Analysis of Software Sales System in traditional Apparel Industry

The software sales system of the traditional apparel industry includes: Project Customization Model Based on the project model, product sales model based on the product model, and the latest ASP clothing software sales system (Service direct sales system ).
1. Project customization mode
1.1. definition: customized project development based on the project model refers to the development, implementation, and support of clothing software for specific users in specific industries according to their different needs, each project may be a different clothing software product.
1.2. advantage: The project customization mode must include the whole process of garment software development. In addition to the pre-sales manpower and capital investment, a larger part of the investment lies in the project development process, therefore, under the characteristics of this model, "Long cycle, high cost" is the main feature. However, due to the particularity of the Project Customization Model, without contract, this is a zero-input model. Therefore, the initial risk is low and it is a "low-risk" model.
1.3. defect: Generally, users have certain reservation for project customization, and payment is often demanding. The payment mode of "3, 3, 3, and 1" is very common (contract payment is 30%, initial acceptance is 30%, the final acceptance is 30%, 10% a year later), so the accounting period is usually> = 2 years, which is an input mode of "long accounting period. The customization and development of the project model is clearly described as "three years without opening, three years for opening ". For the project customization model, it is precisely because of its "long account period, high cost, low risk" sales model that has limited profit margins and low dependence on the market, this makes it difficult to generate a distribution model, mostly based on the direct selling of clothing software.
The most vivid description of the project Customization Model is "Hunting". Every clothing software company that carries out system integration and clothing software development is like a hunter in the forest of the market, find your pheasant, Hare, or wild boar in the barren hills. Once the prey is found, a fierce attacker rushes over and captures it. Of course, in this process, it is likely that nothing can be obtained for a long time, but once a wild boar is played, it will naturally be able to enjoy it for a long time.
2. Product Sales model
2.1. definition: Product Sales models based on product models are product R & D for specific industries. During product development, pay attention to the differences between general and specific products, the Platform Design and configuration-based development principles should be adopted as much as possible, so that the customer's different needs and universal needs can be met to the maximum extent. In the product implementation process, the project development process is reduced, development is replaced by implementation, and this implementation is based on the minimum labor cost.
The product model is a sales system with "large upfront investment and high post-production. The so-called large investment in the early stage means that R & D of universal products is not done by everyone. It requires long-term accumulation of industry experience and production of products through a relatively long R & D process. In addition, after the product R & D is completed, the product marketing is also a high-investment process. The marketing of clothing software products is actually the same as that of other products, advertising investment and advertising investment are required (channel construction services are mostly used in the apparel Software Industry). Product-type Sales models cannot be customized for each order. Therefore, the probability sales model must be adopted, for 100 potential customers, there may be only one success. In order to win 100 customers, you need 10000 potential customers. In this case, we recommend product promotion and channel construction, is the focus of the sales strategy. However, in the later stages of such investment, the process of purchasing product media and product implementation became very simple. Compared with the transaction price of each set of clothing software, the direct cost in the later stage became negligible, therefore, the product is a high-output process in the future.
It is precisely because of this feature of product sales that it is very dependent on the marketing process, especially in different regions and cities, it is more necessary to add channel agents. However, the high profits and high returns of products in the later stages enable the establishment of a "profit-sharing pie" between the manufacturer and the agent, so that the clothing software products are being sold, distribution and agency have become the main sales model of apparel software products.
2. Analysis of the division of labor in the product sales model
2.2.1. Apparel software vendors: the most important thing for manufacturers is to produce products. Good products are the basis of sales and market behavior. I am afraid this is not difficult for manufacturers. Most of them are senior people in this industry, who understand their industry needs and changes, and do a good job in garment software, in addition, they are doing their best. Secondly, they are responsible for product marketing and promotion. In this regard, clothing software vendors seldom advertise through cooperation with traditional media, they mainly Establish industry awareness through website publicity, product exhibitions, industry exhibitions, and other models (apparel software industry, industry awareness seems to be more important than the product itself ), the industry's popularity is also the biggest promotion support for distributors. For example, Oracle product distributors certainly do not need to popularize Oracle's sensory knowledge to users. Finally, after-sales support and technical services are provided, after-sales services of apparel software products are mostly knowledge-based services, that is, when users encounter certain problems in the apparel software, they need to find the answers to these problems from the manufacturer. There are many such solutions, on-site, telephone, email, and remote support, but mainly for low-cost services, such services are sporadic and passive. Unless disastrous errors occur, such services are mostly dispensable, establish an enterprise image model.
