Footwear Vertical Providers Encounter Difficulties Or Bring Disaster To Traditional Brands

As an important channel for traditional brands to develop e-commerce, footwear Vertical electricity providers encounter difficulties, fear that the brand will suffer from the fish pond.

Recently, the vertical electricity supplier of shoes is not calm. Yue Tao CEO Bi Sheng believes that "vertical B2C is a hoax", Le Tao has developed its own brand in transformation, while Li Shubin CEO is a high-profile response, "why is vertical electricity supplier not a hoax"? It means that good le will adhere to the vertical B2C route. At the same time, the excellent purchase quietly entered Dangdang, and there are rumors that the overall purchase of KPI has not yet been realized, and the CEO rotation system will be implemented. CEO will be replaced by Zhang Xuejun, Xu Lei, Zhang Xuejun and Zhang Xiaojun.

　　 Footwear vertical electricity supplier crisis coming

Li Shubin's answer is yes, but he also admitted that "the vertical electricity supplier in the second half of the year will still face a crisis of closure, and the prospects for development are not optimistic."

In fact, many vertical businesses encounter difficulties, the fundamental reason is that their areas are not enough depth, unable to build industrial chain advantages, industry goods and services are too standardized, it is difficult to bring additional value to users. Another reason is capital. In order to bet on the vertical electricity supplier listing, the former capital required the enterprises to pursue the scale, attract investors with the scale, and ignored the pursuit of profit. Now, seeing the situation is not good, they have to tighten their purse strings and stop the blood transfusion and rescue.

　　 Expand categories, private brands, and enter multiple platforms

Faced with the dilemma, the vertical electricity suppliers of shoes have helped themselves by expanding their categories, entering multiple platforms, and launching their own brands.

Good fun, excellent shopping and so on. shoes Sales, at the same time, actively expand clothing, accessories and other categories. It is reported that since March this year, the excellent purchase network has introduced more than 30 non BELLE system shoes and clothing brands. In addition, they also pay attention to the layout of multi platforms. At present, good Lok has been stationed in Tmall. Tmall , Jingdong, Dangdang, PPS entertainment beans mall and many other third party platforms.

Le Tao is trying to develop its own brand. At present, it has launched five brands of footwear, including Chance Chance (just), Lavis Lavie (Le Wei), Imosii (Mo Xi), MANWILL (Mai Wei) and C+ (Si Ga). Chen Hu, vice president of Le Tao, said: "at present, the high gross profit margin and profitability will become an important indicator of the development of Le Tao, and obviously its own brand has an advantage in this respect."

Whether it is category expansion or the launch of its own brand, it will undoubtedly test the platform's grasp of the product supply chain, and it can be said that there is a greater possibility of risk. The industry also pointed out that the stationing of multiple platforms will result in competition between platforms, resulting in the risk of collapse of the product price system.

　　 Fear of traditional brands will be affected by fish pond

As an important channel for traditional brands to exert their strength in e-commerce, shoes vertical electric providers have encountered difficulties, and fear that brands will suffer from fish pools. If you have observed, after the company launched its own brand, the original brand is no longer cooperative, or no longer favored. The home page gold booth has been fully owned by Le Tao's own brand.

In addition, the vertical electric business is stationed in the third party platform, and the traditional brands that cooperate with it also cooperate with the third party platform. According to media survey, at present, the vertical electricity suppliers who are stationed in multiple platforms have 80% price asymmetry, and the price asymmetry products account for the lowest 20% - 30%.

It is worth noting that, "from this year's frequent price war of the comprehensive electronic business platform, the competition between platforms will not stop in the short term, and then the promotion price adjustment is inevitable. In the future, all vertical electric providers will still face the risk of price dislocation when they enter the platform," said Li Chengdong, a well-known e-commerce analyst.

Price asymmetry will not only destroy the brand price system, but also bring great harm to the brand image. Therefore, the traditional brands need to keep their eyes open when they enter the vertical electricity supplier.