How Does Entity Store Make Electricity Supplier? Mark Ed Faye'S Thinking Of Electric Business Changes

The e-commerce sector, composed of five people in 2008, has developed into the framework of an independent company in 2012, and then to the scale of more than seven billions of e-commerce businesses last year.

Mark Ed Faye, on the one hand, made full use of Tmall, Jingdong, Taobao, Amazon, vip.com and other electronic business platforms to expand sales. On the other hand, he actively researched and developed the network dedicated products, and carefully avoided the problem of "big problems" that the entity store did the electricity supplier.

Mark Ed Faye's electric company is located on the seven floor of the Mark Ed Faye building in Xuhui District, Shanghai. An elevator shows the busy figure of the team.

What you will not think is that the business team of more than 210 people set up more than seven billion sales in 2015, occupying a large proportion of the total retail sales of Mark Ed Faye.

How does a physical store make an electronic business?

So far there are still puzzling questions.

Unlike traditional retail formats such as hypermarkets, convenience stores and department stores, because of its own factories, products and brands, Mark Ed Faye's "product path" integration features make it more convenient for full channel sales with the help of online platforms.

From 2008, the electricity business department composed of five people developed to operate the electricity supplier in the framework of an independent company in 2012, and then to the scale of seven billion businesses last year.

Mark Ed Faye, on the one hand, made full use of Tmall, Jingdong, Taobao, Amazon, vip.com and other electronic business platforms to expand sales. On the other hand, he actively researched and developed the network dedicated products, and carefully avoided the problem of "big problems" that the entity store did the electricity supplier.

In the future, Mark Ed Faye plans to start with the change of organizational structure, and use the Amiba mode to manage the electricity providers more in line with the management mechanism of the Internet era.

"We plan to rebuild a Mark electricity supplier in the next two to three years."

Mark Ed Faye electric business person in charge said in an exclusive interview.

Along with foreign retailers such as metro, Hao Shi Da and di Ya enter Tmall supermarket every day, the traditional retailers should learn from Mark Ed Faye's "posture": by leveraging force, conspiring with the electronic business platform, and expanding their sales performance.

1 from focus on men's clothing to multi brand operation: the change of e-business thinking

In 2008, Mark Ed Faye began to "touch the net" and set up a net sales department composed of 5 people.

At the beginning of the business, Mark Ed Faye's strategy and

There is no difference, it is only to open online stores, enter a large retail platform, rely on other people's site to do their business.

However, compared with the traditional retail business, Mark Ed Faye changed his mind in 2012. It will separate the electronic business team from the company, operate independently, assume responsibility for profits and losses, and have independent accounting. It also has three major channels: direct distribution, distribution and special sales.

On line layout, Mark Ed Faye owns a flagship store, and seven distributors, supplemented by flagship stores and distributors, only allow distributors to represent one of their products.

In this way, if Mark Ed Faye is involved in the brand again, that means that we need to register new stores. The existing channel mode has no great advantage in this sense.

In terms of member management, Mark Ed Faye's online shop members share resources, and the members of several stores can effectively pform them, thus achieving further excavation of purchasing power.

The front end is independent of each other, and the mode of resource sharing at the back end, plus the advantage of the original electricity supplier, Mark Ed Faye is confident that the new business of 3 million members and many brands will be quickly opened up.

In the brand operation, Mark Ed Faye's original position is to rely on his men's clothing as a brand electric supplier. After just testing the water electricity supplier for two years, Mark Ed Faye occupied the third place of the men's clothing brand, but the bottleneck came with it.

If the single line is used for men's clothing, the larger the online proportion, the greater the impact on the line.

Considering the advantages of original resources, design, supply chain and influence, Mark Ed Faye quickly grafted women's clothing, shoes and children's clothing on the basis of existing men's wear brands.

In order to balance the online and offline, Mark Ed Faye implemented the differentiated marketing between the electricity supplier and the entity store.

Children's wear and shoes are specially designed for women's wear.

Differentiated marketing strategy makes the coincidence rate of online and offline only thirty percent, and the thirty percent most are offline inventory.

When JACK&JONES and other brand stores were closed, Mark Ed Faye still achieved a two digit growth in offline sales. In this sense, differentiated marketing really worked.

However, does this difference mean the difference in product quality? The director of the electricity supplier of mark Hua Fei responded: "online and offline are not of different quality, but at the same time develop A and B products. A online, B online, they are only models, designs, and production adjustments.

Because Mark Ed Faye online and offline brand sharing.

In fact, Mark Ed Faye has difficulties in implementing differentiated marketing.

If there is no difference between online and offline prices and the same price, it will not meet the consumer psychology of online shopping cheaper than physical stores.

With the launch of the "all channel" concept of Ali group, the three links of commodity, service and membership have been gradually implemented.

