Dialogue Between Traditional Shoes And Clothing Enterprises And Electric Business Enterprises

In April 17th, the 2012 e-commerce summit of China footwear industry was held in Quanzhou. The shoes and clothing representative enterprises, vertical electricity supplier representative enterprises and integrated e-business platform face to face and interact with each other.

Ding Shuibo, President of XTEP group, Zhou Shaoxiong, chairman of the seven wolf group, and Li Guoqing, President of Dangdang network, carried out a wonderful dialogue in the "bull eye business" interactive process.

After rapid development in recent years, the domestic electricity supplier industry has risen to a strong position that any shoe and clothing brand can not ignore, the next three years, five years or even longer.

How to interact with each other and win the benefits of the business channel? Finally, we will realize the brand business of the brand enterprises and the brand of the electronic business platform. We can see clearly that we have grasped the fate now, and we have grasped the trend in the future.

This dialogue aims to sum up the past of shoes and clothing business, thinking about the future development of shoes and clothing business.

Guest host: Fan Yujie

Guest:

Ding Shuibo, President of XTEP group

Zhou Shaoxiong, chairman of the seven wolf group

Dangdang President Li Guoqing

About the status quo

Moderator: there is a set of data for reference. In 2011, China's total retail sales amounted to 18 trillion, and the electricity supplier accounted for about 4%, reaching 800 billion.

According to the "12th Five-Year plan", the total retail sales of Chinese society will reach 36 trillion by 2016, according to the load.

The growth rate, the output value of the electricity supplier will reach 13.5%, and will reach a very attractive 5 trillion, so the electricity supplier industry has enormous room.

In the face of this huge space, what is the current situation of Quanzhou's shoes and clothing business?

Moderator: footwear industry in Quanzhou accounted for the proportion of electricity providers, ranking first in Fujian, specifically to Quanzhou's representative enterprises, and even China's most representative shoes and clothing brand, XTEP and seven wolves electric business status quo? How much sales accounted for?

Ding Shuibo: the electricity supplier is a very potential industry. In 2011, the proportion of XTEP electricity providers was still small, less than 2%. With the development, it will account for 10% in the next 35 years.

Zhou Shaoxiong: in 2011, the electricity consumption ratio of the seven wolves was not very large, about 5%.

The channel of e-commerce is developing very fast. The problem is to consider how to make good use of its operation mode and how to make the channel bigger.

The relationship between the traditional channel and the electricity supplier channel in the future will be related to the price and the way of management. There must be room for discussion.

Quanzhou has a large number of electricity suppliers, and its retail sales have reached a certain scale. At the same time, it has a high proportion in the electricity supplier industry.

First of all, Quanzhou's textile and garment footwear industry is developing in a large scale and is the mainstream pillar industry in Quanzhou.

Secondly, Quanzhou people attach importance to the atmosphere of business. There is a relatively low threshold for entrepreneurship. There will be a good atmosphere for business providers. In learning and operation, there will be some people who are capable of doing business channel.

The mode of electricity supplier is a different form of the channel. Now, the consumption concept of the electricity supplier is changing. Unlike the past, only buying bargains, there will be more and more groups buying high priced products, buying more suitable brands, and only identifying brands.

Moderator: in fact, the proportion of seven wolves to 5% has been very high. I learned a relatively accurate figure from BELLE. The actual sales of BELLE in 2011 was 32 billion (earnings report was 28 billion). BELLE invested in the electricity supplier. Last year it made nearly 3 hundred million, accounting for 1% of the total sales ratio, and this year there will be 7 or 8 hundred million breakthroughs.

In addition, AOKANG group, which is about to sign up and start buying, will achieve seventy million in 2011 (less than 2% of the total sales). This year, it plans to achieve 3 hundred million, which will account for 5%-7%, and the speed is very fast.

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Moderator: when it comes to the electricity supplier industry, it also refers to shoes and clothing, the same pair of shoes, Nike and Adidas can sell 800 yuan, local brands Lining and XTEP can sell 600 pieces, so brand is very important.

A pair of Lining's shoes may be sold on the stalls for 300 yuan, sold in a monopoly store for 400 yuan, and may be sold for 700 yuan in a better department store, so it is very important to sell them anywhere.

