Mei Bang Clothing Crashed Electricity Supplier &Nbsp, Lost 60 Million Tuition Fees

A paper Bulletin of China's leisure apparel giant Smith Barney (002269) reflects the embarrassment of traditional clothing companies' involvement in e-commerce.

In September 29th, the United States announced that it needed to invest in e-commerce, logistics and distribution, marketing resources and information systems, which required huge investment and uncontrollable early financial risks. At present, if the company continues to engage in e-commerce business, the overall performance of the company and the interests of shareholders can hardly be guaranteed.

Therefore, we decided to divest the electronic commerce business from the listed companies, and take the original "state purchase network" to the United States parent company Zhou Jiancheng Shanghai holding Investment Co., Ltd., which is controlled by the US chairman, holding 80% of the investment, and authorize the wholly-owned subsidiary of Mdt InfoTech Ltd to sell the brand products on the Internet e-commerce platform, including, but not limited to, "Meters/bonwe", "Me&City", "CH" IN "and" AMPM ".

It is estimated that all kinds of daily pactions in 2011 will be no more than 200 million yuan.

Despite the fact that the state of BNP's operation is in good condition, it is only because the investment in the early stage is very large that it is not very good financially, and it is emphasized that Metersbonwe is not going to withdraw from online sales, but only to divestiture the electronic business platform.

However, this practice has caused a lot of ripples in traditional clothing industry and electricity business.

In the past, the "MB+MC+ state purchase" business framework of American bond clothing was forced to cut off one arm.

Less than a year, about 60000000 dozen water drift.

But in less than a year, bon did not produce a satisfactory pcript, and the initial investment of about 60000000 yuan was also wasted.

Online shopping has won a large number of young people's favor because of its cheapness, convenience, rapidness and efficiency.

Clothes & Accessories

As early as 2009, the United States began to build the state purchase network.

American Apparel has opened an official flagship store in Taobao. Its executives believe that although Taobao has attracted a large number of customers, some fake and shoddy products have affected consumers' experience. Therefore, we decided to build a "state purchase network" outside Taobao network to better cater for consumers.

In December 18, 2010, the state purchase network was formally launched. This collection of online shopping, fashion information and interactive communities and other multi platform fashion platform is tailored by Metersbonwe to bring consumers "unusual shopping experience".

For the purpose of entering e-commerce, there was such a metaphor: for Metersbonwe, traditional stores are just like army strength, while e-commerce is a new air force unit. Metersbonwe hopes to combine "land and air" to continue to provide consumers with the core competitiveness and provide cost-effective consumer experience services.

Zhou Chengjian, chairman of the American Apparel Company, also placed great hopes on the state purchase network. Before that, he also claimed that the sale of the company's e-commerce will reach 100 billion yuan by 2020.

But in less than a year, bon did not produce a satisfactory pcript, and the initial investment of about 60000000 yuan was also wasted.

According to the announcement, the investment in the electronic commerce business in the early stage of the United States costumes is mainly manifested in personnel salaries, technology development costs, logistics and distribution costs and advertising expenses, etc. the project has invested about 60000000 yuan into the American state clothing income statement.

The 2011 semi annual report showed that the performance in the first half of the year increased by more than 8 times.

In fact, there is no successful precedent for traditional clothing enterprises to enter the field of e-commerce.

Even BELLE, which has done relatively well, has contributed more than 100 of its online shopping platforms to BELLE group, which is less than 1% of the sales revenue of more than 10 thousand entities.

Traditional clothing enterprises are generally cautious about the test of water e-commerce, and to a certain extent, many enterprises are still in the long view stage.

Output is not directly proportional to Me&City.

For US bond clothing, it is not hard to imagine that we should continue to spend a lot of money on promotion.

For the traditional enterprises such as American Apparel or BELLE, their search for electricity providers may be just for "rainy day".

In the short term, output and investment are not directly proportional to each other, and are the biggest problems that lie ahead of enterprises.

It has been pointed out that Metersbonwe, as a listed company, tries to make big state purchases in the short term, and then leads to financial pressure.

It is more likely to postpone state purchase promotion and redesign Metersbonwe's e-commerce strategy.

As a whole, improper grasp of rhythm and ineffective operation of brand can not bear financial pressure.

According to media reports, in August this year, Zhou Chengjian, the head of the US bond clothing company, rejected the proposal of a large scale promotion of the "state purchase network" by his subordinates third times.

In fact, as early as March this year, the United States has suspended the promotion of state purchase.

Prior to that, the "state purchase network" sales volume has exceeded 1 million yuan.

