Chen Hu, Vice President Of Le Tao Network: B2C War Entered Life And Death Time

Happy net vice

President Chen Hu

For the first time, Chen Hu's favorite interview with Chengdu media is that this year is the key year for B2C (business to person) e-commerce.

He suggests that those who want to be eager to further develop new market segments, at least the footwear e-commerce has no chance.

Forecast >

B2C empire's future territory: one tyrant plus many kings

"When the market flow tends to be saturated, the new traffic volume is very difficult.

Chen Hu introduced that B2C came into being in China in 1999, but because of the fact that China's Internet user base and social support had not kept pace, the first batch of B2C enterprises almost died out. Only a few of them survived for 12 years. The second batch appeared after the SARS in 2003, took the Jingdong mall as the leader, and exceeded the first batch in scale; the third batch started from 2007 to 2008, because the domestic Internet environment has already created "400 million netizens and 200 million online shoppers", so this batch of enterprises has caught up with the best time.

"At this point in 2011, the three wave B2C will launch the battle of kings in their respective battlefields."

Chen Hu judged that the first wave and the second wave would compete for the crown of the comprehensive B2C, and the third wave B2C enterprises would compete for their vertical class leaders.

In 2011, for third wave B2C, a vertical category has been prepared for two or three years, and it is just the time to widen the gap.

"The future is also very clear, that is, the competition of these B2C enterprises.

Towards the integrated B2C, one is the strongest, and the other is the king of all vertical categories.

Competition >

Traffic and price war are old ways: no one can escape.

This year, the B2C electronic commerce market, which has been constantly on fire, seems to have confirmed Chen Hu's judgment, such as Jingdong, Dangdang's price war, from the beginning of the year to the middle of the year.

For this round of B2C e-commerce business war, Chen Hu thought, "the objectives are the same: orders and users, in short, the market size."

"The fight is nothing more than a traffic fight, a price war, a service war. This is what B2C companies have been playing in front of. It's not fresh, but it can't run out of this rule."

Chen Hu asserted that "slow, strategic, and apparently short boards are likely to be overtaken by competitors and far away, and it will be difficult to catch up."

In order to deal with this war, Chen Hu revealed that Le Tao has already stocked enough grain and grass. Last June and January this year, Le Tao announced two rounds of financing for us $about 10000000 and US $about 30000000 respectively.

Advantage >

Implementation of real sales agency mode: capital turnover is fast.

In the field of vertical B2C e-commerce focusing on footwear, Le Tao also has good luck to buy such a strong competitor.

But Chen emphasized that their business models are different.

Chen Hu said the "different" business model, in fact, is the "real storehouse sale" mode of Le Tao, that is, he does not purchase goods, and hundreds of thousands of shoes in the 6 warehouses are supplied by suppliers according to the contract.

The form of light stock guarantees that Le Tao can put a large amount of funds into service and market expansion, and the virtuous circle of supply chain can ensure the rapid growth of Le Tao's website traffic and sales volume.

At the same time, service can also be done without reason and free of return. "

Chen Hu revealed that in the data of global traffic monitoring agency alexa.com, Le Tao ranked 245 in Chinese websites, ranking 476 in terms of its nearest competitor. "The development goal of Le Tao this year is to maintain the shoe's vertical B2C leading position at the end of last year, and widen the gap.

In 2011, Le Tao's sales reached at least 700 million yuan.

Jiancang Chengdu >

Reverse coach Chengdu women's shoes focus on making foreign trade shoes to grasp shoes.

In January this year, Le Tao set up a warehouse in Chengdu, Chen Hu introduced that the purpose of choosing Jiancang in the first place is to connect with the footwear industry of Chengdu, which is a "women's shoes city", and sell Chengdu women's shoes as a source of small and medium-sized brands to the whole country.

In his view, the cost of opening a shop offline is very high. For the local shoe factories accustomed to foreign trade, it is very unrealistic to build thousands of stores in Chengdu.

Chen Hu introduced that after the opening of Chengdu in Chengdu, the cooperation between local women's shoes and the local women's shoes started from the breakthrough of zero, and sales volume is gradually increasing.

At the same time, Le Tao also through the supply chain of many experts from traditional footwear enterprises to Chengdu women's shoes enterprises to conduct reverse counselling, let shoe factory from the feeling of making foreign trade gradually shifted to the domestic women shoes shoes grasp.

Chen Hu said that the advantage of Chengdu women's shoes is the concentration of resources, "concentrating on one point of women's shoes competition, winning and winning rates are relatively high, followed by the support of local governments."

But at the same time, due to geographical restrictions, Chengdu shoe factories are not deep enough to grasp the national consumer market, and there is no time to catch up with the global trend.

"To talk about a thousand and one thousand things must be carried out on specific shoes."

With regard to the development of Chengdu women's footwear industry, Chen Hu suggests that only after accumulating a certain amount of experience can we make proper brand positioning and packaging, and make a bigger brand.

Dialogue >

To win the southwest, we must first win Chengdu.

Reporter: in Le Tao shopping, can the Chengdu market reach the next day?

Chen Hu: if it is shipped to Chengdu by Yue Tao warehouse, the order in the morning will be out of storage in the afternoon. Generally speaking, it can reach the user in second days. But this is not absolute. Some users may be in the suburbs or remote places, and the service time may be extended. "Chengdu"

Reporter: how much can the proportion of Chengdu women's shoes sell in Le Tao?

Chen Hu: after more than a quarter of development, Chengdu women shoes accounted for about 5%.

Judging from the layout of the national market, it has been pretty good, and this proportion will gradually increase.

Reporter: how do you see Le Tao in Chengdu and even in the southwest market?

Chen Hu: from the perspective of Chengdu's outward going, Chengdu women's shoes need to learn and introduce resources to grow. From the perspective of the consumer market, winning the southwest market must win the Chengdu market.

Reporter: what kind of work will le Tao do in Chengdu in the future?

Chen Hu: one is to sell the shoes of Chengdu suppliers in a down-to-earth manner; the two is to organize a team of experts to coach Chengdu shoe factories for a long time, and the third is to meet the consumer demand of Chengdu market in the near future.