A test of the way of shoes electric business: Where is the cost depression

The intermediary transaction SEO diagnoses Taobao guest stationmaster buys the Cloud host technology Hall

Wen/World Network business Yang Qin

With expensive rents, increasing human costs and cumbersome promotional expenses, retailers are overwhelmed. E-commerce using the "electronic" technology, all of a sudden out of the line of the heavy store rental costs, but also seems to be able to some extent to improve the efficiency of labor, reduce human costs. The whole e-commerce seems to be a cost of depression, many heroes to bow.

When all of us plunge into the market, we find that reality is not as good as imagined. Although the electric dealer has omitted the entity store expense, but also has brought the new cost such as the logistics expense, the drainage cost. The excessive competition among peers is a rapid push some fees such as advertising costs to a completely irrational height, but also gave birth to the electrical business talent bubble.

Standing on the independent electric dealer this hill, we can still faintly see Taobao waving the cost of low-lying this big banner. It is undeniable that Taobao since its inception to the present, has been "comprehensive flow cost" the lowest place. But when Taobao, the electronic business ecosystem, has evolved to this day, is this still as good as yesterday?

We have seen China's first vertical electric dealers-shoe dealers face the test. Shoe Electric Trader's dilemma also represents the vertical electric trader's predicament, once electric quotient this piece of "the cost depressions" not only was quickly filled up, but was the base to become a Highland.

What do we do? Is it like Amoy transformation to do its own brand, or still adhere to the platform of the train of thought? Is it to the operation of fine to profit, or to investors to support for more space? Enter or not into Taobao? One problem hit our shoe dealers.

It's time for a good account.

Where is the cost of a shoe-electric dealer?

Please do not be too attached to the cost of the depression, he only gives you a window of time, let you build your own moat.

Wen/World Network business Yang Qin

This account of the vertical electric dealer is really not good.

First, it varies from person to person.

Relying on endogenous growth, steady, or borrowed capital, holding up Gao Ta represents two very different business models. There is no right or wrong, or even good or bad, in these two business-critical ways. It is not simple to assert good or bad from the result. Different people, different resources, at different times, adopt different strategies. It's good to be right.

But the two business models have a very different financial performance in the short term.

And even in the same business model, the results of different teams can vary enormously.

Second, it is sometimes different.

Internet advertising costs rose six times times, 10 times times, 12 times times within a year, each version has. The specific increase is not important, we just need to make sure that the advertising price drastic rise is enough.

And in the most fanatical period of electricity, even if the advertising price is fierce, we still scramble to squeeze, and from the line to the line. Once upon a time, the subway cracks were full of electric commercial advertising. Now, all reverts to flat silence. Although many people complain that the price of Internet advertising has not been effectively reduced, the decision to spend money is ultimately in the hands of the electric trader.

Again, it is a "Shing".

Footwear dealers have not yet been born in listed companies, the financial and business enterprises are not fully regulated. And even the norm, the statistical caliber of the indicators are not the same.

However, this also brings benefits. Each company can publish its own data, see people dazzling.

All these are very testing the audience's ability to identify.

Vertical shoe electric dealer cheat who?

Amoy Bi Sheng has proposed two versions of the vertical electrical quotient cost structure, and got a conclusion: the vertical electric quotient is a hoax.

Good lok buy Li Shubin, the data were contested. He believes that the vertical electric quotient is not a hoax.

Their respective data are not entirely accurate, but they are sufficient for reference.

　　

Their respective data are not entirely accurate, but they are sufficient for reference.

We put the cost of the electricity business into three categories: order delivery costs, operating costs, marketing costs.

The most important thing in order delivery cost is warehousing and logistics cost. Li Shubin said that in the industry "normal average level" as an example, the electric dealer's comprehensive order delivery cost should be controlled in the range of 10%-15%, more than 15% is too high.

We can get a reference from several listed companies: Amazon's warehousing costs and distribution costs are 9.52% and 8.3% respectively, Dangdang's two costs are 5.8% and 7.45% respectively, the goods will be 8.87% and 6.31%.

Overall, warehousing logistics costs are the most heavy cost of electricity. Similar to offline retailing, the optimization of these two costs is a fine one.

Another major cost of electricity is marketing costs, which is also the most flexible part of the cost. Decomposition of the electrical business in different periods of marketing costs, the basic can see the evolution of the strategy behind the enterprise.