In this regard, Zhou Chengjian's explanation is that we should draw lessons from the previous brand Me&City promotion and try our best to seek stability.

Insiders speculate that Zhou Chengjian may not be able to tolerate three business losses of two yuan. He can only peel off state purchase and ensure the performance of listed companies.

The loss of two pieces of baggage, in addition to the state purchase network, there is also not let Zhou Chengjian worry about MC.

In August 28, 2008, on the day of Smith Barney's clothing launch, the sub brand "Me&City" came out synchronously, and the United States, which focused on brand operation for a long time, began to extend its own product line.

Whether in the presence of shareholders or in the presence of the media, Zhou Chengjian did not deny that he had made several aggressive mistakes.

"Me&City" is a case often used by Zhou Chengjian to remind himself not to ask for quick and aggressive mistakes.

At the beginning of the brand building, the United States has been wearing Me&City apparel in 2009.

Zhou Chengjian believes that pursuit of scale should not be the top priority for enterprises.

Summing up the experience and lessons of Me&City, he told the media that at the time, the first thing was not to open stores on a large scale, and second did not expect the number of sales to be 100 million yuan overnight.

But in 2009, it will be 2 billion yuan. This investment is huge. The cost is not there. The root of the problem is that there is not enough risk awareness.

The choice of "Me&City" and the abandonment of "state purchase" show Zhou Chengjian's choice in the strategic focus, that is, continue to pay attention to the operation of traditional channels.

In the long run, throwing away a burden that is not good at management will not have much impact on its operation, but it is a wise choice.

However, the promotion of pause before the sale is undoubtedly a blow to BPN, because Bong must increase its revenue through advertising promotion.

So insiders pointed out that a serious shortage of investment is the biggest reason for the collapse of the United States and costumes.

For US bond clothing, it is not hard to imagine that we should continue to spend a lot of money on promotion.

Traditional enterprises often use their own funds, often holding the mentality of "less money and quick results", and they are not willing to spend money.

For the traditional enterprises such as American Apparel, BELLE and so on, their exploration of the electricity supplier may be just for "rainy day".

When online channel sales occupy an absolute proportion, they will naturally invest in the key points online, and it is impossible to promote the profitable online sales that are not yet clear. This is also doomed that the online sales of traditional enterprises will be very difficult in the short run.

In addition, solving the conflict between the online and offline channels is also a thorny matter.

However, fans of the clothing industry, such as fan Kai Cheng, Taobao and other Internet technologies, are more successful than those who do professional clothing. On the one hand, they know better how to build a platform in the network language and way to find the target audience. On the other hand, they will concentrate all their efforts on building an e-commerce platform.

Venture capital providers are willing to spend money to build their own logistics system and compete for price wars.

Single brand business is hard to make fun of B2C

Chen Guo, general manager of the e-business training center, pointed out that not money can be done to do business, direction and strategy is very important.

State purchase is an independent B2C platform, and a single category is difficult to support.

The construction of an e-commerce platform, in fact, means a perfect Internet enterprise, and in the choice of the model, the single brand is not enough to play e - commerce.

Chen Guo, general manager of the Electronic Commerce Training Center, pointed out that it is not that money can be a good seller, but the direction and strategy are very important.

Bong is doing an independent B2C platform, and single category is hard to support.

In addition, 60 million yuan is a small number of integrated e-commerce platforms.

It's a good thing for Bong to buy it.

In this way, we can cooperate with the outside world and get more investment. What's more, it will not affect the earnings of listed companies. After all, the data that the state has not yet made is not very good in the performance of the listed companies.

But for AI Shang bang, the rapid introduction of other cooperative brands is not an easy thing.

If the new brand moves too slowly, it will also become a major obstacle to its development.

Such as footwear B2C industry, the problem of brand supply chain out of control is increasingly serious, especially for small and medium-sized enterprises.

For example, the industry has been the first to go online in the footwear B2C industry, but at present there are only 110 online brands.

The speed of new brand entry is slow, and the problem of brand supply chain is becoming more and more prominent, which is very inconsistent with the current development speed of the platform.

There are more than 1700 kinds of online products in the shoe store, and only 40 brands are supplied. This can be seen from the side that their product positioning is relatively limited. If not widened, once the supply chain breaks, it will cause a fatal blow to the enterprise.

Does the tailor do not have the idea of electricity supplier?

In other words, the path of the traditional enterprise's electricity supplier is difficult to change in the mode of thinking instead of having experience.

Only by reversing the boss's thinking and embedding the idea of Internet and e-commerce can it be easier to succeed.

