The Seventh Online Was Unveiled At The 11Th Olai Summit, And AI Driven The Upgrading Of Retail Supply Chain

May 22-24, 2024, The 11th Olai Leadership Summit The 2024 Aolai Industrial Economic Forum was held in Nanjing. On the forum, No.7 Online, a service provider of intelligent commodity plan management system, led the retail supply chain into a new upgrading stage with forward-looking AI technology, and won wide attention and praise from the guests.

　　 The summit was jointly hosted by China Outlets Club and the Yangtze Evening News of Xinhua Newspaper Media Group, and organized by Outlets Media Technology (Guangzhou) Co., Ltd., aiming to explore the high-quality development path of China Outlets industry. As a leader in the field of commodity plan management, Seventh Online was invited to attend. Its founder, Mr. Ma Kejun, delivered a keynote speech entitled "Upgrading the Retail Supply Chain Driven by AI" at the summit, deeply analyzing how AI technology can help retail enterprises achieve intelligent transformation.

(Mr. Ma Jun)

Mr. Ma Jun said that Seventh Online was founded in 1999, rooted in the Seventh Avenue in New York, the United States, and has 25 years of retail technology accumulation. In the past 25 years, Seventh Online has closely cooperated with many brands, with an accumulated R&D investment of more than 1 billion, committed to the future of smart retail. The brand has now become the leader of omni channel supply chain solutions, not only witnessing the deep integration of technology and retail, but also setting a benchmark for supply chain intelligence in this era. He emphasized that in the face of inventory problems in the retail industry, the seventh online intelligent commodity management platform realized accurate grasp of consumer demand through AI technology.

(The seventh online cooperative customer)

Mr. Ma Jun clearly pointed out that the core of building a supply chain is not only to accelerate flexible production lines and improve logistics fineness, but also to accurately grasp market trends and consumer psychology. If there is a lack of keen insight into market dynamics, even if the supply chain operates more efficiently and the products produced cannot win market recognition, all efforts will be futile, resources will be wasted, and efficiency will disappear. The real supply chain master is to integrate the forward-looking wisdom of the market into every step, from Product creativity To the retail terminal, follow the market rhythm step by step. This is not only about the fine control of time and cost, but also needs to deeply understand the market trend and consumer psychology, ensure that production accurately matches demand, do not expand indiscriminately, do not waste resources, and strive to spend every effort on the edge to create value.

(Product life cycle flow chart)

In his speech, Mr. Ma Jun analyzed in detail the cooperation model between the Seventh Online and several world-famous retail enterprises. It is particularly pointed out that although the leadership of a customer with 8000 self operated stores personally participated in the selection process every quarter, only 36% of the goods were profitable, which is insufficient compared with the 40% level of the same industry abroad, and the remaining 60% of the goods have caused varying degrees of drag on the performance.

Faced with this dilemma, the customer chose to cooperate with Seventh Online to halve the pre-season order volume with the help of technology, and the rest was flexibly adjusted according to seasonal changes. After several rounds of practical verification, customers found that if the proportion of profitable goods was increased to 50%, their gross profit would increase by 30% to 35%.

To achieve this goal, No.7 Online works closely with the customer's commodity team, uses advanced AI and machine learning technology to quickly capture consumer preferences when new products are launched, and accurately distinguish between best-selling products and unsalable products. In addition, Seventh Online has also successfully developed a store cluster algorithm, which can intelligently extend the successful experience of test stores to all stores and optimize size management, thus building the industry's first highly responsive replenishment system.

In the process of cooperation, Seventh Online found that the customer used to rely too much on manual analysis reports and subjective experience in commodity distribution strategies. This method is not only time-consuming and inefficient, but also difficult to adapt to the rapidly changing market environment.

This cooperation experience makes Seventh Online more convinced that data-driven and intelligent decision-making is the key to efficient operation of the retail industry. At the same time, it also highlights the important role of excellent tools and technologies in liberating labor force and improving work efficiency. This is not only the core idea of the current industrial revolution, but also the inevitable trend of future retail development.

After sharing the case of how the Seventh Online helped a large retailer with thousands of self operated stores to increase the proportion of profitable goods and gross profit, Mr. Ma Jun also told us an example of helping an emerging fashion brand achieve rapid rise and successfully occupy market share with AI technology.

This is a world-renowned Outdoor clothing brand , and the Seventh Online for nine years. During this period, its sales achieved an astonishing growth, from 3 billion to nearly 15 billion, a five fold growth rate that is rare in economically mature countries. With its excellent product quality, lifelong warranty commitment, rare discount strategy and excellent supply chain management, the brand has become a leader in the industry and a benchmark for many brands to emulate. Interestingly, a denim brand with a scale of 15 times that of Nike also listed it as a learning object, which is enough to prove its lofty position in the industry. Since the beginning of the cooperation between the two sides in 2015, the brand has been confident in its forecasting ability, and has not immediately adopted the forecasting tool of Seventh Online. However, in 2018, out of curiosity, they began to compare the prediction results of Seventh Online with their own predictions. Surprisingly, the prediction accuracy of Seventh Online is not only 30% higher than theirs, but also 80% more stable. This discovery enabled them to earn 2.3 million yuan more every four weeks for 32 styles in a certain category, which was undoubtedly an unexpected gain. Since then, the brand has been using the seventh online AI commodity planning system, and has achieved remarkable results.

In general, Seventh Online With its profound accumulation and innovation ability in the field of AI and retail technology, it has successfully helped many retail enterprises achieve the upgrading and transformation of the supply chain.

In addition, Mr. Ma Jun also pointed out that the retail industry is standing at the intersection of digitalization and intelligence, and the future competition will focus on the level of intelligence, especially the quick response and accurate prediction ability of the supply chain. He pointed out that both the growth of sales and the intelligent transformation of decision-making methods are subversion of the old model, which indicates that the retail industry is moving towards a more efficient and more profound understanding of the market. It is through AI technology that the Seventh Online has realized accurate prediction of market trends and rapid response to consumer demand, thus helping retail enterprises to achieve intelligent and efficient supply chain.

At this summit, the stunning appearance of Seventh Online not only brought profound enlightenment to the guests, but also injected new vitality into the entire retail industry. With the continuous development of AI technology, it is believed that in the future, Seventh Online will continue to lead the new revolution of the retail supply chain and contribute more to the high-quality development of the retail industry.