Bi Sheng in Central Europe, the cost of the Lok Tao Marketing is 30%. At the most radical time, Amoy's marketing costs could account for 50% of the current income, he said. After entering the second half of 2011, Amoy claimed to cut 80% of the advertising costs. In the second version given by Bi Sheng, the drainage cost of Amoy dropped to 10%, and the two data were basically consistent.

Li Shubin that the industry's "normal average" marketing costs of 6%. He said the most crazy time, marketing costs have also exceeded 10%.

As far as promotion is concerned, the biggest problem that the vertical electric trader faces is "marketing efficiency" is low. The more vertical, the more detailed consumer groups, the traditional broadcast marketing can effectively hit the lower the probability. We see a lot of vertical electric dealers after a certain stage has turned to the department store, platform. Internally, department stores can provide more liquidity channels for their own flow. External, the more rich category, large and wide-type marketing efficiency is also higher.

Li Shubin that the normal operation of the electricity business costs should be around 25%. We can also compare the data of several listed electric companies. Amazon, Dangdang and the only products operating costs are 28.95%, 21.69%, 25.87%, the median value of about 25%.

However, we should also note that the marketing costs of these listed companies are very tightly controlled, and only 4.87% per cent (the second quarter of this year) is the highest.

is the vertical electric dealer a hoax?

For the proprietary electric business, warehousing, logistics, back-office technology and other business departments are similar, the cost can also be a reference, but the marketing costs can vary by 108,000.

Only goods will use less than 7% of the market costs, driving revenue growth 6 times times, the old customer turnover rate less than 10%. Lok Amoy Network marketing costs have been as high as 50%. And cut off the market budget, the situation has plummeted. What is the root of the problem?

Taobao: The scenery here alone good?

Why do the electric dealers make money on Taobao?

The cat carefree son to this answer is, Taobao has been the electric business field "comprehensive flow cost" the lowest place.

Taobao has hundreds of millions of of consumers, basically all the Chinese online shopping users are also Taobao users. These users ' spending power accumulates on the platform of Taobao, forming a huge force.

More users, gather more demand, support more sellers. More businesses, to provide richer goods, to attract more users. This set of logic over a long period of time to promote the development of Taobao, but also molded Taobao merchants one after another legend.

However, the development of Taobao today, the giant ecosystem within the species is very rich, the participants more. What is the survival status of millions of sellers above Taobao?

This has to start from the competitive pattern of Taobao.

Taobao's footwear products are classified into three categories: Women's shoes, sports shoes, men's shoes. After synthesizing the number of searches, the number of attention, experts, quantity and volume of goods, and other factors, the market capacity of women's shoes industry accounted for about 3.54% of the net Taobao, men's shoes industry accounted for 0.85%, sports shoes industry accounted for 2.25%. Three industries combined with the market capacity of the men's industry, and women are ranked top three of the big market.

This market is very big, but the competition in the market is also very intense. At present, Taobao on the number of women's shoes sellers are close to 500,000. The number of sneakers and men's shoes sellers is relatively small, but it is also at 200,000. Visible market competitors.

The number of shops is growing fast. In the past two years alone, the number of Taobao shoe shops has doubled.

In the footwear hundreds of thousands of sellers, the daily Active shop number (user has produced browsing, the collection, orders and so on Behavior's shop) only then the total shop quantity half. The number of shops that generate deals is smaller, accounting for about one-tenth of the total.

Taobao is almost nineth years away. Any market, after nine years of the fittest, there will be businesses continue to be eliminated, but will also grow a number of Big Mac. New entrants are involved in the market, and these big sellers become the mountains that don't go around. The evolution of sellers ' scale in the time dimension can reflect the change of the market competition pattern.

Diamond-level sellers have been the mainstay of Taobao. Once, they occupied more than half of Taobao, or even 60% of sales. Even now, their sales share is still over 40%. But their market share is falling every year.

The most rapid growth is the mall channel. Taobao Mall in the past few years from scratch, from small to large. In the foreseeable future, the proportion of Taobao Mall will be further improved.

Subdivision, men's shoes, women's shoes, sneakers appear in the law is also different.

Women's shoes are Taobao footwear industry's largest segment of the category, the market capacity of more than sports shoes and men's and shoes. This market has created a lot of big sellers. Taobao women's shoes industry, crown Sellers contributed nearly 30% of the sales, this ratio is far higher than sneakers and men's shoes.

Another major feature of women's shoes is that the mall sales accounted for a low, only accounted for the total sales of women's one-sixth less than. In contrast, this proportion is also significantly lower than the sports shoes and men's shoes mall ratio.

