Holle Said Footwear B2C Market Competition Is Fierce &Nbsp; Calls For Orderly Competition.

[introduction] Li Shubin believes that proper competition is a good thing, which can promote the rapid development of the whole industry, and there may be room for cooperation in the future.

On June 21st, in response to the recent discussion of VANCL (all customers) entering the hole shoe market recently, Li Shubin, President of the domestic footwear enterprise B2C, responded that Amazon had also entered the footwear market, but the footwear B2C originator Zappos still had a unique reputation. Therefore, the customer entry into the footwear market will not cause any impact on the good buy business.

It is understood that the imitation of PPG started VANCL in just a few years, from only selling men's clothing to women's clothing, children's wear, shoes, accessories and household are selling, recently also set foot in the low price cave shoes market, and even some industry people worry that VANCL this move will impact on the domestic footwear market B2C enterprises.

In this regard, Li Shubin said good fun business should not be affected.

He believes that although everyone, Amazon and other websites are involved in the footwear market, there are different areas of focus.

"Amazon has done similar things in the United States, but Zappos is still thriving."

Li Shubin believes that proper competition is a good thing, can promote the rapid development of the entire industry, and there may be room for cooperation in the future.

Speaking of the other happy music net recently received tens of millions of dollars in financing, Li Shubin said this is a good sign that the footwear B2C industry has been recognized by everyone.

However, he believes that many websites of the footwear B2C market are rushing headlong into the competition.

In response, Li Shubin appealed to colleagues to focus their attention on their respective businesses and jointly develop the market, jointly improve the credit system of e-commerce, and expand the cake together.

"We see that some websites use some improper means to attack their competitors. These practices are actually very unwise, which will lead to the whole e-commerce market being challenged, and its development is also unfavourable."

It is understood that at present, domestic B2C enterprises extend to the upstream and downstream industries.

VANCL has taken several measures to improve the supply chain, including the use of self built and third party combined logistics, to build around 600 call centers, and to set up special inspectors in all aspects of fabric procurement, clothing production and warehouses.

Jingdong mall, which won a huge amount of financing at the beginning of this year, also said that 50% of the new funds will be used to enhance the service capabilities such as warehousing, distribution and after sales. It also announced that it will build more than 100 thousand square meters of super large logistics centers in three cities in Beijing, Shanghai and Chengdu in the second half of 2010, and establish 15~20 two level warehouses nationwide.

When it comes to this phenomenon, Li Shubin said that e-commerce companies in general are using the way of docking inventory information with upstream suppliers to avoid risks.

But as these enterprises develop gradually, these customers who rely too much on upstream suppliers or manufacturers will drop rapidly.

"So under the pressure of this situation, many enterprises are forced to turn to heavy companies.

In the first year of its establishment, Zappos did not make inventory. After a relatively painful period, it finally decided to become a so-called heavy company.

When it comes to the development of its own enterprises, Li Shubin said that there would be no big category expansion in the short term.

"Our current goal is to make shoes bigger and bigger. As for the expansion of new fields, we will not do them."

In his view, "heavy company" is not necessarily the development goal of all. Enterprises should start from their own capabilities and their respective industry conditions, develop in their own good, and choose the right way for them.

{page_break}

Following is an interview with Li Shubin, President of Tencent technology.

Tencent Technology: Recently, a similar website with you, Le Tao has also received tens of millions of dollars in financing. How do you view the current popularity of footwear B2C website and the future development of footwear B2C website in China?

Li Shubin: This is a good sign that this industry has been recognized by everyone and has entered a stage of vigorous development.

China's retail consumer goods market is very huge, of which shoes are a large category.

We all have strong confidence in e-commerce in China. Many websites specializing in the sale of shoes are also very normal. Of course, many successful websites abroad have stimulated the development of domestic websites.

But at the same time, we have noticed that many websites may rush into competition, which may lead to more severe competition. This situation is beginning to show. We call on everyone to focus their attention on their respective businesses and jointly develop the market and jointly improve the electronic business credit system, so that everyone will get considerable development.

There is a problem of orderly competition. For example, we also see that some websites use some improper means to attack their competitors. These practices are actually very unwise, which will lead to the whole e-commerce market being challenged, and its development is also unfavorable.

