Bo Yang Home Textile: Online And Offline Search For Balance

On the day of November 11, 2011, sales of Taobao mall broke through 100 million yuan in 8 minutes, broke 200 million yuan in 21 minutes, and nearly 500 million yuan in an hour. Finally, the transaction volume reached an astonishing scale of 3 billion 360 million yuan. For two consecutive years, Taobao mall's double eleven promotions not only made people see the great potential of e-commerce, but also made many star enterprises popular.

Among these stars, Bo Yang home textiles is undoubtedly the most dazzling one. Before the 2011 sales promotion, Taobao mall launched an online survey of sales promotion brands. The poll of 810 thousand people voted to become the eleven most anticipated brand. But later facts proved that Bo Yang home textiles failed to live up to the expectations of consumers, and sales exceeded 40 million yuan on the double eleven day. It refreshed the 20 million record created by itself in 2010, reclaiming the first category of online shopping. In 2011, the sales volume of Bo Yang home textile line also doubled than that in 2010, which will exceed 200 million yuan.

　　 Different battlefields and different tactics.

The conflict between online and offline is all. Traditional enterprise Wu Ronghua, general manager of Bo Yang home textile e-commerce company, made a very vivid analogy: in WAL-MART, a coke can only cost more than 1 yuan, while in the lobby of a high grade hotel, it will have to sell more than 20 yuan. "Sometimes it's like this, the service and experience you enjoy in different places are different, the line is to be decorated, there are manual services, and how to play if the price is consistent?" Wu Ronghua said, "but if the line is still selling the same product at the same price, then the line becomes a variant payment platform, which has become a traditional enterprise."

How to solve this contradiction? Bo Yang home textile has created its own unique style of play, specifically dividing the products sold online and offline.

"At present, there are about 95% of online sales of products." Wu Ronghua said, "the remaining 5% basically is to help offline products to digest inventory." At present, the team of the online and offline teams of Bo Yang home textile industry is also independent of each other. Even the design and Research Department of the product is the same. There are specialized teams to develop products for the online characteristics.

Design research and development has always been the advantage of Bo Yang home textile. In today's Shanzhai popular Chinese home textile industry, Bo Yang home textile is undoubtedly an "alternative". In 2010, Bo Yang home textile product research and development center was set up in Shanghai, which has 45 leading designers and flower designers in the industry. This ensures that every flower pattern on Bo Yang products is designed by a special designer. The strong R & D capability also enables hundreds of independent innovation products to be launched annually.

The advantage of R & D capability is further extended to the online industry. In April 2011, when the 3rd Anniversary mall of Taobao mall was celebrated, Bo Yang home textile won the sales of home textile products with nearly 16 million performance. After that, Wu Ronghua and his team began planning the double eleven activities at the end of the year. According to the experience of 2010, the autumn winter kit, such as sanding, short plush and Raschel, is the best selling product in autumn and winter. It can basically contribute about 30% of sales to Bo Yang. So Wu Ronghua concentrated on R & D and produced a large number of these products. Indeed, the products were still eye-catching during the double eleven period in 2011.

　　 beyond The biggest advantage of dividing online and offline products is to avoid the loss of brand value.

Many traditional enterprises in the early days regard the online as a way to clean up inventory, and deal with the inventory products at a very low price. As the importance of online channels has become more apparent, enterprises have begun to sell new products on line and give certain discounts, which has resulted in two sets of different price systems under the online and offline. Although the price sensitive consumers can be attracted in the short term, the low price online will eventually become the killer of brands in the long run. And the way of Bo Yang home textile is obviously safe at this stage.

　　 Benefit sharing

Apart from the division of products, the success of the e-commerce of Bo Yang home textile lies in maintaining the harmonious coexistence of online channels and offline channels.

In order to ensure the interests of offline dealers, the company has adopted a way of sharing interests. In the early days of Bo Yang home textiles entering e-commerce, many offline provincial dealers strongly objected. After thorough investigation of Bo Yang home textile, it found that many of the dealers who had objections had secretly opened stores on Taobao. So these people are not against e-commerce itself, but are worried about their own interests. Having made this clear, the next thing will be easy to do. What we need to do is to find a mechanism that can balance the interests of agents under the line.

As a result, Bo Yang home textile began to invite provincial distributors to set up shop and admit their legal status, but they should accept the unified management of the company. Bo Yang home textile is opening up the backstage data of its official flagship store of Taobao mall to distributors. All products sold by flagship store outlets in the mall, as long as the receiving address is the area under the management of the online agents, then the business is counted into the dealer's performance, and the company and the distributor are divided into a certain proportion. In this way, the relationship between the company and offline agents is straightened out.

Through this campaign, the Bo Yang home textile has established a well controlled online sales platform. Agents can open shop online, but the price of products is managed by the unified management of Bo Yang home textiles, and the most important thing is not to sell goods under the sales line, otherwise it will be punished. The control of goods is firmly held in the hands of the company. The original "miscellaneous army" has become a "regular army", which has laid a solid foundation for the product strategy of the online and offline industries.

Of course, the balance between online and offline relationships is far from enough. Warehousing and logistics are becoming the key factors restricting the development of e-commerce. The double eleven sales in 2010 also made it difficult for Bo Yang home textile to encounter "burst warehouse". With the lessons of 2010, Wu Ronghua made preparations for goods in 2011 and expanded the storage area to a total of 10 million square meters. He also asked logistics companies to arrange more than 70 employees to be stationed in the warehouse of Bo Yang home textiles, which was responsible for packaging and courier receiving. However, even though they had made enough preparations, the performance of 2011's double eleven 40 million was still tight enough for B2C.