Clothing Business Operators "Impure Purpose", "Lack Of Innovation" Is Hard To Make Profits.

"Apparel e-commerce is the rising star of the Internet industry.

But not yet profitable.

Bruising.

Looking back at the development of related enterprises, it is easy to see that "the impure goal, the lack of innovation in the business mode and the company's light" are the main reasons for the current situation.

Zhang Dazhi, a consultant in management, said in an interview with reporters.

Zhang Dazhi said that if asked what the purpose of clothing business is, the answer is likely to be: "legitimate and legitimate profits, to provide better services for customers."

But the fact is not so simple.

Take PPG as an example, the PPG set up in 2005 is based on the integration of e-commerce and traditional retailing, relying on the call center for sale.

Soon, its low price bundling strategy has become a shining new star for online men's clothing direct selling website, which makes consumers feel that "even if the product is not good, it will not lose where they buy", thus stimulating their initial purchase behavior.

Accompanied by huge media, TV media advertising fees and celebrity endorsements, PPG reached the peak of his career in 2007.

Even at this time, the company did not put customers first, and complaints about "rough workmanship, shrinkage and untimely return" were everywhere.

PPG, which lost the trust of its customers, increased the scale of advertising investment with cheap products.

In January 2010, PPG was sentenced to economic compensation by the Shanghai district court. The bank's 1 million 800 thousand yuan deposit was frozen and the company's surplus materials were moved away.

DELL in the clothing industry fell to the ground.

Part of the clothing electric business is still the old way of website management.

After entering into venture capital, it requires rapid expansion to occupy market space and reach a certain scale, and then packaging will be listed.

The rapid expansion of the electricity supplier naturally can not take account of profits, and operation depends entirely on investment support. Once the capital chain breaks, the consequences will be unthinkable.

Then look at the business model of clothing type e-commerce.

There are two main ways of clothing electric business.

Pattern.

No matter which way it is adopted, the mode of electric business relies on the display of the front end website to attract customers, and the back ends cooperate with corresponding warehousing and logistics.

Because the mode is fundamentally the same, homogenization is very serious. The expansion of business operators to seize market space can only rely on increasing advertising efforts, improving services and reducing product prices.

From 29 yuan shirt to 59 yuan canvas shoes, although the sales volume is very large, but how much profit this action can bring to businessmen has always been a question.

In addition, the image of clothing business to consumers is still low, how many loyal users this impression can retain, and how many users recognize the brand of e-commerce is also unknown.

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Clothing electricity providers are not universally regarded as "light assets" companies. Besides servers, personnel and operating expenses, they also include warehousing, logistics and distribution.

"No shop" is only relative to the customer interface. It is worth noticing that many electric providers have been planning to "lower the network" gradually -- setting up offline experiential shops, in a sense, they become very "heavy".

Light assets are mostly the concept of clothing suppliers.

In addition to selling front desk from the Internet to the Internet, other links have not decreased.

In particular, the purchase and storage of customers after low prices occupy a lot of resources. When the latter third party logistics can not meet the delivery time and after-sales service requirements, the electricity supplier can only be forced to build warehousing and logistics.

Although the Internet can provide more accurate customer supply and demand information for the enterprise, it can greatly improve the turnover speed, but it is impossible to achieve zero inventory of clothing, and the quantity of purchase is slightly larger than the volume of shipments, otherwise it will affect the customer purchase experience because of the broken stock.

Even if the platform providers only provide some resources support to the merchants, from this point of view, there is no "light" company in the clothing business.

At the same time, as the category increases, the electricity supplier is also becoming "heavy".

In his early years, he once said, "we don't do it.

"Later, because of competition requirements, it has developed into a website that provides all kinds of clothing products.

The display of goods on Internet websites is unlimited. More than one commodity or category is more than a few pages on the surface.

Behind the stock storage, logistics and distribution doubled the pressure on the website.

In addition, the level of management can not keep pace with the rapid expansion of business, and it is easy to cause problems for operation.

Taking into account the diversity of customer needs and the characteristics of online and offline stores, some of the garment manufacturers who started out from the website are also preparing to set up their own experience stores. We can imagine that the high rent, labor cost and management mode will create new challenges.