Price War Has Become The Whole E-Commerce?

What is e-commerce and how can it really be successful? Traditional clothing companies always like to ask such questions to successful e-commerce enterprises, but the answers are different because of their different situations.

Price and location

The world is always advancing and the business never stops.

The same is true of e-commerce. Although PPG finally bid farewell to the stage, the myth they created inspired the latecomers.

With the disillusionment of PPG myth, the VANCL following PPG has suddenly become a leader in e-commerce.

VANCL founder Chen said that PPG - PPG told us that men's shirts are likely to succeed in electronic commerce. They are the pioneers of clothing e-commerce, and they have been so close to success. It seems that only half a step away from success, PPG is very bad, but the contribution of PPG to the garment industry is unwiped.

VANCL is in

The price played a key role in the success of PPG, but it was also the fuse leading to the failure of PPG finally. How did VANCL take the same position with PPG to see the double-edged sword of price?

"Price is still the most important factor in e-commerce."

When interviewed Ke Linli, senior vice president of VANCL, the senior VANCL who started business with Chen said so.

Since its establishment in 2007, VANCL, like PPG, has entered the market at low price and the mass consumption route. In just 3 years, it has become one of the top brands of clothing e-commerce in the market share.

In the eyes of these distinguished elders (the VANCL founder team is mostly from excellence), e-commerce is the core of the company, and clothing is just what they choose to use in e-commerce.

Therefore, they use the e-commerce marketing skills to be perfect, and because of this, they quit the clothing e-commerce stage after PPG, quickly replaced the position of PPG, came back from behind to become the leading brand of China's clothing e-commerce.

"Of course, not the cheaper, the better, but also the quality, the sense of fashion and the sense of design.

Good price performance is the key to occupy the market.

When it comes to the relationship between price and market, Ke Linli said so.

VANCL drew on the experience of PPG and seized the essence of clothing, that is quality.

VANCL all products will cooperate with reputable suppliers to ensure the quality of products and quickly solve customer complaints.

Low price and good quality have become an important reason for VANCL's popularity.

Another clothing e-commerce.

When it comes to price, Sun Hong said, "the Internet can also sell high-end products.

Of course, compared with offline stores, the price of online sales is still much cheaper.

But it does not mean that e-commerce brand is simply selling, we have been pursuing a brand style of their own, but also insist on their brand positioning.

Facts show that clothing e-commerce is not only able to sell low-priced goods, but also has its own market space like high priced and good quality products.

However, Sun Hong also stressed that MASAMASO is still the location of mass consumer goods rather than luxury goods.

He believes that the timetable for the sale of luxury goods by electronic commerce has not yet arrived. Although MASAMASO can achieve the same quality products as sales and luxury goods, it can not bring more three-dimensional sensory experience to luxury consumers, resulting in high added value.

The sale of e-commerce is flat. It sells products only through the web pages of the brand. It brings visual pleasure on the web.

The sale of luxury goods from the space decoration atmosphere, to the taste of the store, and then to the service sense of product shopping, and try to wear a happy mood......

To consumers is the "sea, land and air" full range of experience, this experience can not be achieved in e-commerce, so e-commerce sales of luxury goods still have many problems to be solved.

Price and consumer groups

In VANCL and MASAMASO's survey of their consumers, MASAMASO consumers are 70% years old at the age of 25~40, 67% of the consumer group is 5000~7000 yuan, and some are between 7000~1000 yuan.

MASAMASO's product price is not high for this consumer group.

The age of VANCL menswear main consumer group is the same as that of MASAMASO. It is also a good customer of 25~40 years old, and the age group of women's wear is 20~30 years old.

Although the consumer of accessories shoes is also 20~30 years old, there is a trend of decreasing age, even more than 10 year old consumers.

Analysis of the main consumers of these two enterprises can be known as "after 70" and "after 80", and slowly to the "post-90s" development.

This is the consumer of e-commerce.

After 70, the consumption concept is relatively traditional. "After 70" is basically a family of many children. When young, toys were made by hand.

