Break through the digital transformation, let Tebu grow 24.8% year on year


Break through the digital transformation, let Tebu grow 24.8% year on year

Reading guideMany years ago, the media asked Ding Shuibo: “for you personally, what is the most painful part in the process of transformation?”“ The key is the change of market consciousness. Hearing is false and seeing is true. Only when they are seen by the outside world can they understand and accept it. A lot of things have to be done successfully to convince others, but the time period will be longer. ” Ding Shuibo responded like this.

In recent years, Tebu has been increasing its weight in the field of sports shoes segmentation. In 2019, the company successively acquired the relevant operation rights of soconne, Milo, gestway and paladin, forming a brand matrix covering the three major market segments of mass sports, professional sports and fashion sports, breaking the single brand pattern in the past. But a series of acquisitions also increased Tebu’s goodwill to 830 million yuan.

At the same time, Tebu’s business is constantly changing.

This year, the retail industry has been greatly impacted by the epidemic, but also forced the rapid improvement of Tebu’s new marketing business. Since the outbreak of the epidemic, the digital transformation has been fully accelerated, and brand clothing enterprises have rushed to the new retail mode of online and offline channel integration. In this important trend, Tebu is no exception. This year, Tebu’s e-commerce business continued to reform and strengthen the new marketing matrix by adjusting the internal product structure, precision marketing promotion, and layout of live broadcasting business. Relevant data show that in 618 activities, the total turnover of Tebu’s main brands through all channels exceeded 250 million yuan, ranking third among domestic brands; Tebu children’s new products grow at a high speed, and the growth rate of the whole network reaches 77%. Shanhai series, cat and mouse series, Jisu series are favored by consumers. In this way, Tebu completely broke the circle. The business growth and development of all these are due to the third strategic upgrade of Tebu.

Established in 2001, Tebu, one of the leading sporting goods enterprises in China, has 6230 stores. From the clothing industry, the vast majority of retail enterprises are doing wholesale. In this mode, the brand and consumers are separated and isolated.

  • On the one hand, the brand can not quickly put new products to the market, to the hands of consumers;
  • On the other hand, they can’t understand the consumer’s evaluation of the product and their needs.

This eventually led to the entire apparel industry into inventory crisis.

Since 2013, Tebu’s revenue has declined significantly, and thousands of offline stores have been closed. Faced with the disadvantages of the traditional model and the pressure from international fast fashion brands, Ding Shuibo, chairman and CEO of Tebu, put forward a three-year transformation strategy in 2015.

While returning to sports and focusing on running, we should change wholesale mode to retail mode. In 2016, XTEP launched the third strategic upgrading of the group, and set up the strategic goal of “3+” (Internet plus, sports + product +), taking the consumer experience as the core, and actively embraced new technologies such as cloud computing and big data, to achieve business lead and technological innovation, and to support the steady progress of strategic change. In this process, Tebu found that in order to do retail, we have to reorganize the original business process based on wholesale, split or integrate departments, and business departments have to constantly try new business opportunities. But when we do this, we find that the original it system can’t support it at all, and it will only delay us. Driven by the group’s strategy, Alibaba cloud middleware team was invited to conduct in-depth research on it informatization of Tebu, and explore some challenges that hinder the implementation of Tebu’s strategy

  • Business suite can not meet the diversified development requirements of Tebu business, such as the related business process and organizational adjustment involved in multi brand split and reorganization. For Tebu, the traditional application systems are tightly coupled, and the separation and reorganization of business means that the relevant systems must be re deployed;
  • The burden of it history is serious, and there are many internal chimney systems. Through research, Alibaba cloud found that there are as many as 63 sets of Tebu chimney systems, and there are more than 30 IT suppliers alone. In the face of different links and scenarios involved in online and offline business integration, such as sales, logistics, production, procurement, order meeting, design, etc., in order to achieve Omni channel integration, it is necessary to get through all dozens of systems;
  • The problem of high inventory and high out of stock has always been the knot of the clothing industry, and Tebu is also troubled by these problems. Due to the fragmentation of the system, the data cannot be online in real time, and is limited by the concurrency limitation of the traditional single SQL Server database. The data of more than 6000 stores can only be sent back to the headquarters in T + 1 mode, which directly affects the efficient collaborative turnover of inventory;
  • The waste of it construction cost is quite serious. The traditional business suite brings the disadvantages of “chimney” system, which leads to many functions repeated construction, repeated data model and unnecessary repeated maintenance.

On the one hand, the business department has to constantly seek development opportunities; on the other hand, the IT department is struggling, but still unable to keep up with business changes.

Because this Omni channel project is of great significance to Tebu, it shoulders the heavy responsibility of Tebu from wholesale mode to retail mode. Therefore, according to the strategic needs of Tebu business transformation, Alibaba cloud has tailored an omni channel business middle platform solution based on the cloud native architecture, which combines, standardizes and shares the common functions of different channels in the cloud, and derives the globally shared commodity center, channel center, inventory center, order center, marketing center, user center and settlement center.

No matter which business line, channel or new product is born or adjusted, it organizations can respond quickly based on the existing modules of shared service center according to business needs, breaking the inefficient “chimney” application construction mode. Following the principle of Internet architecture, the omni channel business center plans the online and offline loosely coupled cloud platform architecture, which not only completely gets rid of the stubborn disease of traditional it delaying business, but also flexibly supports rapid business innovation, integrates Omni channel data into the shared service center platform, and lays a good product and data foundation for data-based decision-making, precision marketing, and unified user experience, Let XTEP really embark on the “Internet plus” fast lane.