The same is true for Smith Barney. When the "traditional tailor" is pformed into "Internet tailor", it is ultimately the pformation of thinking.

Otherwise, how can a tailor play IT?

When Ma Yun spoke internally, he pointed out: "traditional industries have almost failed to enter the Internet."

He pointed out that to do online marketing, we must invite new young people to build new teams.

"If there is no new team, there is no guarantee of new organization building, it will fail.

The first day begins with failure. "

Yang Dayun, President of the textile and clothing retail industry and President of UTA Fashion Management Group, has also suggested that the boss of traditional clothing enterprises who want to develop e-commerce will become a "capitalist" and invest in a team that knows the rules of e-commerce game and reside as an investor.

"When the traditional clothing enterprises are involved in the field of e-commerce, the best way is to invite professional people to do professional things."

Because e-commerce faces different market patterns, different sales modes, different customers and different service modes.

A complete e-business team needs to be equipped with operation management, marketing promotion, activity planning, art editing, technical support, customer service and other posts. These functions are completely different from the existing ones, resulting in the recruitment of all jobs.

And these are not just as simple as adding a new department.

In other words, the path of the traditional enterprise's electricity supplier is difficult to change in the mode of thinking rather than experience.

Only by reversing the boss's thinking and embedding the idea of Internet and e-commerce can we increase the chance of success.

The same is true for Smith Barney. When the "traditional tailor" is pformed into "Internet tailor", it is ultimately the pformation of thinking.

Otherwise, how can a tailor play IT?

B2C website Meng bausa co founder She Xincheng said that at present, e-commerce is only a supplement to traditional enterprises, e-commerce and traditional sales are two kinds of cost systems, there are conflicts and contradictions.

At present, most clothing enterprises are often based on their own products. Their way of thinking is to sell more products through the Internet on the existing basis.

As a result, the e-commerce Department of enterprises has become a dumping department.

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According to people in the industry, in recent years, the newly emerging online shopping apparel brands usually launch many styles on the Internet for consumers to choose from, and through the backstage statistics to achieve the industrial scale production style, and then let the factory produce the hot selling styles.

One of the keys to the operation of brand on the Internet is to find out the latest fashion trend through information technology to consumer's shopping habits and preferences, and two is to have the overall organization and coordination ability of various factories and logistics companies.

Traditional clothing companies such as Mei Bang dress are customary in production, and are not consistent with the trend of Internet companies.

Statistics show that the first quarter of this year, the United States apparel inventory reached about 3 billion yuan, more than the normal level of about 1 billion 500 million yuan, the main reason is that in the four quarter of 2010, single store sales were hot, with the growth rate of almost one hundred percent, so mistaken that the first quarter of this year will also grow at the same speed, Bong net in the short term to become an important channel for American state clothing digestion inventory.

Industry status

Traditional enterprises dare not gamble gambling business reasons

With regard to the reasons why traditional businesses dare not gamble in e-commerce, an interesting metaphor of "friends in August" can be seen in the practitioners.

Entrepreneurs are like young people who don't have enough money to gamble. They spend 100 yuan in their pocket. Many people are willing to make a fortune.

Bad luck, bad gambling skills, lost, and lost; there are so many one or two young people, perhaps luck or gambling skills, 100 yuan to win 1000 yuan, then dressed VC appeared, said: buddy, you are doing great things, playing too small, I lend you 10 million, you bet.

I won 90%, you accounted for 10%, and lost my count.

This young man calculates that he wins or loses more than 1000 yuan. That will definitely continue. He also wants to raise the size of the gambling table and play the big, all show hand.

At this time, before opening the card, the VC was not idle, looking for other VC and investors everywhere, telling how worthwhile the investment was, and the result was that the card had been fired several times before the card was opened, and the money on the desktop was already about 1000000000 dollars.

The young man is very happy, no matter what cards he opens, he will not lose.

VC are also very happy, as long as a few rounds of succession take over, there will be money, even if no one answered, you can also try to sell this hand to the NASDAQ American stock holders.

But, in the end, what cards are on the cards, because no one has opened the cards, no one will win, but in the industry already has the legend of "gambler".

Traditional enterprises are like gentlemen who go to middle age. They never gamble, and generations of people build their scale by accumulating hard money from scratch.

One day, he read the news and saw the legend of "gambler", so he was eager to do it, copying money and coming.

He is not fighting alone, behind a pile of shareholders, management, employees, partners and so on are watching him.

At the card table, I saw a lively scene.

