The Pformation Of Traditional Retailers Is At A Low Level.

As a big domestic retailer with BELLE, Baosheng international, which is listed in Hongkong in 2014, has nearly $2 billion in sales in 2014. Its unique electricity business mode is placed high hopes, providing a new direction for the traditional retailers who have been deeply affected by the electricity business but difficult to pform. However, with the departure of the company, the pformation of traditional retailers has fallen into a trough again.

Unique positioning

Baosheng international is a large retail group founded by Taiwan capital and based on Greater China. It mainly sells international sports brands such as Nike, Adidas, Puma and Converse, as well as Levis, TNF and other casual wear. At present, there are about 4000 Direct stores and 2400 franchised stores.

According to the results released by 03813.HK in mid January 2015, the total net operating income net (that is equivalent to total sales reduction sales discount and sales returns) for the 12 months ended December 31, 2014 was $1 billion 981 million.

Although sales of Baosheng's electricity business account for a small proportion of total sales, only 1%, but because of the unique location of its e-commerce business, the industry is concerned.

The designer of Baosheng's electricity supplier is Xing Kechun.

Xing Kechun graduated from the radio technology major of Xi'an Jiao Tong University, EMBA, China Europe International Business School. He worked in Lucent and Intel for 12 years, and served as vice president of the mobile design giant Long Qi holdings in the next 5 years.

He joined Baosheng international in 2012 as a special assistant to CEO, responsible for post investment management, forensic and auditing. He began to prepare the electricity business section in June 2013 and formally established the electrical business department and held the lead in Kunshan on 2014 New Year's day.

According to the understanding of Xing Ke Chun, Baosheng international, as a retailer of large sports goods in China, chose "customer" as the entry point, or member, in the three elements of retailing.

Because commodities are determined by brand dealers, retailers can only express their value if they do well in service.

Therefore, he placed Baosheng's position in O2O as an emphasis on service.

According to his plan, Baosheng electricity supplier is not defined as a profit center in the short term, but a cost center to help entities store to increase sales and profits.

In the early days, price conflicts were reduced by some commodity divisions, and the final strategy was online and offline.

This is clearly different from the location of the traditional retailer's e-commerce business in China, that is, to attract members by adding value rather than price.

The concept of O2O has started to start in 2013 and deepened in 2014. Many enterprises have made many explorations in the form of O2O implementation.

Judging from the present situation, Xing Kechun's original O2O thought was still refreshing after the drastic changes in 2014.

For example, he stressed that in terms of members' interests, we should focus on happiness, such as special offer, directional member sale, limited money priority, participation in small circle gatherings, etc., so that members feel honored and comfortable, willing to have "face" in front of their relatives and friends, and are willing to show off.

This way of doing nothing but price subtraction is only a way to add value.

The core of Xing Kechun's O2O design is mainly embodied in system integration and cross boundary marketing.

In system integration, the O2O defined by Xing Kechun has the unique code for each store from the system settings, both in POS or in the WeChat two-dimensional code, and the store code is exactly the same, so it can determine which store the member is from.

Members and stores are tightly bound. If the stores and attendants are in good service, the member will always belong to the store.

But if a member complains of a store, the headquarters will remove the binding relationship between the store and its members.

Under the clear logic of stores and members, members can sell their sales and incentive bonuses through the background system of group headquarters, regardless of online or offline consumption.

In this way, shop assistants have direct motivation to develop members, serve good members and avoid the loss of members.

As a result, Baosheng O2O system can cover thousands of stores, and digitalization of basic information, such as geographic location, digitalization of marketing activities, and the purchase and sale of goods in physical stores.

stay

Level, Baosheng electricity supplier through WeChat, Alipay, public comment and other mobile clients, and consumers two-way interaction to facilitate pactions, stronger adjustment of a cross boundary marketing system.

For O2O based cross-border marketing, Xing Kechun, for example, bought a pair of internationally famous brand shoes at Baosheng store, and will get two DQ snow queen. This way, share the marketing expenses with DQ through DQ drainage.

