In 2010, All Customers Were Determined To Be The First Billion Yuan Enterprises In Clothing Industry.

User experience is the key

China Securities Journal: the sales scale of Fan Cheng pin has reached 2 billion yuan in three years, while the sales volume of traditional clothing enterprises such as Shanshan stock and seven wolves is now around 2 billion yuan. What is the core competitiveness of the rapid development of customers?

Chen: three years ago, when we entered the clothing online shopping market, there were many objections around us. All of a sudden, we were stunned. We could only take the old Internet approach and put user experience first.

Over the past few years, we have launched a series of marketing strategies, such as reducing the amount of free shipping, and not satisfied with free replacement. This is based on user experience.

China Securities Daily: the product advertisement of every customer can see the proportion of marketing cost in every corner of the Internet. In addition, where does the profit come from the 29 yuan T-shirt and 59 yuan canvas shoes?

Old age: as

Low price is not the same as cheap, you buy 29 yuan T-shirt, we are actually losing money, but you may also need to buy pants, shirts, sweaters, at this time we will be profitable.

This is the same as our free exchange policy. Although the cost of customer return is very high, when you see our delivery staff sweating to pick up the clothes you want to return, many people will choose to buy it again, which is the marketing effect of user experience.

In addition, it is the scale advantage of the Internet.

Our 29 yuan T-shirt has sold 5 million pieces. Now we also join 3M company to invite Hollywood fashion designers to design winter clothes. This is unthinkable a year ago, but when we can sell 30 million clothes all year round, the scale advantage of the industrial chain is beginning to show.

Horse racing is more important.

China Securities Journal: the number of previous rounds of financing has exceeded 140 million US dollars. What is the current profit situation? Will this low price strategy be under the pressure of investors?

Old age: investors are more aware of our current market strategy, and now it is still the key to seize market share. It is not time to gain profits in financial terms.

The most difficult period for all customers was the fall of another clothing online shopping company PPG at the end of 2008, when we were under great pressure, but in 2009, with the rise of the domestic online shopping market, we soon got out of the predicament.

China Securities Journal: in recent years, the domestic online shopping enterprises are rapidly advancing. What time do you think the integration or shuffling of the industry will come?

Chen: Chinese e-commerce enterprises have entered the golden period of development since 2006. This is because they have already had sufficient market cultivation, and these companies have been doing nothing in recent years, and there are more than 100% growth every year.

Amazon is dominant in the US online shopping market, can it generate a single largest company in China? I think there will be a tough battle next year in China's online shopping market. Amazon is in urgent need of the Chinese market to grow to a scale of 1 billion dollars, which will compete fiercely with Jingdong mall.

But Internet companies in the US have rarely been successful in the Chinese market, and I expect Amazon to return.

China Securities Daily: when do you think the company will compete directly with traditional clothing enterprises and Taobao clothing stores?

Age: the registered customers of all customers are 10 million, while the number of Chinese online shoppers is 400 million. Our customers are only 1/40. This market space is very large. We still have a lot of things to do. Now we still have a lot of competition to do, and we will not face competition directly. There is no competition between us and some Taobao stores. I personally respect these Taobao stores, and they should produce excellent Chinese independent brands. But they are attached to Taobao. It is very difficult for them to develop in the future. We have no intention to compete with these online stores. Their biggest year is less than 100 million, and it is not easy for us to start from scratch.