2 amoeba Entrepreneurship: Reinvention of a Mark electricity supplier

In January this year, Mark Ed Faye electric business ushered in a special employee: she was not only the first employee recruited by the Mark Ed Faye electricity supplier ladies team, but also joined Mark Ed Faye as a business partner.

Inside the company, a business partner like her is called "Ba Chang".

All this stems from the amoeba management model Mark Ed Faye carried out in recent years.

Amiba management is the original management mode of San Sheng Sheng Fu, a Japanese business. Its essence is a quantitative empowerment management mode.

The organization is divided into small groups, through the independent accounting system directly linked to the market to operate, train managers with a sense of leadership, so that all staff involved in business management.

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From the whole group to the branch office to every department, Mark Ed Faye carried out the operation of amoeba.

At the level of the group, departments are independent accounting, self financing and self distribution.

For example, in the electricity supplier company, CEO is a class "Ba Chang", and the heads of various departments are two level "Ba Chang".

Each two level "Ba Chang" is responsible for team building, personnel recruitment, cost accounting, project promotion and profit distribution of the whole business unit.

Under this mechanism, the company's institutional setup, workflow and performance appraisal have undergone tremendous changes.

In terms of institutional setup, mark Hua Fei does not divide the team by the level of the process flow, but according to men's clothing, women's wear, children's wear and footwear, the duplication of business modules, the establishment of business units, and each division as an independent profit center.

In this way, each department has the same sub departments as operation, commodity, market and so on. It seems that the duplication of construction mechanism follows the principle of "let the right people do the right thing", because familiarity with men's clothing does not mean familiarity with shoes.

And each team leader has different industry experience, or familiar with the platform, or familiar with clothing.

The head of the business department controls how to acquire resources, how to sell and how to lead the team at the front end of sales.

At the back end, the various departments jointly owned factories, design and supply chains, and each department formed a purchase and cooperation relationship with the design. The person in charge could choose the design that he thought better in the existing Mark Ed Faye design circle.

In the incentive mechanism, KPI performance appraisal greatly mobilizes the enthusiasm of the business backbone, and the twenty percent of the division's head is divided into profits. The incentive mechanism that the employees share twenty percent profits according to their contributions makes every employee very active. Because for them, creating benefits for the company means winning their own interests. Meanwhile, mark Hua Fei adopts the principle of immediate encouragement and implements quarterly settlement.

Behind the incentive mechanism is the partner system pursued by Mark Ed Faye electric business. Mark Ed Faye defines the business operation as a new undertaking. For the company, entrepreneurship means sharing with employees' interests.

The empowerment of every department does not mean that Mark Ed Faye is totally throwing it away.

In the operation of the electricity supplier, Mark Ed Faye implemented process control, set the price discount ahead of time, listened to the business reports every month, and worked out the principle of reasonable employee separation, so as to supervise the work of various departments.

From the effect of amoeba management, the new increase in women's clothing business in half a month, online sales surged from 800 thousand to 3 million, to the current breakthrough 8 million.

3 branding, platform and Ecology: the three step of e-commerce strategy

Every year, we develop 4000 new products, SKU, and more than 210 employees. Every year we send about 2000000 products to express, and online profits account for nearly 1/3 of the total profits.

But Mark Ed Faye's brand electric business is not enough to do business in other people's sites. Instead of being bigger and stronger, its own official website platform, independently adopting the B2C mode, faces great resistance. Capacity, resources and technology need great investment in all aspects.

The biggest problem is the acquisition of traffic. For Tmall and the only product, the acquisition of traffic is the cumulative contribution of each brand.

Therefore, if we want to build a platform, we must first solve the problem of traffic acquisition, and the single weakness of the brand is precisely that it can not contribute to big traffic.

This year, Mark Ed Faye brand business is officially pformed into a platform based electricity supplier.

The first step on the platform is the expansion of Mark Ed Faye's dress, children's wear and shoes.

First expand their brand, then develop social brands, the future Mark Ed Faye may "a set of people, two signboards."

Mark Ed Faye's position is not that of online sellers. From hatching his Internet brand to product wide web promotion, what Mark Ed Faye wants to do is not simply to expand retail outlets, but to create online shopping and offline experience business models.

Mark Ed Faye's official said he hoped that the online scale would account for seventy or eighty of the future, while the line would be guided by product display, promotion, distribution, service and terminal display.

After realizing the socialization of the whole network operation and expanding the retail platform, Mark Ed Faye's third step development strategy is to create a nationwide access from the brand, the channel, the user to the production supply chain, and the whole network big data.

This goal means that the entire service, the entire related industry, and all upstream and downstream industrial chains will be integrated into a system.

Before the implementation of the third step strategy, Mark Ed Faye must first realize the development of platform.

With the injection of other brands, the size of Mark Ed Faye's original brand in the future will probably be much smaller than other brands of his agent.