Ikea factory to drive the tide of the company's gross profit margin rise

The original IKEA supplier Alliance President Cao Yue Wei, a group of IKEA in the United Nations factory jointly established Jia Yi Mei Home Company, to build the Internet furniture brand. By reducing procurement, (offline) sales links, reduce costs, implementation of LOW-COST strategy.

Cao Yue never thought he would become a "celebrity" after leaving home.

"Almost every day a reporter calls for an interview. "On the afternoon of March 6, after receiving an interview with CCTV reporters, the former Ikea supplier Alliance president in the Hangzhou Alibaba Group headquarters, 1th building bright top conference room to" Huaxia times "reporter said.

That afternoon, the Heilongjiang Endurance Wood Group Chairman of the board, Jia Yi Mei home brand sponsors, led his team (12 original IKEA factory owner) and Alibaba Group and the Cat Mall here to reach a cooperation agreement, holding regiment stationed in the day Cat Mall.

After the 2008 international financial crisis, a considerable number of foreign trade enterprises began to turn inside the package, due to the general lack of domestic sales channels and brands, E-commerce has become a priority choice for many enterprises. Lee, a senior expert at Ali Research Center, told reporters.

Test Hydro-electric business

Test hydro-Electric before, Cao Yuewei launched the establishment of the United States home plan is to do offline shop, and released Hao said: "Rapid replication Ikea model, quickly occupy the market, 3 years open shop 200." ”

October 2011, because unbearable "squeeze", Cao Yue Wei United Nations within a group of IKEA factory jointly set up Jia Yi Mei Home company.

"China for foreign brands to do foundry enterprises are walking in the crossroads of fate, the two sides of the huge disparity in capital and strength, doomed to the small and medium-sized enterprises must face the repression of these retail giants." Cao Yuewei in the afternoon speech was quite excited, "either continue to endure humiliation, or a complete break." ”

Due to the origin of Ikea, the United States in the last year quickly entered the public eye, the industry to its oath and Ikea "than the high and low" mixed, public opinion more think "difficult to escape failure."

"It is hard to guarantee that we will succeed if we just shop offline." "Cao Yuewei admits that the transition to success, more benefit from the electric business platform."

Day Cat Mall to provide the public data show that the United States in late October 2012 in the days of the Cat Mall in the city opened a flagship store, a short period of 10 days sales on the breakthrough of 1 million Yuan, "double 11" on the day is a set of more than 2 million yuan sales.

"Through electricity dealers, we can shorten the distance between consumers and factories, especially in the form of C2B customization, not only to scale production, but also to lower commodity prices." "Cao Yuewei is clearly confident that he will start a full-scale war with Ikea from the electrical business approach. He cited an example: a ladder stool, Ikea's price is 99 yuan, Jia Yi Beauty as long as 59 yuan, in the days of the cat store listing just 10 days to attract 3,000 orders, "This amount may be Ikea a store a year of sales." ”

Cat Mall Furniture Department to provide data shows that this platform attracts many generations of factories, distribution enterprises to join the transformation, last year, Cat home decoration category of business turnover amounted to more than 34 billion yuan, the year-on-year increase of 300%, of which the furniture category growth fastest, up to 324%.

According to the third party Electric Business Research Institute China Electronic Commerce Center released the 2012 China Network retail market data monitoring report, as at the end of December 2012, China's online retail market transaction size of 1.3305 trillion yuan, to maintain rapid development. At the end of last November, Alibaba's cat and Taobao accumulated turnover of more than 1 trillion yuan. In this context, the home electric business industry also entered the peak development period in 2013, which made China's many aspiring to create a brand, to seek new channels for the development of manufacturing enterprises found a transformation and upgrade space.

Zhang Ju, vice president of Analysys International, said that in the United States, traditional enterprises are the main force of online retail market, home electronic commerce accounted for 19.8%. Home electronic Commerce scale will reach 205 billion in 2015, the net buys the scale to increase 249%, the net buys the rate will reach 17.5%. Home electric dealers will become apparel, 3C digital after the "next gold mine."