2.2.2. distributors: agents, the most important thing for them is agency rights (the strange thing is that agents do not take the end customers they face as the first consideration ), the so-called agency right refers to the independence or not, the total generation of agency or not, that is, the position in the entire distribution system. The reason is that this position is closely related to the product price space. If the price space is too narrow, it means that the customer may not ship the goods from himself, then all the profits will not be discussed (the quotation is not the lowest offer that the customer can get, and no one will suffer such a negative loss ). The second consideration is the customer's problem, because it deals with the end customers who are the sales personnel of the distributors. they gain the user's trust in the product through various sales strategies and methods, and product price recognition to achieve the profit target. In this process, sales people do not really care about the performance or functions of a product. Instead, they look for products they represent to become a point in the transaction and reach a profit target. They are the most powerful driving force in the product sales chain. "Whether it's cabbage or database, it's a good result to find selling points, make a successful sales, and earn a profit of 5% ".
2.2.3. end customer: for the customer, finding the right product and the right price is the ultimate goal of the purchase. There are two meanings here: the first product must be suitable. It will be bad if you buy something and go home. This is the most unfortunate thing. The second meaning is that if it can meet my functional needs, so even if it is slightly defective, but the price is relatively low, it is also very good. Customers are always looking for a balance between products and prices. "Good quality and low price" is the final principle.
2.2.4. analysis results: in this process, the reasons for the mutual existence of the three are determined by their attitudes. First, vendors are able to tolerate irrelevant others taking 30% or 40% of their product profits (for agents in the apparel industry, they can even reach 70%, of course, the final transaction price is also off), because manufacturers do not know the cost of this self-built sales network and regional agents and obtain their corresponding benefits, matching or not. To put it bluntly, it is a "Risk Model", which may make or lose money. The use of other people's ready-made networks, personnel, and resources for sales is just a piece of "agreement" that can bring back stable profits for a year (whether this benefit is more or less ), this risk-free mode is the first choice. Of course, as far as vendors are concerned, how to straighten out the relationship between these agents and prevent inconsistent prices of goods and sales is a matter of great care. After setting the rules, we will let each of them develop. The second is the agent. Due to the lack of garment software production capability of the agent, the road to self-production and self-sale is no longer available. As long as there is no pressure on the agent, it is a pleasure, the attitude is naturally correct. Finally, it is the end user and the person who finally pays the bill. For them, conflict or confusion is not the most important. Their attitude is "inexpensive ", both manufacturers and agents are measured by this standard. (If the agent reports a wrong price and achieves "good price loss", the ultimate goal is achieved .)
. Advantage: The biggest advantage of traditional product sales models is quick product profits. No matter how the distribution price is established in the sales process, the price of a set of ERP clothing software of tens of thousands of yuan is certainly needed, and the manufacturer through this sales process, the process from a four-cent CD to a profit of 10 thousand yuan (not to mention the initial investment) is attractive. Buying a set is a huge amount of money. The manufacturer is happy and the agent is happy. Another advantage of the traditional sales model is the ability to build a nationwide sales network at zero cost as quickly as possible, which is quite attractive. For a clothing Software Development Company, clothing software sales are a mess. However, after finding the appropriate agent sales team, suddenly there is a nationwide sales network, which is a qualitative leap.
. Defects: However, the shortcomings of the traditional product sales model are also aimed at the above two points. First, due to the high sales price, the sales process has become difficult and abnormal. When I buy an LCD TV at home, I have to go to the store several times. What's more, I have to pay tens of thousands of yuan to buy clothing software that I can't see. (What's more, this clothing software is still a new brand and has never been used ). It is ideal to make up 10 thousand yuan for four cents, but you may need to make the best effort of 10 thousand yuan in the process. Second, for agents in the apparel software industry, 90% of agents will not take the initiative to promote or advertise your products. These 90% of agents basically belong to the door-to-door mode of waiting for others, however, these market advertising behaviors must be the direction of the vendor's efforts to establish Mental Cognition, so that users can recognize the brand, it is not the work of the agent (of course, it cannot deny the sales efforts of the agent for specific users. This is the direction they are very willing to work on. It is relative to the agents of other products, such as the distributors of medicines and health products, the product distribution in the apparel software industry is still primitive ). The last weakness is for the real social driving force. It seems that there is a sense of "flourishing in the world, responsible. Clothing software can bring convenience to people's production and life. It provides specialized computer services. The fundamental point of the clothing software industry is service. For large enterprises, this kind of service system is the clothing software revision and professional service aimed at its changing market demands. In this aspect, clothing software is a service, without a true service system, the path of clothing software's greatest contribution to society is broken. For small and medium-sized enterprises, clothing software products with low prices and special service systems are more required.
