The "&Nbsp" Of The Internal Chain Is Low, And The Risk Is Controlled By Information Technology.

Say "no" to low prices.

In the late 1990s, it owned its own website.

The first thing to bear in mind is how to cope with the impact of low cost of electricity supplier on the old price system, such as the traditional enterprises of pure manual production and sales of independent stores.

In the "traditional" concept of electricity supplier, due to the sharp decline in storage, logistics, stores and other costs, the retail price of the network sales channel of products is often far lower than the price of physical stores and dealers.

This will bring multiple levels of management challenges.

This kind of "forced" management is enough to make the first "electric shock" business prohibitive.

Faced with this problem, large and powerful enterprises usually focus on the production of network channels, and build a set of e-commerce, production, warehousing, logistics, sales and after-sale system to avoid conflicts with the original system.

But small and medium-sized enterprises, which are troubled by capital, are obviously not likely to be in such a big financial situation. They often use tens of millions or even hundreds of millions of dollars to start an adventure.

The company did not consider the way to win the electricity supplier.

At the end of 2008, Cheng began to advise the board of directors to consider the beginning of e-commerce. There had been a short attempt of a week's low price route, but then it was immediately amended.

"We can't walk this way."

Cheng Xu recalls.

It is a painful thing to walk away.

At the end of 2008, the official website of the alliance upgraded to an independent sales area with a price of about 10% lower than that of the store, but only a few days later, dealers everywhere complained about it.

"This is not a labor pains of pformation, but a subversion of tradition.

So a week later, the price of all our online channels was completely blocked.

Moreover, not only our own portal website, but also we have notified all dealers, and prohibit the sale of all network channels such as Taobao at a low price.

In the next few months, the attempt to start an electric business at the beginning of the competition seemed to be aborted - because on the Internet, no more than a pair of shoes.

Dormancy is for better development.

In those months, Cheng Xu did not sit still, but began to investigate and thoroughly explore all the Internet sales channels.

After having a basic understanding, the internal alliance signed a new authorization agreement with more than ten dealers to stimulate the contracted distributors to sell the network with more favorable conditions, but the premise is that the price should not be lower than the selling price of the stores.

At the same time, it has opened up new areas on the portal website, trying some products that are not sold by physical stores.

"Cost advantage is not necessarily reflected in the price.

And for our enterprises, they must not be reflected in price. "

Cheng Xu explained.

The impact on the price system is fatal to traditional enterprises integrating production and marketing, which directly determines the digestion ability of dealers and the formulation of enterprise strategy.

"But we can do it in other ways, for example, member value-added services, personalized customization, and other ways of compensation such as coupons."

As a result, the internal League not only saved its own price system, but also encountered more management challenges because of the impact of the electricity supplier. It also strengthened the newly opened e-commerce platform with the help of some new designers' special products and value-added services.

Looking for training ground

The first attempt to win the fruit League was not complacent.

In July 17, 2010, Cheng Xu sighed in micro-blog after visiting Le Tao net: "the standard warehouse management has improved the efficiency, and the logistics system of e-commerce enterprises is worth learning." subsequently, the network of the inner court of Le Tao network was formally launched.

Prior to September 2009, Taobao's inner rise mall opened its doors.

After the network channel opened by the dealer and its own online sales, the inner League has found a more open training ground for itself.

Compared to the third party platform, traditional enterprises in logistics, publicity, background technology and payment and other aspects are just beginners.

Only when we know how to make use of force can we avoid "choking water" to the greatest extent in the test of water e-commerce.

But the new problems will follow: the sale, logistics, after-sale and other links to "outsiders". How much is the autonomy of e-commerce?

"At this stage, this way is only good for us."

Cheng Xu explained: cooperation with the three party e-commerce platform, such as Yue Tao, is based on the "virtual library" cooperation mode, which can fully guarantee the benefits of the internal alliance.

"It's just a sales channel."

The so-called "virtual library" refers to the payment of certain prepaid deposits by electronic commerce enterprises, the pfer of goods directly from the enterprise warehouse when orders are placed, the products that are not sold out, and the refund of the brand shoe traders, and the manufacturers will then supply other styles, such as the recurrence.

Compared with the need to pay a large amount of funds to purchase the real library distribution mode, this cooperation mode is more suitable for such enterprises, such as intranet, who have warehousing capacity, and hope to control the channel. The risk is greatly reduced.

Stable e-commerce sales prospects, the rise of e-commerce, seems to have begun to enter the right track.

Starting information control risk

But in the big concept of traditional enterprises entering e-commerce, these efforts are far from enough.

"If we use traditional shop production and store selling concept to do e-commerce, the risk can be ignored.

But in that case, e-commerce can only exist in a dispensable subordinate position, and never grow bigger.

If we use the concept of complete electronic commerce to do intranet, risk is totally out of control.

Many shoe manufacturers in China are faced with such problems. "

Yu Qingjiao, a marketing expert who had done brand consulting for many well-known shoe making enterprises such as Hengda shoes industry, told Chinese and foreign management.

The first problem that traditional enterprises should take into consideration is to control risks.

"In fact, it's a good idea to solve this problem in another way."

For Chinese and foreign management on how to put the traditional system and the challenge of electricity providers into question, Cheng Xu said with a laugh, "why do we have to get them pinch?" in his view, the relationship between the two is quite similar to the relationship between TV and film.

"The emergence of television has not allowed the film industry to die out. It will not replace the film industry completely because of its lower cost, convenience and popularity.

E-commerce can also go hand in hand with traditional systems.

But for the current internal League, it is not easy.

Although in the existing e-commerce system, the logistics is outsourced to the better SF express, which shares the stock with the traditional stores, and there is no large-scale investment of funds and personnel, but Cheng Xu still feels the pressure all the time.

"For clothing industry, the biggest advantage of e-commerce is interaction and experience.

Some enterprises have begun to try to store offline stores as "online fitting rooms".

But this interaction and experience need to depend on the degree of informatization of the enterprise. If you buy a pair of shoes online, you can tell if you have chosen three sizes, and the sense of loss can be imagined.

In Cheng Xu's vision, full information sharing directly determines the future of e-commerce.

The ERP system, launched in 2008, helped Cheng Xu solve this problem.

According to Cheng Xu introduction: the website order and the ERP order two systems merge, the website sale platform and the ERP finance, the accounting, the inventory system docking, all dealers are included in the system, is precisely these attempts, causes the electronic commerce risk to drop to the lowest.

"In this system, the B2B between us and the distributors, the B2C between us and the consumers, as well as the B2B of the platform enterprises such as Le Tao and so on, have been integrated together, which has truly realized the stock sharing, and has greatly reduced the communication cost and the labor cost."

"Old" business future

Although electricity providers now account for less than 2% of the overall sales.

But the rise of E-business has already made a joyful step.

On the one hand, the "three pillars" of the electronic business platform structure, to minimize the challenges brought by management challenges; on the other hand, the combination of enterprise informatization and B2B and B2C reduces operational risks.

For the traditional enterprises still hovering before the threshold of electricity suppliers, the road of the rising electricity supplier can be described as the "safest water trial mode".

"This year or next year, we initially hope to achieve more than 30% sales growth in e-commerce.

When we can occupy 5% or 8% of the overall sales level, we will have a larger scale investment and more strategic planning.

Cheng Xu's expectations were slightly conservative, but he seemed to be in a good mood.