When the excellent product does not compete with the customers to push free brand to enhance the gross margin

In recent years, the domestic electric business circle is unusually hot, rapid development, fierce competition. Dangdang as the leading domestic commercial mall, has been quite innovative, and recently, according to Tencent Science and technology reports, when the official release of its own brand "when the excellent product", involving clothing and home textile products and other categories. Dangdang own brand Division general manager Jiangqiang later in the acceptance of Tencent Technology interview, said the original brand was pushed by the important reason is to enhance the gross margin.

Prior to that, not only every customer, excellent purchase network when the home page ads, Amoy also settled when the open platform. The relationship between the parties is subtle as it pushes its own brand. However, Jiangqiang said that when the difference between the competition, push own brand does not affect other electric operators when the ads.

Push own brand to raise gross margin

When the margin is only 14% (Tencent Science and technology mapping)

Earnings showed that when the first quarter of 2012, when the loss of 99.5 million yuan, plus the first two quarters respectively loss of 73.37 million yuan, 129.8 million yuan, in the 9-month time loss to 300 million yuan. When the loss is the main reason is that the gross margin is too low, has been maintained at about 14%.

When you always call yourself a retail company, it is important to increase the gross margin while increasing the scale. According to Jiangqiang, as early as a year or two ago when it is to explore whether to do their own brand, and into which subdivision area. If you are involved in the food field, faced with the issue of food shelf life, the plant quality control risk is relatively large. If you are involved in the field of electrical appliances, when not able to do the home appliance warranty, and this area of gross margin is not high.

This is also when the private brand to choose clothing and home textile products in the field of important reasons. Jiangqiang said that there is no similarity in the style of clothing, and more flexible folding, can avoid furniture logistics escort problem. Jiangqiang himself when more than three years ago, was responsible for dangdang procurement, in recent years, began to take charge of the entire free brand project, earlier in Wal-Mart for 7 years, and has been in charge of a Hong Kong clothing enterprises for 4 years of clothing factory production.

Jiangqiang that, Dangdang has more than 10 million of customers in shopping, there are 60% to 70% is to buy books, quality is relatively high, good income. If you want to buy high quality brand goods, go to buy goods store is too expensive, how to give customers to develop this high quality but the price is easy to accept products. So the price preferential quality is developed as the starting point of the product.

Independent consumer not worth buying: lack of users and brand awareness

Previously, Dangdang marketing vice President Chen Tenghua left the founder of "Elegant 100", involved in the field of home textile supplies. Former guest Assistant President Xu Xiaohui founder of the first carved brand, Cotton Network CEO Lin involved in online sales men's socks, women socks, children's socks and other fields. There are a lot of broken brands in the market.

When asked why it was not necessary to buy a niche brand faster, Jiangqiang pointed out that there was no need to say that when they were acquired, the aim was to quickly brand them. If your own sales growth is very good, there is no need. "Products we have, users are not missing, what is their value?" Not only does not have the flow, but also lacks the brand propaganda, the consumer takes a long time to understand them. ”

According to Jiangqiang Introduction, when the excellent goods on the line this May, sales have reached 3 million, is expected when the next month's sales will be more than 10 million yuan, can easily surpass elegant 100 and other independent enterprise. When the goal is to become a good product this year, except for all the clothing brand second, to achieve 3-year scale when 20%.

Jiangqiang said, for when the excellent product, this year focused on building a team, the men's, furniture slippers and other products do a good job. At present, when the excellent product team size of 100 people, the main design basic and classic, however, Jiangqiang stressed that this does not mean that when the quality does not pay attention to design, when the excellent product will have its own design team.

Do not compete with the customers to promote the old customers when the excellent products

When the excellent products used directly from the generation of factory purchase mode, merchandise out of the factory door directly into the Dangdang warehouse. Dangdang selected the generation of factories are also for "Nine Shepherd King", "Jin Li to" and other high-end brand OEM industry well-known manufacturers, such as Edimonto, Vosges, flying Lions, Qingdao Snow, Shantou Jin Pang, Guangzhou Hualin. Plus the involvement of private brand areas and where the customer close to the outside world will inevitably think that when the competition with every customer, will also cause to participate when the open platform of the business rebound.

In this respect, Jiangqiang said, when there are tens of millions of users, many brands are willing to work with when the cooperation itself, when the open platform of several brands on the existence of competitive relations, in this case, when the strategy is differentiated competition. When excellent products speak classic, casual, fashion details, emphasizing high quality and cost-effective, to when the name of the brand to give customers confidence.

Own brand online sales channel development is very good, such as Tesco Lotto, Wal-Mart, Carrefour and so have a very successful own brand. Tesco's own brands accounted for 20% of the overall business. Wal-Mart, Carrefour owned brand sales accounted for 5% to 10%. Jiangqiang that when it is completely possible to copy this model, for the time being, the own brand is a supplement to the original business.

Jiangqiang said that when with the difference between the competition, pushing their own brand does not affect other electric operators when advertising. He believes that compared to every guest, when the best product advantage is the use of old users to promote, rather than Fank as the 20% of the funds for marketing promotion.

Dangdang Senior director Guo He said Wal-Mart would sell coke and drinks, they will also launch their own brand, when you can also sell nine King's T-shirt, the same quality may be a factory plant, but the logo is not the same, but the price is the other brands of One-fourth, because when you do not need to go to the floor of the mall model, no into the shop fee , there is no rent, no freight, you can turn the cost into price competitiveness, so that consumers buy the same goods cheaply, this is when confidence is there.

Guo He pointed out that when the excellent product will certainly compete with every guest, but the two are not direct competition, where customers are more college students, clothing quality and quality requirements are not so high, today bought a wear a season, next year will not wear, for when excellent products, absolutely do not want to let users wear a season will not wear, People are not exactly the same.

It is reported that, as of December 2011, the size of China's online shopping users up to 203 million. The vast majority of consumers are in the hands of several big electric power companies in China. For clothing This hundreds of millions of scale net buys the market, when thinks that the electricity merchant should be tun. But at present the clothing market, the real electric dealer own brand is very few.