Small And Medium-Sized Vertical Electric Business Executives Dialogue: How To Save Themselves In Cold Winter
Recently, the product convergence network is a typical representative of the electricity supplier industry in the cold winter.
Electricity providers pushed up by capital
enterprise
In the case of subsequent investment is not in place, we have to readjust our strategy.
Although the cold winter theory is not for business, it is for investment, but accustomed to the growth of electric business in the greenhouse, eventually need to return to the natural world.
To this end, this venture circle focuses on small and medium vertical.
Online retailers
The head of the enterprise and experts will explore the strategy and path of the electricity supplier's winter.
Focus one: low cost marketing to increase traffic volume
When Q is rich, everyone lives pretty well. After the capital has gone down, advertisements
Marketing
The cost will generally be reduced.
In the case of promotion cost reduction, it is not easy for enterprises to reduce traffic flow or even increase.
A is the future direction through the dissemination of quality content; it seeks appropriate tools for promotion, such as embedding content into information, word of mouth marketing, social media, platform borrowing and optimizing SEO.
Li Yun: we have adopted the strategy of finding the target users with the lowest cost.
On micro-blog, we only spend more energy on Sina, because its user group is the best match with high street network.
In November 2011, Sina micro-blog accounted for 8% to 10% of the total sales volume of the high street network.
Selling goods on micro-blog is not enough to impress customers. We insist on using the official account to disseminate the fashion concept and sell things along with them.
Deep cooperation with many women fashion websites is another step.
For example, we organized the activities of shopping and sunning goods with the community of Ruili network, and organized a fashion show with Phoenix fashion.
Content is also related to marketing. For example, we export some content to vertical women and fashion websites every week.
Although it is slow and time-consuming, its persistence and user stickiness will be higher in the long run.
Zhao Jingwen: the reduction of marketing cost will definitely lead to the decrease of traffic volume.
If you sell homogeneity products, you must increase your sales and increase sales to make users remember you.
The marketing mode of wow net is diverse, so as to ensure low cost and effective control.
I have to mention: because the articles and products in the information will be more SKU, wow is very focused on search engine optimization, including advertising on Baidu and Google. Our experience also shows that search is a very accurate marketing.
Chen Tenghua: elegance 100, on the one hand, we are doing channels, and also making products, such as Dangdang (micro-blog), Jingdong (micro-blog), Taobao mall and other platforms, we have entered.
In addition to borrowing channels, the main thing we do is to do word of mouth for users, to make word of mouth through social media, and to provide some tools to help users do more word-of-mouth.
For example, elegance 100 launches an excellent plan, old users can bring new users, old customers and new users have gifts or coupons, and then push down.
Through this project, the number of registered users will increase rapidly, and the cost will be very low. What we are paying is just a gift. It used to be a small square towel and now it is a towel.
Xu Xiaohui (micro-blog): as a private brand of clothing, reducing the marketing cost has two main aspects: on the one hand, borrowing more resources from existing platforms, such as Taobao, etc., their traffic is relatively large, and the cost performance of the entire marketing is also good; on the other hand, through oral word-of-mouth, such as singles day, the video pmission and the collection of smiley faces are all spread through the micro-blog platform, and achieved good results.
In addition, we also collaborated with some folk singers, such as Shao Yibei, her "concert city" national tour, the first moment is the exclusive ticketing and promotion at the event site.
The City Pictorial "desert island concert" and Anthony Wong tour are all cooperated with the beginning.
Li Shubin: when someone else spends a lot of money on advertising, we do not grab it. When others are shrinking money, we do not necessarily have to cut down the promotion cost, because if everyone stops, our cost may be lower.
As a result, good music will develop according to its established rhythm, and will not blindly follow suit or increase the cost of marketing promotion.
However, we will incorporate some new elements into the promotion.
For example, at the end of 2011, we launched the "city grab GO" theme line activity, which brought good results.
In addition, we also increase some resonances with the audience in the sensibility and spirit, speed up their recognition of our speed, strive for a loyal group of users, and increase their traffic flow through their word-of-mouth, which is also an effective way.
Ju Chuanguo: our marketing will make adjustments next. First, we will increase the marketing of social media. The trend of social media is low, and the cost will be low. Such channels as micro-blog and SNS will increase. For example, we have opened up micro businesses in Sina micro-blog, and there will be a lot of cooperation in this area. Two, we will further strengthen cooperation with the platform and make use of the traffic on the platform, such as Tencent QQ online shopping, Taobao mall, 58 group buying, Jiayuan (micro-blog), etc. three, we should strengthen cooperation with different industries in vertical websites, and hold together sales and marketing.
Focus two: improve the internal strength so that the background can not drop the chain.
Q electricity supplier is no longer a lightweight mode, it is getting heavier and heavier.
In the early and rapid development period, the supply chain and management of e-commerce are not so important.
However, when the economic environment is bad, suppliers may have problems.
