Fan: Becoming The Winner Of E-Commerce

"Love"

The advertisement that Han Han endorsed for VANCL is now flooded with Beijing's subway or bus signs.

It is understood that all customers are currently with the major video advertising companies to contact the issue of advertising, Beijing, Shanghai, Guangzhou outdoor LED will also appear in recent years, a large number of fans of genuine products advertising.

This is 3 years ago, Lei Jun investment in "all sincerity".

Today's customers, like "extraordinary", have developed from less than 10 sales per day to more than 20 thousand sales per day, which is a nearly 300 times growth scale.

In the rapidly changing e-business sector, sales of companies with geometric growth may have become commonplace, but success or failure is often there.

However, Lei Jun's valued customers are not only built on the whole industry chain, but also China.

The gross profit of garment industry is not lower than that of software.

Lei Jun, who sold the excellent network to Amazon for 75 million US dollars, sold the excellent network as if he were a child selling a girl. Fortunately, he had the founder and partner of the outstanding network. It was also the old age. In the day of 2007, he saw another opportunity for e-commerce, which is the PPG website endorsed by Daniel Wu.

PPG has no stores and distributors, mainly through the network to sell men's shirts at medium price, and its biggest feature is that the brand of shirts is all PPG, instead of selling different brand products like Taobao mall or Jingdong mall. The former can be said to be a boutique, while the latter is a department store.

Weighing the pros and cons, Chen decided to learn the mode of PPG and copy a fan, which was approved by Lei Jun. He believed that "in the clothing industry, gross profit is absolutely no less than software."

At this time, Lei Jun saw the success of PPG besides seeing the development of the UNIQLO. This is a famous Japanese leisure brand. Its strategy is to provide fashionable casual clothes to consumers at low prices. With this, the excellent clothing store after the chain quickly defeated the entire middle and low class clothing in Japan, and the founding partner of UNIQLO became the richest Japanese after 5 years of establishment.

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Divided into promotion control cost

In fact, the registered capital of van sincere product is only a few million yuan. Although the company got millions of dollars in venture capital when it was founded, these funds could not afford to pay high TV advertising fees. At that time, the customers began to launch the advertising of the portals in order to make the market bigger quickly.

It is precisely because of this way of popularization that customers have better controlled the cost input and realized the demand of the market. This is the place where van PPG has put a lot of advertisements on TV commercials.

From that point of view, the sales that PPG really can form is only about 1/3 of the advertising cost. For a company, this is a big chasm. Once the control is not good, it will fail in an instant.

Unfortunately, PPG went bankrupt because of the chain break. Fortunately, the success of the company was successfully controlled by the proper cost control and experiential marketing, and the innovative connection between e-commerce and traditional retail business was successfully achieved.

Today, the daily sales volume is about 6000000 yuan, and the monthly sales volume can reach 200 million yuan. According to this speed, the sales volume of is 1 billion 500 million yuan.

At the end of last year, the Beijing Municipal Committee was shocked by the two years' business after being invited to visit everyone.

It is exactly the growth space that everyone expects to grow. Many venture capitalists have thrown "olive branches". With the help of Lei Jun, it took only 9 months for everyone to start to complete the third round of financing. On the day of its founding, IDG invested 2 million dollars. After 2 months, Softbank Sai Fu invested 2 million dollars, 8 to 9 months, and Qiming ventures invested tens of millions of dollars.

The winner of the garment B2C is the winner

Looking at the e-commerce sector in China, Jingdong mall has not lost its sales volume of nearly 4 billion yuan, and Dangdang has not realized large-scale profit in the past more than 10 years.

Amazon, the world's most famous e-commerce company, has been losing money for 8 years. It has been working on a large scale. Until 2003, Amazon began to make profits. In 2009, when Amazon's sales reached $25 billion, its profit was only 2%, or about 500 million dollars.

Nevertheless, Amazon is still regarded as the "originator" of global e-commerce enterprises.

For e-commerce enterprises, if they attach importance to profits, they are likely to limit investment. In this case, even if they get profits, they may lose market share.

In today's fast-growing market environment, many entrepreneurs in e-commerce will probably choose a loss of 1%, but the market share will reach 80%. Instead of choosing a gross margin of 10% or even higher, the market share is only 1%. In other words, most of them will prefer market share rather than profit.

Therefore, for those who are not yet making money, his investors and CEO are not worried. Lei Jun sees long-term value and not short-term profits. Only by expanding the scale and cultivating the market can we gain greater value.

Now, they have predicted that they will be able to make profits in the next one to two years, because the future marketing cost will be lower with the increase of the geometric number of the customer market share. If the marketing cost accounts for 30% of the total revenue this year, the marketing cost will be reduced to 15% with the market share doubled next year. According to this development speed, the marketing cost in the next year will be 7.5%.

According to the subdivision clothing industry of fan Kai Cheng, the development prospect in China is even more important. According to the upcoming quarterly monitoring data of China's online retail market in the first quarter of 2010, according to the upcoming Enfodesk think tank, the paction scale of China's online retail market in the first quarter of 2010 reached 95 billion 970 million yuan, a 18.7% increase in the ring.

An increase of 101.7% over the same period.

Among them, clothing and clothing sales volume reached 21 billion 500 million yuan, accounting for 22.4% of the market scale; 3C (communications, computers, digital consumer electronics three) accounted for 17.5%, publications accounted for 1.1%.

As a result, with the growing habit of users' online shopping habits, especially the increasing awareness of women's clothing online shopping, the clothing e-commerce B2C website is likely to become one of the fastest growing e-commerce subdivision categories.

Everyone is lucky to walk on this road, and defused Lei Jun's worry. "The e-commerce industry lacks a complete industrial chain. To succeed, we must have three conditions: first, high unit price, second high gross profit, and third high purchase."

Nowadays, customers are already building a complete e-business chain. From design to production, from products to logistics, all customers do things seemingly ordinary.

This is Lei fan's investment in all customers, just as it stands for the same meaning, "all customers, to provide them with sincere products."

Lei Jun believes that Louis Vuitton is not necessarily the best, and luxury goods are not necessarily fair prices. With the upgrading of consumption, customers can not only sweep away the goods, but also occupy a place in the middle and low clothing market in the future.

On the face of it, van guest is another masterpiece in the Internet era. In fact, it is the winner behind the huge space of consumption upgrading.

In the view of Lei Jun, everyone is not the next Alibaba [15.84 0.25%] or the next Taobao issue, but the pformation of e-commerce brought about by the upgrading of consumption.