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Dialysis Of E-Commerce: Online Sales Flow!

2011/3/5 15:09:00 389

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In the rapidly growing B2C market, clothing sales performance is particularly eye-catching.

It's better to open a shop than to do business all over. The simplest and simplest philosophy of getting rich in business. In the past two years, this business model has been given a new meaning.

Last November 11, "Singles Day", Alibaba Its Taobao Mall has created a "sales myth", with an average transaction volume of more than 10000 yuan per second. It is said that this number even exceeds that of Hong Kong, the so-called shopping paradise.

A month later, Dangdang It was listed on NASDAQ in the United States and issued at a price earnings ratio of more than 100 times on the day of listing, setting a new high for China's first listed companies in the United States since 2010. The opening price of the day was US $24.5, closing at US $29.91, up 86.94% from the issue price. This domestic old brand e-commerce company has set foot in the fields of clothing, shoes and bags and other general merchandise, which is known as "the first stock in China's B2C market".

For a while, I went online, opened online stores, entered e-commerce, and became a popular word in shopping malls again.

In fact, these fabulous figures are just for China's rising tide Electronic Commerce The trading market, together with the rising sales of online stores, provides new evidence.

According to statistics, in the first half of 2010, the trading volume of China's e-commerce market was 2.25 trillion yuan, and the annual trading volume exceeded 4.3 trillion yuan. By June of that year, the number of personal online stores in China had reached 12 million.

Before that, China's online shopping market has been developing rapidly: in 2006, the total transaction volume exceeded 1.5 trillion yuan; In 2007, 2.17 trillion yuan, up 90% year on year; In 2008, 3.1 trillion yuan, up 43% year on year; In 2009, RMB 3.85 trillion, up 81.5% year on year.

On November 16, 2010, the third party of China Science and Technology released the fifth "Survey Report on Brand Cognition, Consumption Behavior and Satisfaction of Internet in China". The report shows that online shopping behavior of Chinese Internet users has been widespread and frequent, and the shopping frequency of users of mainstream shopping websites is relatively high, of which more than half of users shop twice to four times a month on average.

The data also shows that the scale of China's online shopping market currently accounts for only 1-2% of the total retail sales of consumer goods in the whole society. In South Korea, the proportion is 10%, and in the United States, about 4%. In Japan, by the end of March 2009, the total retail consumption of Japan through online shopping and telephone shopping had tripled to that of fiscal year 2000, More than 70% of them are completed through online ordering, which exceeds the sales scale of physical stores such as department stores and convenience stores. Japan's largest online store, Lotte Market, has 53 million members.

In contrast, the prospect of China's online shopping market is obviously very broad.

In this fast-growing market, clothing sales performance is particularly eye-catching.

According to the 2009-2010 Research Report on China's Clothing B2C Online Shopping Market released by iResearch, China's clothing B2C online shopping market has grown very rapidly in recent years.

Zhang Yanping, an analyst with iResearch, believes that at present, the development speed and growth potential of China's apparel B2C online shopping market are very large. At the same time, apparel B2C has also attracted the attention and investment of many traditional apparel brand enterprises, becoming the focus of the market.

According to the statistics of iResearch, the scale of online shopping of Chinese clothing in 2009 exceeded 30.7 billion yuan, up 81% year on year. Among them, the B2C trade volume of clothing was 2.4 billion yuan, accounting for 7.8% of the online shopping trade scale of clothing, with a year-on-year growth rate of 99.8%, which was higher than the overall growth rate of the online shopping market of clothing. "Although this proportion is still relatively low, the development speed and growth potential of B2C clothing is far higher than C2C," said Zhang Yanping.

At the same time, iResearch predicts that in the next three years, the characteristics and potential of China's online shopping market will ensure that clothing B2C will continue to grow at a high speed. In 2012, the transaction scale is expected to exceed 18 billion yuan.

First of all, the clothing online shopping market has a large future space. In 2009, the proportion of online clothing shopping in the clothing retail market has just increased to 9.7%, and there is still much room for growth in the future. It is estimated that the proportion will be close to 17% by 2012.