Sports shoes are the most distinctive feature. The crown and Golden Crown sellers of sneakers are very small, with only 10% less. The business of the mall accounted for the moderate, about 20%. The remaining sales are all Stars and diamond-level sellers contribute, among them, star sellers accounted for in this year to improve to nearly one-fourth.

Men's shoes are the three segments of the category, the mall transactions accounted for the highest category, close to 30%.

The laws of men's shoes, women's shoes and sports shoes are related to their own characteristics and are similar to the competition pattern under the line.

Women's market capacity is large, line maid shoe market brand concentration is low (hundred Li Group's market share is high, but hundred Li's single brand market share is not high). At the same time, relatively, women in the consumption of more heavy style, light brand, created the situation of Taobao shoes blossom.

For sports shoes, although the brand concentration under the line is relatively high, but the highest market share of Nike, Adidas has not yet in the electric business to step. Domestic one or two-line brands have a more positive attitude towards E-commerce, but they are limited by their brand influence. Therefore, the growth of sports shoes sellers have a clear "ceiling."

In addition, there are a large number of unknown sports brands in China. A goods, fakes, not well-known brands of several common role, achievement of the sports shoes industry small and medium-sized sellers of the strange prosperity.

Men's shoes mall accounted for the highest, perhaps because in men's shoes consumption, consumers more pursuit of quality, pay more attention to the brand caused.

There is another set of logic for refining to a specific brand.

The greater the brand, the stronger the appeal, the greater the difficulty of channel management. Formal product informal channels such as parallel imports, dealers fleeing goods, informal such as a goods, fakes and other commodities flooded the market.

The most obvious brands are the international brands in sports shoes category, Daphne in women's shoes category and Belle brand. Sales of these branded products up to the data million, Nike, Adidas sales outlets have even more than 100,000.

So many sellers at the same time to compete for the brand's popularity, products, users and other resources, resulting in excessive competition in the market. At the same time, considering the store in the brand licensing has been wandering in the gray area, can not be completely "wash white", the development of the seller has a natural bottleneck.

The result is that, although these brands of high visibility, the annual turnover on Taobao is also very large (Nike annual turnover of more than 1 billion), but the market lacks significant large sellers. Large sellers and shopping malls contribute to a very low share of sales. The main sales volume is by the star and low diamond shop completed.

For brands that have less clout, things will be different.

First of all their channel control is easier. Because if a businessman wants to fake, usually also will give priority to choose the brand more big international line brand.

Second, such brands embrace emerging channels more aggressively. Unlike the larger brands, they have often included e-commerce on the strategic planning agenda. If we want to actively develop the electric business, then they have more stringent control over the network channel.

The domestic one or two-line brand in the sports shoe industry can be grouped into this category. The biggest characteristic of this kind of brand is "outside the system" circulation commodity proportion is lower. They are on the day cat (Taobao Mall) to achieve the sales accounted for a large, usually can reach one-third or more.

Regardless of the market distribution or mall monopoly, they are very strict control of goods. In the crackdown on traditional dealers fleeing goods and Taobao clean up, they have been walking in the forefront of the times.

As for the lower-profile brands, they are hardly bothered by the channel's standards. For them, because brands have very limited influence on consumers, their attractiveness to businesses is limited. Therefore, they usually can achieve the effective grasp of the channel. As for the main mall or market, is mainly dependent on the flagship store or vigorously develop distribution, the main decision-making power in the brand's own hands.

Although not well-known, but the number of such brands. For example, sports shoes, in Quanzhou, in addition to everyone familiar with the domestic one or two line brand, there are more than 4,000 sports shoes brand, which most of the brand is not well-known. These businessmen with their sensitive business sense of smell, e-commerce is also full of longing. Dong Xinda, vice president of the shoe net, told us that these categories contributed more than 80% of the sales of the shoe net, which is Mickle.

What is the effect of this set of logic on the shoe dealers?

In short, sales of well-known brands of shoes do not make money.

Of course, we must first ensure that the products sold are authentic. If you can not obtain authorization from the formal channels, it can only be through the line of dealers fleeing goods. Even the shoes electric dealer ranked the first good music buys, also can only through the Nike province generation disperses the order.

In the solution of upstream products, these electric dealers also have to whirl arms, and the market with tens of thousands of sellers face positive fight. These grassroots sellers bases, everything proficient. Caught in the "People's War" of the sea, no one can be a rest.

Amoy Shoes Network Chairman Wang Dongzhu, Pat Shoes Network Vice President Dong Xinda, Lok Amoy Network Vice President Chen all expressed the same view to us.

