Put Together Many Thousands Of Foreign Trade Brands To Realize "Goods For People"

Since the beginning of this year, affected by the new crown pneumonia epidemic, offline businesses have been greatly impacted, which is a life and death battle for export-oriented enterprises. According to the Ministry of Commerce, the total import and export volume of China in the first half of the year was 14.24 trillion yuan, a decrease of 3.2%. Among them, exports were 7.71 trillion yuan, down 3%.

The transformation of domestic sales has become a long-term strategy for foreign trade enterprises in the future, rather than a temporary emergency. It is not easy for the enterprises mainly engaged in domestic sales. The weakening of consumption demand and the intensification of transformation and competition of foreign trade enterprises make it difficult for enterprises to survive. But there are also exceptions. Only e-commerce is growing against the trend.

At present, new e-commerce formats such as live delivery with goods, reverse customization and store home are booming. According to the statistics of the Ministry of Commerce, the scale of e-commerce transactions in China has increased from 4.55 trillion yuan in 2010 to 34.81 trillion yuan in 2019. In the past nine years, China's e-commerce has grown by an average of 25%. Since 2013, China has become the world's largest online retail country for seven consecutive years.

It not only plays an important role in promoting the production and upgrading of the e-commerce industry, but also plays an important role in promoting the production and upgrading of e-commerce.

On September 27, at the 2020 China intelligent manufacturing industry annual meeting hosted by 21st century economic report, vice president Dirac of pinduoduo said that the epidemic situation has catalyzed new opportunities for e-commerce. It has combined its advantages in platform, data, and flow to guide the industrial belt, truly transform the relationship between supply and demand in the market, accelerate the pace of foreign trade enterprises to turn to domestic sales, drive supply side reform, and support the growth of independent brands.

It is worth mentioning that pinduoduo, with the platform logic of "goods for people", drives the formation of new consumption trends and optimizes the supply chain in women's wear, home textile and other markets. At the same time, pinduoduo also launched a new brand plan to help the manufacturing industry constantly Polish its products from the aspects of flow inclination and live training, trying to establish a brand and testing water and live broadcasting with goods.

"The next step is to better help China's manufacturing industry to establish and strengthen its own brand in the context of domestic circulation, so as to make China a brand power." During the annual meeting, Dirac stressed in an interview with 21st century economic reporter that he would continue to increase investment in emerging brands this year, but there would be no more industrial chain investment plans for the time being.

Dirac. Information map

Online new channels promote domestic sales transformation

"Orders of foreign trade enterprises have basically decreased. Because there was no return to work during the epidemic period, and the production capacity was insufficient. After the resumption of work and production, foreign countries began to be affected by the epidemic, resulting in a large number of orders returned. " Dirac disclosed that the difficulties of foreign trade enterprises in the early stage were difficult personnel and high capital pressure, etc., and later they encountered customer chargeback, and now they have to face the challenge of transforming export into domestic sales.

However, on the other hand, the domestic demand for production and manufacturing is very strong, and there are also many sales channels, among which the products suitable for domestic consumers are still lacking. In the first half of this year, the total export value decreased year on year and the offline real economy was bleak. According to the data of the National Bureau of statistics, from January to August, the online retail sales of physical goods increased by 15.8% year-on-year, accounting for 24.6% of the total retail sales of consumer goods, an increase of 5.2 percentage points over the same period of last year.

"E-commerce is a unique branch. In this case, the dual cycle of data, online is still a major trend, but also the main growth point. Online and digitalization have also changed the whole ecology of the manufacturing industry. " Xie Wen, executive director of the board of directors of Standard Chartered Bank (China) Co., Ltd., vice president of the head office and co managing director of enterprises, financial institutions and commercial banks, said in an interview with 21st century economic reporter.

For foreign trade enterprises, if they want to really open the domestic market, they need to develop products suitable for domestic consumers. More importantly, they should change their business ideas and have the ability to respond quickly to domestic consumer demand.

In any case, Zhu Tao tried to escape from the epidemic in August. In the first half of last year, spring and summer are the off-season for domestic sales of wool products, and the single volume mainly depends on export. In 2019, Zhu Haitao's export volume in the first half of the year will reach 200000. However, under the influence of this year's epidemic situation, he received only a few hundred orders of foreign trade orders, almost falling precipitously.

"There is no market, but the cost is not small at all, such as factory rent, labor, water and electricity. Any one is enough to crush factories with tight capital chains. One of the advantages of e-commerce is that it can resist the off peak season. The first half of the year was originally the off-season of traditional offline sales, but on the e-commerce line, the sales volume was still very good. " Zhu Haitao told reporters of the 21st century economic report that he passed the epidemic period smoothly in the first half of the year through the launch of new e-commerce.

