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The EMC Contract Application Case of the Mix&Match Sub-EMC under Yunshang Internet of Clothing

As the quality of our life improves, users are no longer satisfied
with generic products that everyone buys even if we all have similar living
spaces and the same scenarios using those spaces. For example, when it comes to
the wash, care, storage, and mix-and-matching of clothes, they are becoming
increasingly particular and their needs are getting more diverse. When
interacting with users, Wang Fang, the ME owner in Haier’s Yunshang EMC, found
that users not only want their clothes to come out of the washer clean but also
wrinkle-free and germ-free. Moreover, many users have tons of clothes but how
to mix and match them is a daily struggle
. Based on these user needs,
the ME owner managed to give birth to a new species - the Mix&Match Sub-EMC
(under the Yunshang EMC), aiming to create a scenario that enables users to mix
and match their wardrobe so the aforementioned pain points can be resolved.


The reason why we believe the Mix&Match Sub-EMC is a new species is that the owner
of this Sub-EMC, who has seized this opportunity, is able to create
unprecedented user experience in the industry. The Haier clothing care
cabinet takes care of the storage and care of clothing on a daily basis by
providing not only the functions of drying and disinfection but also special
care of premium fabrics such as wool and silk, after which wool coats and silk
clothes become softer and smoother. And the Haier Yunshang washer addresses
users’ health concerns and meets their needs for clean, wrinkle-free and
sterilized laundry. Then when they’re torn with what to wear and which shoes
and hair styles to match their outfits for different occasions, the 3D cloud
mirror offers them useful tips by using its smart identification technology to
take the measures of users and automatically adjust the size of clothes. The
clothes move with users in the mirror so they can take a 360-degree look at
their outfits, and based on occasions, moods and the weather, tips on how to
mix and match clothes with bags and accessories are displayed on the screen.
Since successfully identifying this opportunity, the Mix&Match Sub-EMC has
been able to gain recognition and share the high value they created by
servicing users in a precise way and meeting their needs. Its success has made
it a standout in Yunshang EMC.


And all of this is attributable to the underling EMC Contract
. Haier proposed the concept of EMC contract in early 2019 as the
Group's upgrade of the VAM contract. EMC contracts stipulate the rights and
obligations of MEs and stakeholders of different interests through the signing
of decentralized multi-party VAM contracts. Earlier this year, the online
version of EMC contracts - the “EMC Contract Workbench” was launched. Among the
first batch of EMCs to try out this new version, Yunshang now truly appreciates
the advantages of EMC contracts and the convenience of the EMC Contract


After identifying user needs, ME owners inside Yunshang EMC can submit
their requests in the EMC Contract Workbench which automatically
generates a bottom line target according to the four dimensions of market
capacity, market competitiveness, industry growth rate, and GDP before
producing the E2E like-for-like targets. Owners of the Sub-EMCs need to set
higher targets that can generate revenues 1.5 times that of the industry
average so they can get their fair share. For instance, after Wang Fang, the
owner of the Mix&Match Sub-EMC, posts the request, the Workbench will show
the gap based the overall target, and each related node can bid on the Workbench
and present their proposal. Then the Sub-EMC owner can evaluate those proposals
on the Workbench, and the nodes that are a good fit will win the bid. In this
case, the winners are the nodes of planning, design, CPM, marketing, training,
supply chain, manufacturing, quality, after-sales and procurement. Later, the
team will continue to expand and bring in more nodes based on the iteration of
user needs. After the nodes win the bid, the Workbench automatically generates
an interaction group within which information on how each node is narrowing the
gap is shared at any time, and the Workbench will also send reminders according
to the progress of each node. And each node’s share of the value added that is
determined before the work is not set in stone and will be adjusted according
to the contribution they make in the process.


After testing the EMC Contract Workbench, Sub-EMCs of Yunshang and all nodes have
shown impressive performance. Let’s take July as an example. In this month,
Yunshang set the high target of a 24% year-on-year growth, and through the
nodes driving and enabling each other, the actual growth rate reached 35% as of
July 28th. Their market share of products above 10,000 RMB was already 10% higher
than that of the previous year. The entire team is motivated, self-driven and
self-evolving under the guidance of the EMC contract. In the case of the
Mix& Match Sub-EMC, the clothing care cabinet as part of the cloakroom
scenario has always been quite important to a family. The height of most
clothing care cabinets available in the market is about 1 meter, inadequate to meet
user needs for storage and mix-and-matching. After interacting with users, the
experience-oriented EMC under the Mix&Match Sub-EMC found that the most
suitable height of the clothing care cabinet is 1.9 meters, taking into
consideration the average height of users and what they need from a fitting mirror,
and further planed to install a 1.7-meter-high, 0.6-meter-wide mirror on the
cabinet door, which can not only serve as the mirror but also the touchscreen where
users can set the time, humidity, temperature and sterilization for clothing
care. However, this was quite a difficult design. After the design node won the
bid, it realized its current partners weren’t up to the job. But driven by the
over-arching goal and pushed by the other nodes, it connected with new partners
in the ecosystem for joint experiments and eventually a clothing care cabinet equipped
with a touchscreen/mirror function made its successful debut.


If the EMC contract is an innovation derived of the contract mechanism,
which has made decentralization a reality, the EMC Contract Workbench will further
solidify the contribution. On the EMC Contract Workbench, everyone has access
to the arising user opportunities and information no longer needs to cascade
down different levels of an organization. Anyone with ideas and capabilities
can bid for that opportunity. Meanwhile, all goals and how much you get to gain
from the added value are visible to everyone, which also becomes an important
means of motivation. In the process, variances can be monitored in real time
through the Workbench, and dynamic adjustments can be made, empowering the
teams to be truly self-driven and self-evolving.

2 June 2021 : 11:08 am


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