China's MI Technology has created a business legend within four years, capital market assessment of 10 billion dollars. If the same gene can be copied to online clothing? How does ROMWE put the business essence of phone industry into clothing indus
If China is the world's biggest surprise of 21st century, then the biggest surprise of 2013-2014 year in capital world should be the Internet enterprise called Beijing Xiaomi Science & Technology Co., Ltd. which is dedicated to mobile communication terminals and software development. Established in April 2010, the capital market valuation of Xiaomi Technology has reached 10 billion U.S. dollars in early 2014 during only 4 years. At the same year, Xiaomi announced to march into overseas markets, and Lei Jun, the founder of Xiaomi, started to make the 50 billion dollars bets. The nature of Xiaomi business model is recognized that paying 1/3 price of IPHONE to get a mobile phone of the same quality and living for crazy & establishing high viscosity fan base. Even in the whole world, it should also be recognized as a business miracle. David S. Landes, a professor of history and economics in Harvard University has said that "success lead to emulate, gave birth to a sense of power, in the long term, this sense of power can almost make people ascend to the height of the god " in his book The Wealth and Poverty of Nations.
Thus, also in China, a new online clothing company ROMWE which stays in the same period with Xiaomi claimed that paying tribute to the Xiaomi model, but our question is whether the same business model can be successfully replicated to the fashion industry.
The development history of mobile phone is 20 years since Motorola pushed out it, which has quickly occupied people's life-style, and it has updated significantly three times in 30 technology. Apple has launched six generations of IPHONE during 6 years since 2007. These products swept the globe. Compared to mobile communications industry, fashion industry showed a slow performance. Tthe history of fashion industry has been across the a century since Ms. Chanel promoted garment of fashion industry in the 1920s, but the updated speed of technology and business model is later than them in the 20 years' development of mobile phone. Even ZARA, which is the founder of a new innovation modal of clothing named HIGH STREET, is the most mainstream recently and now. Its establishment date also could trace back to 1976. Time steps into 2014, while ZARA is now globalized, can we start looking forward to the next change and inject a stimulant to our wardrobe and consumer?
Although mobile phone and clothing are two distinct products, we return to the business itself ------- seize the core points of consumer demand, Xiaomi allows customers to buy products the same with IPHONE (sensory) with a third of the price, ZARA allows customers to buy products the same with first-line brands (sensory) with one fifth of the price, lower the threshold, make a better product to be accepted by more public people, that is, the price of customers getting better product is lower, It needs 3000 dollars to buy a mobile phone in 1990, but IPHONE5S who's performance ratio improved 100 times just needs 800 dollars in 2014, in a similar way, before ZARA, the girls who want to wear high-end atmospheric grade clothes must go to DIOR stores, but now, see from a distance or at first glance, ZARA can mix and match with any first-line brands, because the quality of product design is the same, the difference is fabric detail not spirit.
ROMWE's approach is to find a highly attractive product through the way of crawling fashion element, mainstream fashion items, such as cross-belt swimsuit that we see 20-year-old hot chicks wearing on beach in California (it can not be cheap goods that HM sells(it couldn't be the cheap style that HM played.)), then to maximize sales with cost price, to allow most girls to buy the best products, affordable prices have been Chinese people's strengths, it may not be able to make products really make a real picky girl beckoning, I believe it is the key point of the success of Xiaomi business model, Can ROMWE achieve it? How about making a try to visit Romwe.com to get answers every Thursday?