The potential user base of clothing online shopping is huge. The number of Internet users in China has reached about 400 million, of which about 80 million are online shoppers of clothing. Clothing is also one of the necessary consumer goods, and the potential user base is huge.

More users value the quality and service of online shopping clothes. At this stage, users are more sensitive to price, so the sales of apparel products on C2C platform are more prosperous. However, with the subdivision of online shopping user groups, the user groups that pursue service and product quality are gradually forming and growing. B2C is relatively more powerful in product quality and service protection, and is expected to become a growth initiative.

In fact, as early as 2007, clothing has become the largest category of online shopping goods in China. Before and after that, a large number of well-known online marketing brands such as PPG and Fanke emerged. Although the final results of these brands are different, from the perspective of the overall operation situation of online marketing brands, it is enough to prove that the online shopping market has a promising future.

The e-commerce industry observers believe that "fashion B2C websites will certainly develop rapidly in the future, because fashion is the demand of people's life, and it does not need to cultivate the market, just change the consumption habits of netizens."

Fashion people have great consumption power, and are not very sensitive to price. They pay more attention to the improvement of life quality. These people are the main people in e-commerce today. In fact, the B2C website Macaulin, which is also listed on NASDAQ, has only 2.1 million active users, creating a net revenue of $108.03 million and a net profit of $2.53 million.

It is precisely because they are interested in the prospect of fashion products such as clothing consumption in e-commerce. In October 2010, Huang Ruo, the COO of Dangdang, said that Dangdang might launch its own brand clothing or shoes and bags in 2011, with the goal of "making clothing, shoes and small digital products the first in online retail market sales".

"But only basic and classic products will be involved, creating value for customers by volume and scale, rather than fashion products". Huang Ruo said that the private brand model is only a supplement to the department store business of Dangdang at best, because a single private brand product has a narrow audience, it is difficult to do large-scale.

Although Huang Ruo has repeatedly stressed that the construction of private brands is only a supplement to Dangdang's department store strategy, the insiders familiar with e-commerce believe that Dangdang's upcoming clothing, shoes and bags projects are by no means as simple as "business supplement". "Dangdang should seek a clothing online retail market with a scale of 100 billion yuan".

This is indeed the case. In the face of such a booming online marketing market, who is not interested?

The first mention rate of online shopping website brand is the shopping website that online shopping users first respond to:

Current B2C market pattern in China:

In 2006, China's e-commerce transactions totaled 1.5 trillion yuan

In 2007, it was 2.17 trillion yuan, up 90% year on year

In 2008, it was 3.1 trillion yuan, up 43% year on year

In 2009, it was 3.85 trillion yuan, with a year-on-year growth of 81.5% {page_break}
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Since 2011, capital has been frequently distributed in B2C, and traditional enterprises have also frequently "hit the net".

There are numerous traditional enterprises that have embarked on the "Internet".

"Large C2C e-commerce platforms are like supermarkets and department stores, but consumers also need all kinds of specialty stores, which are B2C vertical e-commerce websites." Wang Qiao, who has worked in the Internet industry for many years, has his own understanding of domestic e-commerce. Such a vivid metaphor helps us to distinguish Taobao from ordinary Macaulins.

Wang Qiao is not the only one who is optimistic about B2C. At the beginning of 2011, capital has frequently distributed B2C: Letao's 200 million yuan financing has been in place, and Haolemai has obtained at least 60 million dollars of financing. E-commerce giants also began to focus on B2C. Baidu joined hands with Lotte to establish a joint venture website Lekutian, and Taobao split Taobao Mall with an independent domain name.

At the same time, traditional enterprises also frequently "hit the net".

On December 18, 2010, Meibang's "Banggou Network" was launched for trial operation, mainly selling MB, MC brand clothing and AMPM products of online private brand. Twenty days later, the daily sales of Banggou exceeded 300000, and the daily trading volume exceeded 1000, with the average value of each order exceeding 300 yuan.

Zhou Chengjian, the chairman of Meibang, said that the company's goal is to achieve 100 billion yuan in e-commerce by 2020. In addition to the pursuit of scale, Zhou Chengjian hopes to achieve the vertical integration of Meibang's clothing business through the "Banggou Network" platform, explore the reform of the sales model of the clothing industry, so as to win a huge future market.

