Amoy brand "Singing decline theory" spread again, Matthew effect push high cost

Amoy brand "Singing Decline theory" on the microblog again quickly spread. "With the traditional brand collective net, once the scenery of Amoy brand has fallen out of the class at present 20, the survival situation is worrying." "Some people even predict that in the next 5-10 years, Amoy brand will disappear." The term "disappearance" here means "no longer exist", rather than "certain death".

Amoy brand Gxg recently "high-priced prostitution" to the traditional costumes Shangsen horse, may be seen as this trend. But the same event can be reversed look: A group of Born in the network, longer than the network, genuine, inexpensive network brand rapid rise. These "grassroots" network brands successfully completed the traditional brand of the "reverse attack", so that Sen horse had to take out "2 billion yuan sky-high price" acquisition.

In fact, with the advent of the electric business era, the traditional brand and network brand began to "compete", squeezing each other living space, the days of both sides began to feel sad.

The Siege of traditional brands

Network brand really enter the vision of traditional manufacturers, when from 2009 Taobao create a "double 11" began to count. This day, Amoy brand to single goods "burst" breakthrough, record brilliant, this lets the traditional brand in the "New play" in front of a loss.

Mann PR director Xu Xianling to South All reporter said, network brand can do 30 days out a batch of goods, this with the traditional clothing manufacturers in advance a single, production completely different. Online shopping in the display, promotion, pricing, advertising has a lot of skills, the key is to "play with the user".

However, "new play" is only a skill, naturally easy to be copied, reversed. 2009, Taobao Mall Men's 10 of the current, only two are offline brands, but to 2010 years, the number turned over, in the top ten rankings, only Dirmach and Spokane the two Amoy brand can stick, while the remaining eight are offline brands. In the last one months of 2010, Taobao announced that the mall will be split, open the door to meet more traditional giants.

"2012 There are a lot of ' Amoy brand ', but this year has become a traditional giant edge over." "Amoy Brand Xin Wei founder Longyin told the South are reporters," 2012-year double 11 "set a sales miracle, triggering a new round of traditional brand net frenzy, quickly divide up the share of the net purchase. "In the last year, Xin Wei 17 million of the sales, to absorb the number of users about 100,000." It has accumulated 560,000 subscribers this year, and sales have shrunk to around 6 million. ”

Taobao Sellers Wos win that the weakness of the brand caused even with the same resources, Amoy brand conversion rate and two times purchase rate, are inferior to the traditional brand. "For example, Jeanswest is relying on the national warehousing distribution and management system to the network to buy customers the best distribution, service capacity is stronger." ”

Based on this, there are netizens on the micro-Bo on the shooting, "in the next 5-10 years, with the traditional brand of the maturity of the electric business channel, Amoy brand will disappear." ”

Matthew effect pushes higher costs

However, many of the things of the electrical business is really very peculiar, not only subvert the tradition, but also more beyond the tradition. South all reporters learned that many traditional manufacturers have also begun to learn Aff, crack silk, etc. to do the explosion (refers to in the commodity sales in short supply, high sales of goods), but consumers do not buy it.

Data from the Rubik's cube shows that the women's Day is the most competitive cat on the category, but the sales ranked in the top three is still Han, the Mann and split silk. According to the data provided by Xu, the 2012-year sales are 300 million yuan and the advertising spending budget is about 8% of the total revenue. Converted down, the Mann's advertising fee of about 24 million/year, and, this large amount of money focused on the cat-oriented online shopping platform ——— this with the traditional brand heavily hit TV, offline advertising is quite different.

The problem is obvious. Although the total amount of Taobao and cat trading breakthrough 1 trillion, but the flow of resources, after all, in the scramble for traffic, large brands, large merchants of the Matthew effect more and more obvious.

This trend leads to the increasing cost of online brand operation. Longyin Memories, 2008 a focus map a day to spend 57,000 yuan, traffic is more than 10,000 IP a day. Now do tens of millions of ads can not achieve the effect of the time. "Some traditional businessmen do not understand the electric business game, blindly out of the high price of the" Through Train "," drill show, "abruptly pull up the price. ”

South all reporters learned that at present, the through train of the category click Average price has reached 5, drill show of the average value of more than 1 pieces, and the previous few years of clicks only 1, 2 cents. The cost of the inflow is only 2 million, and less than 2000 of the traffic is on the single product. Those who participate in the cost of the business, in addition to pay tens of thousands of pit fees, but also need to move the day from the shop or drill show into the flow to gather cost-effective, the general shop is almost impossible to participate.

