Electricity Supplier "Magic Power": Two Days To Sell 50 Thousand Pairs Of Canvas Shoes

An obscure private shoe making enterprise in Shanghai, after many arduous attempts such as foreign trade orders, private brand and domestic foundry, has chosen to produce canvas shoes for new e-business websites in the past two years. As a result, it has unexpectedly opened the gate of wealth: in 2011, the order amount of the website was as high as 2 million 300 thousand pairs, and the annual output value of the enterprise exceeded 140 million yuan.

For this Canvas shoe The miracle of online shopping, experts say, is booming. Electronic Commerce It is bringing new opportunities and growth opportunities to the traditional manufacturing industry in China. With the emergence of some large online retailers, traditional retail chains will face challenges in the tide of e-commerce.

Electricity supplier "magic power": two days to sell 50 thousand pairs of canvas shoes

Shang Hong Shoes Co., Ltd. is located in Jiading District, Shanghai, Ma Lu Town, formerly known as Shanghai Huili shoe General Factory, Hong Hong branch. "Back force" is China's earliest fashion shoe brand. In 2000, when the shoe industry filed for bankruptcy, the Shang shoe industry was transformed into a private enterprise in December of that year. For many young Internet users who like online shopping in China, a lot of canvas shoes are popular in recent years.

Hu Qilong, chairman of Shang Hong footwear industry, told reporters that the company initially made foreign trade orders, and tried to push its own brand during the same period, but failed for three years. Since 2003, the company has become one of the local designated manufacturers of the General Logistics Department, supplying products to the army for many years. In early 2010, VANCL, an e-commerce company, came to the door and asked for its OEM products. At that time, the first order was 50 thousand pairs of shoes, and two days after delivery, the order of customers was also increasing. The total volume of orders reached 2 million 300 thousand pairs in 2011, and the output value of the upper footwear industry reached 140 million yuan at the same time. This is also the fastest growing year of business performance.

According to Hu Qilong, in recent years, due to the decline in foreign trade and the substantial increase in raw material costs, the domestic footwear industry is generally facing difficulties. Around 2000, there were nearly 40 shoe factories such as Shang Hong in Shanghai, but in recent years, many enterprises have closed down because of their difficulties in operation. At present, only five of them are on the same scale as those on the Hong shoe industry. It is through doing the foundry for all customers, the macro shoe industry has become the main supplier of canvas shoes for all customers. At present, the order quantity of all customers has accounted for 70%-80% of the company's total orders.

The website responsible person said that in 2011, the total sales volume of the website was about 4 billion 500 million yuan, and the annual sales volume was 70 million, of which only 5 million pairs of canvas shoes were sold, and the supply of the upper footwear industry accounted for nearly half. In 2012, the volume of orders that anyone would give to the footwear industry is expected to grow further.

Internet retail has become a new channel for traditional manufacturing industry

In the eyes of experts, it is only a microcosm of e-commerce in recent years to promote the development of traditional manufacturing industry in China. With the growing popularity of e-commerce, emerging online retailers are becoming new marketing channels and growth space for traditional manufacturing enterprises.

According to research institute, AI consulting statistics, in 2011, the scale of China's online shopping market reached 773 billion 560 million yuan, accounting for 4.3% of the total retail sales of social consumer goods, and the number of online shopping users reached 187 million, accounting for 41.6% of China's PC users. In China's online shopping market in 2011, "clothing, shoes and caps, bags and bags" accounted for the highest proportion, with a market share of 26.5%.

"The vigorous development of e-commerce is changing the traditional manufacturing industry's existing production, sales and even enterprise operation mode." Shi an, founder and founder of Gu Tan technology, a brand marketing planning company, told reporters that through the cooperation with e-commerce platform, the traditional manufacturing industry has been greatly improved in reducing procurement costs, reducing labor costs, expanding supply channels, improving operational efficiency, and facing consumers directly, thus achieving "lightening the burden" for enterprises and making enterprises "lighter".

Shi An believes that e-commerce websites, especially those with a certain scale, are becoming a powerful driving force for more and more traditional manufacturing enterprises to get rid of heavy load operations. For example, the Yangtze River Delta, the Pearl River Delta and other places, many factories are accepting orders from large e-commerce platforms, and through cooperation with e-commerce platforms, the quality of business has undergone a qualitative change.

"E-commerce enterprises need stable sources of supply, which are the basis for the normal operation of e-commerce enterprises. The cooperation between the customers and the upper shoe industry can meet its demand in this area, so as to ensure the stability of the supply. Mo Daiqing, an online retailer analyst at the China Electronic Commerce Research Center, said in an interview with reporters that as a result of mass production, the cost of the e-business website can be saved a lot and profits are more secure. For footwear manufacturers, relying on well-known business enterprises, in terms of profits are also considerable, at the same time, with such a platform, to create their own visibility.

"The cooperation between the future electricity supplier enterprises and these traditional foundries will continue, and now the footwear enterprises are overcapacity, and cooperation with the electricity supplier can alleviate this problem. The cooperation between them is mutual benefit and mutual promotion. Mo Daiqing said.

Traditional retail industry faces challenges

"E-commerce website put forward product demand, so that the OEM fast OEM production, and then rely on low price strategy, through the network to sell massive users, generate huge volume of transactions." In the Internet era, this "light company" model is becoming more popular and praised by many e-commerce companies. In the development trend of e-commerce, traditional retail industry will face the fatal challenge of user churn and transaction atrophy.

Gu Guojian, a professor at Shanghai Business School and director of the Shanghai Institute of chain store research, said that the phenomenon of 2 million 300 thousand pairs of shoes produced by the upper footwear industry to fan Ke Cheng's products in the first year shows that there is an effective combination between the traditional retailers and manufacturers in China. The traditional retailer's business methods are relatively simple, and there is no difference between the goods and the risk of operating in advance. If the goods are not sold, they will be returned to the manufacturers. Now, some new network retailers have combined the concept of OEM (foundry production), and have the capital and users, can take risks, so they dare to order the traditional manufacturing enterprises.

"On the one hand, Internet retailers are developing rapidly; on the other hand, many traditional manufacturers are starting to open their own online stores. Internet sales The change of new Internet retailers and manufacturers is making a huge impact on traditional retail enterprises. There will be new changes or consolidation in China's commercial retail sector, but the organizers of integration may be online retailers, not traditional retailers. Gu Guojian said.

In this situation, Gu Guojian believes that chain operation has been developing in China for many years. At present, it is necessary to upgrade to a strategic height to see the change of its business mode and technological innovation, otherwise it will be impacted in the tide of e-commerce development.

Faced with the severe challenges brought by e-commerce, the domestic retail industry has begun to accelerate the pace of expanding online business. The guidance issued by the Ministry of Commerce on the promotion of retail development in the "12th Five-Year" period has also recently pointed out that large retail enterprises will be encouraged to set up online shopping centers to promote online transactions and offline transactions integration and interaction, which is considered as "bringing opportunities for the domestic retail industry to enter the electronic business market".