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    Customers Are Forced To Profit Or Embarrass Themselves Or To Cater For Capital.

    2013/5/8 20:54:00 19

    CustomersSalesProfits

    Two days ago, it was reported that Wang Chunhuan, a founder and senior vice president, left office. This is another VP leaving after Yang Fang and Wu Sheng. In two months, the two wave "special sale" of low price goods was criticized for damaging the brand image.


    In 2013, it realized full year profit. This is a new goal of fan Kong in 2012, after stopping advertising, layoffs, cutting products and clearing inventory. In the view of the current customers, it seems that they should be able to go all out in a light fight. Just where to fight, how to fight, the idea given by customers is still platform.


    When commenting on the V+ platform in 2010, everyone commented: the on-line platform of V+ is to admit that there is a huge risk of failure in the sustainable development of all customers. We hope to transfer this risk through this platform, and win the confidence and investment of shareholders (VC) for ourselves. At the same time, we can delay the development of our competitors. After all, Dangdang, excellent network, Jingdong network, and even the red kids have announced that they will march into the department store industry in an all-round way.


    Later development also confirmed this risk prediction. The development of V+ in the past year has shown no significance in the big platforms such as Taobao and Jingdong. The V+ platform has nearly 300 brands, and the daily average website traffic (PV) exceeds 10 million. The single day sales volume has exceeded 2 million on average, and the monthly sales volume has exceeded 60 million.


       Fan's founding team is not stable, V+ is just a flash in the pan.


    Because the price per customer is less than 100 yuan. clothing Brand, its flow base and user consumption capability can not support the clothing brands that are several times more expensive than those of the customers on the V+ platform, plus all customers have to ask for warehousing operations. It also makes it possible for the third party channel to digest the inventory and accelerate the turnover of the clothing brand. In the case of smaller sales volume, it will no longer devote energy and resources to the V+ platform, instead of investing in Tmall and Jingdong with high growth. Since January 2013, V+ products have been fully accessible to all customers, indicating the final destination of V+.


    I have always emphasized that the genes and values of a company are closely related to their founders. Unless the team of founders is gradually formed, the company's genes and values will gradually become firm and force in one direction until the profitable State of positive circulation is achieved. Ali Ma Yun 18 Lohan is such a development trend, in fact Ma Yun is also a strong personality and strong founder, but because of the founding team, on the one hand, to avoid too many ideas of Ma Yun can not disperse a lot of energy to achieve the ultimate goal of a business (Ali's B2B business has insisted on 7 years), on the other hand is to reduce its personal subjective errors (such as Ma Yun in the C2C business insisted on using Ali mother's domain name, but Taobao's first CEO is also a member of the founding team, Sun Tongyu insisted on using Taobao domain name).


    Why can't customers stay in their own brand for 7 or 8 years? In third years, they began to expand the category and rush to the V+ platform without any rules. This is due to the dream of the platform, which has been doing well for 5 years in the past 5 years. That is the five year that China's B2C started. And since the establishment of the company, the core founder team has not yet been established. According to friends in the industry, since almost all the VP class senators had no options, the VP went away in the most difficult 2011 to 2012.


       From platform to special sale, profitability is still difficult.


    All customers from the six round to the 422 million dollar ranked second burn private brand B2C, created a RMB sales volume (6 billion equivalent to the U.S. dollar is nearly 1 billion, is only 4 times the amount of financing) of the electricity supplier miracle, but this result is still unable to make everyone profitable, which not only makes NSDQ difficult to imagine without IPO, but also many online and offline. Brand clothing Practitioners can not imagine including the Amoy brand (now called Tmall original). After all, to build a private brand is to be a channel or a channel. Secondly, through the spokesperson, the new product line or the different brands of different categories of people, we should strive to raise the price of the brand to achieve the brand premium. The clearance will also be carried out through the third party platform to avoid brand price or new products being affected. All customers seem to be challenging the business principles of their own brands, and have dragged themselves to this embarrassing situation.


    The core of the platform is traffic. Taobao paid 2 billion for this. Jingdong paid 10 billion for this. Now these two platforms still invest hundreds of millions of marketing expenses into the process of obtaining traffic each year. Another core is technology, in order to support high concurrency order processing and multi business backstage operation, and to get the two distribution of traffic on the platform, the technology input is still in the number of 1 billion.


    The profitability of the platform is not simply a commodity deduction and account period (Taobao / Tmall accounts for a maximum of 7 days, and the average point is 5%, which is no higher than the highest 5% point point announced by all customers). Their profit is to reduce the flow cost through mass purchase flow, retain the traffic through the operation and high user experience, and then assign two times to the businesses (the merchants do bidding advertisements on the platform) to achieve high traffic realisation.


    Van guest also seems to find that such a platform is still difficult to achieve scale profits, so V+ merged into all customers did not invest in a wide range of regular business, but launched a special sale channel. Only in this way, we can achieve quick profits through high button points, and become more subtle because of setting the deduction point to 5%.


    It is bound to be difficult for all customers to own this brand and special sale. Although in my micro-blog, I also see a few advantages of making a special sale: 1. the brand appeal of the clothing industry; 2. the huge capacity of operation, the foundation of logistics and storage; 3., the marketing experience and team; 4., the business cooperation and service experience accumulated by the V+ platform before 4.. But this does not mean that customers can operate continuously in such a dual mode and gain a profit base. Because for users, the constantly blurred location of customers will speed up the loss of users. Secondly, the platform electricity providers also see the benefits of special sale (flash purchase). They offer a special sale or Flash purchase channel to accelerate the market competition of this business mode, and further migrate to be the only about 30000000 user group that enjoys the brand sale.


    To be yourself or to cater for capital is the real topic before all guests, but there is little time to think about it and put it into action.

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