The Electricity Supplier'S Winter Debate Triggered A Heated Debate: No Money To Burn &Nbsp; How To Spend The Winter

Since a CEO, Bi Sheng has been the leader of 2011 Chinese economy.

Ting Bisheng believes that he speaks of the development of the domestic e-commerce industry.

To this end, the reporter interviewed camel CEO Wan Jingang, Fang Jianhua, chairman of Yin man and Lu Ming, founder of the company, and heard them from the angle of the traditional line brand "electric shock", "Amoy brand" and "independent B2C".

How to define "burn money"?

Southern Metropolis Daily: it is said that many domestic independent B2C marketing expenses have accounted for 30%-40% of sales.

How many percent of the cost of products and brand promotion are accounted for?

Fang Jianhua: the cost of promotion of EMMAN is like this: in 2008, the advertising cost in Taobao was very cheap, and the advertisements on home page were basically donated by Taobao mall.

But because it is just beginning, brands need a savings period. During that time, maybe you put in 50 thousand yuan, it can not form a good proportion with your sales.

Our initial proportion is 20%-30%, but this year's advertising cost can be controlled below 8%. If next year's sales volume is bigger, it may be less.

Once the amount is up, the advertising ratio will gradually shrink.

Wan Jingang: our e-commerce started in June of this year. There are camel dress flagship stores and camel women's shoes stores in Taobao mall. There is a leather store in the Taobao fair.

From September 19th to October 23rd, we made an activity in Taobao, with sales volume reaching about 50000000, excluding other C stores and distribution. At that time, the advertising cost of flowers was more than 500 yuan, and the basic control was less than 10%.

But in contrast, we do a B2C website, more than a dozen individuals may spend about 50% of the promotion fee.

As far as I know, a slightly larger seller is basically within the scope of 10%-15%. Personally, I feel that controlling within 20% is acceptable.

Lu Ming: I think about 10% is relatively benign, and now if we want to do category promotion, it may reach 30%-40%.

Regain the value of brand electric business

Nandu: in fact, everyone is still more cautious about promoting "burn money". So what is the difference between making brand electric business and simply selling an online "selling" channel, or making a brand online?

Wan Jingang: I started off as a offline brand, so I can only talk about how I feel after doing business.

To be honest, I don't think much difference.

Some people may think that the brand of electric business is lower than that of offline brand, but from my point of view, the price of online brand is not much different.

Because the price of a physical store is only very high, but it is virtual. It doesn't sell much without discount. Every day in the mall, consumers are waiting for activities.

In the words of Yintai boss, less than 30% of the original price was sold, and 70% were bought at a discount.

In the past, we did a lot of thinking about the offline brand management. We made some differences in products, separated by people of different ages and different cities. Basically, this is the case.

But maybe because of the accumulation in the past few years, although our men's shoes can be sold online, the price may be relatively high. But now the customers' turnover rate is 30%-40%. I think this is mainly due to quality and cost performance.

Fang Jianhua: I also don't agree that online shopping consumers only pursue cheap.

Ingman's customers are mainly white collar workers with a monthly income of around 3500-6000 yuan. If they sell a T-shirt for 29 yuan, the customers may not buy it, because they will think it is not good, so what we have to do is to make them feel cheap rather than absolute low price at a price acceptable to the customer.

For example, before Taobao's "double eleven" activities, we made some high-grade fur clothing, and after 50 percent off, more than 2000 of the price, many consumers still feel cheap.

This is the difference between making a brand and selling goods simply.

Secondly, the difference between online and offline, my understanding is that online brands can buy 24 hours without interruption. For example, "double eleven", we started sales promotion at 12:01, and sold 6 million of the sales in one hour, when the offline brands were closed.

The other is that online brands can interact more with customers when making product forecasts, such as taking some pictures to allow them to vote, predicting the direction of next year's products and formulating some marketing strategies according to their needs and judgments.

Transition from "niche"

Nandu: now, if there are some electricity providers to pform into brands, what opportunities will there be in the future? Should we start with a more popular brand positioning, or first cut out a niche market with high viscosity, and then wait for the expansion of the external environment when it becomes better?

Wan Jingang: I think there might be more opportunities for the latter. Because in the final analysis, camels are actually small brands, such as mountaineering and outdoor, which are very niche markets.

Lu Ming: small incision in a very developed society, it must be a very good choice for start-up companies. Good fun is also a small company. If everything is done, it will not work well, so we only sell shoes, because we have to survive first.

I think there is still an opportunity for minority brands. If we can afford them, there must be some reason for them.

Moreover, it is easier to differentiate from other brands. Once differentiated, the conversion rate, repeat customers and profit margins will be improved accordingly.

Nandu: specifically, how should we grasp some niche brands?

Fang Jianhua: the most important thing is to analyze what brands your competitors are doing, where you are stronger than your competitors, and then choose your brand positioning according to your own situation, your resources (if you are a suit, a suit's plate, fabric, and whether the upstream and downstream relations can be adjusted), and your preferences (because of the brand's tone of the start-up company or the relationship with the founder).

China has a population of 1 billion 300 million. Even if you only catch 50 million of them, you will have a good chance for a brand.

I once heard that a seller of large size shoes specializes in shoes over 40 yards.

You may wonder how large a special market can be, but the sales volume of the current year is also tens of millions.

Therefore, as long as we firmly grasp the customer group, they will stick to you, that is our future opportunity.