Is E-Commerce Under The Control Of Traditional Enterprises?

How to turn

In 2009, the annual turnover of Taobao was 200 billion yuan, and the sales volume of Jingdong mall was 4 billion yuan.

As a representative of this, we have experienced the rise of online retail market and B2C vertical e-commerce.

The pformation of traditional enterprises into electronic commerce should be regarded as the third wave in the history of e-commerce.

Relevant departments predict that by 2012, the scale of China's online retail market will reach 713 billion yuan, accounting for 3.5% of the total market size.

As the future online shopping channels merge into the main sales channels, the market is gradually maturing. For traditional enterprises, this is undoubtedly an urgent change and trend.

For many new businesses, many enterprises feel this power.

But in the process of turning from B2B to B2C, these traditional enterprises with strong brand influence, high-quality offline resources and mature channels have encountered unprecedented confusion.

On the one hand, it is a question of fitness, that is, whether the product of the traditional enterprise is suitable for sale online.

In spite of the huge space of e-commerce, many traditional enterprises are in the arrows, but in the domestic market, cars are obviously not selling daily necessities on the Internet. Insurance needs to be constantly explained before they can be sold.

In addition to those products that are reasonable in price, universal in demand and strong in product extension, many times, e-commerce will require enterprises to make certain innovations and changes in order to match their needs, and even need to give up.

Having passed the first benchmark threshold, traditional enterprises will still face many problems.

How to define the location of e-commerce in an enterprise, whether it is a specialized E-business Department or an independent company operation? What kind of configuration should be adopted to do e-commerce, self built B2C or occupation platform? How do we integrate the resources under the online and offline? Do the IT system and the supply chain make their own or outsource to the third party?

But obviously, only

The role of e-commerce

"If you don't do it, your competitors and your copycat versions will continue to carve up your market on the Internet."

BELLE group (hereinafter referred to as BELLE) e-commerce operation director Hu Chenrong described this.

Although some traditional enterprises have made some trade-offs in e-commerce, it is undeniable that most enterprises have chosen to join the indispensable online battleground.

But as a brand new territory, what role does e-commerce play in traditional enterprises will determine the future of an enterprise.

"Strategic positioning is the primary issue, which determines the speed and thinking of the development of enterprises."

Li Ning Co (hereinafter referred to as Lining) director of electronic commerce Lin Lin told reporters.

Choosing what kind of starting point obviously determines the future direction of this traditional enterprise e-commerce.

The simplest understanding is whether e-commerce is a means or business for an enterprise.

Among the many traditional enterprises visited by journalists, though the company is right

First is the channel expansion strategy.

Cao Fei, senior analyst at Analysys International, said that the channel expansion strategy is actually the traditional retailers to expand the coverage of customers by increasing the channels of online retailing, so as to achieve the purpose of increasing revenue.

"We are a department store in the network, not an Internet company selling products."

Top grade discount (hereinafter referred to as top grade) CIO Wu Xiaoxin told reporters.

For top grade, its top grade discount network is a typical representative of the channel. "I see some department stores regard e-business as an investment, which is stripping their business."

In Wu Xiaoxin's Internet thinking, he thinks investment behavior is actually a kind of separation of its business.

Analyst Cao Fei believes that the strategy of top grade is very suitable for its development.

Since the top grade discount is a medium-sized regional department store retailer, there are only 7 chain stores in the Beijing area. After the cable channel is available, it can effectively serve consumers outside the Beijing area, making up for the limited coverage of their stores.

This strategy can directly promote the growth of the revenue of the main business of the retail enterprises. The traditional enterprises can directly consider the results from the sales results or the order and the scale of the customers.

According to the reporter, the top grade discount network has reached 10% of the store's performance.

The second is investment layout strategy.

Cao Fei explained that the investment layout strategy refers to the traditional retailers regard the online retail market as a new potential market, and its online retail business can be regarded as an investment behavior in the e-commerce market, and utilize an advantageous resource such as their own capital, brand and procurement channel to support a B2C enterprise.

This mode of online retail business is usually operated by independent companies or subsidiaries, and there are certain divisions between retailers and main retailers in terms of products and prices.

It is more suitable for larger chain retailers, especially the more powerful retail enterprises, such as Suning, BELLE and so on.

Similarly, as the concept of an independent company, Lining's model is slightly different. "Our main body is still serving the company," Lin told reporters. The Li Ning Co's e-commerce strategy is constantly changing from the original "electronic channel" to the current "e-business", and in the future will focus on the "aorta" B2C mall's strength.

