Who Is Hero In Terms Of Success Or Failure: Lu Bin, Former Director Of Daphne Electricity Supplier

Daphne's online sales rose to nearly 100 million yuan from the number of millions of dollars generated during the operation of the company. The huge jump in this figure was a surprise attack on the brand by the early generation operation to brand independent full network marketing. The raid, which began in 2010, finally died in the autumn of 2011.

　　 Making the most suitable full network marketing

Lu Bin enters Daphne In the late summer of 2010, it was a year after the golden autumn October. In a short span of a year, his brand and online sales ideas are no longer green. But he never wanted to be told that his team was a team in Waterloo.

The reality is that Waterloo is only a change in the overall decision-making of the top leaders of the group. It can not be denied that the whole network marketing really brought good results for Daphne.

Most of the time, big brands are transferring online channels to some generation operations or joint ventures, so that online and offline communication may have problems. Daphne touches the net in 2006, and set up its own e-commerce team in 2009. However, its operation has not improved. The annual sales volume is about 23 million, and the advantage is that e-commerce is being handled by itself. The situation at that time was 199 yuan under the line. shoes On the line, it also sells 199 yuan, so that consumers and their online purchase of products that are no discount are better than Daphne's six thousand stores across the country to try and buy.

　 There is no advantage in brand online, and sales naturally do not go.

When I first entered Daphne, Lu Bin found that the original design of a pair of shoes is so simple, as long as the selection of shoes, materials, and type, and then in the dazzling jewelry store in the selection of their favorite accessories, combination is the shoes you design.

Designing shoes is simple, online selling. shoes It's not that easy. Especially in such a big Brand Company, if you do not make good performance, you will face many difficulties. For example, the earliest signing of a simple contract will go through many processes such as forensic examination and general manager's signature. It may take three months. In order to shorten the process, Lu Bin designed several standard versions of the common contracts, including consignment, delivery, underwriting, real storehouse, buyout and so on. He took the contract first to seek the approval of the group leader, then went to some vertical B2C merchants to discuss the channel problems, and signed more than 30 contracts a month later.

It can be said that at this time, Daphne completely changed the previous e-commerce mode, and began signing contracts with affiliate, underwriting and page linking contracts with vip.com, Le Tao, celebrity shoe store, Holle, Jingdong and other network channels. The whole network marketing began to be formally laid out.

Speaking of how to convince channels to serve themselves, and how to make online products more competitive than offline, Lu Bin's speech speed began to rise. He thinks this is the second step after simplifying the contract process -- how to sell things.

　　 If you don't sell shoes, I'll play.

There are six thousand retail outlets under Daphne, including one thousand franchisees. Just as some other traditional brands do online sales, Daphne will also worry that online price changes will lead to problems in offline sales.

"You can't move the price, you can't move the style, so you will be crushed to death on behalf of the operation. So we know that doing online can not be opposed to offline, but requires closer cooperation. Lu Bin told the "Internet merchants of the world".

For this reason, Lu Bin often went to Daphne's offline stores to consult and understand the situation, and then discussed with them how to make price differentiation. In a few conversations, he found that Daphne had to design hundreds of shoes for every season, but not every store would be full, the store could put up 40 shoes at most, and 700 could be placed on the Internet; for example, candy colored shoes, stores might have only three colors of shoes to sell, but on the Internet they could sell 12 colors. The number of store codes was up to 39 yards, and the Internet could be sold to 43 yards.

So Lu Bin and the vice president of the line under the consultation, "you sell 199 yuan, I also sell 199 yuan, but I sell you can not digest the inventory and style, is a broader customer base and higher conversion rate, and then small special needs of customers gathered to the network also has hundreds of thousands of people."

As a support for each other, the shoe boxes on the six thousand stores below are printed on the address of Daphne's Internet shop. As a result, online and offline change from the previous conflict to cooperation. Immediately after that, Lu Bin and the leader under the line reached an agreement, that is, goods not sold under the line, and pricing power on the line.

This is more of a stock model, and Daphne sells at least 90% of inventory per year, that is to say, only 10% of inventory is left per year. But even if only 10% of the inventory is available, there will be a lot of last year's products in the base of Daphne's sixty million double sales.

A total of six thousand stores in the country, even if a pair of shoes is broken, may collect more than 20000 pairs nationwide. So Lu Bin began to package these deposits and sell them to the shoe store and Jingdong group purchase.