Although not make money, but we can not give up this part of the business. Give up these brands, who also dare to claim their own shoes for vertical electric business? Consumers can not find these well-known brands on the site, how to ensure the user experience?

Back to our original proposition: Taobao or the cost of the shoe electric business depression?

In fact, there is no need to calculate the accounts of Amoy electric dealers. If you are just a channel business, then from the moment you step into Taobao, you have to withstand 360 degrees of all-round competition.

However, unlike the independent electric business environment is not the same, Taobao to "small peasant economy" started, Taobao above the business has always been to make money for the purpose. So the competition may be fierce, but the bottom line is that at least some people can make money.

Capital in recent years also began to go to Amoy electric dealers, but they did not set off Taobao above a reign of bloodshed, why?

The aim of competition is to eliminate competition. On the battlefield of the foreign independent company, the main competitors are the few companies that can see the numbers. Therefore, independent, regardless of the use of "kill 10,000, since the loss of 8,000" brutal tactics gambling, hope that they can become the ultimate survival of the person.

But the battlefield shifted to Taobao, the play changed. Taobao "Enemy" there are tens of thousands of, and they are good at using the "millet" guerrilla warfare law, you kill to come?

Therefore, the people who have done Taobao know that "this market is very big, we all have the opportunity."

Amoy is not too bad living environment, but the same, they are very difficult to live too well.

The market is not allowed, competitors do not allow, Taobao is not allowed.

Taobao has been emphasizing the concept of "electric quotient ecosystem". Earlier this year, Taobao further proposed two 1 million strategy, that is, in three years, so that Taobao sales last year more than 1 million sellers to reach 1 million. At present, the number of this group is only more than 100,000.

Ecosystems have to be metabolized. In this market, must have the business to be eliminated, but also must have the new merchant to enter, but the platform has to provide the possible development path for the new merchant's growth. So, Taobao is looking for a balance between different groups on this platform, the huge middle group is the basis of achieving balance.

The shrinkage of diamond-grade sellers in the footwear industry is a very bad sign. The ideal state of harmony is to make the vast majority of sellers have money to earn.

So, if you live on the battlefield of the independent electric dealer too difficult, may as well try Taobao. At least he can keep you alive, as long as you're not too bad.

Where is the moat of the vertical electric dealer?

From traditional retail to E-commerce, from independent electric to Taobao, we have been chasing the cost of the business depression.

Taobao above the market costs are also gradually rising. Therefore, Taobao to maintain its own cost of the status of the low-lying, is also actively seeking transformation. Personalized search, more scientific flow distribution mechanism, Taobao is trying to solve the solution.

Taobao may also be able to maintain a 35-year cost of depression, but can the cost of the depression continue to exist?

As long as it is a free market economy, the cost of depressions is not allowed to exist for a long time. Once the cost depressions are in place, the market participants who flock in will quickly fill the depressions.

Today, we are surprised to find that the footwear of vertical electric dealers in the "transformation." Le Amoy transformation to do its own brand, a good buy to apparel expansion, the name of the shoe library positioning as a "supply platform" and the use of their own traditional supply chain advantage to develop their own brand, Amoy Shoe network and brand to carry out in-depth customization, Pat Shoe Network is focused on the long tail market.

Summed up is that everyone began to "do nothing", shoes, electric dealers no one to focus on shoe sales.

Not only do we ask, where is the moat of the vertical electric dealer itself?

The core of retail resources is, of course, consumers. Online, retailers can occupy consumers in space. But online, this logic no longer holds. In addition to using advertising to attract users, what can we do to retain users for a long time? How can a vertical electric trader Parry an integrated electric dealer?

There are no satisfactory answers to these questions. However, who can answer this question, he also found the key to open the door of the vertical electric business.

Please do not be too attached to the cost of the depression, he only gives you a window of time, let you build your own moat.

Traditional retailing: Profit for fine operation

The end of the happy enclosure, the traditional shoe retailers to fine operation, however, we can see that the advantages of electric dealers in this far more than traditional retailers.

Wen/World Network business Yang Qin

When did China's traditional footwear companies turn to a refinement operation?

For Belle, this point is 2008 years. In this year's performance report, Belle explicitly proposed to "benefit-oriented growth" as the direction of change. Before that, Belle had been running on the road of extension expansion.

To occupy "Space" is the first priority of traditional retailing. Convenience stores can not even cover a large community, but large shopping malls may radiate a small city. But the two have one thing in common: their space coverage is limited, but the scope is small.

So, do the traditional retail, first of the horse race enclosure.