Although it is only one year, Zhu Haitao's shop has become one of the core businesses in pinduoduo's sweater category. In the off-season of the first half of the year, Zhu Haitao's monthly sales still exceeded 700000 yuan, accounting for more than 20% of the total revenue.

"How to deal with the epidemic situation for foreign trade enterprises is a very difficult problem." According to Dirac, pinduoduo is helping foreign trade enterprises to improve the layout of online channels, not only for the value of the channel itself, but also for further feedback of consumer big data and consumption insight to the manufacturing industry, so as to guide enterprises to produce products that meet the needs of users.

The logic of the domestic market is completely different from that of the export market. Generally speaking, foreign trade enterprises are engaged in the purchase of raw materials, processing, product proofing, mass production, and finally to the export port according to the order, while the market strategy and channel directly facing consumers will not be involved. This is also the most difficult part of the transformation of foreign trade enterprises.

Before doing e-commerce, Zhu Haitao's customers were mainly b-end market and export business. In the view of the industry, although the market is stable, the overall gross profit is not high, especially the homogenization competition is becoming more and more fierce, and the business is becoming more and more difficult. By 2018, the gross profit of b-end market has been lower than 15%, which is close to the bottom line of the industry.

Production is the strong point of Zhu Haitao and his wool weaving industry belt in Dalang town. But as for sales, just like most industrial belts and Chinese factories, due to the long-term isolation effect from the market and not directly facing consumers, sales are usually carried out in the form of traditional wholesale markets or overseas exports.

"In traditional sales, the main cost in sales price is not manufacturing cost, but channel cost. The channel cost accounts for more than 50% of the total price. We can better achieve this through e-commerce, and get through the middle link. " Dirac pointed to the industry pain point.

Big data promotes supply side reform

Several responsible persons of foreign trade enterprises told the 21st century economic report that after the epidemic, enterprises have further realized that they should let the market and customers perceive the differences and uniqueness of products, so as to avoid homogeneous price competition, and then enhance the ability to resist risks. The epidemic has made them pay more attention to the domestic market, especially the layout of online channels and the establishment of their own brands.

Pinduoduo's core role is "data empowerment". It uses big data to position and analyze consumers, and helps foreign trade enterprises develop and customize some products suitable for Chinese consumers, and finally establish their own brand.

"All the data on the platform have, and we know what users like. We combine it to form a valuable database. Big data is not only big data, but also big data with strong data clarity and processing ability. All the things are analyzed, processed and classified, and then structured to become the definition of the product. " Tang Jingsheng expressed his understanding of Jingdong data.

This is also the most urgent demand in the transformation of traditional enterprises. Taking a Zhejiang enterprise as an example, according to the demand of pinduoduo platform sales, the product of pinduoduo quickly achieved 100000 + sales on the platform. The occurrence of all these changes is in line with the change of supply and demand relationship under the Internet mode. The support of e-commerce back-end based on big data can better portray users.

"Because e-commerce has first-hand consumer information, they are particularly sensitive to the needs of consumers and take the initiative to connect with the manufacturing industry, thus producing more diversified and personalized product designs." Xie Wen pointed out that from the perspective of opportunity, the first is the common development of ecology and the best matching of ecological resources. At the same time, it also promotes the online and data-based manufacturing ecology.

At the same time, the transformation of foreign trade factories to domestic sales has undoubtedly intensified the domestic market competition. In pinduoduo, Li Ran felt the most obvious feeling. After many foreign trade enterprises tried to sell online e-commerce, the pressure he faced increased sharply. On the one hand, he took the initiative to reduce prices, in order to make small profits and sell more. At the same time, he cleaned up the inventory by means of live broadcast with goods. On the other hand, Li Ran refines the style and color on the popular trend given by pinduoduo, which increases the probability of pop up in stores.

"The future development will focus on diversification. The store is not mainly focusing on one pop item. It needs to be constantly updated. New style also needs to face more subdivided crowd, have chic style, can win bigger market Li Ran reflected.

It is the secret of Li Ran's annual sales from 100000 yuan to 25 million yuan in only three years in the competitive clothing market. Based on pinduoduo to provide large flow, style of the big burst and single quantity of stability. "In the past, when I went to other people's places to look for money, the style was fixed. Now it's based on the popular trend of pinduoduo to create your own big hit model. It only takes half a month to test the model to become a popular one, and it takes a lot of walking." He summed up the rules of success after taking stock.

