How To Lay Out Digital Enabling Intelligent Manufacturing And Continuously Increase The Chinese Market

In the post epidemic era, how should multinational manufacturing enterprises cope with new challenges?

"We can imagine a scene: when consumers enter an experience store, as long as they pick up their mobile phones and scan, they will know the raw materials, production and logistics of the products. I will place an order after I understand it. If there is a problem, I can return it. All information is implemented in app or small program. It's giving the consumer the right to know where his money is going. If it is done, it reflects a responsible attitude towards consumers. " On September 27, at the "2020 annual meeting of China's intelligent manufacturing industry · embracing new infrastructure and driving to the new blue ocean" sponsored by the 21st century economic report, Nu Skin president solemnly said in his speech that Nu Skin is using AI and big data to improve product quality and quickly meet the personalized needs of consumers. At the same time, based on the sales forecast of digital model, the distribution efficiency is more efficient. "We also hope that through this way, we can improve the internal operation level, reduce costs, and share more benefits with consumers."

The Chinese market is becoming a booster for the development of global enterprises. Nu Skin group has also made great progress in the vast Chinese market. Thanks to China's stable market, bright prospects and open business environment, China has become the world's largest market for this foreign-funded enterprise since its entry into China for 17 years.

In this year's new pneumonia epidemic environment, greatly accelerated the pace of digital transformation of global retail industry, and China's mature digital and intelligent not only promotes the development of the whole industry, but also points out the direction of digital transformation for other regions.

Nu Skin said that in the second quarter of this year, more than 85% of its revenue came from online transactions. In the future, it will continue to strengthen the company's digital construction through strategic investment in technology infrastructure and digital tools, so as to feed back the business with digital technology.

How to develop domestic circular economy in China is decided not only by the current global economic environment, but also by China's economic growth mode. Under the strategic basis point of expanding domestic demand, the "domestic big cycle" will lead all walks of life to upgrade the consumption quality.

Solemnly stressed that enterprises must closely follow the needs of consumers and make faster feedback for personalized and customized demands.

New normal and new demand

The new crown pneumonia epidemic has created a brand-new business and technological environment for various industries. For example, to promote the rapid application of science and technology, more industries will face a new business and technological environment. Enterprises need to make innovative layout for the "new normal" to meet the new needs of customers while ensuring business continuity and coping with the impact of the epidemic in the short term.

In the first half of 2020, the total domestic retail sales dropped to 17.2 trillion yuan, down 11.4% year on year. Affected by the epidemic, domestic retail sales decreased by 19% in the first quarter and slowed down to 3.9% in the second quarter of 2020. In June, the total retail sales of consumer goods totaled 3352.6 billion yuan, a year-on-year decrease of 1.8%. From January to June, the online retail sales of physical goods reached 4.348.1 billion yuan, an increase of 14.3%, accounting for 25.24% of the total retail sales of consumer goods.

With the continuous consolidation of epidemic prevention and control in China, the pace of resuming business and resuming the city has been accelerated, and the living order of residents has been obviously restored. In particular, under the promotion of policies such as expanding domestic demand and promoting consumption, residents' consumption has improved and the consumption decline has narrowed for three consecutive months.

According to a report recently released by PricewaterhouseCoopers, "recovery and growth again: how consumer trends can promote the transformation of China's new retail industry", China's retail industry is cautiously optimistic for a steady recovery. Some emerging consumer trends worthy of attention are accelerating the digital transformation of China's retail industry.

As the health crisis subsides, many Chinese consumers surveyed still expect consumption levels to be flat or higher in the coming months. The Chinese government emphasizes that domestic consumption is the most critical driving force for economic growth.

On the other hand, the trend of short video, live broadcast, online and offline integration is increasing. After the epidemic, the consumption scene, consumption habit and consumption intention of almost all industries have changed greatly. The development of "housing economy" has highlighted the convenience of the Internet again, which has spawned short videos and online Red live broadcasting with goods. At the same time, the in-depth integration of online and offline has built a new business ecology, and the beautiful health industry has taken the lead in stepping out of the haze, and has basically returned to normal in the second quarter.

