Pillars on the development of domestic footwear electric business

Footwear dealers have been losing money for years, and the industry has questioned its entry into the long winter. Footwear Consumer Amoy CEO Bi Sheng called "wrong, everyone is wrong." Electric dealers really do not earn money in an industry ", Bi Sheng's old opponents, while the shoes of the company's good music to buy CEO Li Shubin seems to disagree with its views, in 2012 China e-Commerce Growth Summit Forum, he said," the internet will not be a single big, small category completely have the opportunity! "according to the speed of the network understand, Despite the good music to buy Tencent 50 million of dollars of investment, but because of the huge cost, operating conditions are still very bleak, still in a loss of status "in this regard, the industry believes that the e-commerce industry continued to lose money in a short period of time still can not be profitable. With the increase of logistics, advertising and flow costs, the whole industry will not be able to get out of the doldrums for some time.

And recently, in most of the weak electricity business, excellent purchase network trend of expansion has aroused widespread concern.

March 22, hundred Li's network of companies to buy shoes online shoe City announced a large-scale investment plan, to attract domestic non-Belle footwear line brand settled in. According to the CEO Xuejun to the "It Times" introduction, the current hundred Li Group 200 million U.S. dollars investment plan has been in place 100 million U.S. dollars, the future of the site will also be the direction of the Channel brand development. "What you want to do in the future is to be a platform trader, not a brand maker." "Xuejun said.

Since last July hundred Li through the network to enter the online footwear business, good lok buy, Amoy and excellent purchase network formed the footwear industry pillars trend. According to the data provided by the official, the site's daily average of more than 6000, one-day sales of nearly 2.5 million yuan, the monthly revenue of more than 50 million yuan, is expected to 2012 revenue will reach 600 million to 700 million yuan.

Although the network is ambitious, the intention is to start from the footwear platform to the comprehensive fashion platform development, but a senior industry personage to the Economist, said that the 2012 footwear industry still has a variety of factors. In addition to the above three strong, Taobao's famous shoe library, the rising West Street network and many other competitors are likely to be staged in the "Three Kingdoms", adapted into the "feudal regime", and the field of competition will become increasingly fierce.

At the same time, the future of the footwear industry is not as good as the overall environment is poor. On the one hand, the electric dealers are looking for new profit points. Lok Amoy Network Vice President Chen pointed out, "at present the entire industry has not touched the footwear business scale profit point", as the cost of rising, the industry's scale of profit point "will be more and more high." On the other hand, VCs have taken a more cautious approach to the market. According to Lok Tao Network revealed that the beginning of this year, just won 30 million U.S. dollars, completed the fourth round of financing, and investors made a "profit to do the budget" and "business restructuring" commitment.

At present, the boss of the footwear industry is "happy to buy", after completing the C round of 60 million-dollar financing last year, announced the establishment of the logistics system, the site from profit to loss. Some people worry that the good buy can withstand the load. Some analysts point out that the 2012 competition for consumer footwear will become more and more fierce, it is difficult to achieve profitability.

"War" caused by footwear

It is no coincidence that footwear has developed into a subdivision of the electricity business.

Wang is consulting president and chief analyst Lubberg pointed out that Alibaba's cat and Taobao platform, the former balance strategy makes it difficult for individual enterprises to dominate in the category, the latter is not suitable for high-end brand development, which prompted the brand to choose another platform, "a different way." And good music buy, Amoy and excellent purchase network and other sites in this environment came into being.

Compared to a good buy, Amoy, and other traditional internet gene of the electric quotient, excellent purchase network to the traditional enterprise "electric shock" into the market identity. Lubberg pointed out that with the capital strength and industry experience of traditional brands into the field of electricity, will be an "E-commerce battleship", will give a great impact on the network brand. He thinks, the hundred Li launches the excellent purchase net "is doing so".

2008, Hundred Li opened Taobao flagship store "Amoy Show Net", the formal test of hydro-electric field. July 2010, by its investment in the purchase of online shoe city on-line; August, Amoy network and excellent purchase network merger, the former all members into the latter door, while Belle announced that its footwear brands such as Think Cato, good days, best picture, Tata, and so on, only to provide you with sourcing, suspended to good buy to provide sales authorization. Belle's support for its own footwear business is already evident. And the cessation of the competition to provide brand authorization, the intention to block the enemy's access to the goods channel behavior at that time also caused by peer dissatisfaction.

