The Way Of E-Business In Garment Industry

"In one year and eight months, the trust of users increased to thousands of times." In August 22, 2009, VANCL, a clothing online shopping company, said CEO at the ninth annual meeting of Chinese enterprises in the future. In the tone of the old age, you can hear a lot of pride, which stems from VANCL's impressive growth performance.

In the past two years, some of the VANCL represented are not physical stores, pure. Internet sales Of Clothing brand The new fashion brands, which are beautiful, fashionable and of high quality, were quickly accepted by the market, especially the young people who are keen on Internet consumption.

In addition to the new brand, some traditional clothing brands have begun to set foot in it. E-commerce marketing Many famous clothing brands such as AOKANG, Lining, and so on have already launched online sales, and their performance is gratifying.

The clothing brand carries out the electronic commerce marketing, is advantageous to the clothing enterprise further develops the market, saves in the storefront, the personnel and so on cost, but for the obvious difference, the consumer difference big clothing industry, how solves the network sale to cause the distribution limitation, the replacement, the after sale service aspect and so on questions, also placed in front of these enterprises.

　 New brand and new mode

Will the e-commerce sales pattern of clothing industry be favored by clothing enterprises? If two years ago, the answer is still unknown, and now it seems that this question is "a bit of a question".

Up to now, a large number of clothing brand manufacturers have launched the network service, hoping to borrow the new business mode of Internet, and promote their leaping development. What is even more surprising is the fact that some of the clothing brands that have been subverting traditional physical outlets and selling purely online have springing up in just a few years.

Opening up the major portals, the advertisements of new clothing brands such as VANCL, Euro leno, Ramsay and Isabel are all over the world. All of these brands sell products with pure e-business mode, and the products are various, and styles and colors are not inferior to traditional brands.

Despite the fact that these clothing brands have been sold through e-commerce mode, margins have not yet been fully reflected, but the rapid increase in their sales is still coveted by competitors. More insiders say: "in the future, if you do not participate in e-commerce, you will be eliminated by the market."

"At present, the proportion of clothing online shopping in clothing retail accounts for about 6% of the total." In an interview with reporters, AI said Zhang Yanping, an e-commerce analyst.

Ai Rui net released an analysis report on the e-commerce of clothing industry last year, which has not yet counted part of B2B. Compared with the share of online shopping in other industries, this data is already relatively high, because at that time, the total volume of online shopping in social retail sales accounted for only a little more than 1%.

Compared with the sales channels of traditional physical stores, online shopping clothing brands have saved much of the cost of rent, water and electricity, personnel and so on. Their low price, convenience and large amount of information do give the competitors a lot of pressure. According to the data provided by VANCL website, the sales volume of 20 thousand orders per day has only been achieved for more than a year on line. No wonder VANCL's CEO age can be so strong.

The clothing industry has entered a new mode of profit distribution, which has opened up a new profit channel for itself. While maintaining the traditional market, it has further opened up the increasingly large market of fashion groups who are keen on online shopping.

According to the Research Report of AI consulting on clothing e-commerce, with the rapid growth of the proportion of online marketing of apparel e-commerce, China's clothing e-commerce market has great potential to be excavated. Especially under the pressure of the global economic environment, e-commerce has become a good way for traditional enterprises including garment enterprises to break through and solve the crisis.

　　 A new way out for the clothing industry?

Although the production capacity of Chinese clothing ranks first in the world in terms of output alone, only about 10% of the real brands are in the market, and the rest are unlicensed, counterfeiting or subcontracting enterprises. There is no brand in the whole industry that can occupy a place in the international market.

With the continuous financial crisis, the domestic consumer goods market has shrunk, and some traditional clothing brand sales have begun to drop sharply. Many garment enterprises are in a state of loss, and the discount of clothing brands has been prevailing. According to the relevant data, the profit margin of the apparel industry has dropped from 1.48% in 2007 to 0.1% in 2008.

"E-commerce is relatively popular in the Internet economy. With the further development of online shopping, all kinds of consumer goods manufacturing enterprises pay more and more attention to the network channel." Zhang Yanping, an e-commerce analyst, told reporters.

Network sales is a new channel in the future sales channels, which is much lower than the traditional channel, and the efficiency is even higher. And the group that this channel faces may be a wave of people, that is to say, the value of this channel will be higher and higher.

"Of course, not all clothing brands use online shopping, like some women's clothing brands, because customers are more differentiated and more difficult to standardize production, which is inappropriate for online shop sales." Zhang Yanping said.

At present, online shopping clothing products are mostly standardized products, mainly men's clothing. As a B2C product, men's clothing is relatively standard in terms of styles, models and so on. But in some differentiated markets, offline stores and online stores are facing different user groups.

Zhang Yanping believes that, as a whole, the online shopping clothing brand has not entered a period of pure competition. More people need to jointly expand the market. Different brands may have different audiences. For example, the high-end business people, or young people, or middle and old age, etc., each location has different styles and styles, and there will be a fixed user group. {page_break}

　 Problems and challenges

"Buying clothes from the shop is cheaper and the style is richer, but there are still many concerns." Online shopping clothing consumers Miss Chen expressed concern to reporters. Miss Chen is the head of a private enterprise in Beijing. Because she is usually busy at work and has little time to shop, she often buys clothes or daily articles from some online stores.

Miss Chen said that the biggest experience of her online shopping dress is that her style is rich. No clothing store can display any more clothing styles than a website. But the shortcoming is that sometimes the clothes that are sent by mail will be different from the ones seen on the website in terms of color and wearing effect.

"It's very troublesome to return the goods online, so you have to run to the post office to send your clothes back, and then wait for them to send the replacement clothes, which is often very long." Miss Chen told reporters.

Zhang Yanping, an e-commerce analyst at IREI, also pointed out the disadvantage of online shopping. She said that online shopping is indeed a key constraint factor in logistics, distribution and replacement services. Unlike the physical store, online shopping clothes can not be tried on the spot, but can not be paid on the spot. They can only wait for the logistics distribution to reach their comfort level.

"But now many online shopping brands are also trying to solve these problems. For example, some online shopping providers have launched the" open trial service ", and the clothing they distribute can be tried first, and the dissatisfaction can be returned directly by the logistics personnel, which is also a solution. Zhang Yanping said, but this way of logistics distribution network requirements too high, for B2C enterprises, the cost will be relatively high.

Online shopping clothing brands, like other Internet companies, are also popular among venture capitalists. VANCL has accepted many venture capital investments. This undoubtedly doomed the online shopping brand to bear more pressure than traditional brands.

"Profitability is a relatively big problem in the e-commerce industry, especially in the B2C way." Zhang Yanping told reporters that the online shopping clothing brand is a relatively new thing, and it is impossible to make profits in the short term.

Although the cost of store rents and salesmen has been omitted, online shopping brands need to invest more in customer service, logistics and distribution, and also need to cultivate market, brand awareness and user loyalty. As for profitability, I am afraid that it will still be a matter of years later.

For personal small shop, it is easier to make profits. Nancy is the boss of a clothing store on Taobao. Unlike those big brands, her online store has a lot of revenue. "I don't need to spend money on advertising, and Taobao's online shop is also free. There is hardly any cost. As long as I can get into fashionable clothes, I can basically buy one and get a profit." Nancy told reporters.

Of course, online shopping brand is not completely without risk. Once the pioneer of online shopping clothing brand, PPG, a famous clothing network direct selling company in China, has fallen from the problem of capital chain. It can be seen that the e-commerce card of garment enterprises is not a trump card, and there are still many problems to be solved for the domestic apparel online shopping enterprises to survive and develop for a long time.