This generation, from small to large, is used in school bags.

After getting married, everything is considered cost-effective, so high quality and relatively low price are the criteria of their shopping.

The "post-80s" are basically the only child, two employee families. This generation of consumers likes to try new products, and impulse buying more easily than any other generation.

The temptation of electronic commerce to this generation is unprecedented.

This crowd is the main force in the current network sales.

In addition, with the "80's" playing a more and more important role in the society, the consumption view of this group will also be more far-reaching.

Most of the post-90s are still in the school learning stage, and consumption is dependent on their parents' support, but this is undoubtedly the most powerful consumer pillar for e-commerce in the future.

"Post-90s" pay more attention to personalization, because this generation has a more publicized personality.

They are very interested in products with unique appearance, and are more willing to spend money. They have very few concerns. Once a thing is approved, they will do it.

Once he sees a product, he will buy it, just when to buy it and where to buy it.

Therefore, once the crowd enters the mainstream consumer group, it will have unlimited potential for consumption.

For the consumer group of e-commerce, how much price factors play a role? MASAMASO and VANCL have consistency and differences.

Sun Hong said: "with the maturity of the e-commerce market, the consumption concept of consumers will gradually mature.

The price of e-commerce will gradually increase. This is the trend.

This way of low price competition will gradually withdraw from the mainstream consumption mode instead of products with better quality and higher cost performance.

However, he also acknowledged that the low price is still an important factor in Internet consumption, but high price and low price are relative to the value of the commodity itself in some ways, rather than the absolute low price.

"It is precisely for this reason that MASAMASO will achieve today's success."

Ke Linli said: "network sales, price is the first place, the second is quality, fashion, design.

China's market has always been different from foreign markets, and so is the network marketing market.

Many foreign Internet sales brands have traditional brands and start selling online after many years. Reputation has accumulated for a long time, so consumers will accept the price of brands.

China's online marketing brand still needs time to accumulate in credibility, so low price is still the best way to attract customers.

She admits that Chinese netizens do not care about the price of Internet products, and it will take a long time.

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Price and marketing

"Internet is not a mode, but a market," Chen said.

As the older generation gradually withdraw from the main consumer market, as the new generation of the Internet grows more and more inseparable from the Internet, the market will become bigger and bigger.

In the Internet market, there is a market rule for survival and development. This is completely different from the traditional game rules of clothing market. If the traditional clothing industry wants to enter the Internet, it must follow the market rule to succeed.

At the beginning of the year, the key to e-commerce marketing was to put the store on the Internet, that is, online marketing, and VANCL was also a great success.

But in 2010, VANCL began to try the traditional marketing methods, please speak for the body and bus advertising.

Wang Luodan, a movie star, and Han Han, the representative of the 1980s, become their product spokesmen.

"We try to use the marketing method of traditional clothing enterprises in order to expand brand awareness.

And this marketing strategy is now very successful.

We find that not only brand awareness has been improved, but also our advertising creativity has spread very well on the Internet.

This is very much related to the product positioning that we have asked the spokesperson to be very consistent with.

Ke Linli said.

Recently, there is a new term in Baidu Encyclopedia: any object.

It is interpreted as the style of VANCL advertising copy, which is intended to banter the mainstream culture and highlight the brand's personality image.

However, its alternative method has also attracted many netizens to watch. A lot of spoof objects have appeared on the Internet, and the spokesmen have been turned into Xiao Shenyang, Feng Jie, Guo Degang, Edison Chan and other topics.

Its advertising words are ridiculous, making people laugh, and spoof by netizens as "annoying objects".

This network phenomenon makes VANCL very happy. The success of traditional marketing means on the Internet has made VANCL not only win the attention of traditional consumers, but also attract the attention of the Internet users, so that VANCL can pay a cost and win the two channels.

The promotion and marketing of E-business on the Internet is one of the experiences gained by PPG in failure, and it is also the consensus reached by e-commerce enterprises.

