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Can The Success Of Internet Shoe Store Zappos Be Duplicated?

2010/11/8 15:59:00 124

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Internet Shoe Store Zappos Venture Capital Pays Close Attention To Lok

In 2009, the United States Internet shoe store Zappos Amazon is acquiring $1 billion 200 million in cash plus stock. Over the same period, as with any overseas successful mode, the online shoe store model has become popular in China, but there are many losers. As the tide rises and falls, two online shoe stores survive and win. Venture capital concern The family is Good fun buy One family called letao 。

Zappos orders, the company is located in KY (Kentucky) warehouse at 3:42 am the next day sent to confirm the package has been sent to the mail, to 11:59 in the morning to receive the goods sent by UPS. It took 12 hours and 43 minutes before and after.

It is easy to see that Zappos is at all costs for word of mouth. And its logistics advantage is a "trump card" that can satisfy customers.

However, in China, such a successful mode seems quite difficult to replicate. For good luck and Lok Tak, logistics bottlenecks are the biggest problem now after they have harvested tens of millions of dollars in venture capital. Gan Qicui, President of IBM Business Value Research Institute, told reporters that the bottleneck in the development of e-commerce is logistics. Morgan Stanley analyst Ji Weidong told reporters that if you find a company that can solve the bottleneck problem of industrial development, it is a very good quality enterprise that is worth investing.

　　 Sprint and long distance running

The development of Le Tao net has been developing rapidly, and the development of good Lok emphasizes stability.

With the 100 years old brand and "China's first cloth shoes" in July 9th, 43 brands of shoes have been sold on Le Tao, with 3134 styles, and CEO, the 5000 of the year-end style. Good Lok is the 35 footwear brand with a style of more than 7000, and CEO Li Shubin is expected to achieve more than ten thousand next year.

Le Tao network has been developing rapidly. From last year's 10 million sales volume to 1000 daily sales date and 300 thousand yuan per day, Bi Sheng expects to reach 100 million yuan of e-commerce life and death line at the end of the year.

The latest round of financing of Le Tao network, which has been developing rapidly, has arrived on the night of June 4th this year. Its financing amount is more than ten million dollars, and the investor is the Tiger Fund and the American German capital. Tiger capital is also the largest investor in the Jingdong mall of 3C online mall, and also invested in B2C e-commerce businesses such as Dangdang and fan.

As for the rapid development of Le Tao net, Chen Xiaohong, general manager of Tiger Fund, said: "Yue Tao's footwear business has grown rapidly in less than a year, but the most important thing is that this growth is achieved almost without advertising. B2C is a field of long distance running. We believe that in pursuit of speed and scale, companies that are able to control input output ratio are more sustainable.

So Bi Sheng is also using more energy to adjust the pace of development and the internal process of sorting. Bisheng has recently enjoyed a weekend with his family. "Usually there is no weekend, not to negotiate with customers, but to have internal meetings."

After getting the investment, Bi Sheng repeatedly stressed that he would not advertise, he would invest in services and lay a good foundation.

But there is also good luck buying in front of Le Tao, but the rush rate is fast, and the gap between the two sides is shrinking.

"To do e-commerce is to invest one billion in ten years, and the harvest is very long." Li Shubin thinks e-commerce will be a long-distance race.

A good month ago, Li Shubin told reporters that the company was developing at a speed of more than 300% per year. Last year, its sales volume has reached 50 million yuan, and the expected sales volume this year is two hundred million yuan.

Good Le bought recently disclosed that the second round of financing has arrived. Li Shubin told reporters that the conversion of the financing quota to RMB must be a scale of 100 million yuan. When the first round of financing was good, it was the $10 million invested by Michael Moritz, a well-known investor of Sequoia Capital in 2009, so its second round of financing could reach tens of millions of dollars. Sequoia Capital is Zappos's investor.

At the beginning of Zappos, Michael Moritz invested $48 million in venture capital, and Amazon bought Zappos in November last year for about $1 billion 200 million (according to the closing price of Amazon). Over four years, the Sequoia Capital earned 248 million dollars. {page_break}

　 Logistics gap

In order to achieve the fastest delivery, Zappos directly stores warehouses near the airport of logistics company UPS, so many times customers can get shoes in second days. In fact, Zappos commitment time is three to four days. Consumers are generally surprised by this quick service.

As a result, Zappos has won a great reputation in the United States.

Zappos's success lies in pursuing customer satisfaction at all costs, and even for customer satisfaction. Customer service can personally deliver the goods to customers.

The most extreme service is that if the goods are out of stock and the customers are in a hurry, they will even introduce their customers to their competitors.

Before happy Lok and Le Tao, there were actually several websites trying to replicate the success of Zappos, but failed.

Bi Sheng and Li Shubin agreed on the logistics problems.

Bi Sheng complained to reporters: "my biggest headache is that China's logistics is about ten years behind the development of e-commerce."

Li Shubin also told reporters, "we must invest a lot of money in logistics".

Good Lok and Le Tao are replicating different stages of Zappos.

At different times, Zappos's business model faced different challenges. In the early days, Zappos did not keep any stock, but every ten orders would make a mistake. It was not a wrong product or a broken product. The consumers were very unhappy.

Later, Zappos adopted the whole inventory mode. There were millions of pairs of shoes in the warehouse, but the pressure of funds was very high. Zappos relied on a revolving credit of 100 million US dollars to purchase inventory. If it failed to meet the established monthly revenue and profit targets stipulated in the loan agreement, even if only a little bit less, the banks had the right to withdraw the loan, thus bringing cash flow crisis to Zappos and eventually bankrupting the company.

So Zappos later had to choose to sell it to Amason.

Li Shubin recalled that the first year of good Le business was in October 2007 and October ~2008. "Zero inventory was used like Zappos, but it was tortured, and the refund rate reached 40% because of the shortage or no supply."

In view of the situation in China, good Lok adopted the mode of warehousing by region, expanding warehouses in five places such as Beijing, Shanghai, Guangzhou, Fujian, Jiangxi, etc. the warehouse area in each area is 3000 square meters, and Beijing reaches 6000 square meters.

Yue Tao net expands its capacity in three places in Beijing, Shanghai and Guangzhou, and sets up new warehouses in Shenyang and Wuhan. The area will increase by five times and parallel warehouses will be set up. Bi Sheng said, "if the goods that consumers want are not available, the parallel warehouses across the country will be shipped."