Another major feature of traditional retailing is the cost of "rigidity". Rents and labor costs are at the same time as the stores, and there is a long-term upward trend in both costs. In a period of macroeconomic good, income and consumption qi, such endogenous growth of terminal stores can partially or wholly offset the increase in costs. But in the bad times, sales will quickly decline, but the cost in the short term is difficult to compress, showing a rigid. This will put heavy pressure on the performance of retail companies.

At the end of 2008, Belle undoubtedly encountered problems in both areas.

As mentioned earlier, the retail trade needs to be in happy enclosure, but there is no limit to open shop. From the financial accounting, there is a cost boundary.

By the end of 2008, the number of hundred-Li stores has expanded rapidly from 3,863 in two years ago to 9,384, with an annual net increase of 2,760 stores (including the impact of mergers). Although at that time hundred Li new pioneering brand such as the acquisition of the Sen, Best picture also has a larger extension of space, but the original core brand in the one or two-line market penetration has become saturated.

This means that the development of Belle-Rodeo is basically over.

The house is leaking overnight. Another factor that has hit Belle is the financial crisis. In the fourth quarter of this year, Belle has been able to clearly feel the weakness of the retail market. Performance pressure highlighted.

We can see that there is an industry with the then hundred Li face the same dilemma, that is the home appliance industry. After years of galloping, Gome and Suning's occupation of China's two or three-line market has been preliminarily completed. And the temperature of the home appliance market has plunged this year. Therefore, internal, Su Mei are in the practice of hard skills, the pursuit of fine operation. External, but also to do the fight beast. But two are beasts of prey.

How heavy is the cost of traditional footwear retail channels?

Department stores are the main distribution channels of footwear products, currently accounted for more than half, and there is a trend of further upward. Stores and other independent stores have also contributed about One-third of sales. The rest is circulated through grocery stores, cheap shops and other channels.

Take the department store counter channel, although not directly generate rental costs, but the shopping mall's water deduction is equivalent to the real sense of rent. So, the market Commission can be incorporated into the rent.

In Belle, Bao Sheng, Daphne, Saturday, the four listed shoes enterprises, in addition to Daphne, other enterprises are mainly department stores channels. When the market, hundred Li in the department store in the number of counters accounted for 84.1% of the total number of stores, to achieve the company's overall revenue of 73.4%. In contrast, Daphne appears to be more maverick, the company sales mainly from independent shops.

Note: The data involved in the Department of more estimates, if you have any questions about the data, please micro-blog @ World Network business.

The business composition of these four companies is also different. Belle, Daphne, the main business of the Saturday are the own brand of women's shoes (Belle-owned male shoe brand Sen Tatsu). At the same time, Belle is Nike, Adidas in China's largest agent retailer. Daphne was also a Nike, Adidas agent, but after the 2008 Olympic Games gradually withdrew. Bao-Sheng's main business is Nike, Adidas retail, at the same time run some of the sports brand agents and OEM business.

In order to make the data comparable, the department only analyzes the retail business of individual enterprises.

Can be seen, for the traditional footwear retailers, whether it is a private brand or agent brand, whether independent shops or shopping malls counters, the rental rate is basically maintained at more than 20%.

Note: Bao Sheng, belle, Saturday only calculated the company's retail department of Human costs, and Daphne is the company's overall human costs, so they are not completely comparable

The cost of manpower is another major cost of traditional retailing.

Labor cost = per capita cost/person effect. Similar to the footwear retail industry, the per capita cost of each business is very close. However, there are many differences in the efficiency of people in different enterprises. The most obvious contrast is Saturday. In recent years, the company carried out a relatively large pace of expansion, but the operating efficiency has not been effectively controlled, low efficiency, high cost. At the same time, Saturday also faced serious inventory pressure, not to repeat.

We take the labor cost control better hundred Li and treasure wins for example. The labor costs of the two companies accounted for about 8% of sales.

Therefore, in the traditional retail industry, only rent and labor costs, accounting for about 28% of the income. The rent corresponds to the level effect, the artificial corresponds to the person effect. Both of these efficiency improvements need to be practiced in a long time, not overnight.

It should also be concerned that rents and labor costs will continue to rise. Therefore, the cost of the retail business will deteriorate gradually if the efficiency and the effectiveness of the people cannot be increased accordingly. Just like rowing against the tide.

Excluding directly related to the terminal rental and labor costs, the traditional retail industry will also produce management fees and other miscellaneous fees, so the overall channel cost is higher than this.

Note: Belle only calculates its sports apparel business as a purely retail channel. Saturday and Daphne's channel costs include the costs associated with branding operations.