Internet marketing has undoubtedly made the success of e-commerce enterprises, and this success is supported by data and can be counted. But this marketing mode also increases the cost of marketing.

"Because resources are limited, the improvement of marketing costs is hard to avoid."

Ke Linli said so.

E-commerce can not effectively save costs, and the best internet marketing providers may not be able to provide the highest cost performance return for enterprises.

Because many factors need to be taken into consideration, the first step in the success of e-commerce is to have a sense and sense of self.

The so-called bosom friend is to understand the objective reality of their enterprises, products for the crowd, scale, development strategy, budget, etc., and then accurately analyze the location of various network media resources, user behavior and input costs.

The so-called know each other is to understand the relevant information and related strategies of the industry competitors, and learn everything that can be learned.

The price of PPG is also bad.

"We must be pioneers instead of martyrs."

This is the classic quotation of the founder of an e-commerce brand.

But we always follow the martyrs' footsteps. They lead the way, and they avoid our mistakes.

Clothing e-commerce began to attract much attention in 2007, when PPG broke into people's eyes for a short time. Low price competition is the killer of PPG for short time.

In order to reduce the competitive cost, PPG integrated the direct selling experience of e-commerce in other industries, and handed the production of shirts to the OEM enterprises, while logistics and distribution, quality inspection and other links were all outsourced. PPG only retained the functions of design, quality supervision and direct selling.

When docking with consumers, PPG sends mail to the website and to consumers. Consumers get product information through catalogues and pictures with product names, and order clothes through the Internet or call center.

Because there is no factory, PPG saves more than 20% of the fixed assets investment in factories and warehouses than the traditional clothing enterprises. On the other hand, because there is no terminal store, PPG has saved about 20% of the channel investment, and the outsourcing of logistics has reduced the cost by about 20% compared to the traditional enterprises.

As a whole, a shirt of the same quality will save nearly 60% of the operating capital than PPG of the same brand.

With this advantage, PPG did not hesitate to take a low price competition strategy, positioning the shirt price between 99~150 yuan, and the prevailing price of the mainstream men's shirt at that time was between 200~300 yuan.

Then with the help of advertising, in 2007, 1~3 months, PPG continuously created 15 thousand miracles of monthly sales, which exceeded the average daily sales of YOUNGOR shirts in the clothing enterprises by 13 thousand.

This is a myth.

But the myth quickly disappeared.

Because of the price war, there is no time to take care of the quality, and PPG's long-term default on the manufacturer's money has led to a decrease in the enthusiasm of the suppliers and a sharp decline in the quality of the products. Many consumers have shown that the size of the clothes is not correct, the smell of formaldehyde is serious and the shrinkage is fading.

At the beginning of October 2007, PPG received complaints from consumers continuously. The tired PPG did not respond. Complaints were rendered to the Internet and then spread to traditional media.

At the same time, PPG was quickly dragged to the "lawsuit gate" because the cooperative advertising company that had not received the PPG reimbursement for advertising for a long time suddenly started the legal proceedings.

Consumer complaints caused PPG's dissatisfaction with upstream suppliers. PPG decided to restrict its funds and refused to pay suppliers' debts.

The confrontation between the two sides caused the chain reaction of suppliers. The 7 suppliers of cooperation boycotted PPG and demanded cash in cash.

Because PPG can not meet the supplier's requirements, resulting in greater supplier's conflict. Frequent quality problems can not be solved. The production that can be completed in 24 hours will not be completed in a week.

PPG, which increasingly loses control over upstream suppliers, has to consider changing its original processing mode.

In December 2007, PPG decided to raise funds for the expansion of a 8000 square meter plant, hoping to get support from venture capitalists. However, venture capital believes that PPG has lost the trust of consumers, and its competitors have grown up, and PPG's advantages are no longer there, so abandoning its support.

In the wake of huge capital outbreaks, PPG's overwhelming advertising was forced to stop.

In April 2008, PPG restricted the amount of money because of the high advertising expenses, and the problem of capital withdrawal occurred, and the investment limit reached with venture capital has arrived. PPG actually lost 150 million yuan in real terms.

