Apparel Enterprises Tap Network Channels To Expand Sales

　　當江浙一帶的出口型加工企業還在為歐美訂單減少而一籌莫展的時候，義烏服裝加工廠老板樓金和一家網絡銷售公司聯合，把積壓在工廠多年的尾貨銷售一空，并獲得了很好的利潤。

The news was soon spread to the local market, and many processors were attracted by the pformation performance of their peers in e-commerce.

I understand that the traditional processing factories in Jiangsu, Zhejiang and Shenzhen and Guangdong have begun to extend to the field of Electronic Commerce recently.

   　　 挖掘網絡渠道

It was in the second half of 2009 that Yiwu merchants started building factories and network sales.

Previously, Lou Jin's factory has done many processing for many European and American women's clothing brands, and has stored a lot of tail goods in the factory's storeroom.

During the financial crisis, European and American demand was sluggish and orders were reduced. Lou Jin had to disband some workers.

A chance, Lou Jin saw a well-known website shop, daily clothing sales of nearly 200 thousand yuan.

Lou Jin began to try to contact the network company, set up outlets, and let Internet companies sell products for them.

"Under normal circumstances, the backlog is always sold at a loss, but the result of the final sale is a surprise to me. I not only lost money but also made profits."

Lou Jin said.

   　　 并不是只有樓金發現了電子商務的好處。

In the interview, the author found that the change of the profit mode of processed products in the Pearl River Delta region is more obvious.

Xue Shengyong, a businessman in Shenzhen, recently realized a major change in his career -- pforming from traditional jewellery to e-commerce website CEO.

Like many traditional processors, Xue Shengyong opened jewelry processing factories to Luohu District, a manufacturing intensive city in Shenzhen more than ten years ago. Luohu District is the most concentrated area in China's jewelry processing industry.

For more than a decade, Xue Shengyong's factory has developed into the top 5 jewelry processing plants in Shenzhen.

For Xue Sheng Yong, e-commerce changed the profit model of the factory, and let him bid farewell to the low profit development mode.

In the new trend of retail industry development released by China Federation of Commerce and industry in 2010, it is pointed out that "online stores" will become a new battleground for the contention of retail channels.

   　　 告別低價競爭

"The vast majority of jewelry brands you see on the market have been processed for generations by my factories.

But the processing industry, the profit is very low, even lower than you can imagine, how can the factory profit? "

This is Xue Shengyong's pride and lament experience.

Xue Shengyong told me that the jewelry processing industry in Shenzhen is extremely developed, and the competition between them is very fierce. The processing profit can only be maintained at about 6%. Sometimes even these small profits are hard to guarantee. "Jewelry processing is the only way to make profits from reducing wastage."

Xue Shengyong told the author that in the jewelry factory, the staff's work clothes are to be recycled because the sticky scraps of precious metal on the work clothes can be recycled by burning clothes.

The curtain in the processing workshop can also be recycled, and even the daily garbage is also recovered by specialized companies, so that the precious metals consumed in jewelry processing can be extracted from these wastes.

"But the problem behind it is that the profit margins of the processing industry are getting lower and lower, turning them into profits from reducing losses."

Xue Shengyong said that the financial crisis started in 2008 has led to a major blow to the export oriented Shenzhen jewelry processing industry.

Subsequently, Shenzhen launched a number of e-commerce support measures.

At the end of April 2009, Xue Shengyong resolutely started a new round of entrepreneurship of traditional businessmen. He founded his own jewellery brand, Ou Baoli, to enter the jewellery e-commerce, no longer walk the old way from the wholesale of jewelry factories, but shorten the product supply chain to the fountainhead factory, and create the "F2C" (from factory to retail terminal) mode, that is, from factory to terminal sales, mainly for the domestic market.

He told the author that in the first 8 months, his sales exceeded 50 million yuan.

Industry experts believe that, in the sharp decline in overseas orders, jewelry enterprises will focus on processing to retail, facing the domestic market, "F2C" mode is undoubtedly a good entry point.

Xue Shengyong, who pformed from a processing factory owner to an e-commerce company, has a deep understanding of CEO.

"Taking the network as the channel, directly from the factory to the consumer is the optimization and upgrading of the e-commerce mode of the mainstream jewellery. The biggest advantage is shortening the supply chain to the source plant. There is no distributor in the middle. Consumers can directly buy from the factory, and the manufacturers can save more money to make profits, so the price is lower."

Xue Shengyong said.

Insiders revealed that the profit of online sales of jewelry was nearly 15%, much higher than that of processing profits.

   　　 政府支持“外轉內”

The Shenzhen municipal government is making efforts to guide export oriented enterprises to open up the domestic market.

However, a special survey conducted by the Guangdong investigation team of the National Bureau of statistics shows that "some enterprises have indicated that the domestic marketing channel has high laying costs, long time, various expenses of traditional sales terminals, and the pformation of enterprise products, and the pformation of exports to domestic sales requires support from the government and business organizations."

Nanling, Deputy Secretary General of the Shenzhen municipal government, told the author that after the financial crisis, the Shenzhen municipal government has been seeking new models for the local economy to expand domestic sales.

The pformation of Xue Shengyong from the factory director to CEO has undoubtedly solved this problem.

The head of the Luohu District science and Technology Bureau has also said that in Luohu, the integration of the Internet with the gold jewelry industry, commerce and trade, and the financial industry will create many, many subdivision websites, which not only can rapidly upgrade the industry, but more importantly, one virtual space greatly relieves the dilemma of the unsustainable development of the old urban area.

Statistics from the world factory network show that the largest number of Internet users in China is Guangdong Province, accounting for 18% of the total Internet users in China.

The number of e-commerce users in eastern coastal areas (Jiangsu, Zhejiang and Shandong) is larger than that in other cities.

In Zhejiang, where China's traditional export processing and manufacturing industry is concentrated, more than 10 SMEs have been traded through the Internet.

According to data from Zhejiang Economic Information Commission, the turnover of e-commerce in Zhejiang also exceeded 500 billion yuan.

In the "new trend of retail development concern" released by China Federation of Commerce and industry in 2010, the author sees that there is a trend of expanding online sales of clothing, food, cosmetics and other fast selling products, which are also among the fastest growing categories of online shopping products.

The Ministry of Commerce has also proposed that "at the end of 12th Five-Year, the proportion of online shopping pactions to total retail sales of social consumer goods will be increased to more than 5%."