Why Is The "Low Profile" Vip.Com, The Limited Time Inventory, A New Favorite Of Capital?

In 2016, China's textile and apparel industry wholesale level inventory basically completed, the same period of channel inventory to the end, 2017 began the overall performance of the clothing sector began to improve, mainly due to the digestion of inventory.

Over the past few years, the declining clothing industry has been retailing.

The situation is not as good as before. However, the situation of cold has been improved since 2017.

According to Changjiang Securities Analysis, in 2016, China's textile and apparel industry wholesale industry level inventory basically completed, the same period of channel inventory to the end, 2017 began the overall performance of the clothing sector began to improve, mainly due to the digestion of inventory.

This is also consistent with the industry "who can make money in this industry, that is to see whose inventory is cleaner."

In this, the online channel is hard to fail, and the rise of vip.com shows that the stock sale is a good business.

Clothing is a semi standard product with high frequency and rigid demand.

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Clothing category can not be out of stock. Due to seasonal and fashion, unsalable goods mean warehousing costs and outdated risks.

The increase rate of clothing products is generally more than 2 times, and the gross margin is high, so that the platform can have enough spreads to support discount sale and profit.

Vip.com sale mode receives the profit from the point of deduction, which can keep the gross profit margin relatively stable, around 20%~25%, but stability is a good thing, but it is also a restriction.

The sale mode needs constant and steady flow and fast logistics system. With the increasing cost of online passenger, vip.com's profit margins are getting lower and lower.

In 2017, vip.com began to tear up the stock sale tag, breaking the "ceiling selection, genuine sale" of the ceiling pformation mode, and Tmall, another major channel, began to lean towards food health care.

This will also leave opportunities for new players.

Social networking providers such as the global catch and many other social networking businesses and numerous miracles indicate the price depression of social traffic. Just over half of this month, two companies on clothing and inventory distribution on WeChat have continued to raise funds.

In July 2nd, AI inventory completed 580 million yuan B round financing, led by Junlian capital, Zhong Ding ventures and Jian FA group.

In July 17th, the good clothes bank completed hundreds of millions of RMB B round of financing, and Tencent voted, IDG, perilous evergreen, Yuan Yuan and other institutions.

Chong Ying capital serves as the exclusive financial adviser for the current round of financing.

In June, just 100 million yuan A financing was announced by IDG.

From the perspective of App form and platform, there is little difference between the two companies: S2b2C mode, upstream docking with the brand side inventory, the downstream for professional micro purchasing, providing genuine low price stock, and then distributing the commodities by micro dealers, forming a brand name platform - small B (WeChat purchasing) - a new paction system for consumers.

Simply sum up, these two companies are "low profile" vip.com plus.

Limited time stock sale, "low distribution".

The location of good clothes store and love inventory is clear, that is to do what vip.com did before: stock sale.

From the contents of the two App, you can also see the familiar words such as "schedule", "notice" and "cut list". It can be judged that good clothes store and love inventory are similar sale modes to vip.com.

The sale time and venue notice are similar to the sale of vip.com.

First, let's make a brief introduction to the sale mode of vip.com: the brand side first declare the schedule in the only product, predict the sales volume, send the goods to vip.com warehouse, lock up the stock, after the start of the activity, the brand side looks at the sales situation in the background of the product only, check the order every time, once every time, the vip.com warehouse delivers the goods once, the user returns the goods to the brand warehouse directly, after the end of the schedule, vip.com returns the remaining merchandise.

Vip.com sale mode has no cost, but the discount point is very high at around 30%, but vip.com can quickly handle a large number of stock products, and less impact on other online or offline pricing systems (vip.com and Tmall, Jingdong users overlap degree is not high), domestic and foreign second-line brands will be cleared through vip.com stock, and even some small brands will be vip.com as the main sales channel to accelerate the flow of funds.

Good clothing store, love inventory upstream also docking brand inventory, but it is "low distribution", take good clothes library as an example, compared to vip.com, good clothing store sale positioning low line brand and shallow inventory, the volume of the period is small, only 3 days, can end the end of each schedule.

And from the sale brand, the good clothes store is obviously lower than the vip.com one or two grades. In addition, according to the billion state power report, most of the orders on the good clothes library platform are directly shipped by the brand to purchasing agents or consumers.

From the perspective of business docking, for the brand side, there is no difference between the sale of good clothes and the sale of love, which is different from the special sale of vip.com. This means that the brand will encounter the same problem in the good clothes store and the love inventory: the sale is only suitable for inventory and sales, and is not suitable for making brand.

On the one hand, the discount will have an impact on the brand image, and more importantly, there is no stable store and user evaluation remaining in the sale mode. Therefore, the brand positions on the Internet are generally able to face the consumers' Tmall and Taobao, which is why we have heard of the Amoy brand, but have never heard of the only brand.

But on vip.com, there are also a group of brands that rely on continuous sales for their survival. They often survive on Taobao and Tmall. It can be speculated that good clothes and love may also have such a phenomenon. But it is certain that, if there is a big possibility, no brand is willing to make a living by selling, and it is a channel that WeChat can not hide the brand name.

"Consumer upgrading" in micro dealer distribution

There are several kinds of social traffic games on WeChat: bargain, assemble, pull, distribute.

Among them, WeChat's relationship chain is naturally suitable for distribution mode.

Let's look at a case. In May 11, 2018, the 3rd anniversary celebration, Xiao Shang Liang announced that its platform annual GMV exceeded 10 billion yuan in 2017, with 4 million merchants and shopkeepers (that is, paid members) more than 3 million.

Although there is no longer a three tier distribution, even if it is a first-class distribution, the owner has the opportunity to achieve "lying earn".

Like the gathering, good clothes store and love inventory are also the "S2b2C mode", and the distribution is also the main social game.

Good clothing store, love inventory also need invitation code to use, but good clothes library does not receive membership fees, love inventory is to pay 298 yuan membership fee, two months domestic sales full 5000 yuan is returned.

Love is 298 yuan in membership fees, which is the same as collecting fees. The first thing we need to do is to invite codes, and then pay 398 yuan service fee.

The core of both is to filter the "traffic entrance" - the shopkeeper.

Increase entry threshold, on the one hand is to select precise users, on the other hand, it is also the threshold for upgrading the platform. If it can not form a hierarchical differentiation, then distribution can not play a role.

A good clothing store and love inventory are even first-class distribution, and there is no "offline" or "team" mechanism.

The profit is far less than that of cosmetics and health care products, so the good clothing store and love inventory are "low matching", but they are far more than "gathering".

However, without the "offline" Commission mechanism, the good clothing store and the love stock are lacking the driving force of "sharing money", which can only be driven by price, and the price of goods in other channels (Tmall, Taobao, etc.) is low.

As a platform side, good clothes store and love inventory can collect a certain point of discount to the brand side, or directly buy off self promotion profits. For the micro business, the platform provides a channel to take the cheap goods with genuine goods, and should help and motivate them as much as possible so that they can distribute more brand stocks.

In the final analysis, good clothes store,

The emergence of vip.com + cloud collection is the advantage of traffic price, so that the "low" and "no protection" micro businesses are on the table. The so-called "brand is efficient to inventory, buying stands to earn money, consumers are good goods are not expensive", the key is still on "not expensive".