The Alternative O2O Developed By Erdos

Here world clothing shoes The Xiaobian of the hat net introduces the Ordos alternative O2O, which sells the goods of dealers.

"In the past, we couldn't figure out why, like billions of brands under our line, we could not do online brands."

"We are all talking about illusory reasons, what genes are different, the speed of the supply chain is different, and so on. Ordos supply chain control capability should be said to be very strong in the industry, starting from raw materials in the supply chain control. In fact, we can do a lot of things on this. Erdos electricity supplier director Li Kai this sentence "can not understand", I am afraid that out of most of the traditional enterprise electric business person in charge of heart disease.

It's called China. Spin Erdos, the first brand in the clothing industry, was established in October 2010 and opened the flagship store of Taobao mall. In recent four years, the electricity supplier explored the way: longitudinal ratio has many breakthroughs, such as double eleven performance doubled every year. Last year, double eleven single day sales of 33 million were also unable to meet any line store.

But on the other hand, the Erdos electricity supplier seems to have better performance than those of the Ordos brand.

Director of electricity supplier to "go to the electricity supplier"

What is the burden of traditional enterprises to do business?

As a company with a history of more than thirty years, Ordos channel is more complex. Direct, distribution, franchised, store and centralized storage systems coexist. The control and synchronization of online and offline businesses have always been a major problem restricting the development of e-commerce in Ordos.

In this regard, Li Kai boldly put forward "go to the electricity supplier", enterprises no longer do something for the electricity supplier alone, but let the electricity supplier follow the pace of the enterprise. That is to say, let the electricity supplier become a sales system like direct selling and distribution, and operate uniformly into the company.

If you want to line up to the line, there are difficulties and resistance, so let the line go first.

An electric business director advocates "go to the electricity supplier", it sounds a bit incredible. This is similar to asking how to let a dripping water never dry up, so we must let it merge into the ocean and become a part of the ocean.

In the past, Erdos, like most traditional businesses, had drawn the electricity supplier separately. The electricity supplier has a team of its own people, like a distributor, buying goods from the enterprise, having its own warehouse or even Logistics -- equivalent to the people in the system "entrepreneurship" to do business.

In doing so, first, the overlap of functions results in inefficiency, and the two is limited to the electronic business team, both in goods and in the market, and the coverage is narrower. For Ordos brand, the significance of doing business is not only to increase tens of millions of sales, but also to enhance the customer experience and create a brand image that keeps pace with the times.

Moreover, as the Internet continues to deepen the penetration of all trades and professions, for the traditional enterprises, the electricity supplier has changed from the new gadgets to the normalization work, and the two systems which are not compatible with each other, the frictions and frictions are increasing day by day, and even become the internal friction of this change.

Remove the dazzling business labels, to show the greatest sincerity of cooperation, is actually a good strategy to retreat.

Two directions of breakthroughs

The independent structure of the electricity supplier is minimized, and the function of the electricity supplier should be maximized by integrating enterprise resources.

Li Kai seeks the breakthrough of Erdos electric business from two directions. The first is to maximize the width and depth of goods, and the two is to make good use of resources under the line.

Erdos electricity supplier's SKU is very many, the winter sales peak season amounts to several thousand, summer is few, also is in the thousands. Other clothing brands are usually two hundred or three hundred. According to the general electricity supplier's operation experience, to create explosive funds, large single products are the way to improve sales performance. Correspondingly, SKU does not need to be too much.

Li Kai did not agree. He believes that in the case of limited supply chain control, it is necessary to bet on "large single products" through the way of selecting and distributing goods. From the consumer's perspective, there must be more choices. As long as the classification is meticulous, for example, you can pick colors, cross stitch type, pick thickness, etc., and then use different page presentation forms to reduce the fatigue of consumers' choice, so that they can give full play to the advantage that the e-business is not limited by space time.

