The clothing brand Giordano has an e-commerce reputation. Compared with non-store direct-apparel e-commerce providers, Giordano adopted a model strategy of interacting with more than 700 stores in China, and interacted online and offline closely. In terms of cost, Giordano only has two staff in the IT department to do special maintenance. How can Giordano play with such a low investment for the transfer business? The integration of ERP, CRM and supply chain is the answer.
First, ERP integrated system optimizes inventory supply
At the end of 2003, Giordano's new e-commerce website was launched. Unlike the previous one, the new e-commerce website was seamlessly integrated with ERP at the back end. After the global ERP integration is completed, the senior management of the Group can see the sales of any store at any time. The inventory status of any warehouse and all business processes of the Group are more standardized and smooth on this unified IT platform. The benefits of integrating systems are obvious.
1. Share inventory and operate efficiently
Giordano’s online store does not own inventory, but shares the warehouse with the physical store channel. When the consumer orders online, the system notifies the warehouse of stocking. Compared to offline customers, local climate, promotion policies, and product-specific restrictions, all products can be purchased in online stores. For example, customers in Guangzhou saw Harbin's products on the Internet. The integrated ERP system will automatically notify Harbin stores to deliver to the Guangzhou customer.
2. Avoid out of stock
Small batches and many varieties are common strategies for clothing companies. However, this also makes it easier for the clothing company's e-commerce website to be out of stock. Giordano has nearly 1800 stores worldwide, and a huge sales network can make it quickly distribute goods around the world. Under a huge system, how to make online sales have a sufficient supply? The integrated ERP system will automatically calculate the inventory of a certain product. Only after a certain amount is reached, the online store will display this product as "in stock."
Second, sensitive reaction of CRM integration system
The integration of CRM makes the integration of e-commerce and offline channels even closer, and it can even achieve the functions that are difficult to be realized in some traditional shops, making Giordano respond to the market more sensitively. Giordano believes that "the value of data generated is greater than the sales of online stores."
1. Traffic import
When many traditional clothing brands launch e-commerce, there are two kinds of scruples: First, consumers think that online shopping is cheaper than offline; Second, if online shopping prices are lower than physical prices, it will definitely impact offline channels. Third, online shopping clothes can not solve the trial, touch and other experience, resulting in shopping concerns.
In the early days of the new online store promotion, Giordano used free express delivery to attract customers. In Giordano's online store, registered users receive free consumer points for discounted prices. Compared to offline channels, online stores offer price discounts of 2% to 5%, both to make up for missing customer experiences and to stimulate price-sensitive consumer groups.
2. Foster loyal customers
Giordano promoted the global VIP plan called "The World Without Strangers." In Giordano, customers spend a certain amount of money, upgrade to become VIP members, and enjoy discounts and accumulated points for each subsequent purchase. Its CRM plan is global, including any physical store and online store in the world. If customers fill out VIP information online, they can also get small gifts. These measures helped Giordano's online store dramatically increase its popularity. The gathering of VIP customers brought Giordano 60% to 70% of repeat customers.
3. Low-cost data collection to optimize the shopping experience
CRM uses the global unified CRM platform to share all the data of more than 2 million members, and to perform analysis and sales forecast for the relevant departments of Giordano. In addition, this system also assists Giordano to collect more accurate customer information, which also avoids the customer's patience to fill in customer data online.
Giordano generates daily reports that reflect customer reviews at each store. This is a new channel opened by the online store for customer relationship management. Users who are used to the online world are more willing to post comments in online stores, suggest improvements or consumer feelings.
4. Online data conclusions Auxiliary offline sales
Giordano had conducted RFID experiments in some stores, counting how many customers picked up clothes and walked into the fitting room, and ultimately did not buy. Unlike previous sales, which can only be considered, these data are valuable for future sales forecasts. Due to the high cost of RFID, it is difficult to promote it in large quantities. The online store can easily achieve the purpose of acquiring data at a low cost. The behavior of online shopping customers can be recorded by the system: including which products have been browsed, which pages have been visited, whether they have been compared with other products, and so on.
Giordano's IT department uses these online data to constantly adjust web pages so that online stores are more in line with the customer's shopping psychology. In addition, the sales department uses this data for analysis to find more helpful sales conclusions. According to his insider, "If a customer repeatedly looks at a piece of clothing on the Internet but doesn't buy it, it may be because he has no confidence in online shopping. We will tell the store's colleagues if the salesperson is positive for the customer looking at the dress. Some, the success rate of sales will be higher."
Third, supply chain integration
Giordano’s inventory for the entire group is 32 days. In June and December each year, Giordano needs to report inventory turnover and sales to shareholders. Because Giordano’s board of directors opposed the use of a large warehouse strategy, stores generally do not have a warehouse, but only store a small amount of goods in the staff's restroom. This requires that the turnover of goods is highly efficient. This has caused an examination of IT support.
On Giordano's IT platform, every link in the supply chain is interlocked. When a garment is designed well and the processing factory is selected, the factory can see the model of the garment from the system, and modify the pattern and quotation according to the actual pattern making. At this point, Giordano's global purchasing staff can place orders in the system, and every step of the factory's production will be entered into the system.
After the goods leave the factory, Giordano's headquarters can grasp the distribution of each item in every store in the world in real time. When the logistics center inventory falls below the safe value, the factory will automatically replenish.
Efficient supply chain system makes the online store distribution process more smooth. Giordano's online store's goods are shipped to the nearest customer according to their geographic location, which saves a lot of logistics costs. When the customer places an order online, the system will first find out where the inventory is. Generally, the system will first find the warehouse, then find the shop, find the physical distance, and then send the goods out according to the principle of proximity.
Because Giordano’s core business processes are all based on IT operations, changing the delivery model only requires modifying the program in the background and does not increase departmental operations.