Dangdang should be a department store and locate a department store. If the traditional brand is stationed, is it possible for a good brand to sell a good price? Will it be like other brands, when it comes to discounts, deal with inventory, and win at a low price?

Li Guoqing: Dangdang positioning middle end and middle and high end, when choosing brand, do not accept low-end, do some luxury goods, high-end also do, occasionally may engage in high-end in a certain season, but focus on high-end.

Clothing enterprises are not like diapers, milk powder, household appliances, etc.

We have noticed two adherence, the first insistence, the same thing can not make Dangdang more expensive than others thirty, twenty, one hundred, for retail is to do a good job in price and clothing management; second is to find breakthroughs, clothing enterprises to promote sales and reduce the discount of brand image.

Moderator: the so-called promotional discount, including Taobao's Juhuasuan, gold coin, in fact, the essence of price war, Dangdang is also?

Li Guoqing: Yes, the retail price on the Internet is very pparent, so we also resist the price comparison shopping website. The price war is the price war.

About channel cognition

Moderator: the same goal can be used with different tactics and means.

From the retail industry of related industries, this year is a history.

In the most stressful year, Xu Xiaonian's micro-blog said that this is a concentrated expression of China's overcapacity in recent years. Miao Hong's micro-blog also said that including department stores and brands all believed that this year was the hardest year to make.

But from the first quarter's earnings report, XTEP is the fastest growing brand in sports, but it also faces these two challenges. The first is dealing with the original stock. The second is the competition for Nike ADI's entering the three or four line market. XTEP has always dominated the three or four line market.

In the face of competition, will XTEP have greater input in the electricity supplier industry? The electricity supplier industry is another good channel for us to digest the rapid growth of inventory. What is Ding Zong's view on this view?

Ding Shuibo: 2012 is very difficult and challenging, because the whole industry has developed rapidly in recent years, this time there is a problem of terminal inventory.

In the field of electricity supplier, in early 2011, the company explicitly put forward the accurate location of the electricity supplier, first sold part of the stock, but at the same time launched the electronic business counters.

The electricity supplier space is very large, and in the whole shoe and clothing industry, Quanzhou is the largest base, XTEP will vigorously develop this aspect.

Moderator: in the traditional channel construction, shoes and clothing are similar, mainly in three channels, department stores, chain stores and large supermarkets, shoes industry has shoes, clothing industry has clothing supermarkets.

To the cognition of the electricity supplier, is there another fourth channels besides the three channels, or is the electricity supplier an online channel? Are shopping malls, supermarkets and franchised stores under the offline channels? How to make a partition? Some brands think of eating channels, such as Daphne, if they enter the shopping mall, they can make two goods, enter 70% stores and sell 30% leather stores, and the specialty stores are 30% leather and 70% leather.

For commodity segmentation, in terms of electricity providers, how about the operation of seven wolves?

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Zhou Shaoxiong: all kinds of commercial channels are constantly developing and changing. From department stores to stores and large shopping malls, they are developing rapidly.

But each channel corresponds to the crowd to be subdivided.

Different channels sell different products, corresponding to different consumption groups.

The electricity supplier is also a new channel, and the positioning of the crowd must be different.

The current electricity supplier channel, price oriented consumption mode is a very important feature, but its channels are also developing, and the imagination of this channel is particularly large.

Therefore, many traditional enterprises electric shock is exploring how to correspond to the customers of electronic business.

Moreover, each brand has its own brand positioning. The so-called positioning is that it presents a fixed impression to consumers, and the brand positioning is different, and the choice of channels will also be different.

At present, the electricity supplier has not yet formed a breakdown, and has not yet completed the integration.

For the seven wolves, the electricity supplier is a supplement to the channel, and there are also points of discount shops and discount stores.

It is normal for the electricity supplier to sell discounted products, because the products will be discounted in the past season.

This is a reasonable discount to offline promotions.

The electricity supplier sells the positive price goods, needs to cultivate the customer group, let them get used to the newest product on-line line purchase is the same.

There are some differences between online and offline management and operation modes. There is not much difference in the way of essence. The operation idea of brand is the same. If the brand positioning is damaged due to different channels, this will be more than enough.

