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    Traditional Service Enterprises Must Follow The "Ten Principles" When They Enter The Network Retail Business.

    2011/5/4 10:20:00 50

    Ten Rules Of Traditional Service Enterprise Network Retailing

    At the first China e-commerce and Media Marketing Summit held in Beijing, Cao Lei, director of the China Electronic Commerce Research Center and Secretary General of China integrity online group buying alliance, said that the introduction of e-commerce almost changed all aspects except manufacturing.

    He analyzed that with the development of science and technology and scale economy, the cost of products in manufacturing links is decreasing day by day, and the share of obtaining market information, marketing and production process management is increasing.

    The core role of e-commerce is to reduce the cost of manufacturing outside the enterprise, and create a profit margin for enterprises, especially small and medium enterprises and most products.


    According to relevant data, only 130 million of Internet users bought clothes and shoes in 2010 alone.

    After financing $100 million, VANCL's valuation has reached an astonishing $5 billion. It has become the "China's most valuable clothing brand in terms of valuation and sales." it took three years to surpass other domestic garment companies for more than a decade or even thirty years, and far exceeded them.

    In addition, van guest has shouted the "goal of breaking through 10 billion yuan in 2011". Mcglaughlin and Dangdang have successively succeeded in IPO overseas, which further proves the feasibility of "B2C mode" in China.

    This is very scary in traditional clothing enterprises.


    It seems that a "virtual" network company has been far behind the traditional clothing predators.

    This is the charm of "Internet + capital + innovation".


    It can be seen that e-commerce is no longer a future but a current problem. E-commerce is not a matter of doing or not doing, but about how to do it.


    Yao Jian, a spokesman for the Ministry of Commerce, also announced at a regular press conference about the situation of China's business operation in 1-3 months in 2011. He also said that the development of electronic commerce, especially electronic commerce, was very fast. It existed in two aspects, including venture capital, investment in the development of new electronic commerce, and the development of many traditional commercial enterprises.

    Electronic Commerce

    The volume of pactions is also expanding.


    "However, the network sales platform has its own characteristics, the trust of the payment platform, the concerns of consumers due to the inability to feel goods, logistics costs and express efficiency, after-sales service and so on will become the constraints of traditional enterprises in the development of e-commerce."

    Cao Lei said, traditional enterprises can not completely move the operation mode of the entity store to the network, and do preparatory work ahead of schedule before "touches the net".


    What are the specific preparations for the traditional retail businesses before they set foot in e-commerce? Cao Lei said, first of all, enterprises need to clarify whether their objectives are to make stock pfer or increase sales; secondly, whether the network strategy is to open up new network channels or strategic investment layout;

    Brand line

    "Fourth," channel direct sale "or" network distribution "should be adopted in the channel.

    Finally, he also pointed out that the traditional retail enterprises have just set foot in the electricity supplier. Do not expect new customers to make money immediately, reduce the cost of new customers, reduce the customer turnover rate, stimulate the repeat purchase rate, is the core of customer strategy.


    In addition, the development of e-commerce for traditional enterprises has a "congenital bottleneck" that reflects the slow pace of supply chain system. Cao Lei also pointed out that the demand for network market is changing rapidly. Traditional enterprises with mass production often have difficulty in dealing with the relationship between supply and demand.

    Therefore, traditional enterprises should upgrade their supply chain system, improve e-commerce logistics information, and follow the control point of user market orientation and production cost to make flexible production.


    Finally, Cao Lei summed up the "Ten Principles" that traditional enterprises should follow in their online retail business: one is the purpose, the other is to do business.

    Stock pfer

    Two, it is incremental strategy; the second is the strategy, and the development of new network channels or strategic investment layout; the three is profitability, what is the expected input and output of enterprises; four is the route, the price route or the brand line; five is the process, the use of the existing system or the development of exclusive e-commerce; six is the channel, the official website is direct sales or the network distribution; seven is outsourcing, B2C system development, warehousing, logistics and distribution, etc. outsourcing is considered; eight is the team, the traditional way to do B2C or the Internet to do B2C; nine is the opportunity, that is, the best time to enter the network retail; ten is the investment return rate, the most important rule of all enterprises.

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