Jingdong, Dangdang, Fan Three Giants Joined The War Of Private Brand Clothing

This Monday Dangdang Its own home brand Dangdang superior products is on the home page with high profile. buy We will soon join the battle for this brand of clothing, Jingdong, Dangdang, Van guest Can the three giants focus on speeding up the export of private brand e-commerce?

Dangdang has entered the design and production of clothing, home textiles and household three major categories. The first batch of private brand clothing will reach 70-80 styles. Home textiles are mainly bedding, and furniture supplies will include daily life, kitchen supplies and so on. According to Li Guoqing's statement, Dangdang's own clothing is to take the route of UNIQLO, which belongs to the basic market, but its positioning will be higher than that of all customers, and at the same time, it will build a fashion department store mode.

This is not the first time that Dangdang has entered its own brand. In 2007, Dangdang, which was not yet listed, used to imitate the fashion sale mode of PPG which was very popular at the moment. It launched its own brand named "Bond Street", and sold men's shirts. But because of poor management, it soon got off the shelves. At that time, Fan Cheng pin was just established.

Dangdang, from the book heavy B2C mall, expanded to the integrated B2C mall and open platform, total revenue in 2011 reached 575 million US dollars, an increase of 59% over the same period, but a net loss of about $36 million 300 thousand over the same period, compared with a net profit of 30 million 800 thousand US dollars in the same period last year.

In the same period, Dangdang gross profit margin dropped from 22.2% in 2010 to 13.8%. Dangdang CFO Yang Jiahong said it was mainly affected by changes in product mix. "Our department stores revenue increased by more than 200%, accounting for 39%. of total revenue," Yang Jiahong CFO Dangdang said earlier.

"Compared with books, department stores and 3C, the gross profit margin of private brand can reach more than 30%." Chen Shousong, an analyst with Analysys International, believes that for Dangdang's integrated B2C to enter its own brand, more consideration is still to achieve the goal of expanding trading volume and raising gross margin, especially for Dangdang listed companies.

"From the current situation, private brand is mainly used as a supplementary business to reallocate existing resources." Chen Shou believes that using existing channels to sell its own brands can effectively save logistics costs and market costs, and produce synergistic effects on commodities, which will help to increase profit margins. "However, this kind of electricity supplier will not easily mention the strategic level of its own brand and the B2C of the integrated class. A long term boss, Mr. Yang, who is a senior brand agent in the domestic market, told Nandu reporters that once Dangdang and Jingdong accelerate the layout of their own brand clothing, it means that their competitors, besides all customers, will also involve traditional clothing brands, such as UNIQLO and Metersbonwe, which are also based on the basic market.

"The clothing industry is now facing the problems of rising raw material costs and rising labor costs. How to choose a guaranteed foundries and guarantee low prices? Moreover, large scale foundries usually use cash settlement mode, coupled with large scale R & D costs, and difficult to control the risks of storage, which require high cash flow for enterprises." He believes that even if there are already hundreds of suppliers of all customers, the successful reorganization of the standardized production of clothing routes, have not achieved profits, the Internet's own brand is difficult to see profit margins in the short term.

However, high profits always attract the eye of competitors. Jingdong mall will soon join the battle for its own brand clothing, and will be personally led by Wu Sheng, vice president of Jingdong, who is a guest dealer. It remains to be seen whether he can reorganize the advantages of all customers to the resources of the organization into the existing structure of Jingdong to achieve synergy.