"Whether online or offline, the new crown pneumonia epidemic has greatly changed the behavior of Chinese consumers, and retailers are eager to achieve long-term success and sustainable growth through these changes," said Ye min, head partner of PwC's China consumer market industry. Whatever the outcome of this epidemic, the reality of the transformation of the new retail industry will continue with the acceleration of digitization, the proliferation of e-commerce and the adoption of consumer technology. "

The report shows that low-level cities have become the new consumption growth engine in China. The acceleration of the growth of disposable income and the enhancement of purchasing power promote the consumption in the second and third tier markets. Cross border e-commerce platforms attract mature consumers in second and third tier cities. E-commerce and community commerce will continue to be growth catalysts for retailers in low-end cities.

In the post epidemic era, online consumption migration is irresistible. Of the Chinese consumers surveyed, 46% of the participants said that they would increase the use of social media during and after the outbreak of NCP, and 40% of the participants said they would increase the use of messaging applications and video games. In addition, demand for food distribution and online shopping has soared since the outbreak. Even if consumers are more active in online shopping.

Solemnly said that under the epidemic situation, Nu Skin must establish a more agile and data-driven operation mode to deal with the epidemic, including product innovation and marketing innovation.

After the epidemic, consumers have strengthened their online shopping habits, the value of e-commerce platforms has been highlighted, and online consumption habits have been rapidly cultivated; intensive research-oriented consumption has been promoted, and the instability of income and employment panic have made consumers more rational in purchasing. They not only pay attention to the "refined and practical" products, but also focus on the ingredients and origin of products; they are more inclined to health products As a result, the public's attention to "health" has generally increased, and the concept of health and consumption has been upgraded in an all-round way, which has given birth to a lot of new business opportunities, which gives Nu Skin more room to imagine its development in the field of big health.

In view of these changes, we solemnly believe that "consumer behavior is changing, but there will always be opportunities in the change. We have the courage to open up live broadcast and other online information dissemination modes, firmly adhere to the concept of sustainable development in product research and development, and take the route of brand rejuvenation. "

Nu Skin continues to adhere to the pace of "brand rejuvenation", aiming at young consumer groups and making innovations and changes from product line to pricing. In order to maintain continuous interaction and communication with young consumer groups, it is necessary to optimize the consumption experience of young people in both marketing activities and product design, so as to make the whole process of understanding, planting grass, purchasing and experiencing more accurate, direct and fast.

Today, generation Z (post-95 and post-00s) have begun to enter universities or enter the workplace. With the continuous improvement of their consumption capacity, they have become the main force of consumption together with the "millennials". They are a very individual generation and love to be different, personalized and customized. Nu Skin must take the initiative to embrace the Millennials. It will make changes in the communication objects, communication methods and content expression, and further promote the development of the industry by combining online, offline and diversified channels.

Digital enabling intelligent manufacturing

With the acceleration of online and offline integration after the epidemic, consumers will expect to be able to purchase products and services anytime and anywhere more than ever before. Therefore, multi-channel marketing must reach a new height to adapt to the rise of consumer expectations. Similarly, as manufacturing processes become more digital, some companies have begun to implement the c2m (customer to factory) model to save costs and improve customized services. C2m model is being adopted by more and more retailers to meet the challenges of demand forecasting, product customization and inventory management.

This requires enterprises to strengthen the implementation of digital enabling intelligent manufacturing. "Nu Skin has started digital transformation a long time ago, and the epidemic has accelerated this process. During the epidemic period, we built a "live purchase" platform and built a small program for Nu Skin. In the future, we will continue to strengthen the company's digital construction through strategic investment in technology infrastructure and digital tools, and feed back the business with intelligent manufacturing and digitization. " Solemnly.