In January 2017, Tebu and Alibaba cloud launched the construction of Omni channel middle platform. It took six months to complete the delivery deployment including demand research, middle platform design, R & D implementation, test verification, etc. after four months, all 42 branches and 6000 + stores in China were successfully launched.

Master plan of Tebu Omni channel business

Break through the digital transformation, let Tebu grow 24.8% year on year

Technical architecture diagram based on cloud native middleware:

Break through the digital transformation, let Tebu grow 24.8% year on year

Some of the key nodes are worth learning

Application side

The new technology architecture fully carries the relevant applications for different business departments, including store POS, e-commerce OMS, distributor management supply, marketing and inventory DRP, and member customer management CRM. In addition, there will be some intelligent analysis applications in Omni channel management, such as inventory balance, and some configuration management of Omni channel can be simplified through Omni channel operation platform. All the common business capabilities of enterprises, such as commodities and orders, can directly call the capabilities of the sharing center to make the application “lighter”.

Sharing Center

Omni channel management involves business scenarios such as commodity categories, order sourcing, shared inventory and settlement rules, as well as member information and marketing activities related to Omni channel. These common business capabilities are all deposited in the sharing center, and output real-time / online / unified / multiplexing capabilities to different business departments. Directly integrate and precipitate all the orders / products / members and other information of Tebu, and fundamentally eliminate the data island.

Technical layer: in order to meet the requirements of elasticity, high availability and high performance, through kubernetes / EDAs / MQ / arms / PTS and other cloud native middleware products, the core transaction link concurrency of Tebu can support 10W / TPS and support wireless expansion to improve concurrency. With Alibaba’s technology platform, which has been tested by double 11 for many years, the stability and efficiency are guaranteed by high standards, so that developers can focus more on the implementation of business logic and have no worries. Infrastructure: IAAs layer resources such as computing, storage and network.

Background system

Customer internal background system, such as SAP, production system, HR / OA, etc.

Omni channel business has brought obvious changes to the upgrading of Tebu’s core strategy, and gradually realized it driven business innovation. After the transformation of the middle platform, the POS system is upgraded from offline to online. The core business of POS system, including cashier, inventory, member and marketing, is all provided by the business center. The weak management and control is transformed into the strong management and control of the group. The connection between the group and consumers is really established, which lays a solid foundation for the fine management of consumers.

The emergence of the middle platform realizes the global inventory sharing of the front-end channel, and the inventory business is processed by the inventory center in real time. With the help of global inventory visualization, the transaction order status information can be transferred in real time through all channels, and the headquarters can directly guide the sales of offline stores according to the real-time operation data, so as to realize the rapid cross store commodity provocation. After the launch of Zhongtai, the sold out rate increased by 8%, the out of stock rate decreased by 12%, and the turnover rate increased by 20%, enabling the first-line business.

Business innovation is driven by it informatization. Similar functions of different channels are merged and shared in the cloud through the sharing service center, which breaks the inefficient “chimney” application construction mode, absorbs the Internet DDD domain driven design principles, and designs the online and offline loosely coupled cloud platform architecture. It not only completely gets rid of the stubborn disease of traditional it delaying business, but also flexibly supports rapid business innovation. Omni channel data integration in the shared service center platform, precipitation and create a special step of the core data assets, cultivate the enterprise’s most scarce “proficient in business, understand technology” innovative talents, make it play a core role in business innovation and market competition.

2018 is a proud year for Tebu.

In that year, the company achieved a revenue of 6.38 billion yuan, a year-on-year increase of 25%, a record high since the listing. The annual net profit growth rate was as high as 61%, and the three-year transformation effect is beginning to show. Behind this transformation, besides sports + product + transformation, there is also the Internet plus digital transformation. The “Tebu Omni channel retail platform” built by Tebu’s technical team in cooperation with Alibaba cloud has been officially launched for three years, paving the way for the outbreak of the market. By the beginning of 2019, the recognition of business departments to it departments has continued to rise. At present, almost all Omni channel business support systems have been built independently, and 80% of front-end applications have been running on the middle platform, truly realizing technology driven enterprise business innovation.

Combined with powerful cloud intelligence technology, diverse industry practices, and huge ecological partners, Alibaba cloud has become the largest cloud in the new retail market, helping enterprises promote their own retail transformation through cloud. With the popularity of cloud computing and the wide application of cloud nativity, more and more practitioners and decision makers clearly realize that “cloud Nativity will become the key element of enterprise technological innovation, and also the shortest path to complete enterprise digital transformation”.

Therefore, Internet enterprises with forward-looking thinking have been rooted in the cloud since the birth of their applications. Cautious and stable enterprises and institutions in new retail, government, finance, medical and other fields have gradually moved their business applications to the cloud, and deeply used cloud native technology and cloud native architecture. In the face of different business scenarios, such as architecture design, development mode, deployment and operation and maintenance, applications based on cloud native architecture usually carry out technology life cycle design according to the technical characteristics of cloud, and make the best use of the product advantages of cloud platform, such as flexibility, distributed, self-service, on-demand, etc.

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