The Situation Of Cotton And Guest Is Frequent. Clothing B2C Is In The Development Of Shoal.

With the outbreak of the 815 electricity supplier war again, the competition between the electricity providers is becoming increasingly harsh, reflecting the maldevelopment of the electricity supplier industry. Now it has been trapped in the dead beach, whether it is Jingdong or other platform providers, or the cosmetics vertical electricity supplier represented by Ju Mei and Yue Feng, Xiu Xiu net, vip.com and so on.

Electricity providers are facing different challenges.

The official announcement of the goods shelves on the website of Wei cotton is displayed on the front page.

Recently, it was reported that the warehouse was closed due to arrears, which led to a sharp reduction in advertising investment and exposure.

The development dilemma of vertical electric business is due to the low gross profit margin and the rising cost of raw materials and marketing, forcing the management gap and capital gap of enterprises to be magnified.

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In August 17th, the official announcement of Wei cotton net announced that all the goods were off shelves due to the failure of the warehouse system.

However, according to a person familiar with the matter, the company was seized by law enforcement authorities because its warehouse located in Beijing was not a failure of the company's announcement.

Vertical clothing business development of cotton clothing is blocked.

It is understood that the "Wei cotton net" was formally launched in November 2010. It is located in the "high-end clothing brand" tailored for the pursuit of a high quality life crowd, aiming at the high-end market.

Products gradually expand from socks to underwear.

Towels and so on, and invested a lot of money in the early stage of the line to do marketing advertising.

In the early days of the establishment of the "Wei cotton net", it was in the bubble period of the electricity supplier. It had won two rounds of angel investment by Wang Feng and New Oriental co founder Xu Xiaoping, CEO.

In March of this year, CEO Lin Wei revealed that the A financing was being carried out by cotton, but so far, the matter has disappeared.

At the beginning of this year, the negative news of the website began to be reported: more than 10 people including COO, technology, marketing and administration were laid off, and due to the fact that the early advertising was too large, the advertising money owed by hundreds of thousands of dollars has already been put into operation.

An insider disclosed that because of the pressure exerted by upriver suppliers over the long term, the company can only reduce the operating costs by layoffs and reduced marketing costs.

However, after reducing advertising, the sales performance of the company has been on the decline.

According to the Alexa traffic ranking, the volume of cotton flow has plummeted since March.

It also exposes the awkward management means that the electricity supplier industry relies on a large number of advertisements to exchange traffic.

As the founder of the website, Lin Wei worked as Jinshan Software Channel Manager and later became the product marketing director of one of the earliest B2C websites in China.

After the establishment of the "Wei cotton net", the Wei cotton network has been known as "the apprentice of all customers". In terms of product positioning, Wei cotton network wants to start with a single product as a starting point and expand to a wider department store category.

The difference is only the starting point, where customers choose shirts, while the cotton net chooses socks.

Lu Zhenwang, an electricity supplier's observer, said that socks were a category of continuous poor purchase, which made the users of the network vulnerable and unstable.

At the same time, the overall electricity supplier environment is also not optimistic, small and medium-sized electricity providers can not attract financing, can only reduce expenditure.

This has led to a decline in orders for traffic and greater losses.

Even as an imitator, the development of all customers is also worrying.

As soon as 2007 was established, the venture capital environment is not the same as today's situation.

In the past four years, customers have been financing for six times, and the total cost has been 2 billion 700 million yuan.

Even so, no enterprise can become an evergreen tree of the electricity supplier industry. Since last year, customers have revealed that due to improper management of the old business, the inventory backlog of enterprises has reached about one billion, and then IPO has failed.

In July of this year, there was another news saying that customers reduced their advertising investment significantly.

According to the previous information, from the "object" to "spring without fear," the marketing case that everyone invited the star to endorse the plan has been common in the online and offline businesses, and every customer has become an advertising giant in the streets and lanes every year at the expense of 20%~30% advertising.

Nowadays, customers can not fill the gap of funds by reducing marketing. This shows that due to a series of "trial and error" last year, customers were badly hurt and suffered from business bottlenecks.

The industry believes that: in China, Shanzhai has become a trend. Whether it is product design or business philosophy, start-up companies are copying successful enterprises. They can reproduce their success by delusion. However, this behavior has been verified many times, and plagiarism in the Internet industry is not feasible.

In order to survive, electric business enterprises must have their own competitive advantages of differentiation.

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Dangdang pushed against its own brand and encountered doubts.

Dangdang superior channel

In April 5th, Dangdang launched a free brand "Dangdang top quality", which deals with different categories of underwear, shirts, jackets, windbreaker and so on.

In July 12th, Dangdang's own brand Dangdang good products officially launched the mask products to set foot in personal care.

At present, Dangdang has already covered 6 categories: Men's wear, women's wear, underwear, baby clothes, home textiles and personal care.

Dangdang good products on the line just caused a plagiarism storm: some consumers said that Dangdang superior products of individual styles were similar to the men's brand nine herdmen in design, or the copyright issue. The lawyer said that if the pattern of the king of nine was completely copied in the process of cutting cloth, the copyright of the clothing template should be infringed upon and the legal liability should be borne.

This has nothing to do with the material and quality of clothing.

Not only that, the industry is not optimistic about Dangdang, a Book vertical electricity supplier, but now believes that Dangdang selling clothing lacks brand connotation. This will only weaken brand positioning, and will also affect the already established brand image.

It is argued that Dangdang's sword means all customers, and others believe that Dangdang is seriously losing money. It is necessary to raise its gross profit margin by developing its own brand so as to make profits.

Developing private brand

New blue ocean

It is understood that Jingdong mall also claimed to have established its own brand department, and then suning.com released news that it plans to join the battle for its own brand in the second half of this year.

The electricity giants have begun to build their own brands in step by step, setting off a trend of developing their own brands.

The electricity market, which is not calm, has been thrown into a huge rock again.

Dangdang CEO Li Guoqing has publicly stated that regardless of supermarkets or department stores, 10%-20% is its own brand.

10% of the traditional retailers, such as WAL-MART, Carrefour, and big run hair, are owned by their own brands.

As an online retailer, Dangdang's involvement in its own brand business is conducive to increasing profits.

According to the insiders, the development of self owned brands by electric business enterprises is quite beneficial at this stage. This can not only help the electric providers take the initiative to attack and open up new markets, but also is the effective way to improve the profit rate by taking the route of differentiation, shaping the brand image and enhancing customer loyalty.

At present, the construction of the private brand of the major electricity suppliers is still in its infancy. The launch of its own brand is bound to have a huge test on the B2C mode electricity supplier in many aspects. At present, most electricity providers are in a tight financial chain. Whether the private brand can become the future of the industry is uncertain.