How To Successfully Pform The "Cotton Era" Of Sequoia Fancy Into National Brand

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A store of "cotton era" appeared.

This house takes

The household goods store, which is the main material, has logo with green bottom and white characters. The products and decorations in the shop are mainly light colored and fresh style.

President Li Jianquan is the spokesman of the cotton era. He is in the cotton era.

With cotton paper towels, no occasion to advertise "good cotton".

Since its establishment in 2009, the cotton era has opened 95 direct outlets in the country, distributing in 24 cities.

"The number of stores is growing at the rate of 30 to 40 per year, with total sales increasing at 100% per year and core members reaching 2 million".

The "cotton era" comes from the robust medical treatment of medical dressings and export enterprises.

In 2012, robust healthcare was removed from Nasdaq, and in 2014, it invested 300 million yuan in Sequoia.

Li Jianquan has said on many occasions that Sequoia looks at the growth potential of the "cotton era".

In March 2016, robust healthcare submitted a prospectus to be re listed on A shares.

Li Jianquan hopes to turn the cotton era into a high-quality national brand.

Make daily necessities by using medical system and technology.

Sixteen years ago, soundness was just an ordinary medical dressing factory in Shenzhen. It was mainly exported to OEM, and then had its own brand winner.

The prospectus submitted by robust medical care shows that winner brand products are mainly sold to developing countries such as Asia, and OEM medical dressing products are mainly sold to developed countries and regions such as Europe, Japan and the United States.

Li Jianquan was not reconciled to the company's suspension.

In 2005, robust medical technology began to develop "cotton spunlaced nonwoven technology". This technology has become the starting point for media coverage of the company's "pition from healthcare to daily use".

The imitation gauze products with cotton spunlaced nonwovens can avoid the infection of wound caused by traditional gauze products, and shorten the production cycle. The problem is that medical certification of all countries does not recognize that "cotton Spunlaced non-woven fabric is gauze". This new material can not enter the market.

Robust medical care has invested hundreds of millions of dollars in this technology.

The only way to change is to change direction.

When Li Jianquan discovered that many sanitary napkins were willing to purchase cotton spunlaced nonwovens, he saw the potential of this material in the field of daily necessities.

In 2009, robust healthcare created the "cotton era" of the subsidiary company, producing high quality cotton daily necessities, and made use of pure cotton soft towel produced by cotton Spunlaced Nonwovens Technology and pure cotton surface sanitary napkin and so on to become the core product.

The "cotton era" commodity production line, from raw material procurement to production process control, quality inspection and factory exit, has followed the system of robust medical treatment.

"We control the quality of products almost crazy. Just like Johnson makes daily necessities, we have the genes for medical treatment.

At the same price, we can even get higher than foreign products.

This is also the reason why our maternal and child products are hot.

Li Jianquan said.

Technology and brand raise premium margin

The cotton age is facing high-end users, and the price of products is relatively high. The price of the electricity supplier channel and its stores is around 200 yuan.

Take pure cotton napkin as an example. In a cotton era, the price of 100 bags of household daily cleaning special cotton soft napkin is 21 yuan per pack, while the price of 100 kinds of napkins in supermarkets is less than 10 yuan.

The prospectus shows that the gross profit margin of daily necessities (including baby products, ladies' articles, household goods and men's articles) reached 62.65% in the cotton era in 2015.

Some products in cotton Era

The reason why the gross profit margin is high is that technology and brand enhance the added value of products.

At present, the cotton spunlaced nonwovens produced in the factory will be sold to other consumer goods manufacturers in addition to the production of cotton related products.

"After the scale effect is generated, the early stage of technological investment has basically been recovered."

Li Jianquan said.

"Cotton era" also spread "comfortable, healthy and environmental friendly" brand concept in various channels through exhibitions, sponsoring marathon competitions and so on.

Since 2014, they have conducted more than 10 "cotton changing world" tour exhibitions throughout the country. Through the display of static cotton installation art, "express the beauty of cotton" and strengthen the natural and healthy brand image.

Mo Daiqing, director of the online retail department of the China Electronic Commerce Research Center, believes that under the background of the upgrading of consumption, natural and healthy ideas will attract more and more consumers.

Maintain consistency of brand and service on line and offline

Li Jianquan believes that "the whole industry chain control" also avoids the erosion of profits by all kinds of circulation links.

At present, the whole cotton era is directly controlled by the company from the front end procurement, production and terminal sales of raw materials such as cotton. E-commerce channels and stores all over the country are directly run.

Since 2011, Li Jianquan has insisted on ensuring the consistency of product quality and price in various channels: the price is not the same as that of the electricity supplier production line and the inactive period.

There are many promotional activities on the online e-commerce platform. Double 11, double 12 and other activities will directly reduce the profit of the product.

"We calculate these losses every year when we budget.

On the one hand, the promotion of e-commerce is to give back to old customers.

On the other hand, this part of the loss is regarded as the advertising fee of La Xin Ke.

Li Jianquan explained.

Offline channels are mainly direct chain stores, supplemented by KA channels and large customer channels, and direct stores are usually located in high-end shopping centers.

Although the cost of rentals and manpower is higher, the offline products are mostly sold at a positive price, and they can sell more non-standard products such as clothing.

In 2015, the sales channel of cotton products was 56.70%.

"Online and offline crossover accounts for only 30% of the population, so we believe that online and offline businesses have their own value.

"Li Jianquan said.

The offline store can provide customers with a good shopping experience, and can also create a brand image and convey a cotton lifestyle.

Online and offline are also merging.

The customer management system (CRM) in the cotton era has opened up all kinds of information systems, including offline store members and order operation platforms, e-commerce processing platforms for all channels, and all media service platforms.

In the future, the cotton era will also try to explore the O2O community business mode, establish warehouses in the whole country, achieve the first day of the first tier cities and the next day of the second tier cities, and provide the services such as door-to-door delivery.

Liu Xing, a partner of Sequoia Capital China fund, said in an interview with the media that the cotton era has great room for development in the fast moving products industry, and is becoming a new generation of consumer brands integrating online and offline.