For the product distribution model, a more vivid analogy is "planting fruit trees". In the spring, manufacturers began to plant the fruit tree for product R & D based on market needs and accumulation, after a summer of painstaking care and operation, in the autumn, we finally got the red fruit of the clothing software product. After the manufacturers handed the fruit to the dealers (that is, the clothing software agents, I made an advertisement in the newspaper to talk about the best fruit of XX. I also opened a fruit meeting to bring people from all over the country to try the fruit. The clothing Software Agent places the fruit in its own booth in the market, waiting for the passers-by to buy the goods. Once someone expresses their intention, the clothing Software Agent opens the shelf, let's give a speech on the benefits of this fruit. The saying goes, "the customer pays for it, and the fruit is sold out. Of course, if a customer finds bugs (bugs) from the fruit, the customer will call the manufacturers and harass them. In the end, the bug is actually okay.
3. asp clothing software sales system (Service direct sales system)
3. 1. definition: ASP is an application service provider. As the name suggests, its core product is a service-oriented clothing software model. In this model, clothing software is no longer sold in the same way as "cabbage" or "Fruit", but provides users with an overall solution model. The clothing software platform is the technical carrier that carries such services, not the whole. In other words, it is no longer "this clothing software can implement these functions. You only need to buy it back, recruit people, install it. ", But "we can provide you with these services. All you need to do is sign the service order and go home and turn on the Service Switch. Then we will send these services to the door .". In this system, customers can ignore the computer and clothing software components, such as the installation of clothing software and hardware debugging, because these components will be part of the service. Users can focus all their attention on the real business part, and hand over the technical parts that are unfamiliar and difficult to understand for time to ASP, that is, these "it exclusive companies. In the direct service system, its value chain has undergone a fundamental change, "large investment in the early stage, low income in the later stage, billing by time, large revenue generated by time scale and user scale ". The premise is a huge investment, which is consistent with the product sales model. To provide ASP access for users, your platform and product itself need relatively high product features, in addition, it should have higher technical reliability and security than the product, and also consider performance and efficiency issues. On the other hand, product promotion and promotion have also become a large amount of investment. Because the product revenue has become a linear revenue, the attractiveness to sellers has declined (the original revenue for a single order was 10 thousand, however, it takes one year to earn 10 thousand yuan), so the possibility of distribution becomes very small. If direct sales are used, how can users understand your products, it is very difficult to let users know your product information through some channel. Therefore, the marketing work becomes very important in product advertisement promotion. In addition, a large and stable technical service team is required, just like the green service channel proposed by Haier. for ASP vendors, the Service Specification should also be based on this standard. For the scale of 10 users, this does not seem to be prominent. When the number of users reaches more than 1000, such a technical team becomes exceptionally important. "R & D cost, market cost, and personnel cost" are three weights added in sequence by ASP investment. Low income in the later stage is related to the fundamental profit model of this business. This model is the "lease model". Users who use the clothing software of ASP vendors did not purchase the copyright of this clothing software, instead, it is used by leasing, and hardware equipment such as servers and networks providing clothing software services are also rented, as well as the services of technicians. The measurement unit of such leasing is time, charging by time and collecting money by month seems to be the same as renting a house. In this kind of transaction process, each income will become relatively low, especially in the early stages of system use, during a period of heavy workload investment, this kind of income is often difficult to recover costs. The time scale and the user scale generate a large revenue, which is an attractive aspect of the business. Compared with China Mobile's revenue model, it is clear that although mobile text messages only charge 1 cent, however, due to the occurrence of X number of users, this number has become an astronomical revenue every year. In the direct service mode, if each user earns 500 RMB per month, the annual revenue of 100 million users is 0.6 million, and almost all of this revenue is gross profit. Because the direct selling mode has a thin interest space, it is difficult to share the interests between direct selling services and agents. Therefore, there is basically no agency selling mode (it is not ruled out that agents have a long-term vision, willing to bear the meager monthly Commission model, but also bear the risk for a long time ). End users are willing to accept the payment. The first point is that they avoid IT investment risks and do not need to purchase hardware or clothing software, instead, I will pay for the cost of one month. If the clothing software is not suitable, I will lose a little time and money. Second, the technical staff of ASP company can consult and dispatch at any time during the use of the clothing software. The reason is very simple: they pay for it every month. It is justified to pay for it, (similar to your attitude when you hit 1860), this consumption process is naturally much more comfortable than taking out tens of thousands or hundreds of thousands of dollars at once. The user's worries are actually a little bit. If I leave my information resources to ASP's technical staff like this, can I rest assured that I had bought a lot of money before? After all, it was a dead clothing software, but now we are dealing with big living people every day. What do people do with their thoughts? ASP companies may need to try their best to dispel the 99% worries of users (99% worries, Carnegie s' famous saying, 99% of the worries in life will not happen ).