We still call on everyone to be able to compete in a normal and orderly way, with a large market and a cooperative attitude in competition, so that everyone has the opportunity.

Tencent Technology: Recently, some people in the B2C industry of micro-blog Tencent are discussing that customers are making holes in shoes. Some people even think that customers must sweep away all the stalls in China, so that hawkers can not do business.

What do you think of the phenomenon of customers making cave shoes?

Li Shubin: China has a huge population of online shoppers. Naturally, there will be multiple levels of shopping demand. For the department store category, it is important to choose products.

As long as the product has its own characteristics, no matter in terms of price or design, it will be successful. Everyone is a very good company. It must have been carefully considered in expanding the category.

They saw the unique consumption groups and consumption habits in the Chinese market.

No matter what purpose to make cave shoes, all customers are worthy of respect and worthy of study. The market is very large and their location is different. They choose their own consumer groups. This is a manifestation of social and business maturity.

Tencent Technology: at present, all websites such as customers and Amazon have been involved in the footwear market. Do you think that these actions will have an impact on your business?

Li Shubin: it shouldn't be. There are still different areas of attention.

In the US, Amazon has done similar things, but Zappos is still one of the best.

Competition is a good thing, it can promote the rapid development of the whole industry, and there may be room for cooperation in the future.

In fact, such cooperation is common in foreign countries.

Tencent Technology: at present, e-commerce B2C company Jingdong, red children, all customers are expanding in various fields, but you always insist on making genuine shoes shopping website. Is there any expansion intention in the future?

Li Shubin: we are an e-commerce company specializing in the footwear industry. There will not be any big category and domain expansion plans in the short term. The market for shoes is very large, and it is not easy to do well. Our current goal is to make shoes bigger and bigger. As for the expansion of new fields, we will not do them.

But there will be a part of the cooperative brand clothing business, because we have won many brands such as puma, kappa and other international brand licensing, cooperation involves a part of clothing products, but the proportion of clothing products in the whole product line, the proportion is still very small.

Tencent Technology: 09 years, you have acquired an investment in Sequoia Capital. What are the main aspects of the money currently spent? What aspects will it continue to spend?

Li Shubin: our funds are basically put into supply chain construction, website construction, marketing promotion and better service for customers.

Tencent Technology: at present, more and more vertical B2C website pformation comprehensive website, to discuss a topic, B2C company has always been referred to as "light company", in your understanding, what is "light company", what is "heavy company"?

Li Shubin: the so-called "light company" is that they only do websites and operations, warehousing, goods and logistics rely on partners, "heavy companies" at least do their own products and warehousing.

"Light company" or "heavy company" are different business strategies. Each has its own advantages and disadvantages. It can not be said which is right or wrong.

As a matter of fact, there are many discussions about this pattern now. No matter what mode, there is room for existence. Each has its own merits and demerits.

Operation will be the core issue to test the survival of enterprises, and to do what they are good at.

Tencent Technology: from the "light company" relying solely on the Internet to the "heavy company" that carries more costs.

What causes the phenomenon of "light from weight"?

Li Shubin: I think it is the bottleneck of customer demand and enterprise development that guides enterprises to change.

If the "light company" can meet the needs of customers and support the vision of enterprises, no one wants to be a "heavy company".

Generally, e-commerce companies that are just starting up use the way of docking inventory information with upstream suppliers to avoid risks.

However, most of the upstream suppliers are getting in and out. There is no inventory management system that has been dispersed. Stock information is not updated in time. There is no dedicated department to provide services for these e-commerce companies. This leads to high logistics docking, time cost and high management cost.

Online shopping will eventually compete with a steady supply chain and product and service details. For the current situation, most of the "Light Companies" rely too much on upstream suppliers or manufacturers, and it is difficult for them to control. When the enterprise develops to a certain stage, customer satisfaction will drop sharply.

So under the pressure of this situation, many enterprises are forced to turn to "heavy companies".

In the first year of its establishment, Zappos did not make inventory. After a relatively painful period, it finally decided to become a so-called "heavy company".

But the ruler has the strong points, the inch is short, the different enterprise idea, the different development direction, and the different enterprise values decide their respective tropism.

"Heavy company" is not necessarily everyone's development goal. Enterprises should start from their own capabilities and their respective industry conditions, develop in their own good, and choose the right way for them.