However, the strategy of investment layout is obviously to take the overall view, and it is very difficult to get profits in the short term. We should focus on the investment returns in the medium and long term. Analysts believe that the results of the phase examination focus on the growth of sales volume and the share of the corresponding online shopping market.

Way of approach

Setting the general direction and how to enter the next stage seem to be the most common confusion of many traditional enterprises.

As we can see, for many traditional enterprises that have just started, Taobao's business is their everything at first.

But with the passage of time, more and more e-commerce channels have been derived, and the standardized configuration of e-commerce has begun to spread on the Internet: Taobao + platform and independent B2C+ distribution platform.

The most important thing is to choose a good platform.

Although many enterprises regard the independent B2C mall as the "first placement" of touches, but from the current situation, it is not B2C, but platform, that can make short-term profits for enterprises.

With the help of mature platforms, traditional enterprises have rapidly increased their own network sales channels, making use of the resource advantages of the network sales platform to make up for their "internet gap" in the short term. In the process, traditional enterprises can cultivate their own online retail teams, customized marketing ideas and future e-business strategies. This is undoubtedly a magic weapon for quick start.

The platform is Taobao.

Take Lenovo as an example, in 2008, it cooperated with Taobao to establish Taobao mart's flagship store. With the help of Taobao's huge traffic volume, it realized a rapid growth in sales in the short term, and broke through the turnover of ten million yuan a month.

It is easy to see that by occupying the 80% online shopping market Taobao, traditional enterprises can quickly find out the feelings and methods of e-commerce. In fact, many independent B2C such as wheat bags are also taking the shortcut of Taobao.

But the platform not only has Taobao.

In the current market, on the one hand, traditional enterprises will occupy a comprehensive platform like pat, Dangdang, Jingdong mall and so on. On the other hand, they will also take full advantage of the vertical B2C market.

Apart from Taobao, Lining has worked with vertical shopping centers such as Yue Tao and good Lok to get more customers and sales volume through direct selling, and finally made multi-directional layout for the network direct battalion.

After occupying the platform, it is the establishment of an independent B2C mall.

Through the retail experience of the platform, traditional enterprises have gradually formed their own product line, user group and supply chain system, and the "Internet brain" has initially formed.

But traditional enterprises must not be "selling more goods" for e-commerce. They must have a strategic vision and height for a new battlefield.

At present, Lining, BELLE, Suning and other large traditional enterprises have their own independent mall in e-commerce.

Lin Li told reporters that the B2C mall can directly receive the terminal, which is an important battleground to pass the brand DNA and brand proposition to its users.

"This is a must, and only in this way can traditional enterprises' online retailing be more three-dimensional," Lin said.

Self built B2C is the key to connect offline and online, and enterprises can directly control.

At the same time, relying on their own strong brand pull, traditional enterprises can deploy their e-commerce path from a strategic height.

The last strategy is to set up the whole network marketing led by distribution.

Whether it is Taobao mall or its own mall, it belongs to the direct selling system.

To a certain extent, the direct selling system is unified by the company, which can strengthen the integration ability of the traditional enterprise from the front end marketing strategy to the back-end supply chain.

However, the channels of network sales are complex and complex, and traditional enterprises with online distribution and distribution will have to spread their expertise to the Internet.

The mode of "distribution winning" is being popular.

Lining encouraged Taobao's well sold grassroots sellers to empower them into their own controllable sales system through authorization. BELLE online was famous for its proprietary mode, but on the Internet it opened up nearly 200 independent retailers, and vigorously developed its network distribution channels; SKYWORTH, Galanz, Joyoung...

Traditional enterprises do Internet distribution channels, and even let a group of third party service providers find their way to survive.

In fact, distribution is only a small part.

In the 2010 e-commerce circle, the concept of whole network marketing is becoming popular.

BELLE connects through its call center and after-sales center to its B2C mall. Lenovo and many banks have good cooperation with online shopping mall, and they are involved in TV shopping.

Through the compound marketing system of the whole network, coordinating the strong supply chain capabilities and brand advantages of the brand, integrating all kinds of advantageous resources and building a new business model, it seems like the trend of the times.

Online and offline integration

With the entry of "traditional muscles", the huge ecosystem of e-commerce is forming a new business order from "manufacturing" to "retail".

These traditional enterprises that are accustomed to dealing with distributors must think about how to deal with the terminal consumers, and make good interaction and integration between offline advantages and online.

The biggest advantage of traditional enterprises is their innate brand influence.

Now countless Internet traders want to make their products into "brands", which shows consumers' awareness and demand for "brand".