That time JD.COM From the professional sale of digital products to the development of a comprehensive shopping mall, the Jingdong thinks the best way is to sell the brand that has been in line for many years and the price is recognized by the public, and sell it online at a lower price, so as to highlight the image of Jingdong's goods lower than consumers' impression of some brands. The two sides hit the nail on the head and the Jingdong began selling Daphne's group purchase.

Group buying products are priced at 99 yuan. According to Lu Bin, in the original 199 yuan price, the store rental cost will account for more than half, and online sales, no rental costs, even at the price of 99 yuan sold, there is a considerable profit. Shoes sold for sale within a few hours after the products purchased by Jingdong group were sold out.

After finding a balance between channel and brand, online and offline, Lu Bin felt suddenly enlightened, and the sales channel had been opened. He began to ponder deeper concepts, and felt that every electronic business platform might need his own special contribution. Such a platform will have a certain degree of relaxation in the style competition, and the uniqueness of the platform will be more prominent.

Lu Bin, like traditional industries, began ordering online channels in the lower exhibition hall, and chose their own exclusive channels by the channel providers.

Daphne's offline sales have a certain rhythm every quarter, the listing price is 20 percent off, the intermediate discount gradually changes, and the end of the season is 50 percent off clearance. Lu Bin wants to win a better price for the Internet channel, so he said at the group's performance report: "for example, a good Le buy channel sells 1 million of shoes for me every month, and its performance only accounts for 1% of the total market. I made 1 million in 1% of the market, and if it was in 100%, that would be one hundred million. So we must buy the one hundred million sales price for good music, which is equivalent to the price of the agent at the provincial level.

After the group meeting, good Lok bought the entry price of the provincial agent, and the purchase volume of the first order increased to 5 million after the new supply price was implemented.

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　 Failure of vertical B2C

The reason that led Lu Bin to leave Daphne has not been investigated, because any decision of a big brand enterprise has its own logic, and the reasons are very complicated. In fact, Lu Bin believes that his career in Daphne is his most important career.

After the layout of the complete network marketing, Daphne's own brand positioning and product design are not difficult problems, and there is a large logistics center in Qingpu responsible for the collection and delivery, even if tens of thousands of shipments are delivered on that day, it will also be completed in the afternoon. Based on its strong strength, its online performance is booming.

Perhaps because of this excellent performance, Daphne executives at that time believed that since Daphne's brand effect is a great advantage, why should it be distributed to other channels?

Almost at the time when Lu Bin was ready to do a big job, in September 2011, the mail air parachute was appointed, and the Daphne electricity supplier was fully charged with the operation on behalf of Yao point 100. Immediately after that, the group closed all other channels and planned to do vertical B2C like BELLE. Because at that time, Taobao's statistics showed that sales volume, BELLE win, sales volume, Daphne win.

Speaking of this, Lu Bin did not have any special emotions. He now feels that this is just a very ordinary decision at the top level, which may be different from the interests of professional managers.

But Daphne is a traditional brand. Even the original vip.com, after the completion of the whole network marketing by way of manual negotiation, began to make independent B2C sales. Daphne has cut off all other channels. First of all, it will be faced with the embarrassing problem of no traffic. If there is no traffic, there will be no transformation, and no sales will be transferred. It can only invest huge marketing expenses, and only burn money. Moreover, it does not adopt a policy of conciliation to negotiate with channel operators, but rather directly defaults, which is equivalent to directly cutting off the way back.

The real idea of Lu Bin's departure is to make a point of 100. Lu Bin and Yao point agreement reached 100, there are several shoes sales price can be lit by 100 of their own set, but several products before and other channels have a price agreement, can not arbitrarily reduce the price. But for one of the 99 yuan products, Yao point 100 directly sold to more than 70 yuan, 10 yuan for their own sales.

This has made it very angry for the channel that Daphne signed the agreement. Lu Bin's entire plan was also completely disrupted, so he began to refuse to give 100 points. Finally, Daphne's own B2C did not get Daphne's supply.

Leaving or not leaving, Lu Bin thought about it for a long time. Eventually he knocked on the deputy chief office of the personnel department and handed in his resignation. This decision is very difficult, his most direct feeling is very reluctant.

Later, Daphne's online operation stalled and its performance plummeted. And Yao point 100 burned 500 million yuan in marketing fees, and only made a 50 million yuan turnover, then returned to Taiwan. Of course, this is the future.