Luming, one of the founders of good Tesco, responded in a confrontational manner, "there is no way to win a market victory by blocking the channel." Lok Amoy Network Vice President Chen also said, Belle blockade channel, "will give other footwear brands and E-commerce sites in the market expansion to create a great opportunity." ”

It is understood that the current good Lok buy has with more than 150 brands to reach strategic cooperation, Amoy is also stepping up with game developers to launch a joint brand of footwear, excellent purchase is to rely on the hundred Li's many brands firm footing. According to a private survey last October, the inventory of three commodities (SKUs) in the first half of this year is expected to be over million, forming its own strong competitive advantage. And the famous shoe storehouse, the West Street net and so on industry competitor followed, the net shoe industry "war" which caused by this will become more intense.

Profit expectation

In the face of the aggressive situation, luming representative of good music to buy expressed a calm attitude. In the foreseeable 3-5 years, he says, good buys will only "concentrate on shoes", saying that it has not considered "all-inclusive's department store Route". But at present, good le buys already added the clothing brand, the clothing accessories and so on category. Some analysts believe that the site's Department of General merchandise has actually taken off.

May 2011, Good buy announced Tencent 50 million dollar strategic investment, and officially stationed in Tencent New electric platform QQ Network shopping, become the electric business platform of the first shoe mall. Luming said in an interview, and Tencent cooperation, can bring more traffic to the site. It is revealed that its IPO plan has been put on a good buy on the agenda.

Some analysis points out that competition for consumer footwear is beginning to show signs of differentiation. In good music buy, excellent purchase, such as tireless, the pursuit of large scale, Lok Tao network instead of clinging to corporate profits.

According to our correspondent, the entire footwear industry has not yet realized profitability. Electric business deep exchange platform to send generation network analyst Li Chengdong that the competition will not slow this year, its marketing, warehousing logistics, procurement costs, as well as the cost of human expenditure will not fall, the most enterprises can achieve break-even. Prior to the media reported that logistics costs accounted for the entire footwear consumer price of 10%, marketing costs accounted for 30% or even 50%.

And alongside on the "rich" Tencent's good music to buy, there are hundred Li do "backer" of the excellent purchase network, Lok Tao nets this year to obtain the fourth round of financing 30 million of dollars is not easy. In view of this, Chen, vice president of the network, said that this year, Lok Tao will be from a variety of profit, but also will increase the market input to mobile terminals, through increasing traffic and other aspects of the implementation of business transformation.

Amoy claims to have 182 footwear brands. In the first half of last year, Le Tao launched the footwear Applife brand, working with a popular app application, the Angry Bird developer, who authorized Amoy to sell its game patterns on shoes. Lok Tao Network CEO Bi Sheng called this "joint operation brand."

According to the published data, Lok Amoy nets applife Footwear sales gross profit margin than the conventional shoes are about 10% higher. In addition, Amoy also with "Fruit Ninja", "too drum tatsu people" and other popular app software to discuss cooperation. Bi Sheng said that in the future will increase the joint brand sales, but the company to achieve profitability still need more than a year time. However, for operating costs, capital chain and other issues, "we will not consider to do their own brand." Said Chen, vice president.

Logistics bottleneck

Some people believe that the footwear industry is in the "blood-selling operation." Among them, the return of goods is leading to the high cost of such enterprises is an important reason. A few days ago, the best purchase Network chief Marketing Officer (CMO) Xu to the media, because the goods to the payment will make the cash to account for too long, return to the proportion of promotion, in order to reduce operating costs and exchange rate, etc., excellent purchase network has been completely stopped on delivery.

And, because the mainstream third party Express company business mainly from Taobao system platform enterprises, in the sales season, such as before or after the festival, or Taobao, such as the introduction of large-scale promotional services, these Third-party express companies will greatly affect the footwear business delivery services.

To this end, in the last year, good buy announced its own logistics plans, and take the lead in the North Canton and other cities to implement. Good happy to buy CEO Li Shubin in the recent said, since the construction of logistics to reduce the site due to distribution problems resulting from the return rate, at least 50% lower, greatly saving the logistics costs. But then there is news that the logistics system has resulted in good buy from profit to loss.

"Money is not good buy, Amoy big problem, logistics bottleneck is the biggest problem at present." "The logistics platform is a scarce resource and a competitive advantage for the future," said Zhaojing, an expert on information services and E-commerce at the Institute of Social Sciences and commerce of Cass. "and excellent purchase network Xuejun still insist not to build the logistics," if the order quantity reaches the daily average of 50,000, since builds the logistics to be ripe. "