E-Commerce Platform Has Its Own Shoes And Clothing Brand

Perhaps it was too much energy wasted by the price war, and the business enterprises began to turn their attention to the essence of retailing.

Recently, the B2C footwear supplier, locating in the channel business, started to turn into a brand dealer, and launched 5 in one breath.

Independent brands include Chance Chance (right), Lavis Lavie (Le Wei), Imosii (Mo Xi), MANWILL (Mai Wei), C+ (Si Ga).

And before le Tao launched its own brand, we have seen Dangdang brand online shopping.

In the next six months, it is possible to witness the birth of "Jingdong" trousers or "Suning" T-shirts.

An electronic commerce platform's own brand competition is beginning.

Reporter Liu Wenyan

Most electricity providers aim at their own brands.

It is understood that in May of this year, Dangdang, located in book sales, officially named its own brand, which has been launched in succession, as "Dangdang superior products", covering women's clothing, men's wear, children's wear, home furnishing, home textiles and other fields, and set up a big curtain of the collective business platform's own brand.

It is reported that Jingdong mall has also set up its own brand department, and will soon join in the battle for its own brand clothing, and will be personally led by Wu Sheng, vice president of Jingdong, who is a guest dealer.

In the 2011 Annual Performance briefing held in April this year, Suning Appliance also revealed that in the second half of the year, Suning online shopping mall suning.com will launch its own brand clothing products.

It is not only a comprehensive B2C platform, but also some vertical B2C brands are targeting their own brands.

As early as the 5 brands of footwear were launched by Le Tao net, Quanzhou shoes B2C platform launched its own brand "Dragon School" in 2009.

Previously said publicly, "no development."

"Good buy" also reveals the need to do its own brand.

To raise the gross margin

For the launch of the 5 independent brands, the pformation of the brand business, Yue Tao's responsible person said, "is to bring enough gross margin."

After launching its own brand Dangdang top quality products, Dangdang CEO Li Guoqing also told the media, "the gross profit margin of clothing is 60%, much higher than that of books."

The relevant data show that the gross profit margin of the brand owned clothing of the electricity supplier can generally reach 30%-60%, the gross profit margin of the daily chemical brand can be as high as 60%-65%, and the gross margin of its own shoe brand is also 55%-60%, while the gross profit rate of the large network shoe city is only about 3%.

Last year Dangdang's gross profit margin was 13.8%, while Jingdong mall's gross profit margin was only 5%.

By contrast, the profit of private brand can be 10 times that of the agent brand.

This data has been recognized by Dong Xinda, vice president of the shoe net. It is understood that, taking the shoe net as an example, although the price war has never been insisted on, the gross profit margin of the platform is still low, only around 20%, and the gross profit margin of the independent brand "Dragon pie", which is located in the middle and high end, can reach 100%.

"E-commerce platform has begun to push its own brand, indicating that the electricity supplier began to pay attention to differential competition.

On the one hand, independent brands have independent pricing power, which can raise the gross profit margin of enterprises. On the other hand, because products are not comparable, they can also reduce price wars.

Dong Xinda said.

Operational risk or further increase

However, although the benefits of private brands on the gross margin increase are quite numerous, but in the eyes of many people in the industry, there are still many bottlenecks in the e-commerce platform entering its own brand.

"Running our own brand will increase the operational risk of the e-commerce platform to a certain extent."

Wang Dongzhu, President of Quanzhou Electronic Commerce Association, said that unlike the B2C platform, which focuses on "selling", the independent brand emphasizes the operation capability of the product side.

"Grasp the trend of the trend, R & D design capabilities, from production, pportation to the whole process of sales control and so on, have become new challenges facing the electricity supplier platform."

Although it launched its own brand, Dong Xinda also said that its own brand is facing a dilemma of big market input and low brand recognition.

In addition, how to deal with the relationship between private brand and merchants is also a problem to be solved by B2C platform.

Another shoe B2C platform in Quanzhou has clearly stated that it will not build its own brand in the short term. In addition to taking into account operational risks, a large part of the reason is that it does not want to affect the attractiveness of the platform to businesses.

"As an open e-commerce platform, if we run our own brand at the same time, we may be challenged by other businesses on the allocation of resources."

Tao Rong shoe net CEO Tu Rong is nominal.