The key problem is that different channels are mainly responsible for price management.

Moderator: Yes, regardless of any channel, must adhere to their brand style and positioning, according to different consumers, make the core of their brand, because the pformation of the channel is also very difficult, such as local brands, including AOKANG, Anta, etc., into the shopping mall is very difficult, the proportion of success into the mall is very small.

Like BELLE, the monopoly of women's shoes is not successful.

Therefore, the pformation of channels requires all-round reform, pformation of ideas, technological pformation, and team pformation.

About supply chain

Host: why does Le Tao do its own brand instead of the B2C platform? Why does BELLE make an excellent purchase network? Le Tao does its own brand, and it has nothing to do with BELLE's dozens of women's shoes.

BELLE's core competitiveness lies in its own control of the fast response supply chain.

BELLE is Nike's largest agent in the world, and will soon become Adidas's largest agent. BELLE controls everything because it controls the supply chain.

Dangdang is a platform for positioning department stores, and the supply chain is also competitive in the future.

Li Guoqing: different enterprises have different models, such as BELLE is the front store backstage, the backlog of its own brand is the lowest, more than 10 percent profit than others, that is, to solve the backlog problem.

How to solve it? That is the complex budget, BELLE Sheng to calculate, to join the liquidation, all of its own shop, so it is completely calculated according to the calculation.

The shoe is a workshop enterprise, can do about 20000000000, it uses 15 days to authorize the use, to control the factory, when the control fails, the contract is no longer required, build a factory, this is a chain, this is BELLE's mode.

Catching up with fashion and playing cards depends on budgeting, like ZARA's operation.

As for Dangdang, there is no supply chain in large shopping centers and shoes and clothes, or brands, or agents. Each shop keeper is a small boss who cares about his own survival and backlog.

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Ding Shuibo: the development of supply chain of electric business will be a very core competition.

There are three hundred billion industries in Quanzhou. In the whole Quanzhou area, the first is our petrochemical industry, the second is clothing and shoes. Quanzhou has great advantages in the supply chain, and the whole industry chain is very complete.

At the same time, the biggest advantage of the electricity providers in the future is to break through the traditional mode to enter the market quickly, new and accurately.

About Amoy brands

Moderator: there are a lot of Amoy brands (the brand that has been rapidly fattened by Taobao) has grown up and begun to make offline sales. Because of a clear positioning, the brand is very tall and may not be healthy, but it has certain advantages and characteristics compared with the offline enterprises.

For some Amoy brands to move to the offline market and do overall marketing, how do traditional enterprises see their advantages and disadvantages compared with them?

Zhou Shaoxiong: there is no special difference, but how can the brand grow up from different channels? How to define a brand? First, we need to understand this commodity and its customer base.

At the beginning, Taobao was a simple entrepreneur, familiar with the supply chain through the process of selling, clarifying the positioning of products, and setting up the brand.

As long as the gross profit margin and profit space under the line are consistent, the cost of the brand can be pushed out simultaneously.

It is very normal to know whether the brand's merchandise meets the needs of consumers, and to understand the needs of customers and enlarge the demand in the product conception or organization.

For example, from online to offline, what is the difference between online brand and offline brand? Of course, there are some differences, for example, online more quickly, in the whole shop operation, it may be more concise, but there may be many special requirements under the line. For example, display, shop decoration, salesperson management, management mode and online management mode are different, so online must cross the line, and have to manage the management form.

Especially in brand image, there must be different thinking.

For example, it has not been able to make the standard of the display and shop windows under the line for many years, and the workload is a challenge for them.

Amoy brand e-commerce platform and business brand, create brand is the same concept, when the brand is recognized by consumers, forming a consumer group, from online to offline development, it will be more natural, but to develop well, it is not clear at the moment, because no special examples have yet been seen, online is doing very well, especially to the line.

The key problem is that the challenges faced by management are quite different.

Moderator: Amoy brand line, before some time I was concerned about a brand Mr.ing, making shoes.

Last month, I saw its counter in a shopping mall in Guangzhou. It was very good to me on the Internet, but I think its special counter and special area had a great impression on it.

