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    Analysis Of The Reasons For The Failure Of E-Commerce In Traditional Clothing Enterprises

    2010/11/26 15:50:00 134

    Reasons For The Failure Of E-Commerce In Traditional Clothing Brand Enterprises

    2010 is

    Electronic Commerce

    In the booming year, AI research released the "2009~2010 China clothing online shopping Research Report" shows that clothing has become the first category of online shopping in China.

    Driven by VANCL, Taobao and other online shopping platforms,

    Traditional clothing brand enterprises

    Began to "touch the net".


    The following questions are: how to organize the e-business team and how to coordinate the impact of the online price system on the channel price system under the line? The cost of e-commerce is not low. How to invest in capital is the most economical way? How can we enter the e-business and so on? A series of problems have made the boss of traditional enterprises break the brains, which also makes the owners of traditional enterprises lack confidence, which inevitably leads to the failure of e-commerce.

    Cause of failure


    The road of e-commerce in traditional clothing enterprises is actually diversified.

    Traditional enterprises rely on their own mature system of design, production and sale. If they want to occupy a certain proportion in the field of e-commerce, there are many roads for us to choose.


    1, the pure e-commerce mode of private brand;


    2, brand new network direct selling mode;


    3, brand licensing mode of e-business;


    4, e-commerce mode of special (inventory) goods;


    5, the overall e-commerce mode of goods;


    With so many marketing modes, why do traditional businesses encounter walls in the field of e-commerce? According to my personal experience and understanding, I can summarize him as following three aspects:


    First of all, let's start with the enterprise itself:


    First, there is misunderstanding in the choice of e-commerce talents by traditional enterprises.


    Many bosses have thought about e-commerce, and even bosses who plan and act have always sighed and can't find professionals.

    In fact, it is not that talent is so scarce, but because our business personnel departments and bosses lack the knowledge of e-commerce, so we can only choose their talents in the selection process and do not want to hire senior talents with high salaries. We can only invite a person who once worked as a Taobao or Alibaba as the operator of the enterprise's e-commerce department.

    When the boss of an enterprise asks them to do it for one or two months, they find that their e-business fails to achieve the desired effect. They lose confidence or feel that e-commerce is cheating and changing frequently, resulting in a vicious circle. The boss thinks that the employees are not competent, and the employees think the boss does not know about e-commerce.


    Second, the lack of overall planning for e-commerce.


    Many traditional enterprises, including some well-known brands, will encounter many obstacles when expanding the network market. The reason is that most enterprises' understanding of e-commerce is limited to opening a Taobao store and putting a few things on it. They only regard it as a new sales channel or a channel to digest inventory.

    Such a business strategy competes with those who regard e-commerce as their lifeline, or the platform operators like Van customer's finished products, and lose to the starting line at the very beginning.


    The operation of electronic commerce needs to be brought into full play. Enterprises need to make a corresponding pformation from the overall strategy, team structure and process to the marketing and distribution platform. Enterprises must treat it as an ongoing industrial revolution that will account for thirty percent of the total domestic retail sales in the next 5~10 years, which will affect the comprehensive revolution of the national economy.


    Third, the self constraint of vested interests.


    The so-called vested interest is that when a certain industry achieves a certain degree, it will gradually turn from a revolutionist to a conservative.

    Traditional enterprises, especially those of traditional enterprises which are doing more successfully under the line, usually start from the point of view that they do not affect the existing interests and do not affect the existing dealer system.

    When e-commerce attacks your product sales, product prices and sales channels, it always has a "hate" attitude towards it. Then, in the process of revolution, enterprises will be in a state of revolution.


    Fourth, there is a lack of collaboration among all departments within the enterprise.


    Large scale enterprises, especially some large group companies, have many branches and departments. The collaboration between the newly established e-commerce departments and these branches and departments has become a big problem.


    When the enterprise develops to a certain stage, there will inevitably be some "big business diseases". Each department has its own affairs. Each department has its own interests. When the whole enterprise policy, manpower and financial resources are tilted to the e-commerce department, it will inevitably lead to imbalance among other departments. When there is conflict of interest between departments, it will become a big obstacle for the development of enterprises, especially when e-commerce is just beginning to develop. This phenomenon is particularly obvious.

    The reason why many large enterprises fail in doing e-commerce is that many other departments of the company only support the electronic commerce department, resulting in the final enterprises themselves defeating themselves, not because e-commerce is not suitable for them.

    To solve this problem, it is necessary for every department in the enterprise to realize that the support for e-commerce is not only supporting a new business, but also one of their responsibilities.


    Fifth, wrong direction.


    The wrong direction of force is a detour for many enterprises.

    Most enterprises believe that e-commerce is a very important strategy. They want to be the controller of e-commerce platform, and hold it firmly in their hands. They think that the mature e-commerce platform will feel controlled by others and not free, so they choose to invest tens of millions or even billions of money to build their own e-commerce website.

    But at present, no brand enterprise or manufacturing enterprise has made its e-commerce platform a very large sales website.

    A lot of people will think about the product of the customer, but the core of every customer is not a brand enterprise, but a platform operator. Its essence is similar to Dangdang and excellent network. What is done is not a product brand, but a platform. Its employees are very familiar with the professional talents.


