Electricity Supplier Own Brand Clothing "Province" First

From next month, there will be another kind of clothing brand that consumers can buy online: a clothing brand named Dangdang.

Will Dangdang users be surprised when they discover their own brand "clothing store" on the Internet? Especially when it comes to the news of the loss of CFO, Zhu Jiwen, who has just left, Dangdang when it comes to the cold weather of the clothing business, it is just in time, or is it doomed to flash past? All kinds of doubts are flooding the market for a time.

Give up fashion in order to control inventory.

According to the plan, Dangdang is developing clothing category. Home Textiles There will be three thousand or four thousand kinds of household brand goods.

"Dangdang sells its own brand clothing, shoes, schoolbags and so on in three different fields. The first is basic funds, the lowest price, the lowest cost, and the gross profit margin is very good. The second is classic, and the style remains unchanged for many years, so we are not afraid of backlog. The third is fashion money. It needs a very fast response. It will soon be over and easy to cause backlog. Dangdang CEO Li Guoqing made a clean breast of Dangdang's plan to launch its own brand clothing. "Dangdang certainly will not choose fashionable style, it will be more conducive to controlling costs. We will win on the scale."

For consumers concerned about the style of clothing, Li Guoqing gives such an answer: Dangdang own brand clothing, will be similar to the fan mode. In its own brand clothing, Dangdang will take the route of GAP and UNIQLO, and the main funds will also have different styles. The quality of workmanship and fabric is better, and its location is slightly higher than that of any customers. As for pure fashion and fashionable clothing, they will be sold to 500 clothing brand dealers who are entering Dangdang. "Because fashionable clothing should not only consider buyers' vision, but also quickly follow the fashion. trend These styles of clothing are more suitable for distribution by professional brand dealers.

Retaining old customers and pushing new selling points

"Dangdang brand launched this time is more like a" comeback ". According to Chen Shou Shou, an e-commerce analyst of the view, in 2007, Dangdang once launched its own brand named "BondStreet" after imitating PPG and fan Kong mode. However, due to the gloomy market reaction, it soon was forced to go offline.

Up to now, the PPG of the first "eating crab" has been closed down in vertical clothing business, and no customer has found a clear profit point after rapidly grabbing market share. Now, Dangdang once again claims to launch its own brand, can consumers accept this "rookie"? Many people have drawn a question mark.

In many industry insiders, self selling clothing is not the strength of Dangdang. Jiang Qiping, Secretary General of the information research center of the Chinese Academy of Social Sciences, said that, including Dangdang, and in the case of tight capital chains, many e-commerce websites proposed to implement the strategy of shrinking strategy this year, turning the "competition sites" into the consolidation of the dominant areas, and achieving them through "enriching the category, improving services, focusing on the central region and the old customers". From this, he analyzed that when Dangdang started a series of self owned brand goods including clothing, it could satisfy the demand of the e-commerce website to attract old customers and cultivate new selling points after the strategic contraction.

"In terms of users, compared to training new customers. spend The majority of e-commerce sites are more willing to focus on marketing the maintenance of old customers, and this part of the crowd is clearly the main customer of e-commerce brand clothing. Jiang Qiping said.

E-commerce brand to suppress the entry of merchants?

Dangdang recently released its fourth quarter earnings and annual results show that the company's net loss last year amounted to 36 million 300 thousand US dollars, far from the net profit of US $30 million 800 thousand in 2010. Therefore, after announcing the adjustment of marketing strategy, it is imperative to introduce clothing and other private brand goods. Even so, through Dangdang's "try" and "trial business" wording for this new business, we can see that its profitability for this business is not fully assured.

"A series of actions that have intended to shrink some of the business websites of the camps have reflected a" province ". Jiang Qiping bluntly said that almost when launching its own brand, Dangdang announced "reducing cross province and reducing new user promotion". In fact, trans provincial logistics transportation costs are higher, but the purchasing power of users in these areas is not very strong. Using private channels to sell its own brand can effectively save logistics costs and promote costs, thereby improving profit margins. Jiang Qiping said that with all customers paying a lot of marketing fees and dragging their profits away, other electric providers will be careful in brand promotion.