Practice And Form Of Strong Channel Business E-Commerce

Department stores such as state owned department store system, intime department store, Paris spring, Tianhong, new world, Mao industry, Pacific Ocean, GKA (pnational chain store), Huarun, Wanli, Da Rongfa, Hualian, CVS, fast food, good German, and Louis Weedon, professional retail terminals such as Gome and Suning, and brand manufacturers with large chain terminals, such as luxury brands such as LV, GUCCI, MontBlanc, mass consumer goods Metersbonwe, red dragonfly, AOKANG, BELLE series, Lining, and so on, including catering services brands such as KFC, LKA, real Kung Fu, and so on. Two. There are two basic types of channel providers in China: one is the terminal channel for modern retail chains, such as

The strength of traditional channels depends on the size of its single store, the share of sales, the coverage of the city and the number of single stores. This is the basic requirement for the channel business to form a strong position.

The formation of this strong position means that the channel merchants not only establish brand influence on consumers, but also establish purchasing advantages, that is, a good relationship between manufacturers and suppliers.

These are the favorable conditions that the online shopping brand does not have for the strong channel merchants to move the commodities to the online market.

At the same time, as a professional retailer, it has accumulated the understanding of the manufacturer's brand and can better deal with the communication problem with the brand manufacturer.

At present, the channel providers of e-commerce are mainly electrical and department stores. FMCG, such as WAL-MART, Hualian and 7-11, do not pay much attention to online shopping. This reflects that the role of e-commerce in the pfer of traditional retail is slower than that of low margin goods. Besides, fast selling brand manufacturers are reluctant to sell their main products online for protecting the interests of members of traditional channels and considering the price system of products.

In fact, the channel developers actively develop online sales channels are more driven by the new online shopping brand.

After the acquisition of the Internet, Gome maintained the independent development of the Gome online mall, indicating that the US acquisition and operation of the company had strategic considerations: first, to promote the rapid development of the network with the help of Gome, and to achieve scale. The two is to participate in the competition of Jingdong, new egg and other home appliances online shopping market with the help of the Treasury network.

Gome online mall promotes the "localization" e-commerce mode relying on the store: Gome online shopping mall, commodity category and Jingdong and other e-business sites are not different, but the service form is quite different. In the "switch to other cities" option, it is a localized service system based on the 42 regions in the seven major regions of the Gome (the provincial capital or the key city node).

This means that the mode of Gome online shopping mall is sending the online orders directly to the regional Corporation to complete the last kilometre. The appliances that need to install services, such as water heaters, air conditioners, kitchen electricity, etc., are all provided by the manufacturer's regional branches or distributors, and the channel providers do not own such professional service teams.

Although Gome's electricity supplier mode is different from Suning and Jingdong's unified order and background distribution task, there is no difference in the actual service form of the last mile.

Then, the mode of Gome online shopping mall deliberately adopted a new order processing mode, which is to enable the current 42 regional Corporation to establish a specialized online shopping operation (service) team. Theoretically, it can shorten the logistics radius, improve the processing time of orders, and effectively improve customer service level, and still need to coordinate with brand manufacturers.

Suning has launched a new e-commerce brand named suning.com, which is exactly the same as Jingdong and new eggs. It is the supply chain: when the Jingdong needs billions of RMB to improve Jingdong's supply chain system, Suning's ERP system has been able to better respond to online and offline orders.

The difficult thing is the control of the price system: some customers who are accustomed to online shopping are forming the model of goods (brand, model), online looking for goods, and the consumption pattern of three prices.

This consumption mode has a certain impact on offline stores, but strong channel manufacturers and brand manufacturers are no longer entangled: the rapid rise of Jingdong has proved that manufacturers can not resist the temptation of low price sales of online shopping platforms, and the channel owners naturally understand that instead of letting others dig their own corner, it is better to let the corner still be in their own warehouse.

The strong competition among home appliance manufacturers has thrown aside their worries and worries. After making every effort to enter e-commerce, the competitive advantages of Jingdong, new egg and other online shopping appliance enterprises are being challenged by real threats.

A strong channel trader will have a real game with the Jingdong and new eggs on the value chain of online shopping, relying on stores all over the country, negotiated purchasing relations and customer service experience accumulated under offline operation. Unlike competing marketing campaigns to win customers' preferences, the contention of the different value chain links supply chain and service chain will be the final weight to decide the brand's fate.