    Every enterprise has its own core gene, which determines where the enterprise is the most professional. It is difficult to learn what others are good at.


    Since we recognize that this direction is wrong, we must make an adjustment.

    Professional people do professional things.

    The expertise of branding and manufacturers lies in manufacturing and brand building and marketing, rather than in the establishment and dissemination of marketing platforms.

    Professional platform building work should be handed to professional websites that are good at this area and do their best to succeed.

    {page_break}


    Secondly, the influence of external environment is mainly the resistance of product dealers.


    I believe that many brands have received such complaints, so the Internet is selling its own products. The price is very low, which makes us very passive.

    The traditional dealer's conflict is also a big problem facing the enterprise. This problem can be solved but will not disappear completely.

    It is unrealistic that there is no conflict between the online and offline industries. Revolution inevitably represents the loss of some people's interests. If these people lose interest, they can quickly pfer to new interest groups if they are flexible.


    The second is the influence of market environment.


    It is understood that the total retail sales in 2010 amounted to 480 billion yuan, accounting for less than three percent of the total retail sales in the country. In the future, this figure is likely to exceed thirty percent, and clothing has always been the top priority in a few years.


    The arrival of every industrial revolution is a watershed. It may cause a large number of new enterprises to rise up, and may also force a group of giants in traditional industries to withdraw from rivers and lakes.

    Three years ago, many people on Taobao didn't know or felt that it was just a jump market, but now there are several retail outlets developed by Taobao online, with annual sales of over 100 million yuan, with tens of millions of Yuan sold.


    Many years ago, people thought that clothes sold on the Internet could not be judged because they could not be tried.

    But in fact, on the contrary, the apparel industry belongs to the earliest and best developed industry in the field of e-commerce.

    Clothing shoes and hats have become the first category of online retailing, accounting for nearly thirty percent of the total.

    Among them, Taobao ranked first in shopping and retail websites, accounting for nearly eighty percent of the market share.


    The original online retailers were individual sellers, but by the time of 2007 and 2008, a large number of traditional clothing brands began to enter the Internet.

    Now the online retail market is far from being limited to individual sellers.

    For example, UNIQLO is one of the largest clothing companies in Japan. It has five offline stores in China, and in 2008, when its development was not very ideal, it reached a strategic cooperation with Taobao. Its sales volume reached 500 thousand yuan within ten days after the launch, which was equivalent to the total sales volume of two stores under the two lines, and its sales volume was over 100 million yuan in 2009.


    It will take at least more than 10 years to invest hundreds of millions of dollars to start a brand online, and it will take only two or three years to invest millions of dollars on the Internet to start a brand. This kind of cost advantage has made a group of network brands quickly play their own field in the Internet.

    Aka is one of them. It is an original design brand for women's wear on Taobao. As a personal development network operator, sales in 2009 exceeded 60 million yuan.

    There are several Internet brands that are similar to Taobao, and their common characteristics are to seize the consumer groups who pursue novelty, pursue uniqueness and pursue individuality in the network.

    Although these brands are not well-known online and hardly sell, they have developed rapidly through their unique design styles and the accuracy of buyers' psychology on the Internet.


    Thirdly, it is the core leaders of the group that influence the growth of e-commerce.


    First, lack of understanding.


    It is understood that many business leaders lack the understanding of e-commerce, that e-commerce is to open a Taobao store, money will come rolling, and even think that e-commerce is a zero cost project, such a view directly killed the traditional enterprise e-commerce project startup, doomed failure.


    Second, eager for quick success and instant benefit


    Traditional business owners often see TV business reports and friends around to see who is making money for Taobao. They also want to try it, but they also think that e-commerce is too easy.

    They do not understand that others eat meat today because they have been eating grass for several years.


    Many enterprises fail to make profits in the first year of entrepreneurship. E-commerce, as a company's two venture, wants to make profits at the very beginning. It is also unrealistic to shift from a profit seeking mentality to a strategic loss mentality, giving itself at least a year of strategic loss, and putting enough advertising, promotion and product activities fees into this period to create the first wave of its brand in the market.

    At this time, the focus of business should be user browsing and attention. Sales volume is not a key point. Only after experiencing such a stage will there be a good foundation for development in the next second, third years.

    After waiting for maturity, it is necessary to strive to increase sales, and then focus on building brand reputation and influence in the network.

    The development focus of each stage is different, and the profit seeking attitude at the beginning is the most undesirable and the biggest problem leading to failure.


    Third, pride goes before a fall.


    When we interview e-commerce or operators in a traditional enterprise, we often hear a saying by our boss: "our quality is the best, our agents all over the country, we will give you a good development platform... The boss's excessive pride is the inevitable result of the failure of network marketing, so we should correctly understand and treat e-business.


    Through the above analysis, we can see that many problems faced by traditional clothing enterprises in the development of e-commerce are not technical problems, but in the sense of consciousness, in the mode of operation of enterprises and on the enterprises, these are the core problems that restrict the development of e-commerce. This shows that many enterprises have not yet adjusted their mindset awareness.

    The e-commerce project of traditional clothing enterprises is not only a sales channel, nor is it a flexible promotion platform. It brings us a new business civilization. Whether you can occupy a major role in the new business civilization depends on the importance and action of electronic commerce.

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