Previously, the company has opened an official flagship store on Taobao to test the waters for Meibang to build its own e-commerce platform. For Taobao platform, Zhou Chengjian and Wang Qiao have the same opinion. "Taobao is still an important part of Meibang's e-commerce strategy. It builds a public platform on which thousands of families and industries can do business and open stores. The traditional understanding is that it is a shopping mall. Our Banggou platform is more like a monopoly store."

In addition to Banggou, the company will also adjust its product structure, build Meibang Clothing City on Banggou platform, and expand household bedding and shoes.

Like Meibang, Seven Wolves is also building its own independent mall on Taobao and other platforms.

"Before 2008, we had been paying attention to the development of e-commerce. At that time, we had the impression that people used e-commerce mainly to buy cheap things. At first, we were very cautious, worried that the regular price products of Seven Wolf could not be recognized by netizens, and had never really started to do e-commerce," said Zhou Shaoxiong, Chairman of Seven Wolf, "Later, through detailed analysis, we found that e-commerce will develop faster in the future, and the most critical problem for brand operators is to dredge and participate."

After testing e-commerce, seven wolves classified and certified products and dealers, issued a series of systems and policies, and summarized the original seven wolves' dealers and online dealers into one system for unified management.

What's more striking is that in 2010, Seven Wolves cooperated with IBM to develop the e-commerce cloud platform, leaving the maintenance and construction of the platform to IBM, and the company focused on product marketing.

Zhou Shaoxiong said that every brand has different service forms and experience methods, and Taobao can not achieve 100% individuality. "For example, how to quickly find the matching of a piece of clothing, you can match it on the Internet by yourself. Is there something you can do by DIY? This may be your professional field."

"This is a great improvement in business management ideas and technology. On the one hand, it has improved our order processing ability and improved the backstage support for online store sales; on the other hand, it is conducive to improving customer experience. The improvement of order processing speed and accuracy has greatly improved our customer satisfaction," said Zhou Shaoxiong, The first stage work of this new platform, "order processing system", has achieved results: the third-party network platform has effectively docked with the seven wolves' own ERP system, realized real-time data update and analysis, and dynamically managed the online store operation, especially warehousing and logistics data.

At present, the annual sales volume of Seven Wolves has reached 2 billion yuan, and the proportion of online sales is still very low. However, Zhou Shaoxiong is optimistic about the development of e-commerce. He hopes that through cooperation with IBM, he can increase online sales to 10% of the total sales in 2011.

According to the company's plan, after the completion of construction in April and May 2011, the seven wolves are expected to transform from traditional enterprises to a new economy where traditional enterprises and new forms of e-commerce coexist.

The current situation may enhance the company's confidence - last November 11, "Singles Day", the daily sales of the online store of Seven Wolves exceeded 16000, reaching more than 5 million yuan.

Daphne, a shoe company, "went online" earlier. Inspired by Zappos, the legendary American shoe selling website, Daphne launched an online shopping website as early as 2007 when PPG was the most popular. On the premise of the success of the chain, the company "hopes to increase a sales channel."

At present, the sales volume of Daphne online electronic platform reaches millions, which is undoubtedly a small number for this company with 2000 stores; At the same time, due to the special footwear products, "more customers prefer to buy shoes in physical stores, because for shoes, consumers still need to pay attention to experience. E-commerce should be combined with marketing terminals all over the country, which is a systematic project." But the cautious attitude does not mean Daphne abandons the e-commerce plan, on the contrary, The good growth trend of network sales makes the company plan to further expand its network business.

In addition, both Chinese and foreign brands, there are numerous traditional enterprises that have embarked on the "Internet": Baoxiniao, Youngor, Bosiden, Uniqlo... and most of them are doing well.

This confirms Wang Qiao's judgment on the advantages of B2C e-commerce, "because of their professional background, they can provide consumers with more detailed and professional services, and independent websites are also more conducive to building their own e-commerce brands." {page_break}
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Or offline?

McCullin's physical store plan has already been implemented, and the company's goal is to reach 2000 stores

While traditional enterprises are competing to open online stores, some companies are doing the opposite

It is reasonable to use the new model with unlimited potential to enter the new market with unlimited potential. However, what is interesting is that when traditional enterprises compete to open online stores, some of the companies that have long been in them have gone against the trend.

