Electricity Providers Cause Ecological Fission

Zhong Tao, director of group e-commerce, does not want to disclose the performance of these distributors too much. As the company has adopted a channel management strategy of "big and small", Zhong Tao's e-commerce department only manages five major dealers whose turnover exceeds 10 million yuan, and their average sales volume last year was 50 million yuan.

Different from the light operation mode of Amoy brand Yin Mao, the seven wolves have more than 3000 offline stores, and numerous network distributors. There are many challenges in online offline collaboration, channel integration management and supply chain matching, and there are not many successful experiences to follow.

The new challenge is that the trend of the rise of the open platform will not be reduced. The evolution of the whole network ecosystem will be more diversified. This will bring more user groups, but the difficulty system of the enterprises involved in the whole network marketing will also rise sharply.

Luckily, the seven wolves have gradually straightened out their network channel system over the years. It is made up of flagship stores, large dealers, franchised stores and factory stores (Oteri J mode). The Pyramid structure makes the seven wolves electricity providers form a cooperative ecosystem of wolves.

According to Zhong Tao's future plan, this ecosystem will accelerate self fission. Large dealers will spread out the whole network with a similar Pyramid framework. Small stores and factory shops will have more personality, so as to keep the wolves of the seven wolves electricity providers ferocious.

In 2008, seven wolves decided to open their own official flagship store in Taobao. Zhong Tao made a rough statistics. In the past 3 years, about 2 000 online stores were selling products of seven wolves. Most of the shopkeepers were dealers under seven wolves, or relatives and friends of dealers.

This is the 3 year of Taobao's rapid rise, and the 3 year's brutal growth of the seven wolf online dealers. A series of problems, such as fakes and fleeing goods, caused the seven wolves to act in order to eliminate the brand damage caused by this disorder.

What happened afterwards proved that the seven wolves needed not a single wolf with official labels, but a cooperative, orderly and continuous breed of wolves.

This is like a simple copy of offline experience. For example, the training rules for offline shop assistants become the standard of online customer service, while offline image design becomes online decoration, while online distributors' incentive policies are also allowed online.

However, in Chung Tao's view, the most fundamental change is that the seven wolves officially recognized the legitimate identity of the online dealer, rather than suppress or guard against it.

Because of their official status, they can advertise in Taobao, participate in marketing activities such as through train, focus map, member interaction and so on. Sales volume has also risen sharply.

There are also some problems, such rapid development of wolves did not form cooperative combat capability, because of conflicts between categories and styles, there will be price competition between them.

This kind of internal friction similar to the warlords' chaos caused Zhong Tao to have some headaches, so that at a dealer's meeting, he had to tell them plainly: "the seven wolves became the seven wolves because the wolf heads were all outward.

Inside is dog bites, not wolves! "

There is a special request for them. Everyone should pay attention to one of the competitors' online stores, so as to set up the price strategy and sales target, for example, they are allowed to be 10 yuan less than their competitors, always faster than their rivals' sales, and the seven wolves will provide a separate rebate for them, so as to ensure the seven wolves to form a comprehensive suppression of their competitors in the whole network.

In addition to the management of iron fist, the seven wolves started to strengthen the sense of honor and belonging of wolves this year.

Due to their different characteristics, the seven wolves will be unified according to the standards of repeat purchase rate, customer price and word of mouth praise. Excellent people will be honours by the group, and there will be more opportunities for internal communication, travel abroad and financing support.

"In the final analysis, it is still an honor. You have to admit that they have the same qualifications and identities as offline distributors. This has risen to a brand sticky level."

Zhong Tao said, now will constantly discover new people new things, find the advantages, and then spread.

There are many short term acts of hijacking suppliers this year, but the seven wolves have not been significantly affected by the price war. This has benefited from the seven wolves gradually exploring a whole set of network competition rules.

At the beginning of each year, the seven wolves will discuss with each electronic business platform, determine the matching and performance goal plan of the whole year in advance, and adjust every six months.

Product segmentation and regular promotions for different platforms are designed separately, thereby reducing the impact of the electricity supplier war on the annual plan of the seven wolves.

The sales forecast is a difficult problem. If there is a slight difference, it will cause a backlog of inventory.

Now, the online distributors and offline dealers of the seven wolves are involved in the group meeting at the same time, all have to pay the deposit beforehand, but the ordering place is different.

However, Zhong Tao divided all online dealers into three grades of ABC according to credit rating. According to their next year's sales expectations, dealers with credit rating of C category only gave 60% goods, B class was 80%, and the rest was adjusted according to inventory, while the best credit class A was 100%.

This is like a risk corrector, which can effectively avoid the inventory risk of fully liberalized sales.

In addition to the above overall management rules, the seven wolves also formulated a series of differentiated operation strategies to cope with the diversification trend of the whole network distribution.

The most elementary way is to find out the special attributes of each platform and make differential matching.

For example, Tmall's customers are more mature, like fresh and distinctive products, but they are more sensitive to prices. The seven wolves will put more new products on Tmall and offer larger discount. Jingdong users are not enthusiastic about the discount sale of clothing, and the price per passenger is relatively high, some 2000 yuan and 4000 yuan price.

All of them were able to make a successful deal, and Zhong Tao discovered that these consumption habits were mostly derived from the user's self reward behavior after purchasing the electricity. Therefore, the seven wolves will participate more in the Jingdong's coupons and integral activities. The number of customers in shop No. 1 is lower, so the seven wolves provide more basic clothing styles such as Polo shirts and cotton products, the price is between 150 yuan and 250 yuan, and the situation of vip.com is different. The orter mode does not require the seven wolves to provide products for the season, but the discount is 55% off.

Now, the seven wolves hope that this ecosystem can be extended from Taobao to other platforms.

Zhong Tao said that next year, every Legion will be required to form a composite format similar to "flagship store + exclusive store + factory store", and encourage them to enter Jingdong, shop No. 1 and vip.com, so as to achieve multi store formats on different platforms.

"Channel is king is the magic weapon that brands win. How can we increase performance without channels? This will be an important way for us to dig deeper into the value of the whole network channel."

Zhong Tao said.

This kind of ecology can not be completed by building blocks, but also to enhance the fine management capabilities of each store. For example, the operation of their products should follow a "433" principle, that is, new products and image display accounts for 40% of each store, 30% of specialized products and 30% of inventory products.

Zhong Tao explained that this is due to the experience accumulated by the seven wolves under the online channel. The next line of shops will follow the 433 principles in the sales of image, special contributions and inventory, and its Treasury sales ratio will reach more than 75%. "If the Treasury pin ratio is less than 75%, the store seems to be making money, but it only saves a lot of goods, and the cash flow is not enough."

Another intention of Zhong Tao's implementation of these strategies is to let dealers come out from the vicious circle of simply selling tail goods and price competition in the process of ecological fission, so as to achieve more individualized breakout.

"If you want to be an electricity supplier, you must be a large market of small ethnic groups, never be a big family market."

Zhong Tao said Taobao has a mature system, looks like a large group, but in fact, the user has already shown the trend of subdivision. The same is true for other platforms.