Another example is automobile insurance users, because the insurance company can not easily cut prices, you can choose to give the user an electronic coupon, to the Baosheng store to choose the shoes you like, you can deduct the discount of auto insurance, and share the promotion.

The most successful example of this crossover is the cooperation between Baosheng electricity supplier and public comment in 2014.

Users spend 5 yuan on public comment to buy 22% off discount coupons. They can buy 24 new products of the brand in 15 stores in Shanghai.

What's more, this sports shop is obviously different from other brand stores. Every product and even shop has two-dimensional code, and there is a two-dimensional code wall printed with merchandise.

Wang Yu, vice president of the business platform of the partners' public comment network, believes that the cooperation between Baosheng and Baosheng is different from that of other platforms. O2O has not directly given consumers a big discount. Instead, it has used 5 yuan to purchase discount coupons, which has led to the drainage of stores, which has changed the style of the traditional electric business, which is mainly based on price competition.

At the same time, these stores are located in remote stores, and have reached the purpose of drainage for the shops which are not popular.

However, the assumption is good, but the actual implementation is still very difficult.

Xing Kechun believes that the most difficult pformation of business mode is the change of concept.

To this end, Xing Kechun during his stay, completed the training of thousands of store managers throughout the country to enhance sales of physical stores.

In Xing Kechun's view, the electronic business platform is a necessary place for traditional retailing, but it is a snack, not a staple food.

For example, opening a flagship store at Tmall is just an extension or supplement, and the main battlefield is still offline.

Therefore, he emphasized that "O2O is a process, not a result at all, or a technical means, not a goal."

In 2014, Baosheng electric business, which started from scratch, brought 150 million yuan sales increment to the company. Xing Kechun stressed at the time, "if it is for impulse, it can do more, but in order to pform and upgrade, and pursue steady and long-term development, what we should do in the early stage is layout, integration, and enhance service power."

It is just that Baosheng's slow development mode, which acts as a cost center rather than a profit center, does not seem to be able to get enough recognition from Baosheng international high level.

In the first three quarters of last year, Baosheng international, which has just lost its profits, obviously has higher requirements for the business of e-commerce. Compared with the annual sales of BELLE electricity supplier, which is the same as the domestic sports brand retailer, the sales revenue of Baosheng electric power company is too large. The gap between the sales revenue of Baosheng electric power and the sales volume of the electricity supplier is 5 billion yuan.

However, how to balance the huge cost of the O2O mode's early investment and how many years later it is possible to test the patience of Baosheng management.

Under the impact of the electricity supplier, the traditional retailers are thinking about the countermeasures, and the road of choice is also different.

BELLE electric business chooses the mode of independent shopping mall's excellent shopping plus full network distribution, but there is no clear direction and no convincing performance because of wavering between making brand or making channels. Especially after the closure of Dangdang flagship store in January 2015, it has caused many speculation in the industry.

The Baosheng electricity supplier representative is another way of exploration, that is, using O2O to bring online capabilities to the line, emphasizing the overall channel effectiveness of Baosheng international, not just focusing on the business of e-commerce, but at the same time, it is also a setback.

According to Xing kechun's point of view, O2O is an incremental way of boiling frogs in warm water. In 2014, there were no successful cases. Enterprises are busy with technical closed-loop and system opening, and there will be some successful cases in 2015, and there will be more successful cases after 2016.

Mo Daiqing, director of retail business and senior analyst of China Electronic Commerce Research Center, believes that for vertical electric providers, there will be a clear business model in the future, and it is very important to prepare for profitable strategic pformation.

At present, vertical electricity providers have not stepped out of the predicament. One of the reasons is that they are too fond of immediate interests and have a fundamental layout for the future.

At the same time, the pformation of traditional retail enterprises to explore O2O, can not achieve real online offline integration, through mobile tools and social attributes to revitalize the physical store resources are not deep enough and thorough, and in the supply chain, logistics system, marketing promotion, capital pfer and so on, the overall integration direction is even worse.