It was last year's Singles Day. On that day, Taobao Mall "50% off", 150 well-known brands jointly created 936 million yuan of sales. In addition to Adidas, Bosiden and other big brands, Green Box, Macbag Justyle、 Many Taobao brands, such as Zero Man and Ripper, also contributed.

According to taobao.com, in the "Singles Day" promotion, the overall sales volume of the Taobao brand exceeded 132 million, of which the sales volume of Green Box and Mr.ing exceeded 10 million, the sales volume of such Taobao brands as osa women's wear, Inman flagship store and Andu franchise exceeded 5 million, and there were 28 Taobao brands with sales volume of more than 1 million.

The so-called "taobao brand" refers to a well-known online brand that originated from taobao and took advantage of its large popularity and high attention. The concept of Taobao brand first appeared in the clothing field, such as Miss de mode, Ripper, Spotica, etc.

For example, the sales volume of the green box reached 10.5 million yuan that day. In 2006, Wu Fangfang, a designer, founded the Green Box Studio and owned his first children's wear brand - Miss de mode. At the end of 2008, she put her business on Taobao for the first time.

In just over two years, Green Box has developed into a mature online marketing company integrating R&D, design, production and sales. With a team of more than 200 people, its sales volume has approached the 100 million yuan mark, Miss de mode has also become an influential children's wear brand, and the "M.I.L Boy" and "Jenny Bear" launched successively since then have also been among the best in the children's wear market.

However, this company, which is enough to make many offline children's wear brands jealous, is not satisfied with being the leader of Taobao. com.

At the end of September 2010, Green Box completed its first round of financing, and Zhixin Capital from the United States injected RMB 20 million into Wu Fangfang's team. Two months later, DCM Capital, the sixth largest capital in the world, injected another 100 million yuan into it.

Before that, Maibaobao, Qigege, Haolemai, etc. have all been financed.

How to spend when you have sufficient funds? There are two paths for Taobao brand: one is to expand its own channels, "leave" Taobao, enter other e-commerce platforms, or build its own B2C website, such as Maibaobao; The other is to go from online to offline and establish physical stores. No matter which way you take, the purpose is to promote your own brand building.

Wang Yao, deputy secretary-general of the China Federation of Commerce, said that in order to build a brand image, we can learn from the experience of Doctor Frog, enter large department stores, or establish flagship stores in busy streets. "This is exactly what we will do in 2011," said Wu Fangfang.

In fact, some Taobao brands have started such practices earlier.

Spotica has three franchise stores that are preparing to open. In the sample room of Spotica offline store located at the headquarters of Xiamen Huli Avenue Company, European and American style casual men's clothes are placed in an orderly manner, with glasses, scarves and other accessories.

Tang Xianfeng, the chief designer of Ripple Silk Clothing, also told reporters that it is inevitable for Ripple Silk brands to open offline stores in the future.

In fact, there are far more than these Taobao brands that have planned to move from online to offline.

"The plan to open a physical store is not two days in a day," said Li Jianxiong, the media manager of Fanke. "We have been ready since 2009."

At that time, Vanke's CEO Chen Nian decided to open a physical store. "There is still a need to open a showroom in the right place. If you can find a place opposite ZARA, I will open it right away." However, for Vanke who has no experience in physical stores, this is a risky move.

Fanke clearly knows this truth. It has designed a "perfect" route for the opening of physical stores: first, open an experience store in Beijing. If the experience store is successful, copy the experience of the experience store to Shanghai and Guangzhou. The experience store is mature in operation, increases the sales function of the experience store, becomes an ordinary customer physical store, and copies the experience to more stores.

To this end, Vanke launched a large-scale advertising campaign on May 4, 2010. In addition, the company's site selection in Beijing is basically determined. "Sanlitun, Blue Harbor and Joy City have been talked about, and it is estimated that the first physical store will eventually choose the most fashionable and prosperous area in Beijing." Li Jianxiong said.

It was McCullin who started earlier than ordinary people. This online marketing brand, which started from catalog mail order, has tried to open offline stores in Shanghai and other places since 2006 to implement a multi-channel strategy.

