Under The Magnifying Glass, The Conversion Of Shoes Benefits Can See The Change Of Shoes Prices.

In 2007, almost all products that were suitable for sale on the Internet were crowded into the electronic business field, and shoes were the only category that had not yet begun to scale online sales.

So Li Shubin and his partner Lu Ming set up a good buy.

5 years later, it has become China's largest footwear B2C e-commerce company.

The answer is 65%, that is, the sale price of a pair of shoes is about 65% higher than its ex factory price.

The gross profit margin of 65% is the average gross profit margin reported by China footwear giant BELLE.

In recent years, people continue to sell shoes to the Internet.

Because of the high cost of site and staff in department stores and shopping malls, the price of shoes on the Internet is much lower than that under the line.

A large number of consumers began to buy shoes online, and some websites selling shoes on the Internet quickly rose.

Li Shubin and his good buy are the lucky ones standing at the top of this wave of consumption channels.

Born in 1980, Li Shubin, a tall and thin man from Dandong, Liaoning, is currently the CEO of good Lok Information Technology Co., Ltd.

In August 18, 2007, Li Shubin and Lu Ming, President of the good Le buying company, founded a good buy.

5 years later, according to market research firm Ai Rui net, Holle has become China's largest footwear B2C e-commerce company, and has won a total of 77 million US dollars of venture capital, including Tencent.

The data provided by Li Shubin is that the sales volume of good Le 2011 is around 1 billion yuan.

"We may finish a new round of financing at the end of this year, with a total value of 40 million ~5000 US dollars."

Li Shubin said.

Imitating American counterparts

In 1998, Li Shubin, 18, entered university.

China's first batch of electric business enterprises such as Dangdang and excellence were established before and after 1998.

At that time, Li Shubin applied for the Tsinghua University, because of a few points, the result was pferred to the Beijing Broadcasting Institute (Communication University of China) management specialty.

In 2007, almost all products that were suitable for sale on the Internet were crowded into the electronic business field, and shoes were the only category that had not yet begun to scale online sales.

So Li Shubin and his partner Lu Ming set up a good buy.

5 years later, it has become China's largest footwear B2C e-commerce company.

According to Li Shubin, he only did two meaningful things in college.

First, often go to the library with the boys to see the beauty.

The two is in the third year, Communication University of China to do a BBS, called "walnut forest", this community is still the most popular BBS in this university, known as "the most beautiful beauty BBS."

"At that time, very young, did not think about the commercialization of walnut forest."

Li Shubin, who has been fighting in the mall for nearly 10 years, recalls the past and habitually pondering over the business model from a businessman's point of view.

Li Shubin is very business savvy.

After graduation, I entered an e-commerce company and soon became CTO.

Later, the company was bought by patriots, and Li Shubin began to run the business company in an all-round way, but failed.

After leaving the patriot, Li Shubin, who loves music, founded the music sharing website, Songtaste (after sale).

Shortly after Songtaste was born, Li Shubin stumbled across an American website called Zappos.

This website relies on selling shoes online to make money.

Li Shubin thought it was a great opportunity.

Moreover, in 2007, almost all products that were suitable for sale on the Internet were crowded into the electronic business field, and shoes were the only category that had not yet begun to scale online sales.

This opportunity is also seen by Lu Ming, who has been running traditional building materials business for a long time.

007 years in August, Li Shubin and Lu Ming together raised 800 thousand yuan to start a good Le buy.

At the time of its establishment, Holle bought a complete imitation of Zappos and sold all footwear.

But because of lack of funds, only one category can be added first.

To this end, Li Shubin bought a subway ticket to take the subway.

He paid special attention to everyone's shoes.

In the end, Li Shubin found that he could not see a sign in his shoes.

But outside of leather shoes, all shoes, whether genuine or fake, are within 10 brands.

Among these brands, the proportion of sports shoes is high.

So, good Lok bought sports shoes as the first category on the website.

At the beginning, good Lok did not have fame and strength, and could not cooperate with branding, but only from dealers.

At that time, there was no stock in good luck, and someone on the Internet gave orders, and sent people to the dealers to get their shoes.

In 2007, almost all products that were suitable for sale on the Internet were crowded into the electronic business field, and shoes were the only category that had not yet begun to scale online sales.

