Semir's E-Commerce: Success and Exploration

Zhejiang Semir E-Commerce Co. Ltd., the online subsidiary of Chinese casual clothing company Zhejiang Semir Group Co. Ltd. (Semir), grew continuously from its launch in 2012 to become a main contributor to Semir’s success, contributing approximately 30 per cent of Semir’s annual revenue by 2016. Semir entered the online market relatively late after many competing Chinese clothing manufacturers had already established their presence online. Yet it became the industry leader in terms of e-commerce revenue. It differed from other major clothing firms mainly in its implementation of the management philosophy of Kazuo Inamori, particularly his Amoeba Management method and his belief in altruism and a win-win approach to business. Semir worked to create supply chain relationships that were true partnerships, and it promoted the various brands in its multi-brand strategy through celebrity endorsements and online marketing. Like its major competitors, Semir was exploring online-to-offline (O2O) models in the clothing industry. In 2016, the company faced a rapidly changing online environment and increasing competition in the industry. It needed a strategy to maintain its early success in e-commerce. It also needed to determine what kind of O2O model to adopt and how to deal with competition from fast-fashion retailers in the online marketplace.