During the economic crisis in 2009, McCullin announced the expansion of physical stores in a high profile, and planned to reach 2000 stores within three years. Today, Macaulin's physical stores have become an important part of the "24-hour shopping circle" they hope to create. {page_break}

Convenience of online shop

At present, online shopping has long been commonplace in large and medium-sized cities in China.

It is not difficult for traditional enterprises to enter e-commerce and open online stores

In fact, it is not difficult for traditional enterprises to enter e-commerce and open online stores.

The first is the expansion of channels when coveting the huge potential of emerging markets. That is, traditional retailers expand their coverage of customers by increasing online retail channels to increase revenue.

"We are a department store doing network, not an Internet enterprise selling products," said Wu Xiaoxin, CIO of Shangpin Discount. For Shopin, the "Shopin Discount Network" launched by the company is a typical representative of the channel.

Cao Fei, a senior analyst at Analysys International, believes that channel expansion is very suitable for the development of companies like Shangpin. Because Shopin can only be regarded as a medium-sized regional department store retailer. At present, there are only a few chain stores in Beijing. After the online channel, it can effectively serve consumers outside Beijing, making up for its limited store coverage. This strategy can directly promote the growth of main business income of retail enterprises. It is understood that Shangpin Discount has reached 10% of the performance of physical stores.

The second is the avoidance of high costs. Now the market competition is becoming more and more fierce, and the profit has been compressed more and more thin. When producers pay huge fees for the laying of sales channels, what they think most is to reduce costs.

The traditional business model of enterprises is usually that producers produce products and sell products through provincial, municipal, county and other first level agents, or enterprises establish their own first level stores. In any case, the cost for enterprises to lay sales channels is not low, which also increases the product price.

Ding Ping, who has worked in the shoemaking industry for many years, has been engaged in retail and brand agency, and now has set up a small shoe factory. She said that her shoes are usually produced by OEM, and a pair of shoes need to go through many links, such as factories, general agents, secondary agents, retailers, shopping malls and counters.

She took a domestic brand of men's shoes as an example. The cost price of the shoes was 120 yuan, the ex factory price was 135 yuan, the general agent sold the shoes to the secondary agent for 150-170 yuan, the secondary agent sold the shoes to the retailer for about 210 yuan, and the second agent sold the shoes to the retailer who opened the store for about 320 yuan. The number of people who sold the shoes to consumers on the counter would be about seven or eight hundred, "In fact, although the price has increased a lot, every channel dealer has not made much money, because the channel fees are very high", Ding Ping said, "The gross profit of making a pair of brand men's shoes is only 40 or 50 yuan, and it can't earn much money except for various expenses."

Like Ding Ping, many foreign trade enterprises in Zhongshan, Guangdong, also suffer a lot when they switch to domestic sales: the cost of marketing channels is high, and the threshold for entering stores is high. The high cost of traditional channels is puzzling enterprises in urgent need of opening up the market. Therefore, many enterprises hope to change the high cost of traditional sales mode through e-commerce. Although it is impossible to get rid of the traditional sales model for a while, it provides more possibilities for the future development of the enterprise.

Not long ago, Zhongshan Xiahu Shijia Clothing Co., Ltd. began to build an online shop on Taobao. Its products are oriented at business wear and win in similar products with price and quality. "The online store is a platform for displaying our corporate image and products, as well as our attempt at a new business model," said Cui Chunxiu, the company's sales director.

The opening of Xiahu online store made Cui Chunxiu feel the low cost. ”

"Through the change of e-commerce business model, enterprises are reducing costs, directly facing the market production, and realizing transformation," said Tu Mingzhong, director of the express delivery bureau of Zhongshan Post Office, who carries out logistics distribution for online stores.

However, while actively seeking change, the "Internet access" of traditional enterprises also revealed some helplessness. As Hu Chenrong, the e-commerce operation director of Belle Group, said, "If you don't do it, your competitors and your fake versions will continue to carve up your market online."