So Li Shubin and his partner Lu Ming set up a good buy.

5 years later, it has become China's largest footwear B2C e-commerce company.

"At that time, the gross profit was very low, but it did not lose money and earned a little."

Li Shubin said that when starting a business, the operating cost of a month is not more than 20 thousand yuan.

He and Lu Ming and other founders didn't get paid, and the early employees were only half paid.

To save costs, Li Shubin himself worked as a programmer and hired a cottage.

Good Le buy real on-line in November 2007, at the beginning of the website did not have money to promote, so there is no traffic.

Good Lok chose to open a C store on Taobao, and later became one of the first 3 shops in Taobao mall.

At that time, Taobao had a lot of traffic and could sell hundreds of pairs of shoes a day.

At that time, the sales of good Lok 80% came from Taobao, and each pair of shoes submitted 5% of sales to Taobao as commission.

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This process has been maintained until the first round of financing.

Entering the 2009, good Lok began to divide internally.

Some people think that they should expand from sports category to other shoes.

Some people think that the time is not yet ripe.

As a result of the game, good Lok began to sell all the shoes.

But we soon encountered the problem of supply.

Due to the accumulation of users before good luck, the main sports groups are non sports shoes.

As a result, good luck bought in the first half of 2009, still dominated by sports shoes, other footwear development slowly.

Capital and winter

By June 2009, Holland bought $10 million worth of venture capital for Sequoia Capital.

After getting the investment of Sequoia Capital, the first thing that good Lok do is to invest in renting a warehouse.

At first, there were no warehouses for good music. People were sent to the department store to see shoes. When they saw the good ones, they secretly photographed them and put them on their own websites.

This resulted in a good return rate of up to 40%, because not every order could be purchased.

So, after building a warehouse, we spend money on goods.

Holle bought SKU from more than 10000, cut it by nearly half, and then purchased goods from these products in its own warehouse.

In 2007, almost all products that were suitable for sale on the Internet were crowded into the electronic business field, and shoes were the only category that had not yet begun to scale online sales.

So Li Shubin and his partner Lu Ming set up a good buy.

5 years later, it has become China's largest footwear B2C e-commerce company.

At the same time, good Lok began to shrink in the promotion of Taobao mall, spend money to smash ads, promote their website.

With the help of capital, sales of good Lok increased substantially.

From the hundreds of thousands of yuan in 2007 to 10 million yuan in 2008, and then to nearly 50 million yuan in 2009.

Sales performance led to better access to venture capital.

In October 2010, Sequoia invested $17 million with Lok Fung Jie and Intel.

In June 2011, Tencent and investment institutions de Fung Jay jointly invested in Lok buy, of which Tencent invested $50 million, while the rumour that no good Le bought confirmed that Tak Fung invested $10 million.

If it is true, it means that good buy has so far gained nearly $100 million in venture capital.

This is the largest investment case currently disclosed in the vertical B2C field.

"In fact, the conditions offered by Tencent are not the best. The reason for choosing Tencent is because we are afraid that it will not vote for us, and we will not be a rival to Tencent."

Li Shubin said.

With a huge investment, good Lok began to build its own logistics.

The reason why good Lok is self built is mainly because the third party logistics is not well controlled.

Before we rely on the third party logistics, we can not know the distribution status of the goods. The loss and damage of the goods occur frequently, and the rate of return on delivery is very slow.

Li Shubin said.

After the operation of self built logistics, good Lok can not only improve the control of commodity distribution, speed up capital turnover, but also improve the service level of users and user experience with its own couriers.

In addition, although the average cost of the express delivery of a single piece of goods is higher than that of SF, it will be lower than that of the current express company.

Currently, Holle is the only online shoe city in China that has built its own logistics system.

A good investment to get a huge investment is very willing to spend money on talent input.

In happy Lok, there are two departments that have no recruitment restrictions.

One is the design department, the two is the technology department.

Li Shubin revealed that good luck paid to technicians is very high, many people earn more than 20 thousand yuan per month.

In 2007, almost all products that were suitable for sale on the Internet were crowded into the electronic business field, and shoes were the only category that had not yet begun to scale online sales.

So Li Shubin and his partner Lu Ming set up a good buy.