Online open shop gross profit margin higher than the foundry

"To the United States, to enter the electricity business is in fact inevitable." Cao Yuewei recalls that when we tried to make a brand-name business, we first wanted to do the chain store model, but found that the model you put into the cost, the results achieved, the development time is very big, and the risk is huge. Once exposed to the cat, it will be found to become a necessity, because it is China's demand concentration, if we are made in China, the entire network is China's demand.

This reporter check Ka yi United States flagship store with IKEA home the same table, is also a table four chairs, Ikea's sales price is 5899 yuan, Jia Yi Beauty is only sold 1499 yuan, and March 7 promotional price only 849 yuan.

"It is C2B's custom model that goods can be given directly to consumers at factory prices, so that sales will be greater." Cao Yuewei said to reporters, "through the electricity quotient, we shorten the distance between the consumer and the factory, and the profit space all let the customer." In particular, the use of C2B customized form, not only can be produced on a scale, and commodity prices can be lower. ”

Jia Yi Mei Home CEO Chen more in-depth analysis that the manufacturing and retail industry is two companies, when giving a generation factory, it left only 5% to 8% of the cost, even in all raw materials and labor costs, it will not rise in prices, but will decline.

"To step stool for example, at the time of the price, Ikea is selling 99 yuan, the United States on the Internet to sell 59 yuan, the price is to let 40% of the space to consumers." "Chen, for example, buys the process to the sales process, is 50% space, we have to 40% after the 50%, our gross margin also has 20%, when you from 5% space up to 20% space, it is the entire value chain redistribution, the former factory from sales, to distributors, and then to customers.

"Now through our day cat and Taobao platform, factory directly to receive our customers, so that the space profit to the consumers, and for manufacturers, a short period of time to focus on a batch of orders, can be very good to improve production efficiency, this is our contact with the transformation to do the biggest experience of the electrical business. "Chen said.

Electric business helps enterprises to transform

At the seminar held by Alibaba Group, the day Cat Mall announced April will come up with 35 million yuan of advertising resources to support Jia Yi home, such as home brand rapid development.

Kaesong, head of the home Decoration Museum, said, Ali department provides a variety of tools, will also help furniture manufacturers to c2b pre-sale way, to assist these traditional enterprises to transition smoothly to the electrical business. For example, the cat c2b mode, through the convergence of consumer orders, reverse supply chain production, so that furniture enterprises in accordance with customer orders, the scale of procurement to reduce costs, zero inventory, 0 warehousing, consumers can enjoy more than the line of similar models more than 30% of the benefits.

Lee told reporters, Alibaba Group Research Center analysis, 2012, China's e-commerce economy size reached 8.3 trillion yuan, is expected by 2020, China's e-commerce economy will be more than 30 trillion, become the world's largest e-commerce economy. Among them, by 2020, the network retail turnover will be about 16% of the total retail sales of consumer goods, reach 10 trillion, platform-type E-commerce trading platform is still the mainstream, China's e-commerce services industry will be more than 3 trillion. In this huge amount of electricity business economy, the electric business platform to help the enterprise transformation and upgrading of the effect will also play a significant role.

However, furniture and 3C products, as a non-fast consumer goods, furniture of its own particularity determines its difficult to talk about the sales difficulty: furniture in people's daily life is undoubtedly a large consumption, the general people on the bulk consumption is still quite rational, not casually in the online fancy to buy, So people pay more attention to experience than simple price when choosing furniture products.

In response to this problem, Jia Yi Mei gives the answer is: line online under the combination.

"The United States will be in two years in the country most of the city to open experience shop, most areas to do door-to-door installation." Cao Yuewei told reporters.

In Kaesong's view, get through the line under the "Experience Pavilion" mode, through the display of the offline entity pavilion to reassure consumers to buy furniture concerns, to achieve "online shopping", "Offline experience" and "one-stop delivery installation Services" Seamless docking, will help enterprises in the transformation of the road success rate increased.