Digital, moving forward. "For example, we have built a middle platform with Alibaba cloud, which is the foundation of all our data. In this way, on the one hand, we can protect the data in the original host computer; on the other hand, we have a very large demand elasticity for the promotion plan, and the feedback is rapid. " Solemnly, under such a framework, "in the next stage, we can use social media to communicate and promote directly with consumers, collect more consumer needs and data, and empower our business partners."

In the back-end manufacturing, Nu Skin continues to add to the Chinese market, enabling manufacturing with digital technology.

"The Chinese market accounts for a large proportion of Nu Skin's global business and is the largest market. We are very happy to see the Chinese government quickly control the epidemic and return to work. As a result, we can see that the continuous expansion of the domestic market is driven by the continuous expansion of the large online investment policy. "

In 2014, Nu Skin invested RMB 500 million to complete the innovation headquarters of Nu Skin Greater China. In 2019, the second phase project of Greater China Innovation headquarters park with a total investment of 360 million yuan in Fengxian District of Shanghai has also broken ground.

The second phase project will build 12 new product production lines to realize the combination of automation, intelligent manufacturing and flexible manufacturing. After the completion of the project, the production automation level of Nu Skin will be improved, the production efficiency and product quality will be improved, the labor cost will be further reduced, and the product quality, safety and production efficiency will be improved by reducing the interference of human factors in the production process, so as to improve the position of Nu Skin in the cosmetics market and enhance the competitiveness of the enterprise.

After the resumption of work and production this year, a total of 1200 38m piles were driven in on May 6. The foundation construction has been basically completed. The outline of the warehouse, workshop and office building can be clearly seen from the bird's-eye view of the project site. The project is expected to be handed over in mid October next year, and the factory will be moved to mass production in January 2023.

"This is a challenging time node goal, and we will work together to overcome difficulties to achieve the goal: the future of Nu Skin is in China," he said

The second phase project of Greater China Innovation headquarters park of Nu Skin embodies "flexible manufacturing" in all aspects. "At the early stage of the design of the second phase factory project, we have fully realized the personalized and customized needs of young consumers in the future. In the future, through the cooperation of multiple production lines, flexible production scheduling can be carried out for products with different types of packaging, and flexible manufacturing can be realized. Customer oriented to meet customer needs. "

In addition, the phase II project is highly automated. Take the automated storage system as an example, in the future, robots will shuttle between raw materials, packaging materials and finished product warehouses, as well as production workshops, and they will complete the cargo handling.

At the same time, it reflects the sustainable development, and will continue to achieve energy saving, water saving and energy consumption reduction while producing with high production capacity. The wastewater discharge standard of sewage treatment system can meet the discharge standard of the city; the second phase project is applying for LEED certification, which is a green building certification system widely used in the world, and energy-saving and environmental protection equipment such as photovoltaic power generation will be used.

Accurate data tracing can also be achieved. The whole process of product traceability and data collection, all data are in the company's large database, "help us achieve balanced production, effective inventory control, cost reduction, etc. It can also establish price management and control system from the perspective of cost management. And the quality management throughout the whole system, from raw material warehousing inspection to finished product inspection and release are completed in each module of the relevant system

For the performance from the second half of 2020 to 2021, he solemnly expressed "full of confidence: the first half of the year's performance exceeded expectations, and the group's financial report in the second quarter of 2020 exceeded expectations. More than 85% of the revenue came from online transactions, and the manufacturing sector achieved 20% revenue growth, which further consolidated the stability of the supply chain. Let's be full of confidence in the second half of the year and 2021; next, we will launch ageLOC boost and huizhunshiu biological adaptive skin care series; the improvement of business partner's business ability will also drive the growth of the number of customers and the growth of sales team; at the same time, we will accelerate the digital layout, such as Vera, the latest digital tool, will soon be launched, and smart marketing cooperation with Tencent will be carried out. "