The organization of news and collaboration technology enabled Giordano to achieve a series of business goals such as improving sales through e-commerce channels, promoting products to the market, improving resource utilization efficiency, and reducing operating expenses.
At the end of 2003, Giordano's new e-commerce website was launched. Unlike the previous one, the new e-commerce website was seamlessly integrated with ERP at the back end. After the global ERP integration is completed, the senior management of the Group can see the sales of any store at any time. The inventory status of any warehouse and all business processes of the Group are more standardized and smooth on this unified IT platform. The benefits of integrating systems are obvious.
1. Share inventory and operate efficiently
Giordano’s online store does not own inventory, but shares the warehouse with the physical store channel. When the consumer orders online, the system notifies the warehouse of stocking. Compared to offline customers, local climate, promotion policies, and product-specific restrictions, all products can be purchased in online stores. For example, customers in Guangzhou saw Harbin's products on the Internet. The integrated ERP system will automatically notify Harbin stores to deliver to the Guangzhou customer.
2. Avoid out of stock
Small batches and many varieties are common strategies for clothing companies. However, this also makes it easier for the clothing company's e-commerce website to be out of stock. Giordano has nearly 1800 stores worldwide, and a huge sales network can make it quickly distribute goods around the world. Under a huge system, how to make online sales have a sufficient supply? The integrated ERP system will automatically calculate the inventory of a certain product. Only after a certain amount is reached, the online store will display this product as "in stock."
Second, sensitive reaction of CRM integration system
The integration of CRM makes the integration of e-commerce and offline channels even closer, and it can even achieve the functions that are difficult to be realized in some traditional shops, making Giordano respond to the market more sensitively. Giordano believes that "the value of data generated is greater than the sales of online stores."
1. Traffic import
When many traditional clothing brands launch e-commerce, there are two kinds of scruples: First, consumers think that online shopping is cheaper than offline; Second, if online shopping prices are lower than physical prices, it will definitely impact offline channels. Third, online shopping clothes can not solve the trial, touch and other experience, resulting in shopping concerns.
In the early days of the new online store promotion, Giordano used free express delivery to attract customers. In Giordano's online store, registered users receive free consumer points for discounted prices. Compared to offline channels, online stores offer price discounts of 2% to 5%, both to make up for missing customer experiences and to stimulate price-sensitive consumer groups.
2. Foster loyal customers
Giordano promoted the global VIP plan called "The World Without Strangers." In Giordano, customers spend a certain amount of money, upgrade to become VIP members, and enjoy discounts and accumulated points for each subsequent purchase. Its CRM plan is global, including any physical store and online store in the world. If customers fill out VIP information online, they can also get small gifts. These measures helped Giordano's online store dramatically increase its popularity. The gathering of VIP customers brought Giordano 60% to 70% of repeat customers.
3. Low-cost data collection to optimize the shopping experience
CRM uses the global unified CRM platform to share all the data of more than 2 million members, and to perform analysis and sales forecast for the relevant departments of Giordano. In addition, this system also assists Giordano to collect more accurate customer information, which also avoids the customer's patience to fill in customer data online.
Giordano generates daily reports that reflect customer reviews at each store. This is a new channel opened by the online store for customer relationship management. Users who are used to the online world are more willing to post comments in online stores, suggest improvements or consumer feelings.
4. Online data conclusions Auxiliary offline sales
Giordano had conducted RFID experiments in some stores, counting how many customers picked up clothes and walked into the fitting room, and ultimately did not buy. Unlike previous sales, which can only be considered, these data are valuable for future sales forecasts. Due to the high cost of RFID, it is difficult to promote it in large quantities. The online store can easily achieve the purpose of acquiring data at a low cost. The behavior of online shopping customers can be recorded by the system: including which products have been browsed, which pages have been visited, whether they have been compared with other products, and so on.
Giordano's IT department uses these online data to constantly adjust web pages so that online stores are more in line with the customer's shopping psychology. In addition, the sales department uses this data for analysis to find more helpful sales conclusions. According to his insider, "If a customer repeatedly looks at a piece of clothing on the Internet but doesn't buy it, it may be because he has no confidence in online shopping. We will tell the store's colleagues if the salesperson is positive for the customer looking at the dress. Some, the success rate of sales will be higher."
Third, supply chain integration
Giordano’s inventory for the entire group is 32 days. In June and December each year, Giordano needs to report inventory turnover and sales to shareholders. Because Giordano’s board of directors opposed the use of a large warehouse strategy, stores generally do not have a warehouse, but only store a small amount of goods in the staff's restroom. This requires that the turnover of goods is highly efficient. This has caused an examination of IT support.
On Giordano's IT platform, every link in the supply chain is interlocked. When a garment is designed well and the processing factory is selected, the factory can see the model of the garment from the system, and modify the pattern and quotation according to the actual pattern making. At this point, Giordano's global purchasing staff can place orders in the system, and every step of the factory's production will be entered into the system.
After the goods leave the factory, Giordano's headquarters can grasp the distribution of each item in every store in the world in real time. When the logistics center inventory falls below the safe value, the factory will automatically replenish.
Efficient supply chain system makes the online store distribution process more smooth. Giordano's online store's goods are shipped to the nearest customer according to their geographic location, which saves a lot of logistics costs. When the customer places an order online, the system will first find out where the inventory is. Generally, the system will first find the warehouse, then find the shop, find the physical distance, and then send the goods out according to the principle of proximity.
Because Giordano’s core business processes are all based on IT operations, changing the delivery model only requires modifying the program in the background and does not increase departmental operations.
The organization of news and collaboration technology enabled Giordano to achieve a series of business goals such as improving sales through e-commerce channels, promoting products to the market, improving resource utilization efficiency, and reducing operating expenses.
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