Shoe Companies Rush To Occupy B2C Platform

Recently, the world's largest online shoe city, the United States.

China's footwear industry is facing an important turning point: bottlenecks in traditional channel expansion, while the online shopping market is in a stage of explosive growth.

According to the latest statistics, Internet sales have become the third largest selling platform for shoes industry after shopping malls and stores.

Online direct selling has become an important way for some shoe companies to break through the terminal.

Traditional channels to break the bottleneck of development

Jiang Yu, general manager of PEAK shoe e-commerce, told reporters that for the shoe companies, the traditional shopping arcade channels did encounter the ceiling.

The cost of store rental and labor cost are getting higher and higher, and the enclosure of the channel has basically ended. It is hard to leave more opportunities for the later.

Whether in Tianhe City, Wangfujing or just square, consumers will find a common phenomenon: the first floor of these shopping malls, that is, the golden section of shopping malls, is basically occupied by shoes, clothing and cosmetics.

"The rental of these golden lots is all small and small. The amount of money that consumers pay is very large for paying rent."

Xie Yuanyou, chief financial officer of a second-line brand footwear company, told reporters that "golden berths in prime locations are all taken by high priced brands.

Through high pricing, we can pfer high rent to consumers.

Second tier brands are hard to sustain this high cost.

According to the reporter's investigation, another traditional channel, the exclusive store, has been basically saturated in a second tier city, and has only opened up to three or four tier cities. However, the three or four tier market has opened stores and is facing the problem of profitability of single stores.

"For shoe companies, the single store profitability of stores and the coverage of customers in business circles are not enough."

Hu Chenrong, director of e-commerce of BELLE footwear industry, told reporters that the channel resources of large shopping malls have been almost exhausted after more than ten years of contention for first-line brands, and it is very difficult for franchised stores to take the responsibility of making profits. No matter for first-line brands, or for those two or three line brands or from exports to domestic brands (from O E M to private brands), it is difficult to find a big breakthrough in expanding traditional channels.

{page_break}

Shoe giant's impulse to touch the net

Compared with the narrow and narrow channels, the performance of Internet channels is more and more exciting for shoe manufacturers.

Statistics show that in recent years, the growth rate of e-commerce market in China is more than 100% per year.

In 2009, 7 of the 130 million Internet users were buying shoes and clothing products, accounting for about 1/4 of online shopping.

It is expected that in 2010, the e-commerce industry will enter a period of explosive growth.

The reporter understands, before this, traditional shoe tycoon is not optimistic to network sale, worry that the network can cause impact to its price system.

But with the rapid growth of the market, the attitude of these giants to Internet sales has changed.

Whether the international giants Adidas, Nike, or domestic bigwigs BELLE, AOKANG, Daphne, 361 degrees, PEAK and so on, have chosen Internet marketing.

Many two or three line brands and enterprises turning from OEM to their own brands also choose the Internet as a breakthrough for channels.

Jiang Yu pointed out: "the low cost and wide coverage of the Internet have provided space for these shoe companies.

Many three or four level markets, which are covered by traditional channels, need a lot of investment and profitability will surely not keep up.

And through the network, these problems can be solved.

On Taobao, many shoe companies can make 2~3 billion a year, and their days are full of flavour.

In the traditional market, such shoe enterprises simply do not have room for existence.

Another reason for the shoe giants to hit the net is that the Internet is full of fake goods and imitated goods, which has caused great damage to the famous brands.

In order to safeguard their own interests, the shoe giants also had to touch the net.

Even after 6~7 years of resistance, Nike joined the Zappos camp recently.

The shoe industry touches the net, generally has two kinds of methods, one is uses the present B2C electronic commerce platform to set up the on-line shopping mall, like Lining, Anta, BELLE and so on shoes and clothing enterprise enters Taobao, Le Tao and so on platform, the on-line sales achievement goes all the way up; another kind is the self built network platform, like 361 degrees, PEAK, Daphne and so on, besides the on-line sale, also strengthens the interaction with the consumer through the network platform, spreads the brand better.

{page_break}

Resource battle for B2C platform

"For the shoe industry, the B2C platform must be the mainstream direction of e-commerce. Now the major shoe companies are grabbing resources on the B2C platform for layout."

Jiang Yu, general manager of PEAK shoe e-commerce, said.

In Jiang Yu's view, due to the cost pressure and resource depletion of traditional channels, more and more shoe companies are taking e-commerce as a breakthrough in the incremental market.

However, Jiang Yu also reminded that footwear companies had better not do their own e-commerce, but to cooperate with the B2C platform.

"The cost of attracting customers is too high, but the sales volume is limited, and the profit is almost none."

Yue Tao online shoe city has changed from selling toys to selling shoes for less than two years, but in the first 8 months of this year, sales have already been over 100 million.

"The rapid development of E-commerce makes the shoe industry need the B2C platform such as Le Tao.

The sales model of Le Tao in China has included the top 50 brand shoes in the Chinese market.

Every user who buys shoes online can find shoes that meet his requirements on the shoe city of Le Tao.

Chen Hu, vice president of Le Tao online shoe city, told reporters that "Yue Tao's turnover can achieve 100% growth every month."

Chen Hu pointed out that compared to the online store, the advantage of the B2C platform is obvious, that is popularity and word of mouth.

"Le Tao has invested a lot of money and time to cultivate consumer groups, has accumulated considerable customer resources and reputation.

To build a website for a single enterprise needs a slight climate. At least, it needs to invest tens of millions of yuan, which is very difficult for shoe companies.

Even though some first-line brands have a lot of money, burning money does not necessarily bring customers.

The best way is to do what you are good at.

Reporters from a number of two or three line shoe enterprises understand that these enterprises also regard the B2C platform as the key to market breakout.

The rental of traditional shops in golden shops can do many things on the B2C platform.

Our strategy is to grab the site on the B2C platform and then consider intensive farming.

We have built our own shop on Taobao mall, and are currently working with the eldest brother in the industry.

We are optimistic about B2C's business model.

Xie Yuanyou, chief financial officer of a shoe company interviewed by reporters, told reporters.

Chen Hu also revealed that on the basis of the cooperation with the front-line brands in the early stage, Le Tao will increase its cooperation with the two or three line brand in the near future and provide consumers with more cost-effective choices.