He thought, "I have 1 billion RMB in my pocket. If I don't gamble, I can make 10 million of my business every year. I bet it will turn into $1 billion and return to the liberated night before. I bet he will not gamble." he looked at the young man who was called "gambler". The young man looked at the middle-aged man scornfully. He didn't have the courage to play. The middle-aged man looked at VC again. VC said, "you have the money, come to yourself! Look at the money on the card table, the middle-aged people bite their teeth, they are ready to take out 1 million to try it first, and the young man and VC speak, buddy, 1 million can not afford to play, this card is already 1 billion.

The middle-aged man hesitated. At this time, the shareholders behind him spoke: you are crazy, and gambled with our money. You want to die! The management, the staff and the partners are out of business. Your bet is not yours. It is tens of thousands of employees, billions of market capitals and certain social responsibilities.

If you are a middle-aged man, can you still gamble like a young man with 100 yuan?

So, are we simply making the dilemma of traditional enterprises doing e-commerce, which is summed up to lack of determination and lack of awareness. Innovation at the time of the Internet brings countless opportunities for entrepreneurs. However, for traditional enterprises, these innovations are more hidden behind risks, and the failure cost of entrepreneurs and the failure cost of traditional enterprises is not an order of magnitude.

Therefore, it is not only right but also necessary for traditional enterprises to face e-commerce cautiously.

Traditional enterprises enter B2C: too heavy burden

Dangdang COO Huang Huang has repeatedly said that traditional enterprises should not easily enter the online retail business. "They are the army and the water force. If the competition is too hot today, if the army goes to the water, if it does not swim, it will die very badly."

But in recent years, there are still many traditional manufacturing enterprises trying to sell online.

Traditional enterprises are so keen on online retailing. Besides promising prospects, they may also be related to "example".

Bags and bags OEM factory started the luggage vertical B2C website wheat bag only took three years to do the luggage industry's largest vertical website, 2010 of sales reached 400 million, the growth rate is 10 times the traditional manufacturing industry.

More importantly, it has its own brand and pricing power.

Lang Xianping said at the retail conference held at the billion power network that electronic commerce is probably the last opportunity to seek breakthroughs for Chinese manufacturing enterprises who have always made the least money and work most in the industry chain. E-commerce enables Chinese manufacturing enterprises to get pricing power, allowing manufacturers to integrate all industrial chain resources in the most time and make brands at lower cost.

However, traditional industries can only succeed in the field of e-commerce.

Shao Xiaofeng, general manager of Alibaba China business department, also said that if he wanted to play a lot in e-commerce, he used to "huff" the EMBA students in China and Europe to do business, and many traditional business owners wasted tens of millions of dollars.

Experts believe that the burden of B2C on traditional enterprises is too heavy to be able to give full play to their advantages. The resistance to internal constraints is far greater than external competitive pressures. They can not effectively combine electronic speed and business strength, and can not play a role in mouse nerves and cement muscles.

At present, the traditional clothing enterprises are generally cautious about the test of water e-commerce, and to a certain extent, many enterprises are still in the long view stage.

The risk of electric business is no less than that of traditional enterprises.

Half is flame, half is ocean.

B2C has been booming in recent years, but the truth is that the industry is still in a state of loss.

According to media reports, only about 20% of e-commerce enterprises in Shenzhen can be flat or profitable, and their fate is not much different from traditional enterprises.

Statistics show that 30% of e-commerce enterprises in Shenzhen will die in the year of registration, and 30% of enterprises will die after registration three years.

Why is there a general loss?

Some experts pointed out that from the general trend analysis, according to the 28 principles, the whole B2C is still in a very niche market: only about 20% of the people in the country go online, and only about 20% of them will go shopping online.

About 80% of these people choose to shop on Taobao. The whole B2C is still a very small niche market, which is equivalent to 8/10000 of the crowd market.

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Second, B2C, which is bankrupt or not profitable, is a problem of operational rhythm.

In view of the current development of B2C, B2C website operators should take small steps to run rather than rush to run fast.

Because China's e-commerce is still in the initial stage of rapid development, rather than a mature stage of rapid development.

Third, cash flow is the blood of B2C entrepreneurs.

At present, the B2C industry is generally not yet profitable, and it needs to develop the ability of self hematopoiesis.

Otherwise, bankruptcy or decline is inevitable.

Good cash flow requires B2C to have a good supply chain.

At the supply chain management level, if the website sells 1 million yuan per month, the supplier has 2 months' accounts, and the logistics can settle accounts within 1 months, then the 1 month time difference can be used to make use of the 1 million yuan sales cash flow turnover.

Therefore, the electricity supplier B2C should pay attention to the pace of operation, with 2 million yuan of funds to match the resources according to this amount, and develop quickly and quickly.