Take Li Ning for example. As early as 2007, Taobao began to sell Li Ning's products on a large scale. According to the search data provided by Taobao, the number of its stores exceeded 30000. Spontaneous e-commerce channels have emerged. If Li Ning does not expand new online marketing channels in time, its brand image will inevitably be damaged. Therefore, Li Ning cautiously launched an online shopping platform after research and announced that it would selectively sell its brand products.

At the end of last year, at the "2010 Cool Fashion E-commerce Summit", Hu Jun, the head of Seven Wolf E-commerce, also said that the sales of seven Wolf men's clothing on Taobao in 2010 would exceed 400 million, but one third of them were fake.

In 2008, after the company officially established its official website on Taobao, the proportion of fakes has dropped by 30% from the original 90%. Hu Jun said that fakes are harmful to the brand from the perspective of delivering a perfect quality experience and service to customers.

Belle also vigorously develops online stores. On the Taoxiu website of Belle Mall, a brand group based on in net is being formed, and the control of the brand group is very flexible. It can not only follow the best-selling design style offline, but also distinguish from the offline style, so as to reduce the conflict between online and offline.

Hu Chenrong said that after Belle launched its customized IT system from ShopEX, the company's e-commerce system will be upgraded for the second time. It is said that this system can realize multiple functions such as multi brand operation, multi-channel delivery, multi promotion means, and distribution system supervision.

But as the saying goes, every family has its own difficulties. While traditional enterprises are actively or reluctantly entering the network, online marketing brands also express their own troubles. Some troubles may be the reason why they turn to physical stores. {page_break}

Injury of logistics

Logistics has always been the weakness of B2C e-commerce development in China.

"Logistics is the biggest problem restricting the development of e-commerce," said Ma Yun, chairman of Alibaba Group. As Alibaba is the leader of the domestic e-commerce industry, Jack Ma's view is by no means groundless.

At present, the main logistics mode of domestic B2C enterprises is to entrust third-party logistics companies to distribute goods. The relationship between e-commerce enterprises and express enterprises is loose. All disputes around express delivery are almost without exception, and the sellers or consumers must suffer.

So far, there is no law or regulation for the express industry in China, and many logistics enterprises have pushed their own responsibilities through the "overlord clause". Therefore, logistics is the most troublesome link for most online stores.

Express delivery "forced palace"

On November 21, 2009, Zhejiang Shentong Express blocked Taobao, which was reported by Zhejiang TV Minsheng Leisure Channel, causing an uproar among Taobao buyers, sellers and the express industry. In front of the TV camera, a staff member of Zhejiang Shentong Hangzhou Company said, "The price of Taobao delivery is too low, and Shentong will lose money at this price."

Later, someone posted on the Internet: Someone from Shentong Logistics said that (Shentong) would ban Taobao, and other logistics companies would follow suit and raise prices collectively. Rumors are growing.

In order to clarify the rumors, Xia Zubin, the marketing director of Shentong Logistics, arrived in Hangzhou from Shanghai and received an exclusive interview from the media. Xia Zubin said that in August 2007, Shentong Logistics was one of the first logistics enterprises to enter the logistics platform recommended by Taobao. Taobao's business volume accounted for about 50% or 60% of Shentong's total business volume, which could not be easily blocked.

However, there is no smoke without fire. Professionals believe that the fuse of the ban is the lack of logistics capacity. Take Shentong as an example. When it first contacted Taobao orders in 2007, its business volume was 300000, 700000 in 2008, 1 million in 2009, and 2 million in 2010. The huge increase in orders caught Shentong off guard, and its transportation capacity was seriously insufficient, so it was unable to take over many orders from Taobao.

Although the ban is not true, the price increase is true. After clarifying the rumors, Xia Zubin said that the prices of Shentong Express in some cities would be adjusted. The executives of Yuantong, Zhongtong, Shunfeng and other express companies also quickly negotiated the express price with Taobao merchants. Since then, the prices of express companies in major cities across the country have generally risen.

In 2011, the story repeats itself.

On January 27, Shentong and Yuantong basically stopped receiving new express mail. Only EMS and SF are still receiving some express delivery. Previously, since November 2010, many logistics enterprises have been in the situation of cargo explosion.

A new round of price rise is also coming after the storm of position explosion and shutdown.

