Cool Thinking In Fashion B2C: The Profit Model Is Being Questioned.

Clothing B2C -- the development trend of retail sales in recent years is extremely hot. As a brand leader of the top ten clothing enterprises in China, Deng Tao was moved by the investor's advice. Clothing B2C He decided to resign and start a business with broad prospects for development.

Sprout

Deng Tao formally submitted his resignation application at the beginning of this year. His next stop is the brand director of the new B2C brand "DOIN '. The brand investor is a industrialist from the Zhejiang chemical industry. It is the" visit "that he took the initiative to take last year. Deng Tao finally decided to join the entrepreneurial team made up of famous Korean designers.

Therefore, to some extent, Deng Tao's involvement in clothing B2C can be regarded as a "unexpected" encounter with the macro industrial trend. The investment fever of B2C has enabled Deng Tao to find capital, a veteran who has more than ten years' experience in garment industry and is familiar with the whole chain of clothing operation. At the same time, it can also be regarded as the necessity of the combination of traditional manufacturing and new business models. Deng Tao is optimistic about clothing B2C, which is the opportunity he has always been longing for and seeking.

"I think this is an opportunity. Now the space and capacity of the brand growth is getting smaller and smaller. It is very difficult to break out of the growth, but the prospect of clothing B2C is very broad." Deng Tao Explaining its entrepreneurial behavior, "in recent years, online channels have a great impact on various industries, especially in the clothing industry, the acceptability of products, and as one of the most suitable categories for online sales, there is great room for the development of clothing B2C. For example, clothing sales in developed countries account for 10% of total sales, while China accounts for only 3%. Last year, only one percentage point increase can accommodate many online brands.

After experiencing the first wave of Mcglaughlin and public service sales of 2 billion yuan, the clothing B2C has ignited the entrepreneurial enthusiasm of the clothing entity operators after experiencing the first wave of IT and VVC sales.

This is a rare opportunity for Deng Taoshi to fit his position. China's few people who know both the clothing industry and e-commerce know that this is their advantage in Deng Tao's view and is the important reason why he can attract capital to take the initiative to come home. "In China, there are many people who know clothes, but few people know about clothing and e-commerce."

However, challenges remain. In the future, Deng Tao needs to spanlate the understanding of clothing and e-business theory into sales results in reality.

According to the agreement reached between Deng Tao and investors, Deng Tao will get a certain share of "DOIN '" after joining the "DOIN' team, but with the premise of investors, that is," DOIN 'must reach a certain sales scale at a certain time, and these shares will come into force.

Inspire

At present, Deng Tao's resignation application is going through the final company process, but he seems to be eager to leave to adapt to the new role, so that he is still working in the original unit, but he has taken over the specific affairs of DOIN.

As an employee from the field of clothing, who understands Deng Tao's e-commerce, he still feels the difference between the new format of clothing B2C and the traditional clothing brand operation.

"At the product level, clothing B2C requires large amounts of clothing, many styles, low prices and quick response. The requirements for these aspects should exceed the operation of apparel brands under the line. Deng Tao said, "for example, in terms of style and style, any store under the brand line, regardless of the area is 80 square meters or 200 square meters, has limited capacity, and the product will not exceed 2 styles. clothing The number is also limited. But online sales, all styles of clothing can be accommodated, capacity can be said to be unlimited, and must ensure that the amount of style and quantity enough, therefore, clothing B2C brand design and production and distribution capabilities have higher requirements. {page_break}

"At the price level, because there is no intermediate link, clothing B2C is more sensitive to price requirements, and faster reaction can lead to an advantage."

These will be a challenge for Deng Tao and even many offline clothing brands that are developing B2C business, because the clothing chain of offline brands can not guarantee that they can adapt to the intensity of online sales. They need to be faster and cheaper.

These will also be one of the industrial risks behind the hot development trend of clothing B2C. Large scale offline brands will launch online businesses and various capital flows into it. Many of them will not be able to achieve the advantages of online operation because of their inability to meet the requirements of online operation, resulting in insufficient market expansion space, resulting in the formation of low-level, homogeneous excessive competition, resulting in a large number of investment bubbles.

In response, Deng Tao said: "now for the development of clothing B2C, some people have raised the issue of bubbles, such as possible bubbles at the product level. I think there may be bubbles in some areas, but if we look at the big environment, the whole industry does not exist. After all, clothing B2C began to develop only after 2007. At the moment, it is only the initial stage, and the market capacity and prospects are here.

Product sales are hard to make money

At present, in the hot B2C of clothing, its criticism has gradually increased. Among them, the first is the profit pattern of clothing B2C.

Deng Tao does not shy away from the fact that clothing B2C is hard to obtain profits from product sales at present. In fact, in his view, the current clothing B2C "profit" mainly comes from the capital market, and a large part of the investment is also driven by the capital market.

"Now the clothing B2C recognized the profit pattern is different from the traditional line brand, the clothing B2C development opportunity is not the product sale profit, actually his opportunity mainly comes from the capital market, through the financing, the refinancing, unceasingly melts to the new capital, does the large-scale, finally realizes the IPO to appear on the market, this is the present clothing B2C opportunity." Deng Tao said, "from the sales point of view, at the moment, clothing B2C brand can make very little profit, many brands of statements are straightforward, and the whole format is still at a low price run stage. The profit is not high. It is very difficult to make profits through product sales. Most of them want to start from the B2C platform and profit from the harvest in the capital market. Of course, this does not mean that clothing B2C can not be profitable by product, but at the present stage, the ultimate goal of many brands is IPO listing.

The "DOIN '" also follows this pattern. Its "dream" is to become an electric power brand that provides high quality and high price products for the people. However, to realize this dream, Deng Tao's view is that listing is a necessary condition at this stage.

In a sense, the praise of the capital market is an important reason for the development of B2C at the moment. The "recognition" clothing B2C of the stock market has made all kinds of capital rush into, such as venture capitals represented by Mcglaughlin investors and industrial capital represented by "DOIN" investors.

As a new form of business, the development mode of garment B2C at present is to expand the market rapidly at the expense of product profits, seeking the advantage of scale. Through the huge scale advantage, on the one hand, it can attract the attention of the securities market. On the other hand, it can enhance the profitability of the brand's future products by size effect.

Therefore, the "attitude" of the capital market plays a crucial role in the development of garment B2C. It decides who will form the scale advantage first, and the competition between B2C brands will also evolve into capital competition and market expansion speed.