A
Through the system pformation of the electricity supplier system, we will create a new supply chain system, and enhance the internal strength through technological strength, including deepening cooperation with suppliers.
In addition, we need to use special period to strengthen team management and strengthen enterprise culture.
Li Shubin: for the future, more and more people will buy things online, and prices will no longer be the first element of choice.
Based on this understanding, we have done several things: first, we need to increase the clothing, bags and other products needed for matching.
Good fun buys shoes for a long time, and clothes match. This kind of collocation will not confuse users.
The two is to enrich the product line to increase the frequency of user purchase.
Assuming that users spend 500 yuan, we hope that it will take 1 years instead of 5 years.
That is to say, the shorter the time, the better for us.
Therefore, we will also sell leather shoes, casual shoes and ladies' boots.
Three is to build distribution teams and improve service capabilities.
For example, a user who buys a pair of shoes is not suitable for changing the number. It can be used two times through third parties, and we can do it by ourselves.
Therefore, it is better to take the initiative to innovate than to follow passively. Although the cost is high in the short run, it will save a lot of marketing costs in the long run.
Li Chengdong: enterprises do good job in every aspect, such as improving marketing effect, raising conversion rate and reducing marketing cost, such as optimizing inventory management and reducing cash occupation of inventory, so that we can better grasp market demand and reduce business risk.
Of course, there is another internal strength that many enterprises fail to notice, that is, team management.
Many enterprises are growing rapidly, but the lack of corporate culture can easily lead to problems such as coordination, coordination and so on, which will also be reflected in the daily business performance.
Li Yun: overseas brand suppliers of high street network are mainly fashion trends in Europe and America, some of which have not yet entered China.
While selling goods, we also do branding and marketing for these brands as far as possible.
For domestic brands, we mainly do consignment mode.
Because it is a time sale, a brand product will be sold on the line for about two or three weeks, and if it is not sold, we will return it to the brand side.
This mode has made the circulation of commodities faster, so we have been working smoothly with the brand partners so far.
Zhao Jingwen: Wow net is the C2C light mode. It is the selling platform of hand original design. So we only focus on technology operation and promotion, and the chain is very short.
We have no warehouses, but the 1000 warehouses scattered across the country are combined with larger warehouses than some of the electricity suppliers.
Order processing, for example, 10 thousand orders per day for a website, the demand for supply chain and logistics will be very high. But we are designers, shopkeepers themselves, shipping their own stock, distributing them to 1000 stores, and 10 outlets for each shop. They will handle well.
Xu Xiaohui: independent brand electric business has never been a light mode. Compared with traditional brands, it is only a marketing mode and sales channel.
This is a hard job. The threshold of capital, talent and brand building is very high. Therefore, there are very few independent brands to start business, and there are no more than 10 clothing brands in the field of B2C.
As for the supply chain, the initial stage is the most difficult, because the procurement scale is small, and the supplier has no bargaining power.
In the winter environment, e-commerce enterprises should be more intensive and honest, and suppliers will have confidence and cooperate with each other.
Ju Chuanguo: in the field of cosmetics, we have been doing this for more than ten years.
Next, we will strengthen interaction and marketing with brands, for example, in promotions, we will interact with brands, and do some promotional activities together.
In addition, every day net will strive to make the brand goods more profitable to customers.
Focus three: finding a balance between speed and profitability.
Under the promotion of high cost, the more Q sells, the greater the loss. This is not the norm for business behavior.
Now, this strategy is being abandoned by many electric business enterprises, and it has begun to slow down the initiative and pursue reasonable profits.
A
Active speed reduction is a strategy to keep pace at the right time and avoid price wars at the same time; choose high value-added products in operation, find and dig out the differentiation of commodities, do well in maintaining old customers, improve conversion rate, and abandon simple, crude and high cost promotion.
Chen Tenghua: what we are doing is the concept of high quality. The core value of the brand is quality, comfort, simplicity and value.
However, how can we make our brand competition more differentiated? How can we distinguish the home textile enterprises from Taobao mall and Jingdong? This is indeed a difficult problem.
Now, one of the things we do is to use situational display to make people feel that it is not what they lack at home that they want to buy it gracefully 100, but like IKEA, they visit IKEA on weekends, and help users improve their quality of home life.
We believe that manufacturers like home textile free brands will focus on one product, and we will position ourselves as "online IKEA", a home textile retailer.
Li Shubin: when the industry develops at the speed of 100%~150%, a good enterprise will have the speed of 300%~500%, but at such a speed it will cost more.
I believe there will be some electricity providers will speed down a drop, to keep the ammunition, can persist until dawn.
For good Lok, capital is the key factor that determines how much cake we can get, but it does not affect our survival.
In 2012, we had two strategies: first, to improve the efficiency of single person and to control the growth rate of human cost.