So when his staff told Li Kai that it was too difficult to pick money, he asked the other person, "why do you pick money?" Consumers can choose "explosions" naturally, and I can add them at any time. Why is it necessary to do a gambling like pick? "

Natural selection of "exploding money" reflects real consumer preferences and has great reference value for future product design. Li Kai told us that last year they sold two or three SKU, and over five thousand of them sold more than ten. Ordos products are thousands of yuan, then a single product has created tens of millions of sales, this single product is not really small.

The rest of the thousands of sales of only a few hundred or even dozens of pieces of SKU do? For Ordos, this is really not a thing.

Because the main cashmere sweater belongs to the knitting process, it is all woven by one piece, so the ability to add single is especially strong. For example, a factory can produce 1000 units a day, so the 1000 items are one, one color, one size or one thousand, one thousand colors and one thousand sizes. The most frequent change is to reduce the production capacity from 1000 to 800, which is the characteristic of cashmere knitted goods in production.

Ordos owns the best knitting computer lathes and supply chain logic in the country. In the limit state, ERP can be directly inserted into the computer spinning machine, and what can be done for two days can be sold out. Find out which goods are sold well and the inventory is low, then 30 or 30 pieces of small batch production will be immediately added.

Selling goods from dealers

SKU should be done in a deep and independent way. No matter how powerful the supply chain is and how fast the business is, the electricity supplier must retain a considerable portion of its inventory. The management, collocation and recommendation of thousands of SKU also have higher requirements for the operation capability of the e-business team. The electricity supplier team can not only reduce, but also have to be bigger to support it.

How does Ordos "let horses run and horses do not eat grass"?

This is actually what Li Kai mentioned above, breaking through the second directions of the current development pattern, making good use of the resources under the line: let dealers become the warehouse of the electricity supplier, undertake the combination and cooperation of the products.

No, if the above sentence is changed into a manufacturer or a brand, it is the traditional channel division of labor. According to the development trend of the normalization of the electricity supplier, the electricity supplier department will transform into an electric business enterprise, and the electricity supplier and the brand will become one. This division of labor is absolutely right.

Why dealers are generally against the electricity supplier? In the final analysis, it is because you are robbing him of business, or even replacing it. In order to solve this contradiction thoroughly, Li Kai put forward a bold idea: simply sell the goods of the dealers and trade with them.

How do you sell the dealer's goods?

In the case of getting through the ERP system, the electricity supplier Department has hung up the list on the system after receiving the consumer orders, and the dealer decides whether to respond to the order by itself, through the open logic internal bidding (in fact, not only the price, but also the logistics distance, the dealer's matching degree, etc.), the system automatically matches the transaction. The distributor only needs to pack the goods and give them to the contract logistics company.

What needs to be explained is that in the process, dealers will settle accounts with the electricity supplier departments according to their own quotations, while the electricity supplier departments will settle accounts with consumers on the net purchase price of commodities. For example, in order to give priority to the order, the dealer quoted 800 yuan on the ERP system. After the order matching was successful, it was shown on the Taobao mall that the product was sold for 1000 yuan. This means that the dealer's offer determines the cost of the electricity supplier. The electricity supplier has retained the pricing power, and has also retained a flexible profit margin.

Li Kai said, "we actually made product transactions in different ways, and the trading process is different." Just changing the way of trading, everything has been straightened out: in the past, the electricity providers independently sold and sold, and the most important warehouses and retail functions of the dealers were deprived, leaving only after-sale service functions. No matter how to distribute profits, dealers had a sense of crisis. Now, the core functions of warehouses and retailers were returned to the dealers, and the system was done to the dealers. The system service providers revealed that the biggest requirement for them in the system customization phase was Li Kai's convenience, which could not add any trouble to the dealers, so that they could participate at any time.

Postscript: Interview Erdos The process is full of accidents - the director of electronic commerce has put forward the idea of "going to the electricity supplier". Thousands of SKU on the line will continue to grow bigger and no longer stand alone, but will sell the goods of the dealers through the internal bidding system. This interview is full of dry goods. We will push it in two parts to present the audacious O2O practice in Ordos.