5 years later, it has become China's largest footwear B2C e-commerce company.

The large amount of capital invested by investors has also accelerated the listing process of good Lok.

Li Shubin said that good luck was originally planning to land in the US capital market by the end of 2011. For this reason, Le Yue has completed the audited financial statements in the past 3 years.

Unexpectedly, the listing business encountered e-commerce from the second half of last year.

If we continue to push the market, the valuation and stock movements of good Lok won't be too optimistic.

For this reason, Holle and investors jointly decided to postpone the time of listing.

At the same time, the growth target of 2012 was reduced from the original 2 billion yuan to 1 billion 500 million yuan.

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Borders and risks

Although the industry has come down in winter, good Lok has lowered its growth target, but the expansion of Holland has not stopped.

Since 2010, good Lok has speeded up the work of developing categories.

By the end of 2011, the category of good Lok had been extended from sports shoes to men's shoes.

Entering the 2012, in the winter of the industry, good Lok chose to continue to expand against the trend, and began to expand the sale of goods other than footwear.

The most important type of expansion is clothing.

At present, 20% of the daily orders come from clothing, about 3000 orders per day, accounting for 30% of sales.

The reason why they choose to enter the clothing industry is that the gross profit margin of clothing is higher than that of shoes.

"The location of good Lok is everything that you wear.

This is the boundary of our expansion. We will not sell digital products. "

Li Shubin said that the market for shoes is 400 billion ~5000 billion yuan, and the clothing market is also 500 billion ~6000 billion yuan per year, and it will not be smaller than the 3C digital market.

At present, some vertical electric providers have gone through the industry crisis through their own brands, such as online shoe city Le net.

In this regard, Li Shubin said, good Lok won't buy its own brand, because its own brand is difficult to do large-scale, and do not scale, is likely to be eaten.

For the future, good joy is not a bit of pressure.

In 2007, almost all products that were suitable for sale on the Internet were crowded into the electronic business field, and shoes were the only category that had not yet begun to scale online sales.

So Li Shubin and his partner Lu Ming set up a good buy.

5 years later, it has become China's largest footwear B2C e-commerce company.

"I think there is little hope for vertical classes in the future, too vertical to survive, such as selling socks or sheets only, or at least selling home textiles.

Category level will not encounter the ceiling, Jingdong can not squeeze, because the cost of extrusion is too great.

Li Shubin said last year that someone told him that the average cost of acquiring a new user in the electricity industry is as high as 200 yuan.

"If the gross profit of an e-commerce website is 50 yuan, it will cost about 30 yuan for warehousing, logistics and distribution. The cost of new customers of 200 yuan means that a customer needs to buy at least 10 times to make your product profitable.

But the problem is, users of the vertical class are good at buying shoes 3 times a year, that is, you need 3 years to make profits.

Li Shubin said that when he bought shoes, 95% of the orders were simple shoes.

It is not realistic to shorten the profit cycle and reduce the cost of new customers, so we can only work on gross profit and operating costs.

As a result, the operation of high gross profit products and the compression of operating costs became the main means.

"In order to save costs, our customer service moved to Tianjin."

Looking out from Li Shubin's office, you can see the building that used to be good enough to buy customer service.

Li Shubin's office is located in CBD, East Third Ring Road, Beijing.

Extended categories may also face inventory pressure.

For this reason, good Lok bought prudently the consignment method of Le Tao.

At present, the clothing category of good Lok is mainly selling mode, that is, they do not buy out the goods, and require goods to enter the warehouse which is good to buy, and they are responsible for distribution by happy Lok.

Unless it is a strong brand that needs to be bought out of stock, good luck will buy goods in advance.

In order to guard against the cold air blow to the industry in the winter, good Lok is also preparing for the rainy day and expanding sales as far as possible.

Li Shubin's idea is to sell his products to Amazon and other comprehensive platforms.

But this road is also not smooth.

An industry insider from Ho Lok's competitors said that the price curve of shoes and clothing categories were from high to low, and gradually reduced prices and discounts.

But when these categories are distributed to the platform type, it is difficult to sell high prices in the early stages, because the consumers of the platform are pursuing low prices.

So, the industry thinks that maybe distribution can bring sales to good buy, but it doesn't necessarily bring profits.