This led to a large number of suppliers worried that the debts owed by PPG could not be repaid, but also increased the collective panic of the suppliers. The orders were postponed, and the courier companies saw the shipment and the order of consumers began to become remote.

In 2009, consumers could not receive goods ordered from PPG, and became a "common occurrence".

After this series of events, PPG, once the pioneer of clothing e-commerce, completely called the curtain and failed to bid farewell to the clothing e-commerce stage.

The next big space, the market can not be stopped.

Only a career with a bright future will attract the attention of entrepreneurs and entrepreneurs.

Clothing e-commerce is undoubtedly such a cause, it not only has more and more growth space, more and more consumer groups, and more and more mature market......

According to statistics, in the second quarter of 2010, the scale of China's online shopping market continued to grow rapidly, reaching 111 billion 230 million yuan, an increase of 97.5% over the same period last year.

As the largest category of online shopping pactions, online shopping users continue to boom.

In 2009, the size of China's apparel online shopping users will exceed 80 million, accounting for more than 70% of online shopping users. It is expected that the proportion will exceed 80% by 2011.

Clothing e-commerce started in 2007 and has become the largest commodity category in online shopping pactions.

In addition to a handful of well-known clothing e-commerce enterprises, there are thousands of small and medium-sized e-commerce platforms in the market.

In particular, it is difficult to break down to a certain category of commodities, such as men's shirts, homogenized platforms and products, and want to stand out in many enterprises.

The competition in the single market of clothing e-commerce is relatively dispersed.

Among them, women's wear market competition is the most dispersed, and there are few enterprises with obvious competitive advantages.

And women's clothing can be further subdivided, such as underwear, underwear B2C although many, but at present mostly in the early stage of market promotion, mostly rely on funds to shop scale, has not yet formed a stable core competitive advantage.

In comparison, there are at least a few fast-growing businesses in the men's wear market, but the men's wear market can also be subdivided into more areas, such as making shirts and tailored suits.

Generally speaking, the market space of clothing e-commerce is large enough, and it has reserved much room for development for many new entrants.

The speed of survival of the fittest is accelerating in the apparel e-commerce industry.

In the market, there are always old obsolete enterprises and new enterprises, especially in 2010.

At the beginning of the year, the clothing e-commerce enterprises that had been on the offensive had disappeared in the middle of the year.

When it comes to whether there will be another large-scale e-commerce enterprise, Ke Linli said: "the market of clothing net sales is large enough, which should provide room for development for the latecomers.

And in attracting VC, e-commerce companies are not the only ones who can attract the attention of venture capitalists.

Therefore, there will be clothing e-commerce enterprises on the scale in the future.

With huge market space and increasing user volume, garment e-commerce is undoubtedly a new growth point in the apparel industry. I believe there will be more new clothing e-commerce enterprises in the future, and competition will continue to intensify.

Related links

Analysis of electronic commerce

E-business (e-comerce, e-trade), from the literal meaning of English, is the use of advanced electronic technology in various business activities.

The essence of E - commerce should be a complete set of network business operation and management information system.

More specifically, it uses existing computer hardware, software and network infrastructure to conduct various business activities through an electronic network environment connected by certain protocols.

This is a relatively strict definition. It is common to say that e-commerce generally refers to a way of using the Internet to conduct business activities, such as online marketing, online customer service, online advertising and online surveys.

Electronic commerce first appeared in the 60s of last century.

In the 90s of last century, computers were widely used. In the past 30 years, the processing speed of computers has been faster and faster, the processing capacity is stronger and stronger, the price is lower and the application is more and more extensive. This provides the foundation for the application of e-commerce.

The popularity and maturity of the Internet is also one of the conditions. As INTERNET has gradually become the global communication and trading media, the global Internet users show a series of growth trend. The characteristics of fast, safe and low cost provide the application conditions for the development of e-commerce.

The popularization and application of credit cards accelerated the development of e-commerce.