Like Zhou general, Amoy brands may be very professional in the Internet, but they need strong system management skills.

First, the SKU number of goods is not enough; second, the distribution of product lines is not in place; third, the image is not as good as online; fourth, the management of terminal clerks is not in place, which is a systematic project and has a long way to go.

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About operation

Moderator: online order, local pick up, in this regard, the best done is Ctrip, online order, local accommodation.

Will Li Zonghe and Ding Zong make some predictions and judgments about the future of this trend?

Ding Shuibo: more emphasis is placed on offline shopping.

Go to the scene to enjoy the feeling of the terminal.

If it is online shopping, more emphasis on convenient and fast, this is a new way.

The future development of XTEP is relatively new. Once we find a new road, we believe it will be the best way to compete.

Li Guoqing: two years ago, retail (including online retail), it is impossible to achieve the three major functions. Retail is either cheap, or convenient, or atmosphere. Some enterprises are cheap and convenient, and the most gorgeous, then they will die because every link will have competitors.

The customers in Dangdang network account for 68% of the undergraduate education and fifty thousand of the monthly income of the family, accounting for over 52%. This indicates that at least 1/3 of the customers in Dangdang are not for the sake of convenience, but for the convenience of e-commerce.

Why are entities not doing this? The most difficult part of online is inventory management, inventory allocation, coping with the peak of orders and customer experience.

If the customer has ordered ten times, and two times he is out of stock, he will not want to visit your shop.

If the customer price and gross profit are enough to call the customers, customers will be willing to make three calls.

A package of chestnuts, a total of 12 yuan, three times to make sure that the cost of seats is higher than gross profit margin, each format is different.

Moderator: all projects and models must be profitable, and no profit is not sustainable.

In addition, in the electricity supplier industry, information, logistics and payment are three core aspects. These three points need to be done well, whether brand enterprises or online brands can do better.

Last year, XTEP combined with the electricity supplier, combined with the spokesperson, combined with the brand, launched a Han Geng Memorial Fund.

It has achieved good results.

With this way of operation and product positioning, XTEP has achieved price separation and product segmentation. What plans do XTEP have in this regard?

Ding Shuibo: Yes, XTEP worked with a website last year.

"At that time, Han Geng was invited to be the spokesperson, making a limited edition of the star version around the spokesperson, and the network promotion was very successful.

This model is an attempt. There will be more spokesmen, including Xie Tingfeng, Pan Weipo, Jolin, Lunmei Kwai and a series of spokesmen. There are a lot of fans. This is also one of the resources. Through different resources, this year has been doing second generations and third generations of promotion.

In this regard, I am also analyzing, e-commerce brand, should find their own position.

E-commerce has developed rapidly in recent years, but the base is relatively low. If the scale of the enterprise brand is in force, then these small brands can not help themselves, so we must find out their respective positioning.

Now in a time of scrimmage, business is very good and grows very fast.

Once this kind of real competition is achieved, if the brand business fails to find its own position and fails to find its core competitiveness, the consequences will be disastrous.

At the same time, there are so many websites, some rely on capital market injection, but it is hard to predict how long they will lose.

Therefore, the electricity supplier website must find its own position.

The footwear industry in Quanzhou is a traditional industry with the most important resources.

Branding and platform players will have a great development through clarifying their positioning, and XTEP is also willing to increase cooperation with the third party e-commerce providers.

Moderator: Yes, we can do better in the future.

I entered the shoe industry thirteen years, when I have just entered the industry, the most hot spot in Wenzhou, Guangzhou enterprises lead the trend of China, Wenzhou enterprises dominate the Chinese market, but in the last five or six years, Quanzhou shoes and clothing far exceeded the Wenzhou shoes, so I believe that the e-commerce of Quanzhou shoes will do better.

Since the 2008 financial crisis, the European e-commerce market has achieved 30% growth. Up to now, it has reached a price of 200 billion euros, that is, 1 trillion and 700 billion RMB. In another way, it is proved that the whole world is difficult to stop the pace of e-commerce. Thank you all for the wonderful sharing of the guests. We also hope that the traditional and e-commerce brands will be able to communicate deeply in the future, make more exchanges and fill the gap.