Industry Interpretation: How To Solve The Price Conflict Between Online And Offline?

When last November 11th, about 1000000 people poured into the Taobao home.

Recently, Ningbo FOTILE kitchenware Co., Ltd. has signed a strategic cooperation agreement with Taobao mall, which will open its first online shop in Taobao mall next month, offering products such as brand hood.

In Ningbo, in addition to traditional production enterprises borrow Taobao,

What are the results of Ningbo enterprises' entry into e-commerce? What kind of business model is suitable for Ningbo enterprises? How to deal with price conflicts between online and offline businesses? With these questions, the reporter launched an investigation.

Industry status

Clothing, household electrical appliance enterprises are touching the net.

Ningbo garment enterprises "touch the net" earlier, Bo Yang, Taiping bird and other famous clothing brands have entered the electronic commerce vigorously.

Nowadays, Ningbo household appliances are also starting to "touch the net" on a large scale.

"The prospect of home appliances online sales is very good. E-commerce can open wider sales channels for home appliance enterprises, and FOTILE certainly will not miss it."

Yesterday, Li Tao, Minister of e-commerce of Ningbo FOTILE kitchenware Co., Ltd., told reporters that FOTILE could sell lampblack machines and other products on Taobao online next month.

FOTILE's Ministry of electronic commerce has only recently been established and now has dozens of people.

"We have been focusing on e-commerce, and we have not set foot in it before. It is waiting for the best opportunity."

Li Tao said.

Before FOTILE, some well-known household appliances brands such as AUX and Qinyuan in Ningbo have opened online shops in Taobao mall.

The rise of local e-commerce platform

It is understood that Ningbo enterprises enter the electronic commerce in two types: one is to develop e-commerce with the existing network platform such as Taobao and Jingdong; the two is to build e-commerce platform.

"Now, our online sales increase by more than 30% a month, I believe this year will achieve greater results."

Yesterday, Ningbo "by you" by Zhang Anfang, chairman of science and technology network company, talked about the e-commerce platform built by the company.

The head of the garment company who has pformed from garment manufacturing to e-commerce has already felt the power of the network.

In August last year, the company built the "you by me" online shopping platform, invested about 16000000 yuan in 3 months in its official website, Taobao mall flagship store, Taobao C shop to promote.

Zhang Anfang said that the goal of the company is to build "you by me" into one of the largest leisure apparel online stores in China.

At present, there are more than 20 series of nearly 2000 items of casual wear sold in the online shopping mall. There are more than 50 people in the fashion designers, models and online graphic design teams, and have a warehouse of nearly 2000 square meters.

"We will launch the take-off plan this year. Besides selling its own brand products, the platform will also sell other brands of casual wear and build a comprehensive sales platform for casual wear."

Zhang Anfang said.

In addition to the rise of the B2B platform for sale of clothing, e-commerce platforms such as selling specialty products such as agricultural and sideline products, snack foods, home textiles, seafood and cosmetics, notebook computers and other fashion products have been unveiled.

Supermarkets in Sanjiang and other shopping centers have also built up online business super websites, and the group buying websites, which are priced out of popularity, have sprung up like mushrooms.

In March last year, Wu Dingwei, general manager of the Internet Company Limited, who worked hard in the field of IT, invested in the online shopping platform of "green shopping mall".

In October last year, the first entity store opened in Ningbo to achieve interaction between online and offline businesses.

"At present, we are holding a market store on Taobao, and this year we plan to open Taobao mall store to interact with our online sales platform."

Wu Dingwei said that this year will be the accelerated development stage of online shopping platform.

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The market cake is as high as 4 trillion and 500 billion yuan a year.

So many enterprises and funds are heading for e-commerce because everyone is optimistic about the market. Mcglaughlin and Dangdang have listed in the US capital market, and set off the first wave of IPO in China's B2C. This is a great encouragement to Ningbo enterprises engaged in e-commerce.

At the same time, Taobao mall, Jingdong mall and other major strategic adjustments were made in 2010.

All these have attracted the attention of the e-commerce industry.

"It never occurred to me that there would be such an amazing purchasing power. Almost every second, a set of" Bo Yang home textiles "was sold, and half of the products were out of stock.

Bo Yang Group responsible person in November 11th last year after the victory of the marketing told reporters.