Traditional retail channels cost around 30% (Saturday and Daphne are not entirely comparable because of the brand operation).

Looking at the electricity quotient, only rent one item can save 20 point cost. Moreover, the electricity merchant can one station cover the whole country. This "intensive" mode of operation, in theory, can also improve the effectiveness of people.

Further, the electric dealer has "the digitization" the gene, causes it to have the unique superiority in the fine operation aspect. E-commerce also describes a beautiful blueprint for upgrading the traditional supply chain.

Often think and thus, can not help yearn.

The business of Taiwanese shoe dealers

After watching the traditional retail and vertical electric dealers, let's take a look at a special group-Minnan shoe industry, how to pursue the shoe business in the tide of electricity merchants.

Wen/World Network business Yang Qin

I know three years ago, rich and Wanwannian.

The grasp of the future, we can seize the opportunity to make less mistakes. In an interview with the world's network manager, Wang Dongzhu and Xu Songmao all said that the current market environment for electric dealers had been predicted a few years ago. So, they have already prepared for this day.

Fujian, a land of countless business legends, has always been a businessman with a keen sense of business acumen. When e-commerce was born, they were closely watched.

But Minnan Electric is a very low-key group, they have been unable to appear in the spotlight, some companies even deliberately out of the public view. This time, we have the opportunity to approach these companies and explore the stories behind them.

A ten-year business model for planning

The founder of Xu Songmao is a traditional enterprise. He started to make shoes since 1990 and has been involved in foreign trade for the last 1994. At present, foreign trade companies exported to Europe and the United States every year up to 20 million pairs of shoes, is China's largest footwear export enterprises.

Retailing has always been a dream of Xu Songmao. Do foreign trade, the company's foreign trade orders are buyer by the order. In his view, "buyer is a great man" because these orders make many people make money and create value. The dream of doing retail is rooted in the bud.

According to the "Smile curve theory", manufacturing is the lowest value-added link in the industry chain, the value-added of retail links is often higher. After a certain stage, the manufacturing industry has the power to transfer to the high value-added link.

One of the accidental factors that led to Xu Songmao's founding of the shoe store was the 2008 financial crisis. On the one hand, the financial crisis to the company's foreign trade business encountered a bottleneck. On the other hand, the whole domestic sports apparel industry inventory backlog serious.

Upstream brand manufacturers have to sell inventory demand, downstream consumers are also eager to cheap and affordable, so, positioning for the "online outlets" of the name of the shoe library came into being, to a substantial discount sales of goods over the quarter.

However, starting from the beginning of this year, the name Shoe Library also began to sell the new season. Xu Songmao revealed that the current name of the new shoe store and the sale of goods in the past quarter accounted for half. New product sales are growing fast.

What is the model of the famous shoe library after abandoning the Austrian model?

"The name Shoe Library is a platform. This is Xu Songmao's answer to that. But this platform is different from Taobao and Beijing east. Taobao, Jingdong is the platform for people, through the sharing of passenger flow with merchants, platform for the merchants to take orders. and the name Shoe storehouse is a product platform. Flow platform docking name Shoe Library after the equivalent of a one-time introduction of dozens of footwear brands, and brand through docking name shoe storehouse, can quickly realize on all Internet platform to sell goods. The name of the shoe store is to build a bridge between the brand and the platform.

Support Name Shoe Library This business model, in addition to "it" things, there are customer service, logistics, warehousing and other systems. Xu Songmao said that at present in the industry famous shoe store This scale, and can withstand the pressure of the platform very few. These backstage system construction, not overnight.

Two years ago, the shoe store will announce its own sales, in the footwear industry rankings can also top three. But in the past two years, the shoe storehouse no longer publishes the related data, Xu Songmao also does not want to disclose too many. However, Xu Songmao said, the current name of the shoe library on every platform, whether day-to-day operations or large promotions, can do top 1. "Our concern is to win every war and do top 1 on every platform."

For the location of the official website, Xu Songmao has its own unique insights.

If the official website positioning as a platform, then the name of the shoe store and Taobao, Beijing east as the enemy, the name of the shoe library has no chance. If the official website is positioned as a vertical business-to-consumer, the name Shoe library is not dominant in the competition with the integrated type of Business-to-consumer. Xu Songmao even believes that in the long run, vertical sales will shift to the integrated platform.

Therefore, in the planning of the famous shoe storehouse, the official website is almost in a insignificant position.

Xu Songmao says companies are at least able to move into the next decade when they start to make business models. Xu Songmao, who has studied business models very early on, thinks the business model of a shoe store can survive.