3. 2. advantage: The biggest benefit of the Service direct selling model is the profit model. In the current commercial operation, the "Business Model" is a word that almost every CEO can talk about, whether it is business newspapers or commercial programs such as "win in China", the model is almost the same standard. The direct service model restores the profit of clothing software to a leasing model that is easy for users to accept, and changes each user's input to a quantifiable practical project output, in contrast to the original CD value and license value system, business has become another approach. The Service direct selling model is the way out for the apparel software industry in the future. It removes the hypocrisy of the "high-tech enterprises" in the apparel software industry and enters the true category of the traditional and stable industry. Clothing software is a service, which is almost the consensus of the clothing software industry. The value of clothing software exists in this service, whether it is every version upgrade or patch release of Windows clothing software, or update the daily anti-virus package of Norton clothing software. The service is the fundamental and valuable embodiment of the existence of the clothing software industry. For ERP apparel software, this service system is more clear and thorough. It is reflected in every operation and turnover of the user's actual business, it is reflected in each revision and change of the clothing software products produced by the customer's business changes. Clothing software products without services have no vitality, and ERP clothing software without services have no future. It can be said that the service model of garment software products is caused by the current demand for productivity development. The direct service mode reduces the threshold and risks of Enterprise Informatization and increases the probability of successful sales. The customer's overall investment may increase or be flat when using the rental clothing software sales strategy. However, the investment in the early stage is greatly reduced, reducing the risk and threshold of informatization. Therefore, for the sales process, this business negotiation will become easier and easier. "It's a horse, a horse, and a walk out", will become a common psychology for enterprises to adopt direct service sales. The Service direct selling model enables ASP companies, especially ASP companies that provide core business controls for clothing software, to effectively occupy the market of old users. The reason is that they have served for a long time, if you have been closely connected with your business (or sometimes become a part of your business), you will not be afraid to change your service provider if you enjoy this service. The more detailed the provided services, the more in-depth the work, it means that the deeper you bind with the user, making it difficult to separate.
3. 3. defects: the shortcomings of this model are also obvious and the most fundamental point. For our clothing software and the current situation, the direct service sales model can only complete part of the original capital accumulation process. We can use a calculation to illustrate this problem. Assuming that each user can earn an average of 1000 RMB per month (excluding the sales and hardware costs), a technician can complete the technical support work for five users at the same time, assuming that the actual monthly cost of each technician is 3500 RMB (Zhongguancun's price is like this), when there are only five users at the beginning, the company's monthly profit is 1000 × 5-3500 = 1500, and the annual profit is 18000 RMB. when the company is 10 users, it is 1000 × 10-3500 × 2 = 3000, the annual revenue is 36000, that is to say, the company's profit is proportional to the number of users and the number of employees. If the annual profit is to reach 0.5 million, the company's technical staff number will be 27, the number of users reaches 135. That is to say, in this mode, if you want rapid expansion and rapid development, the number of users must be quickly increased, and the number of employees must be quickly increased, both of which require capital investment, the source of funds also requires external funds. For Start-up Entrepreneurs, there are several requirements. First, seeking investors is a necessary path for enterprise development. For entrepreneurs, they need to be prepared to have their shares diluted and their powers reduced, second, product stability and standardized operation are the management path that must be followed, and the production efficiency of unit personnel should be increased as much as possible. Third, certain billing methods should be adopted, to increase profits. The Service direct selling model must solve 99% of users' worries. business hosting or data hosting are all problems that need to be correctly faced and solved. If this problem is not solved, it will be the biggest bottleneck in the sales process.
For ASP's clothing software sales model, the most appropriate analogy is "laying water pipes ". At the beginning, the pipes were laid in the homes of various users so that users could drink clean water. After drinking for a month, let the user collect the water fee for this month. If the user does not pay the fee, the tap water pipe will be disconnected. However, water pipes are very expensive to build, and the fees collected in the early stages cannot be recovered. However, over the past few years, such water fees have become a constant source of profit, it is also a long-term stable and uninterrupted profit.