It is understood that the China e-commerce market data monitoring report released in January 18th by the China Electronic Commerce Research Center showed that in 2010, China's e-commerce market turnover reached 4 trillion and 500 billion yuan, an increase of 22% over the same period last year.

These data show that China has the largest Internet user group in the world, and the habit of online shopping is gradually taking shape. A vast network distribution market has already appeared and can not be ignored.

Dai Chengqi, general manager of Tonlion division of Ningbo waldoran Fashion Technology Co., Ltd., introduced that in 2010, Tonlion had nearly 2000 stores in the country, with annual sales volume of about 2000000000 yuan, while online sales amounted to 70 million yuan.

E-commerce has great potential and will be a new growth point in the future. Tonlion is willing to devote a lot of manpower and material resources to it.

Industry perspective

Good at marketing with the help of Internet

"The Internet is an infinite space. The e-commerce platform should aim at the market of the whole country and even the whole world. If it is limited to a regional platform, it will be hard to succeed."

A senior industry veteran said that building a network platform is easy, but how to make more Internet users patronize this platform and consume it is very difficult.

In addition to backing up capital as "backing up money", it also needs to use the Internet to sell e-commerce platforms.

"We should make efforts to make full use of the existing resources."

Dai Chengqi, general manager of Tonlion division of Ningbo waldoran Fashion Technology Co., Ltd., told reporters that it is very difficult to build professional clothing e-commerce platform. Tonlion has built its own official website with reference to Korea's UNIQLO library, but its main function is to make image presentation the main, and it can not become a sales platform in the short term.

Tonlion's attempt to cooperate with Taobao's Taobao customers is not costly, but the effect is very good.

Because the "Taobao customers" will gather traffic, and then divide them according to the agreed proportion before they generate sales, thus reducing the risk of large-scale advertising investment.

In the field of clothing online shopping, the most famous domestic customer service product in China is not yet profitable. How can Ningbo's local clothing online shopping platform guarantee the biggest odds? Ningbo, "Zhang Anfang, chairman of" I "technology network company, told reporters that the company will not spread advertisements to burn money, but will focus more on the accurate delivery of advertising, marketing planning and third party logistics.

"Now the network sale competition is intense, must segment the market, only subdivides can win the opportunity."

Zhang Anfang believes that e-commerce platform must have its own characteristics and personality, so that users can remember, and many categories of clothing, such as age, style, price and so on, can be subdivided. As long as one of the products is refined and refined, there will be a large market.

Solve price conflicts on line and online

In addition to the need for strong capital and good marketing methods, the most important thing to solve is the conflict between online and offline businesses. Some traditional enterprises are afraid to rush into e-commerce because they are worried that the lower price on the line will impact the traditional channel price system.

"Consumers are most concerned about the cost performance of products. They are used to seeing products online, and then buying online, and the physical stores become a product exhibition hall."

Insiders introduced.

"When we start to do e-commerce, dealers everywhere have objections that e-commerce will make their products sell."

Dai Chengqi told reporters that the company did encounter a lot of resistance at that time, but the determination of the company's top was very large. After patient persuasion, the present development proved that e-commerce and traditional commerce are not purely competitive relations. If handled properly, they will coordinate development and even complement each other, giving play to the "1+1" greater than the "2" integration effect.

The industry believes that online and offline product price conflict, the interests of agents around the issue of protection may be the biggest obstacle for traditional enterprises to get involved in e-commerce.

There are two ways to solve this problem: first, to implement brand segmentation; the two is to implement product segmentation.

In March last year, Bo Yang specially registered an online brand named "shell". Although it is close to Tonlion's style and price, it is a derivative brand of Tonlion, and has a distinct separation from Tonlion.

"There are two types of Tonlion brand clothing that we sell online: one is the style that is synchronized with the physical store, and the other two are products specially designed for online sale, which are different from those in the real store, and the prices are relatively low."

Dai Chengqi said that the company used product differentiation to solve the conflict between online and offline channels, and the two had relatively independent pricing power because of the different products sold.

"This time, FOTILE will enter e-commerce and sell products online. It will be specially designed for goods. Goods sold in traditional physical stores will not be sold online, and products sold online will not be sold in physical stores."

Li Tao, Minister of e-commerce of Ningbo FOTILE kitchenware Co., Ltd.