For the quarterly inventory, the primary purpose of the brand is to clean up the goods. Therefore, the brand of these products control more weak, the retailer discretionary space is greater. The competitiveness of this part of the product basically represents the overall competitiveness of the retailer.

And for the new season, brand-name business for the protection of brand value, often set a strict price control system. In this part of the product, channel vendors often find it difficult to show a significant competitive advantage.

Similar products, the same channel, the name of the shoe library How to establish their own competitive advantage?

Xu Songmao Analysis said that at present, the promotion channel of various enterprises, even the promotion costs are similar. But to spend the same money, different companies get the precipitation is not the same. This subtle difference, accumulated over a certain amount of time, will be caused by quantitative changes. He argues that the reason why companies lag behind is often the loss of competitiveness within the internal team. So he will be in the company special emphasis on the promotion of team competitiveness.

The shoes that are sold above the famous shoe store are mainly sneakers. "Men's and women's shoes must be done, but they are not energetic enough now." Xu Songmao says that the place where he spends his energy every day is to hit the ground.

Last July, the name of the shoe vault online brand Lantivy. Often talk about this brand, Xu Songmao will be enraptured. But the private brand and the name shoe storehouse retail business relations are not big, this actually is Xu Songmao has been another dream.

Amoy Shoes Net: The influence of "line King"

Amoy Shoe Network Chairman Wang Dongzhu has a nickname called "Sewing Line King". Before the establishment of the shoe net, Wang Dongzhu was the general manager of the Dunhuang line industry. This work experience not only let him harvest the title of the line king, more Amoy Shoe network development pave the ground.

What kind of convenience does the line King bring to Amoy shoe net?

Wang Dongzhu to us for example, when he bought a house when he stumbled with Anta Group chairman Dingzhizhong bought the same community. When Amoy shoes if want to take hundreds of pairs of shoes, Dingzhizhong will definitely give him directly. Wang Dongzhu said, "If Amoy shoes do well, when the time is ripe to talk with Anta, no matter which aspect, such as the account period, if I want three months, certainly no problem." ”

The Dunhuang line industry is the supplier of Anta. Anta Annual purchase of polyester line more than tens of millions of outstanding debt also has a good millions of. Wang Dongzhu Even laughed that everyone can barter, money is not a problem.

In Fujian province, such as Anta, such as shoes and clothing enterprises, more than 90% have business dealings with the Dunhuang line industry. Wang Dongzhu and most of them have more than 20 years of cooperative experience, and some bosses are also friends with whom he has a good personal relationship, even the corner relatives. In a region where the culture of the community is so much in Minnan, the trust that has been built up over the ages is priceless.

November 2010, Amoy Shoes net won seven wolves and so on three companies jointly invested 50 million yuan. At that time, one of the conditions for the Seven Wolves to invest was for Wang Dongzhu to continue to be responsible for Amoy shoes, which they only recognized.

Visible Line King influence.

The resources of Dunhuang line industry also provide Wang Dongzhu with another dimension to feel the temperature of Chinese footwear industry. Because the line industry is the upper reaches of the footwear industry, from the shoes and clothing business lines can be seen downstream market prosperity. At the beginning of this year, Wang Dongzhu said, he noticed a sharp decline in the number of large sportswear companies, and he was acutely aware that the consumer market might turn cold. As a result, he reduced the amount of purchases he had made. It turned out to be a very wise decision. At the beginning of this year, the number of shoes to increase the volume of the electric dealers may now have to face the pressure of inventory.

Wang Dongzhu Investment in E-commerce because he believes that E-commerce is the future of the general trend, it changed the way consumers live. What he values most is the quick electronic commerce. "The Wenzhou motor train incident can be spread to the whole country in such a short time, which is unimaginable in the former society." ”

Determined to do E-commerce, and the hands of rich resources, the next is how to do the problem.

Wang Dongzhu said that he had very early thought very clearly, Amoy shoes network not specific rapid Sprint IPO conditions, so must be profit for the purpose, otherwise the larger, lose the more.

For sports shoes, the scale is also very simple, to win the Nike, Adidas half success. But operating these two brands of products do not make money, so the focus of the Amoy shoe Network has not been placed on them.

As for the competitive environment for E-commerce, Wang Dongzhu said he had expected it earlier. He to the Dunhuang line industry analogy, "zipper like YKK, SBS at least can put a logo, but the polyester line even printing logo place is not, but we have to do it." ”

Wang Dongzhu said he was still very willing to invest, but the purpose of the investment is to harvest. The current electronic business environment so that he can not see when the harvest, so he put the focus on the investment team and system. Amoy shoe nets spend heavily to build their own ERP system, its inventory management can be accurate SKU below the single item. The age of the product, the shelf can be accurately detected.