Credit card has become an important means of consumption payment for its advantages of convenience, shortcut and safety, and has formed a perfect global credit card computer network payment and settlement system, making it possible to "one card in hand and travel all over the world", and also an important means for online payment in e-commerce.

In May 31, 1997, the SET (SecureElectronicTransferProtocol) jointly designated by VISA and Mastercard international organization, the electronic security paction protocol, was approved and supported by most manufacturers, providing a key security environment for developing e-commerce on the Internet.

Since the European Union issued the electronic commerce agreement in 1997 and the US subsequently released the "outline of global e-commerce", e-commerce has received the attention of governments around the world, and many governments have begun to try "online procurement", which has provided favorable support for the development of e-commerce.

In 90s, China began to launch the e-commerce application of EDI. In September 1991, the office of the electronic information system promotion and Application Office of the State Council took the lead in coordinating with the State Planning Commission, the science and Technology Commission, the Ministry of foreign trade and economic cooperation, the Ministry of internal trade, the Ministry of communications, the Ministry of Posts and telecommunications, the Ministry of electronics, and other eight ministries and bureaus, and launched the "China coordination group for promoting EDI application". In October the same year, the "China EDIFACT committee" was established and participated in the EDIFACT Council of Asia.

In 1995, China's Internet began to commercialize.

In March 1998, China's first Internet Internet paction was successful.

Since 2000, e-commerce has gradually taken B2B as the main body.

E-commerce service providers are moving from the illusory and venture capital market to the real market, and combine with traditional business enterprises. At the same time, there are some more successful and profitable e-commerce applications.

Only a career with a bright future will attract the attention of entrepreneurs and entrepreneurs.

Clothing e-commerce is undoubtedly such a cause, it not only has more and more growth space, more and more consumer groups, and more and more mature market......

According to statistics, in the second quarter of 2010, the scale of China's online shopping market continued to grow rapidly, reaching 111 billion 230 million yuan, an increase of 97.5% over the same period last year.

As the largest category of online shopping pactions, online shopping users continue to boom.

In 2009, the size of China's apparel online shopping users will exceed 80 million, accounting for more than 70% of online shopping users. It is expected that the proportion will exceed 80% by 2011.

Clothing e-commerce started in 2007 and has become the largest commodity category in online shopping pactions.

In addition to a handful of well-known clothing e-commerce enterprises, there are thousands of small and medium-sized e-commerce platforms in the market.

In particular, it is difficult to break down to a certain category of commodities, such as men's shirts, homogenized platforms and products, and want to stand out in many enterprises.

The competition in the single market of clothing e-commerce is relatively dispersed.

Among them, women's wear market competition is the most dispersed, and there are few enterprises with obvious competitive advantages.

And women's clothing can be further subdivided, such as underwear, underwear B2C although many, but at present mostly in the early stage of market promotion, mostly rely on funds to shop scale, has not yet formed a stable core competitive advantage.

In comparison, there are at least a few fast-growing businesses in the men's wear market, but the men's wear market can also be subdivided into more areas, such as making shirts and tailored suits.

Generally speaking, the market space of clothing e-commerce is large enough, and it has reserved much room for development for many new entrants.

The speed of survival of the fittest is accelerating in the apparel e-commerce industry.

In the market, there are always old obsolete enterprises and new enterprises, especially in 2010.

At the beginning of the year, the clothing e-commerce enterprises that had been on the offensive had disappeared in the middle of the year.

When it comes to whether there will be another large-scale e-commerce enterprise, Ke Linli said: "the market of clothing net sales is large enough, which should provide room for development for the latecomers.

And in attracting VC, e-commerce companies are not the only ones who can attract the attention of venture capitalists.

Therefore, there will be clothing e-commerce enterprises on the scale in the future.

Editor's comment: huge market space and increasing user volume, clothing e-commerce is undoubtedly a new growth point in the apparel industry. I believe there will be more new clothing e-commerce enterprises in the future, and competition will continue to intensify.