Vice President of Alibaba Group
The D2C model will be a trend somewhat. If D2C is applied generally, what will malls do? What about the future of malls as this model develops? Then it is the Interactive Transaction Model (ITM) to be mentioned, which indicates personalized customization. This seems to be a minor solution in the industry featuring a long supply chain. In other words, after digitization, we can collect the needs on the consumer side to guide the flexible customization of the supply chain and to meet the needs of consumers. Open the Miaojie APP and you will find our products much cheaper than those in the market. This is because ITM is used. First, we guess customer preferences to guide the flexible batch customization. Then we make it shared by everyone. There is no inventory risk of raw materials. Next, the working capital is negative, without any capital occupied. More importantly, we skip the intermediary malls to save the commissions, so that it is still very profitable even at a 70% off.
[May 31, Dongcheng District Session, Fashion China · Wangfujing Forum]