And in the scale expansion of investment, Amoy shoes network is particularly "alternative."

As mentioned earlier, Amoy shoes network has not been in the international line of brands spend too much thought, because do not make money. Belle in stop with Amoy shoe net of cooperation, Wang Dongzhu also didn't feel too much loss, because with Belle cooperation originally beyond income. Amoy shoe nets in the cat on the other than to participate in the activities of the cost of a kind of basic promotion, the same reason is that the platform is difficult to make money.

In addition, Amoy shoes net also for some small sellers above Taobao to carry out small wholesale business. Although this part of the business still does not make money, but it can help Amoy shoe net to run the quantity, thus enhances the Tao shoes in the brand business between the right of speech.

Amoy Shoes Network is trying to carry out in-depth customization with the brand. At the end of last year, Amoy Shoes Network and special step cooperation, in the online launched by the Han Geng endorsement of the "Step by step Geng Heart" earmarked custom tide, achieved good results. At present, Amoy Shoe Network is with other brands to promote this mode of cooperation. This is the Amoy shoe network has been vigorously advocated value war.

Similar to the depth of customization, Amoy Shoes Network is also seeking the strength of the brand to do some promotion. Wang Dongzhu said that the power of a platform is limited, and only joint many brands to do marketing, will be more than twice the effort.

After deliberately compressing so many unprofitable business, Taobao can finally achieve its goal: breakeven. If there is profit, Amoy shoes will put the money into the promotion. After all, as long as it is not a loss, the scale is the bigger the better.

Wang Dongzhu also missed many opportunities in the field of electrical business. In the investment Amoy shoe net before, Wang Dongzhu had with good le buy Li Shubin talked about investment. However, due to poor communication, failed to reach an agreement on equity. After the establishment of Amoy shoes nets, Wang Dongzhu also wanted to bundle Taobao, for Taobao investment, but was the name of the shoe store robbed first.

In the process of communication with us, Wang Dongzhu has repeatedly mentioned that "choice is more important than effort". The current choice of the shoe king, perhaps is "latent" bar.

Shoe Net: Maverick

If I told you that retail can not do inventory, you must think this is against business common sense. But the shoe net is doing it.

Shoe-making nets in the industry are more controversial. In particular, as once the shoes of the first Amoy from the distribution model after the transformation, more of this pattern painted a layer of shadow.

However, the shoe net Vice President Dong Xinda told us that the pattern of the shoe net and Le Tao has a very big difference. Amoy is a real storehouse, brand merchants must first transport goods to Amoy warehouse, and ultimately to bear the channel inventory and damage.

But the shoe net is not the same, Pat shoe NET main virtual storehouse sell. Goods in the brand's own warehouse, the brand can determine the direction of these goods. A shoe net is equivalent to providing a brand-name vendor with an additional sales channel without creating new pressures. So it is more popular with brand merchants.

To understand the shoe mesh, we can't just start with its model.

The shoes net's maverick, still lies in its geographical position. Pat Shoe Network is located in Shishi, adjacent to Quanzhou, Jinjiang. This is China's largest footwear manufacturing base. According to statistics, only Quanzhou, the end of 2011 registered sports shoes brand more than 4,000.

The mystery of the shoe Net is also here. Dong Xinda told us that the sales of the shoe net from these unknown brands accounted for as much as 80% of the overall sales. The vast majority of the brands we have never heard of.

So the shoe net is the equivalent of catching a long tail market. This model is basically impossible to replicate to the international brand, assuming that the copy to the domestic one or two line brand, it is not appropriate.

In turn, the buying-selling model is suitable for the shoe net?

One or two line big brand inventory has already let the channel business head scratching, who has the ability to manage this small small brand stock?

So, we understand that a shoe net is more like a product of a particular environment at a given time.

However, the shoe-making network has developed rapidly recently. When the platform grows up, it leaves an imaginary space for the future.

We have been saying that E-commerce is a long-distance running. But before that, still is the hundred meter sprint the player runs in the front.

This year, with the double impact of the capital market's lack of blood and macroeconomic weakness, the market has begun to differentiate, and some slow-running dealers are starting to emerge.

It is still too early to talk about the pattern. But the show will continue because it's a marathon.

Minnan Electric dealer, walk slowly Xu Walk, but step by step like mountain.