"I still love what Daphne taught me." Lu Bin sighed, "I have seen many brands, and few brands can develop so steadily, whether they are production or logistics."

Today, Daphne's main online channel is Tmall, but it does not go to Juhuasuan, nor does it sell large promotions.

After leaving Daphne, Lu Bin went on a trip for some time. In his conversation with him, we found that he spoke very fast and often could not keep pace with others. He is a very religious pilgrim and has his own unique views on religion. At the age of 30, he had worked for many years before entering Daphne.

　 Professional electric business managers from scratch

In 2005, Lu Bin graduated from computer science of Wuhan University of Technology. Two years before graduation, he applied for computer software international accreditation, such as Photoshop's ACCD, in the education and training school near the school. In the third year of that year, he began to be a senior in Zhonghua power Huazhong company. Designer For more than 80, including red people. Clothes & Accessories The big brand customers such as red gold dragon do web design and development.

At that time, he also stood in the technical field of e-commerce, and never involved in the business content of Internet sales. Until then, when he had a backstage data connection with eBay, he began to observe the behavior of buying and selling these big brand customers on the Internet.

Two years later, Lu Bin left Wuhan and went to Shanghai. In fact, it is completely invisible from the form and accent that he is a young man from the northwest. It has also proved that he is more suitable for Shanghai, a city known as "magic capital".

In June 2006, Lu Bin became the first QVC Company of China, the operation manager of Seven Star Shopping group, responsible for the operation of its store and brand electric business, and helping the group manage more SKU products supply chain. At this time, he began to contact the sales business of e-commerce, including the combination of online video and television products.

At that time, e-commerce was not very mature in Lu Bin's view, especially in the two parts of logistics and payment. The form of TV shopping has been in existence for more than 10 years. Seven Star Shopping is the first QVC Company in China. Its holdings have more than 100 brands, and their no store business is better than many e-commerce companies at that time.

In fact, the TV shopping platform at that time was equivalent to an advertising department of seven stars shopping. Just because of the high media attributes of TV shopping, there are often exaggerated contents in advertising. It was at that time that Lu Bin discovered that all the money was actually earned by retailing.

He gave an example. At that time, the price of the smoke-free pot was 30 yuan, and the price for the supermarket was 90 yuan, and the supermarket price was 550 yuan. It can be said that supermarkets are the biggest profit party. The gross margin of business exceeds 5 times. What about the gross margin of the huge online market?

"Maybe you can interview this side." Lu Bin thought about it and then began working with friends in 2008 to cooperate with some factories in Fujian.

In 2008, electronic commerce became the trend of the times. It was manifested that a large number of dispersed C2C began to develop toward branding, but too soon it was not a good thing.

Fujian factory, which is working with Lu Bin, is OEM for some foreign enterprises, specializing in the production of outdoor functional clothing. Just as the 2008 financial turmoil, most orders from abroad were cancelled, and factories were in a difficult position to sell. So Lu Bin turned these outdoor equipment to the Internet business at that time.

Thousands of Yuan like functional costumes cost up to a few hundred dollars themselves, but in those outdoor brand stores, pricing is multiplied because of the high cost of rents. On the contrary, if they are offered to network operators, they can earn 50% of their gross profit because of the cost of rent. Although factories earn little profit, at least production has been rolling.

At that time, Lu Bin did not shop, but bulk distribution, so shops did not have sustainable development. In his view, if the outdoor products do not make their own brand on the Internet, the prospect is not very good. When he proposed to set up shop on the Internet, the impact of the financial turmoil had passed, and foreign orders began to increase. The factory felt that it would be better to continue to make its own processing plant instead of making money on the Internet.

The prospect of the development of non branded products is so dark and obscure that Lu Bin starts to turn around. "We want to make a brand concept instead of being a mature brand, because you don't need to do the early stage at this time, you can quickly open the sales channel."

This is also the reason why Lu Bin first entered Daphne, and was also one of the reasons why he chose to leave.

Now Lu Bin works in Li Cheng. Spin Lixin Agel Ecommerce Ltd under the Group specializes in the brand of mainsook Lang Xu household clothes. In only half a year, Lang Xu household clothing has been ranked fourth in Tmall underwear category sales list.

It seems to be a professional cycle, from brand to industry to brand enterprises, and jump out to make new brands. But only Lu Bin knows how important this experience is from scratch.