarding the 20-year magic effect on brands in the fashion industry, Jin Ming said that the market has not only failed cases such as ESPRIT and Meibang, but also successful cases of brands such as Zara, Uniqlo, and LV. To learn from successful brands, look at successful brands,There is no such thing as a 20-year spell.

The essence behind the 20-year spell is actually a misunderstanding of the brand, the wrong way to build the product, and not to settle down the true value of the product.

Fashion is simply understood as a change, but in reality, this change is a change in the same way; it is a change that it sticks to.

There is often a saying in the industry,Fashion rotates.

The past two years have rotated between Quiet Luxury (Quiet Luxury) and Maillard. This was actually popular more than ten or twenty years ago.

If you look back at Chanel 20 years ago, you'll see that since Lagerfield presided over Chanel in '83, the main theme of Chanel hasn't changed in 20 years, but it will keep up with fashion trends. Chanel changes when trends come, but the premise of this change is that its underlying foundation is unshakable, and its core influence on consumers of the brand has not changed.

The biggest differences between big brands and general brands are:Something new settles at the same time as it embraces it, and then its foundation is strengthened again.

Of course, its foundation is not immutable; its foundation is still being strengthened. This is where big brands are the most powerful.

As an example, Jin Ming also said that when it comes to popular colors every year, people basically make very few mistakes in judgment. But the hardest question is how to combine popular colors with brands.

This transformation is the challenge.By combining popular colors with auxiliary products, a brand can not only gain popularity, but also sell its main products.

In Jin Ming's view, high-ratio and low-ratio brands are just what kind of market you choose.

Is it possible to try a positioning direction similar to Zara and Uniqlo in the future? Jin Ming said no.

There are two reasons: First, the company has a high-end product DNA, and its team can't accept low quality stuff. Second, low-ratio brands have a very strong ability to control the market supply chain. Jin Ming believes that doing this market will do more with less, so he is more inclined to become a high-priced market.

Jin Ming said,The future of the company is moving in the direction of light luxury.He said that when most companies choose to downgrade consumption and downgrade products, this actually means that this is a Red Sea market, and it will expand even more. Instead, everyone is ignoring high-end consumption, so here is another opportunity.