Distribution social e-commerce generation trend, the rising unicorn in the inventory Market

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 Distribution social e-commerce generation trend, the rising unicorn in the inventory Market


In September 2017, Wang Min and his wife calmly took de-inventory as the core concept, and launched the distribution model of social e-commerce platform Love Inventory. Up to now, Ai Inventory has developed nearly one million distributors and 5,000 cooperative brands, becoming a black horse in the field of social e-commerce. In just two years, how has AI Inventory achieved blowout development? What is the business model and logic behind it? In 2019, what new layout will Love Inventory open? With these questions in mind, we interviewed the co-founder of Ivy Inventory Calmly.

From off-line, on-line inventory clearing platform

Before the establishment of AI Inventory, calm is a practitioner who has worked in the electronics industry for many years. In the process of working, clothing brands often find calm, hoping to help them clear the inventory. Through research, we calmly understand that the domestic apparel market has a scale of more than 300 billion yuan a year. At the same time, although the mode of inventory clearance has not yet developed in China, there are already very successful cases of T.J. Maxx abroad. The lack of domestic channels and the huge market size give us a chance to calm down and decisively participate in the stock market entrepreneurship. At first, they started off off-line, opened off-line specialty stores in the mall, found that the main group who came to buy clothes in stock was purchasing on behalf of others. They simply shut down the specialty stores, rented a warehouse, and specially distributed the clothes in stock to this group. In the second year, calm found that the distributors are mostly Baoma. On the other hand, warehouse sale is not only dirty and messy, but also inefficient. In order to solve these problems, calm and Wang Min decided to develop a new inventory clearing APP on the development line to help distributors select and sell goods.

As a discount retail platform, unlike T.J. Maxx abroad, Love Inventory is mainly located on the distribution line; as a social e-commerce, Love Inventory is different from other toC platforms, it is a platform to link brand parties and distributors.

Nowadays, the track of social e-commerce is more and more crowded. After the success of Love Inventory, similar platforms are springing up like mushrooms. But the founder calmly said that he did not worry about other competitors, nor about the stability of the supply. In her opinion, the clothing brand side has an urgent demand in dealing with inventory. The core appeal lies in privacy. The brand side cant affect the flow and price system of the mainstream channel when dealing with inventory, which is also the biggest reason why they cant deal with other platforms. The second reason is the scale. The processing speed of hundreds of pieces a day is a cup of water for the millions-level inventory of the brand side. Car payroll, even Otelles can only absorb about 10% of inventory at most. Professional distributors on Love Inventory Platform have reached millions, which is hard to replace in scale. Thirdly, the brand needs a safe and fast way to get cash flow. Love Inventory can ensure that the brand receives the return within 7 days after delivery, and the money is monitored by a third party. These three points are not only the most painful points in the inventory problem of the apparel industry, but also the greatest competition opportunity for the love of inventory. They are the barriers that other competitors can not replicate the model.

With the increasing scale of AI Inventory, AI Inventory has begun to change in two directions: exclusive supply mode and internationalization.

In the model, Love Inventory initially put all the inventory goods in a pool, and the distributor picks them up by himself. After opening the exclusive source mode, the limited goods will be matched to the most suitable distributor through the algorithm to sell. People used to snatch goods, but now they are goods matchers, which greatly improves the efficiency of goods sales and saves the time cost of distributors.

In terms of business development, AI Inventory is not satisfied with the brand inventory distribution business in the Chinese market. Globalization is also a very imaginative space for clothing de-inventory. Firstly, because clothing is seasonal, the climate difference in different regions can solve the clothing inventory caused by seasonality. Secondly, size, different countries will have greater differences in size, can not be suitable for the size of the inventory. Thirdly, some brands have too much stock to be fully digested in their own countries, and only part of them can be used for export. At present, AI Inventory has found partners in Indonesia, Madagascar, India and other places to extend the significance of inventory goods in the internationalization.