Coincidentally, more than 100 enterprises have joined pinduoduo's new brand plan, and more than 900 enterprises have cooperated with the plan in many aspects. By the end of 2019, more than 2200 products have been launched on pinduoduo, involving more than 20 industries such as home appliances and home textiles, with sales of 115 million yuan. And the prediction has been able to achieve a certain style of women's wear, 2 months in advance to the data to the manufacturer.

"In the previous e-commerce model, when the products were not rich enough, consumers used the active search method to search for goods, which was inefficient." Dirac further explained that the new brand plan launched by pinduoduo is the transformation of the new supply-demand relationship. It is necessary to find people through big data. Based on the underlying technology of distributed AI, the platform can predict the commodities and reflect them to the industrial belt. In turn, the supply chain should be reformed accordingly to further reduce production costs and form a benign atmosphere.

Tang Hengsheng also believes that the impact of e-commerce on manufacturing industry and the changes brought about by e-commerce are the order of magnitude of market scale, which changes the market scale of manufacturing industry or traditional manufacturing industry from regional market to national market. The second order of magnitude is to improve the iteration cycle of the product. E-commerce is not based on years, but on days.

Optimize supply chain and support brand independence

In fact, as early as 2018, pinduoduo began to launch a new brand plan to help enterprises better establish their own brands. "From the beginning, the goal is clear. China has a lot of manufacturing capacity, but it is not a brand power. Many enterprises have strong product manufacturing capabilities, but they have become the low-end value of the whole industrial chain in the global industrial chain. We hope to change this situation and provide better products for consumers at the same time. " Dirac believes that this is the only way to brand Chinese products.

Every manufacturing factory has a heart to be a brand, and Zhu Haitao is no exception. B-end business relies heavily on orders. What and how much is produced is done according to the order, lacking independence and autonomy. Moreover, there is a long distance from the real consumer market, and the anti risk ability is not high. Make a brand and buy and sell directly with C-end consumers. It's hard to explain his dream before.

One year after the transformation of the new e-commerce, Zhu Haitao's baomengni shop has 162000 fans, and the shop repurchase rate has reached 23%. A factory brand focusing on woolen clothes has been born. In just one year, it has transformed from a manufacturing factory worried about profits to a young women's clothing brand that directly interacts with consumers. In such a transformation, Zhu Haitao still felt that he could not believe it. "Choosing the right platform is as fast as riding a rocket."

"New brand plan" mode is the exploration of collective transformation and upgrading of China's small and medium-sized manufacturing enterprises, and also the only way for pinduoduo platform to practice the new e-commerce mode. Compared with the off-line market and the multi-level distribution and consignment system of traditional retail e-commerce, the price is increased layer by layer. At present, pinduoduo has realized the extremely simplified supply chain of production logistics consumer or production merchant logistics consumer in many commodity categories.

In the 50 days before and after the Spring Festival, through differentiated product positioning and 24-hour live delivery, chuang'er, a new cashmere clothing brand, has achieved a breakthrough from 0 to 2.7 million fans.

At present, most of the live broadcasting is a typical "people looking for goods". Star anchors become the entrance of traffic, selling different brands of different products. However, such a model is easy to form Matthew effect. The greater the flow of star anchors, the less opportunities will be left for new brands and small anchors.

The difference is that pinduoduo is more like "goods for people". Live broadcasting is based on the store, and live broadcast is a display and service form of the store, not just a flow entrance. Li Jiwang, founder of chuang'er brand, said, "with the right platform, pinduoduo is still in the rising stage, and the competition is relatively less fierce. At the same time, consumers' acceptance of new brands is higher, which gives new brands an opportunity to compete with big brands."

With the rapid development of pinduoduo, the rise of women's clothing category has just begun, and there are many opportunities in the future trillion market. "There are still many opportunities for women's wear." Zheng Chunxin, a women's clothing merchant who settled in the platform in 2018, said that in his opinion, the more important thing for success is to understand the trend and have the courage to grasp the trend.

By the end of June this year, the number of active buyers of pinduoduo platform has reached 683 million, double the 344 million when he first settled in 2018. The case of Zheng Chunxin is just a small epitome of women's clothing businesses on pinduoduo platform. The wave of e-commerce has brought women's wear to a broader market.

Nowadays, an endless stream of local and surrounding enterprises have come to learn from Zhu Haitao and other businesses. In many places, a new wave of "gold rush" e-commerce is quietly rising. Many businesses have realized the transformation from traditional sales to online sales through pinduoduo, opening up a new market for women's wear industry, and more businesses like Zhu Haitao are rising.

Dirac disclosed that by may 2020, the number of brands on pinduoduo platform had increased to more than 6000, with a growth rate of 30%.

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