If Taobao, Cat likened to a big mall, there may be hundreds of millions of square meters, tens of thousands of users flocking to the gate of this big mall, and many shops have not been searched. Ali now open shop Taobao sellers have 9.5 million, of which more than 3 million sellers shop stop, the remaining shop about 80% are loss, we said the loss refers to the cost of investment compared to sales. Only about 10% online stores are flat, and the real money is only 10%. "Former Alibaba founder, the Lu Zhiban of the company's advisers to the key."

Consumer-to-consumer sellers lack of power to develop

Angel City is experienced a ups and downs of a Amoy brand representative. It has in 2010, 2011 years through the glorious period, for two consecutive years, Taobao Women's category for the purpose of sales champion. By the beginning of this year, the City of Angels has been another Taobao women's brand cracked silk purchase.

A Taobao seller said that among the Taobao sellers he knew, nearly 10 founders had sought to quit because of physical exhaustion. Recently, Sen ma Clothing has issued a notice, will be 1.98 billion-2.26 billion yuan price acquisition Amoy brand "Gxg" of the company ——— Ningbo China Zhe Mu still Holding limited 71% of the equity. This is also so far, the traditional clothing brand acquisition of Internet brands of the first case.

Taobao's initial success benefited from a large number of Consumer-to-consumer sellers, but now, Consumer-to-consumer sellers after years of washing but go to a dead end. "Do online shopping business is very tired, no commute time, no meal time, computer screen all day on the face." "A 2008 graduation of 86 years Taobao sellers posted on Weibo post their own," a monthly salary can earn 4000-5000 yuan, although the early 2011, the shop had a small blowout, but in the three-tier City of the house is not enough to buy a set of capital is too much. Taobao shop is tied to the home every day, living in the ashes of death-like life, no boyfriend. Until one day, I went to buy vegetables, a 20-year-old boy called my aunt, I instantly petrified, that year I am 25 years old ah ... "the Taobao seller said that in 2012 she completely closed the Taobao store, ready to put into the community, but only to find that her ability to communicate with the obstacles, accounting professional forget completely, She has had several years of working experience with her, and she will be with the fresh graduates, the university is almost white.

In this respect, now Taobao is also deliberately narrowing the "gap between the rich and the poor" for "small but beautiful" businesses to provide an escape. Longyin said that Taobao has weakened shop credit, sales, praise and evaluation, refund rate, etc. in the weight of the search weights, increase the store and baby DSR, commodity conversion rate (users click after the probability of purchase), the countdown to the weight of factors.

But anyway, the time has come for businesses to put their products on the table, whether it is online shopping brand or traditional brand, now not only to fight profitability, but also to spell product quality, brand advocacy, supply chain, team management, shop conversion rate, customer repeat purchase rate, E-commerce has become a craft live.

[Industry view]

Traditional brand Penetration: still inventory

Nicolasgros, vice president of the Dream: E-commerce represents the future, representing the emerging markets. According to U.S. data, E-commerce accounted for only 1% of retail sales in 2000, but today accounts for 4.9%, nearly 5%. And the growth curve went straight up in the 2008 financial crisis. So will China.

However, the traditional clothing brand to do E-commerce, in the end what represents the future? I believe no one can really speak clearly. In the July 2012, the dream of the city launched a global market (in addition to China) of the Electronic Mall, in November 2012 only in China to open a Chinese version of the official electronic mall, this year, we in addition to China in the Asia-Pacific region opened a third official electronic mall.

Unlike other men's brands, we supply the day cat, when, Jingdong and other electric platform for the commodity or in the past season, inventory of goods. Dream Special Jiao online and offline merchandise supply to maintain the same style, we hope to track the sales data, we can accurately analyze the Chinese consumer habits and preferences for the company to develop new product line to provide valuable data analysis. And, for us, China is not a "one" market, but a number of markets, from the south to the north, from the coast to the mainland. People's cultural background, economic conditions, aesthetic concepts are very different, the dream of special Jiao can not be the European business philosophy copied over, but to use a new model to deal with.

However, in order to reduce the impact of discount promotions on the brand image, we will not directly to the "discount" on the mall homepage, only to move the mouse to the model photos, will show the price. At present, we have not officially entered any of China's electric business platform.