"In order to meet the needs of the development of the express market, from January 10, 2011, Zhongtong Express will adjust the express service charge standard on the original basis." In the latest "Tell the Customer" of Zhongtong Express, the company said that it will increase the non sample express by 0.5-1.5 yuan per ticket on the original basis; One to two yuan per kilogram will be increased on the basis of the original sample express.

This adjustment is the second wave of price adjustment after the collective price rise of private express companies such as Shunfeng, Shentong, Yuantong, Zhongtong, Huitong, Yunda at the end of 2010. Previously, except Shentong, other express companies increased the price by 1.5-2 yuan per ticket. Shunfeng intra city express has increased from 10 yuan/ticket to 12 yuan/ticket.

A person in charge of a logistics company said, "We hope to divert goods and reduce transportation pressure through this price means." However, this price increase cannot fundamentally solve the problem of insufficient logistics transportation capacity.

Shao Zhonglin, deputy secretary-general of the China Express Industry Association, said, "First there was a warehouse explosion, and then there was a shutdown before the Spring Festival. Fundamentally, it was determined by the relationship between supply and demand."

Logistics development lags behind

In fact, logistics has always been the weakness of B2C e-commerce development in China.

B2C online stores face a wide range of consumers in a small batch. China's third-party private logistics enterprises are still in the development stage, and the logistics supporting system is still immature, resulting in high logistics distribution costs.

With the rapid development of e-commerce such as online stores, online shopping companies' orders have increased significantly, but the development level of China's domestic logistics is far from meeting the requirements of e-commerce development, and is unable to cope with the rapid growth of e-commerce. The pressure on third-party logistics distribution companies has increased significantly.

Since the second half of 2010, express companies have frequently appeared the phenomenon of warehouse explosion, and express delivery has become "slow delivery". According to an insider of Yuantong Express, "since October 2010, the daily express volume of the company has reached more than 2.1 million tickets, an increase of 35% over the same period last year."

Under strong pressure, the logistics industry often has problems such as delivery delay, poor service attitude and uneven delivery standards, and consumers complain incessantly.

Complaints even spread to brand names.

Wu Fangfang said that during the Singles Day promotion last year, the company with more than 200 people was overloaded. The manager in charge of logistics went to the warehouse to pick up the goods in person, and dragged all the goods back in person. Because all the goods were stranded at the airport, the logistics system was paralyzed.

Explore new channels

Liu Qiangdong, CEO of Jingdong Mall, once said, "The ultimate capacity that all our logistics systems can support in 2010 is 26 billion yuan. If there is no logistics limit, we can achieve more than 30 billion yuan."

Logistics lag makes the development of e-commerce in trouble. Ma Yun even violated his commitment to "never do logistics" and said publicly that Taobao would build its own express logistics network.

Data shows that Taobao's business accounts for 50-80% of the business volume of many express companies. With the surge of Taobao's delivery volume, the expansion speed of most express companies has been difficult to match, leading to the deteriorating service quality.

It is reported that Alibaba is planning to establish a huge logistics express network nationwide. A person from the company said that in the next few years, the company will establish distribution centers in 52 cities across the country, "to solve the logistics problems that hinder the development of Taobao."

Taobao said that in the past, Taobao sellers not only needed to provide storage space for their goods, but also acted as a transit to truthfully respond to the information provided by the buyer, such as the address and consignee, to the logistics channel. Even if there was a problem in the middle link, the entire distribution process would be interrupted. After joining the Taobao logistics plan, since Taobao's platform and logistics platform have been connected, the buyer's information will be sent directly to the logistics terminal, thus avoiding possible mistakes due to too many intermediate links.

At the beginning of its establishment, Vancl established its logistics subsidiary, Rufengda. At present, Vancl's self built logistics has covered dozens of major cities such as Beijing, Shanghai and Guangzhou.

For those who build their own logistics channels, they can launch free postage activities at any time to attract customers. In addition, the express delivery personnel wearing ordinary customer work clothes let customers wear them for interview, serve them face to face, and return goods unconditionally, which undoubtedly makes customers feel comfortable buying. "Every express delivery has undoubtedly become a persuasive advertisement for every customer," said a logistics staff member of every customer.