Electricity Supplier Winter Winter Hit The Shoe B2C How To Self Redemption?

This footwear B2C set up a data mining and analysis (BI) team of 9 people at the beginning of this year, using mathematical models to identify problems in operation.

The direct change is that good Lok has changed the structure of commodities.

According to its April figures, women's shoes account for 49% of their total sales.

The adjustment of commodity structure has solved the problem of too low price of hot goods and too fast sales and not selling products in a timely manner. This has reduced the rate of return and thus reduced operating costs and raised gross margins.

This is the credit of the BI team. They found that the previous procurement policy was too radical and did not reflect the market demand.

The wrong purchasing strategy makes the company work to get rid of the stock; the hot commodities are not fully purchased.

As a result, sales have gone up and gross margins have been reduced.

Before BI intervened, the purchase of good Lok was the boss setting up a growth target and purchasing staff accordingly.

This has led to a 30% reduction in the cost of purchasing, inventory management and logistics, and its gross margin can be increased by about 5 percentage points.

In a bleak domestic B2C industry, good Le seems to be relatively strong.

According to its founder, Li Shubin, good Lok is expected to break even in 2013.

Since the end of 2011, close to bankruptcy and "loss" are the key words in the domestic B2C field.

At the end of August this year, socks were sold.

The scarf's net is closed by the law enforcement department because of the default of the supplier's loan. All the goods are offline.

Xu Xiaoping, an angel investor, has confirmed this in micro-blog.

This is not the only sample.

When the new year's Day holiday ended in 2012, the company announced that it was "liquidating and suspending related businesses".

Before and after the Spring Festival, luxury electronics business show network, Shang pin network also came out of layoffs news; in April of this year, Baidu and Le Tian department store "strong joint" launched the comprehensive category of department store electric cool days also declared dead.

The listed B2C business is a dismal report. Dangdang network (NASDAQ Code: DANG) made a net loss of 122 million yuan in the second quarter of this year. The figure for the same period last year was 28 million yuan. Mcglaughlin (NASDAQ Code: MCOX) had a net loss of 30 million yuan in the two quarter of this year, and the loss of vip.com (New York exchange code: VIPS) also exceeded 30 million yuan.

The downside of macroeconomic is external factors.

According to the data of the Ministry of Commerce in July, the total retail sales of social consumer goods in the first half of this year amounted to 98222 billion yuan, an increase of 14.4% over the same period last year, slowing by 2.4 percentage points over the same period last year.

On the other hand, consumption is insufficient, and the other side is no longer blindly following the fund. "B2C business people are having a bad time this year, and their advertising volume has dropped by more than 50%," said the head of an advertising platform.

The homogenization of B2C's electricity supplier is a more central issue.

Take the footwear and other segments of the market as an example, there are many electric suppliers in China, such as good Lok, Le Tao, shoe store, shoe net, shoe net, and so on. These vertical businesses are also owned by BELLE.

The result was a price war. Last summer, a good price war was made between Holle and Le Tao. Both sides kept pushing up advertising expenses and burning money.

Market sector sources said, "the current price of footwear business is generally lower than the normal retail discount price".

Compared with C2C sellers who rely on Taobao, every B2C provider has to pay huge costs for pportation, warehousing, inventory, marketing and so on.

According to the author's investigation, the gross profit margin of the mainstream B2C websites in China is generally less than 10%, even if the gross profit margin of Jingdong mall, suning.com or shop 1 is below 8%.

Bi Sheng, the founder of Le Tao, published the concept of "deception" last winter. He believed that the profit margin of the footwear electricity supplier was too low to support the cost of the electricity supplier.

But the remaining B2C are still trying to keep themselves alive.

According to the data from the National Bureau of statistics, the total retail sales of consumer goods in China over the past five years have maintained an annual growth rate of over 16%. This makes the volume of online shopping pactions expand in the past 5 years at a compound growth rate of 77% per annum.

But the latest statistics from the Ministry of Commerce show that the proportion of online shopping accounts for about 3% of the total retail sales of consumer goods in China, and the proportion in the US in 2010 has reached 23.7%.

Today, Le Tao has pformed itself into a private brand, which is a typical way of self salvation.

Meticulous operation and effective control of costs are also a way. In February this year, the cotton textile industry hoped to restore the decadent situation through layoffs and cost control, but it was too late.

Seeking the differentiation of commodity structure, market orientation and service is a more fundamental way.

In the vertical field of diamond jewelry business, the diamond bird began to pform to high-end; Bloves focused on launching the "wedding ring customization center"; it took the pure network route and relied on the flow brought by Tmall (Tmall). According to public reports, its sales revenue in 2010 has gone through 100 million; another diamond electric supplier Zocai is also trying to multi channel parallel.

Founded in 2007, Kelan diamond is the largest business in the field of diamond jewellery.

According to Alexa statistics, the average daily PV (page views, page view or click volume) of Kelan diamond is close to 290 thousand.

According to the author's understanding from the same office, the 2012 revenue of Kelan diamond will exceed 1 billion, nearly two times that of last year.

This is partly due to the adjustment of its product mix.

Wang Yong, vice president of the company, said that since June this year, diamonds have adjusted their product mix and added colored jewellery, colored diamonds and pearls to their wedding rings.

This category is half the price of traditional stores, but there are still 40%-50% gross margins.

As a result, it has adjusted its positioning to "Pan jewelry business".

"Our user volume increased by 50% over the past year," Wang Yong said. The highest daily invoice volume exceeded 10 thousand orders.

This year, Kelan began to purchase diamonds in cash, which reduced its purchasing cost by 5 percentage points.

At the same time, it also rented about 36 thousand square meters of office buildings in the Shenzhen jewelry industrial zone, making it possible to accept large orders.

According to Wang Yong, the highest daily delivery volume is 30 thousand orders.

This way, suppliers can be concentrated as much as possible: output IT system control quality and control logistics cost.

Many people would argue that these efforts are just for survival advantage, and it is difficult to gain long-term advantage through the current changes.

But after all, they have begun to pform themselves, and perhaps one day, those who always insist on changing will find unique market positioning, raise gross margin, distance themselves from rivals, and promote the formation of stable competition pattern.

We should expect more.

Jump out of the vicious circle of price war.