Second, we should appropriately control the growth rate of sales and not pursue the growth rate of 400%. Maybe 200% is a relatively good speed.
Of course, the result of horse racing is not that all horses can run to the first place.
The inevitable law and the Matthew effect in the future will be more prominent.
Ju Chuanguo: price war is not a long-term strategy. What we are more interested in is differentiation and specialization.
The same product, Dangdang, also sells every day. How do we combine differentiation and specialization? We first made a beauty Research Institute to share and exchange some skin care knowledge of women.
For example, for dry skin and oily skin, guide them how to use products, joint manufacturers to carry out some new product launches, will also conduct research and interaction for some products.
In terms of specialization, we will make a professional database. After buying this product, customers will make a database based on this product.
For example, the product is 30 milliliters, we reckon that this month will run out, and then to a month, we will send text messages.
If the customer buys a moisturizing product, we know that she is a dry skin. In the winter, we will tell her to keep moisturizing and take some care.
These are professionalism.
Li Yun: high street network is also constantly looking for differentiation in terms of commodities.
On the one hand, our buyers will try to find products with high fashion to the user as much as possible. Fashion editors will be able to evoke the impulse of customers from various aspects by taking pictures and text, and on the other hand, the uniqueness of products is also very important.
We are experimenting with some fashion brands to launch customized products for exclusive high street users.
For example, in January 2012, we will launch a leopard print handbag with the French fashion brand Libration.
The cross-border cooperation between fashion brands and online e-commerce brands is still rare in China.
Li Chengdong: I think the spring of e-commerce has just begun.
Amazon (micro-blog) was profitable only 8 years later. By 2001, the loss rate reached 50%, and the loss rate was very large.
At that time, Amazon's market capitalization dropped from $more than 100 to $8, and some people suspected Amazon was a Bubbles Company, but he came.
A good company must have done a lot of investment and preparation in the early stage, so it can go further, and the business will become better and better.
Zhao Jingwen: the essence of business is profit seeking. In the short run, loss does not mean anything. The key is whether it is a healthy loss. That is to say, at some point, we can turn around the deficit and make profits. After scale, we can make profits.
At present, because all of us are doing irrational horse racing, fighting price wars and pulling users, we do not want profits at all. The cost is very high. The bigger the scale is, the bigger the loss is. This is a problem.
In fact, the electricity supplier is a long-distance race, but at present, we are all using the sprint strategy. We want to drag our opponents down in the short term by sprint. However, this is unlikely.
In the cold winter, enterprises are most needed to settle down, do well in internal work, do well in maintaining the old customers, improve the conversion rate in the stations, dig deep into the needs of users, and give up some simple and crude high cost promotion, which is a good thing.
Band aid
Cold with industrial mentality
The e-commerce industry is going through a knockout.
I have to admit that the pursuit of capital shortens the time of this contest.
Although the whole e-commerce industry is growing rapidly, the Matthew effect has emerged, the stronger the stronger, the weaker the weaker.
In the near future, the closing of the product convergence network is pointing out that the electricity supplier enterprises without capital support have begun to return to nature.
Once out of the capital's greenhouse, some weak electricity providers begin to obviously discomfort, trying to lay off and reduce wages to achieve thin body to protect the cold.
The whole e-commerce industry has fallen into the embarrassing situation: the stagnation of business growth and the continuous loss are mainly due to the deviation of investors and business owners' understanding of e-commerce and the essence of business.
Economist Milton Freedman believes that the essence of business is profit.
Under the concept of speculation and capital push, many kinds of e-commerce like the light mode, can not allow enterprises to continue to make profits.
High promotion costs, rising express logistics and personnel costs all make e-commerce enterprises more and more serious, such as self built logistics team, land acquisition, warehousing and so on.
When these unfavorable factors are stacked together, enterprises will have to see if they want to lighten their burden.
For the helmsman of the electric business enterprise, the most important thing is to adjust the understanding. Profitable business is healthy business! Some marketing people believe that the secret of WAL-MART's profit is not to earn the difference of products, but to greatly enhance the turnover rate of commodities.
This is worth learning from electricity providers.
For vertical electric providers, enterprises that own their own brands and give consideration to the platform mode like fans have two aspects to return to the essence of business. One is that the products of independent brands should be returned to the brand's thinking and gain profits through volume.
Two, we should aim at the positioning of the platform, return to the role of channel retailers, and improve the turnover rate of commodities.
Platform is actually a channel, it is a window to contact consumers, so the most important thing is to do well in consumer communication and services, so that they can rely on this platform.
In fact, if we simply take the standards of retailers or channel providers to measure the current vertical business enterprises, they still have a large gap, and there are still a lot of homework to do.
As the saying goes, success depends on thinking.
In the cold winter, the electric business enterprises only abandon the way of Internet enterprises, abandon the illusion of capital operation, have the mentality of returning to industry, and do well in self-improvement, so that they can become the "leftovers" of the industry.
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