Original title: Business Insight | Can Fashion Group's "New Headquarters Plan" bring "three chain coupling" of industry chain, value chain and interest chain?
Reprinted from: WWD International Fashion News
With the deepening of global economic integration, transnational corporations are expanding rapidly in various countries and regions.
At the end of last month, the French Kaiyun Group held the inauguration ceremony of its new headquarters in Milan, Italy. Almost at the same time, Chanel announced to double the size of its global headquarters in London when the 2022 financial report was disclosed, which was less than a year before it officially set its headquarters in London.
From Kering to Chanel Limited, including fast selling companies that are planning new headquarters, can the new headquarters bring the "three chain coupling" of industry chain, value chain and interest chain to fashion giants?
In fact, the office headquarters of Fashion Group has different function combinations from other types of enterprises. Compared with other enterprises, the brand image, brand narrative and other marketing links of fashion enterprises are in the upstream link. At the same time, the production link of fashion enterprises also needs to be closely linked with the brand strategy and market demand. Therefore, the headquarters of fashion enterprises have the leadership attribute, and the "new headquarters" and existing headquarters echo each other to realize the industrial chain, value chain The three chains of interest chain are coupled to form a virtuous circle of business ecosystem——
·First of all, through optimizing the layout of the industrial chain, improve the level of supply chain management, reduce the loss of intermediate links, reduce operating costs, and enhance core competitiveness;
·At the same time, guided by consumer demand, brand value and product added value will be comprehensively improved from product research and development to marketing, and the value chain will be continuously upgraded;
·Finally, we should strengthen the benefit sharing mechanism, build a win-win and co creating business partnership, and achieve a win-win situation between enterprises and society.
"Umbrella structure" is the mainstream mode in the setting of multinational company headquarters.
The "umbrella structure" applicable to most fashion enterprises is to set up the world's only headquarters in the home market, and directly invest in or share in local enterprises around the world, thus forming a global business structure. However, when a group enterprise plans diversified or important businesses, the dual headquarters can play a great strategic value, that is, under the strategic drive, realize the resonance of the overall strategy and regional strategy, and expand business to achieve global operation.
Fran ç ois Henri Pinault, CEO of Kaiyun Group, unveiled the new headquarters in Milan. During the opening ceremony, Pinault mentioned that "Kaiyun Group's love for Italy began 20 years ago. Since then, we have been cultivating and developing Italian brands, which are really the best embodiment of Italian creativity and craftsmanship. It is also important that we have been investing over the years to improve the Group's brand capacity in Italy. "
For many years, Kaiyun has developed industrial centers in Italy for non Italian brands represented by Saint Lauren, Balenciaga, Alexander Mcqueen, etc. Pinault said, "Italy is the only country that provides professional knowledge and technology, so we will continue to invest here."
There are many Italian senior leaders in Kaiyun Group, which indicates the long-term relationship between Kaiyun Group and Italy. The new headquarters is located in the center of Milan's business and luxury goods area. Through this new headquarters, we hope to further strengthen the role of Kaiyun Group as a key player in Italian luxury goods and business.
The "dual headquarters model" is an innovative management model in which enterprises set up two or more headquarters in different regions to enhance competitiveness and maximize benefits. Under this mode, we can not only continue to consolidate the advantages of the original headquarters - the headquarters, but also form a coordinated development of dual core linkage with the help of the second headquarters to achieve strategic expansion.
The regional selection of the second headquarters is very important. The new headquarters of Kaiyun Group is located in Milan, Italy. It is a neoclassical building built by the 18th century architect Simone Cantoni, covering an area of 9500 square meters. In the new headquarters, you can see the Golden Triangle luxury shopping fashion zone.
In the past 20 years, Kaiyun Group has made many investments in Italy. Jean Fran ç ois Palus, general manager of Kaiyun Group, said, "The new headquarters represents an important milestone of Kaiyun Group in Italy." For this high-level city, Kaiyun Group goes deep into the target strategic areas, setting headquarters in the target areas makes it easier to enter the market, while reducing intermediate costs and concentrating on opening up the market situation.
Localization is the only way to establish a new market subject. According to the official website of Kaiyun Group, the number of Italian employees of Kaiyun Group accounts for 27.6% of its total employees. Jean Fran ç ois Palus commented, "I believe that the new headquarters will further strengthen the sense of belonging of more than 13000 Italian employees of the Group."
Beppe Sala, the mayor of Milan, also gave a warm welcome to Kaiyun Group at the opening ceremony, "I am very glad that those who have confidence in our city come here. Milan combines many advantages, is a city of fashion and food, and is also a university city. The internationalized characteristics will open up these fields and persistently carry forward Milan's historical tradition, which will create a unique and diversified city. "
"Urban life is built around the social contract." Vishaan Chakrabarti, a professor at Columbia University, said that the economic value creation of a super city like Milan has contributed to the "feedback cycle" between companies and cities.
Kaiyun Group can benefit from the growth of Milan, and Milan can also benefit from the existence of Kaiyun Group. Kaiyun Group has chosen to establish a new headquarters in Milan, demonstrating its long-term commitment to the European market. The implementation of the dual operation mode will inject diversified power into Kaiyun Group, optimize the global layout, reduce operating costs, respond to the challenges brought by market changes, and achieve sustainable development.
When the whole industry is thinking about how to achieve growth breakthrough. Earlier, Chanel announced plans to double the size of its global headquarters in London while announcing its new financial report. Its CEO, Leena Nair, once said frankly that, This new global headquarters will be designed as the forefront of sustainable development to support Chanel's future growth ambitions.
In addition to Kering and Chanel, Japan Fast Retailing is also brewing a "new headquarters plan". As early as the beginning of this year, Liu Jing, chairman, president and CEO of Fast Retailing, reiterated his goal of becoming the world's first brand when he announced the annual performance of last year, and emphasized that international expansion would be the key to achieving this goal. Yanai said: "Instead of letting the Tokyo Global Headquarters formulate all strategies and guide all operations in other markets, let the managers of each market, as well as those responsible for production, distribution, IT and other functions, make decisions and solve problems on their own according to local front-line information." He revealed that in addition to the Tokyo headquarters, the company will further develop the New York office to make it another global headquarters.
The fashion industry chain, value chain and interest chain are not only a cumulative continuous relationship, but also a circular relationship. The industry chain and value chain jointly serve the interest chain, and the improvement of the interest chain reacts on the value chain and the industry chain. The establishment of the new headquarters has undoubtedly improved the chain links of the fashion group, increased the convergence of consumer demand and distribution path, and finally reached the best state of "three chains are perfect". WWD
Written by Longjing
Edit Li Jun
picture source brand official