Our judgment is that the early bottleneck that hinders the development of e-commerce is that the links of value chain, such as payment, logistics and capital, have been greatly changed. Payment and logistics are becoming standardized indifference links. Therefore, the elements of value chain that determine the brand's fate must be differentiated into supply chain, customer service and other links.

Against this background, a strong channel trader will become the main force of e-commerce and change the growth space of online shopping brand once the wrong idea of online shopping (the disturbance of pparent channel to retail price) is changed.

{page_break}

We can see the constraints of supply chain on the development of online shopping brand from the embarrassing situation of liquor retailers.

In May 2010, the high profile online brewmaster network, known as Shanxi coal boss, invested 1 billion yuan (the first phase of 100 million yuan) to build the largest liquor retailing website in the country, claiming that the price of alcoholic products sold should be cut down to 30% to 50% of the price of liquor.

For 7 months, the first beauty CEO Ye Xiaoli resigned.

Ye Xiaoli was called "leaf 30%" inside the brewmaster net because of his claim to reduce the selling price of liquor, and CEO Wang Xiaoming, who took over the 30%, claimed to be "Wang Sicheng" and had to reduce the liquor price by 40%.

The price of liquor does have more premium space than department stores and electrical appliances, but the really hot high-end liquor such as Moutai,

In order to ensure supply, Yintai followed the buying and selling practices of department stores, and adopted a buyout business model with brands, that is, when the brand dealers order, they take the same 60 percent off price as the traditional channel merchants.

But the price strategy of Yintai online is that retail price is higher than 30 percent off (higher than the retail price of retail stores, which ensures the interests of the physical store), and the online shopping customers have a "pleasant surprise" shopping experience with the strong correlation discount rebate.

For example, when a customer is spending on Yintai network, he may receive a call from Yintai network customer service and tell him to get 7000 yuan return, so that he can buy any product on Yintai online.

This promotional mode of "material promotion" can only be owned by high-end department stores.

Thus, it was also the intime department store launched in 2010. On the ninety-second day of the online shopping day, the number of orders was over 10000, and the average price per passenger was nearly 500 yuan. This result made 2 years of the same, the same as the high-end high-end department store brand. The highest order is about 1000 singlets.

The number of famous brands on Yintai is 300, and now it has developed to 500. It plans to increase to 1000 in 2011. If this goal is achieved, it means that the number of brands in Yintai network exceeds that in the physical stores, and the brand volume of intime department stores is about 600.

At the same time, 50 brands such as CK, Ttiumph, OZARK and Vitoria chose the Yintai network as the only channel for their online sales.

Strong channel providers use their purchasing resources and brand understanding to establish a sustainable supply chain system, which is the correct mode for traditional channel providers to enter the electricity supplier.

Similarly, it is huge.

In addition, the online shopping mall also introduces home clothing, children, men and other categories. It will extend the love of female bra as the core product to the richer underwear, which is also differentiated from the offline stores or counters.

{page_break}

Obviously, BELLE, Adam and other professional brand e-commerce models (sales, marketing, profit mode) once formed, will be on the other.

There seems to be a good prospect for the manufacturers in the department store to enter e-commerce, but the professional home appliances brands such as Haier, TCL, Mei, Lenovo and other self built online channels are generally not optimistic.

Take Haier as an example, Haier group launched its "electrical appliance network", a professional household appliance company B2C, which is jointly built by Wuhan electric industry and trade union of Japan's electrical appliance manufacturers. It claims that it is a new B2C mode of home appliances combined with manufacturers and channels. The goal is to become a nationwide B2C website.

Haier's electricity supplier mode is obviously the same business mode as Jingdong, new egg, suning.com, Gome online store, and Coba network. Under such a red sea and competition pattern, Haier's all time electrical network has become the top three brands of online shopping, and the probability is not sure.

We think that although the household appliance manufacturers are large, sales of Haier and the United States are over 100 billion yuan, while the department store brand's largest BELLE group is more than 20 billion yuan. However, in the game of offline entities, the appliance manufacturers have lost to professional retailers (Suning and GOME), while BELLE and other department store brands can compete with any offline department stores. Even because of its chain store mode, department stores retailers do not have the "power" to department stores manufacturers.

This is the real reason why Haier's e-commerce model is not optimistic. We can also prove that a strong channel business is a channel revolution.