Traditional enterprises must make good use of the huge pull of the brand itself and make new breakthroughs on the Internet, such as brand restructuring.

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Known as the "shoe king" BELLE, the business mode under the line is multi brand management: BELLE, Teenmix, Staccato, and sun da.

Different brands are located in different market segments.

Hu Chenrong said this is a very important way, "so we put the concept of offline brand group to the Internet."

Now BELLE's shopping mall Taoxiu online is forming a brand group mainly based on in net - only by name can it be found that in net is exclusively sold on Internet channels.

Moreover, the control of the brand group is very flexible. It can not only take the best selling style under the line, but also separate the styles from the offline ones, thereby reducing the conflict between online and offline.

This means that it is not necessary to take a low price strategy to sell things online, but to separate the lines from the offline ones and find different advantages.

Products that are in line with the line must be controlled within their own price system. The new products will be sold at full price, and the discount will be given in the off-season.

The integration of resources also comes from every detail.

"A lot of people buy shoes, but they never pay for them before they try."

Hu Chenrong is well aware of the rules of footwear e-commerce.

Prior to that, BELLE's electronic commerce was all online payment, but for customers' "first payment and goods", he decided to support cash on delivery at the same time. The most common way under the Internet was unexpected effect on the Internet.

Lenovo's e-commerce is also well versed in this.

At present, Lenovo's e-business combines the huge national sales network under the line, successfully connects with offline merchants, sets up self purchase shops for online shopping, and Beijing, Shanghai and Guangzhou do not even have to pay deposits, so they can take the place online conveniently, and Lenovo channel business department will give businesses corresponding rebates.

In fact, many managers from traditional enterprises can feel that although many "offline retail outlets" have not yet formed "Internet thinking", the experience of traditional industries is indispensable to the long-term development of e-commerce.

Important data of direct selling, brand building, product life cycle, sales cycle...

To make good use of these experiences from the real industry, online retailing is a real addition to traditional enterprises.

IT and supply chain

Based on the above steps, the Internet DNA has been grown in the traditional enterprises, and more importantly, the business needs more powerful IT system and supply chain throughout the whole process.

This is not just so straightforward about the "electronic" business.

First, under the mode of multi brand, multi-channel and various promotion methods of traditional enterprises, how to get through all links to make the electronic commerce system operate normally; secondly, e-commerce has put forward a higher supply chain requirement for enterprises, which not only includes logistics, but also includes the rapid response of various details such as the design and supply of network products.

Wu Xiaoxin told reporters that the IT system of top grade discount network is heavily built by enterprises. "Because the market is not suitable for us, we finally made great efforts to reform the system."

Obviously, self built IT system needs strong financial and manpower support for an enterprise.

Because of the particularity of the joint stock system in the department store, the top grade discount only carries on the "water flow deduction" for the brand, but does not grasp the data and information of any store product.

E-commerce has changed this pattern. Top grade discount has established its own unique IT system and management method -- single product management system.

Through opening up the database of various brands, docking with online data, selling goods online and offline, and real-time monitoring by handheld terminal PDA, the top quality discount business originally sprouted in Beijing rapidly expanded to the whole country.

Wu Xiaoxin, who was born in IT, obviously has enough technical advantages to do this. But in the view of more traditional enterprises, outsourcing services seem to be more cost-effective -- let professional people do professional things.

These years, the rise of e-commerce has rapidly promoted the development of the surrounding ecosystem. All third party service companies have come to "sell water to gold diggers": whether it is a holistic solution or IT, supply chain, logistics and other subdivision ports, more professional people have been offered services.

Hu Chenrong disclosed that BELLE's customized IT system from ShopEX will soon be launched, which is the second upgrade of BELLE e-commerce system.

It is said that this system, which can realize multi brand management, multi-channel delivery, multi promotion means and distribution system supervision, is customized for BELLE's whole network marketing strategy.

To solve the IT system, the higher ability lies in the upgrading of the supply chain.

For example, open up the IT platform and CRM (Customer Relationship Management) platform, combined with their background data, optimize the management of online members, and segment consumers and make accurate marketing.

According to reporter's understanding, many traditional enterprises with excellent e-commerce performance are moving towards the second stage.

There is no doubt that traditional enterprises are promising for e-commerce in the future.

But there is no perfect or standard model to do or not to do.

The best strategy for a traditional enterprise is to integrate resources with the Internet by means of brand strength, products and channels.

Only by combining these advantages and industry characteristics can traditional enterprises really "play" e-commerce.