Coach again into the power of the current foreign brands in the line of online weighing the way

After shutting off the online flagship store on the day cat, coach did not flinch and launched an independent E-commerce online sales platform recently. Many brand-makers are still struggling to find the best balance point for the channel's benefits, while the fledgling foreign brands in China's electricity industry seem to have little to worry about. Why？ Because they are usually better at controlling channels and distributing prices in China. Foreign-brand electric dealers are not only the devourer of real-store performance, but also the shortest way to reach the inland market. By the fourth quarter of last year, coach had 86 physical stores in 38 cities in mainland China, which, despite rapid growth, could not cover all of China. "We hope that customers in those cities where there are no physical stores will be able to buy authentic products with brand assurance and quality through the official website of the coach." Jonathan Seliger, chief executive of Sailig in Greater China, told the global entrepreneur.

More than the coach, in the initial opening, Uniqlo Taobao store sales of 60% still from Shanghai, Beijing and other major cities. But with the rising popularity of Uniqlo, the ratio has been reversed, with two-thirds of sales beginning to come from places not covered by Uniqlo stores.

In cities with physical stores, if the brand can not better control the interests between the various channels, there will be price confusion results. Once the agent inventory backlog high need to dump goods, the Power Corps team can be low price into the goods, and at a very low price in the online promotion. Although such a way can quickly turn cash flow, but it will affect the long-term strategy of the brand. Anta Sporting Goods Co., Ltd. E-commerce director Peng that the line should take into account the long-term interests of the brand, stick to the bottom line, strictly controls the entire network supply channels and supply discounts. What you can see is that both the coach and Zara have adopted the same price strategy as online.

Foreign brands understand the trade-off. Zara will even give a little sweetness to the offline store. When the customer comes to the store to pick up the goods, the store staff can also get bonuses.

The reason Zara is so confident is that it has a strong supply chain behind it. The small amount of the characteristics of the decision does not need to digest inventory or online promotions to promote sales. and its large number and shorter life cycle decide not to have too many inventory products. At the same time, Zara does not have to go through online price promotions to pull sales. In these respects, they have the advantage of being a power trader.

The future development trend is that the line is not required to pass the price of life and death. For example, the online shopping industry in the nine to 12 point is a peak, but the line was closed early. "Companies need to better grasp the behavior characteristics of consumers, to provide better experience and services." "Taiping Bird Garments Co., Ltd. CIO and general manager Mintie told Global entrepreneurs," the brand should not compete with the price of the way the consumer to rush. ”

Electric Business Analyst Ruzenwang pointed out that at present the electric dealer in the Chinese brand channel role has three kinds. The first is the "sewer", the electrical business as a way to deal with inventory, the electrical business sector marginalization or to allow the agency to operate the responsibility. Second, the new channel, according to the new users and sales to see the electricity quotient, generally have a division or independent subsidiary responsible. The last one is the electric business channel as the new experience channel, as the user's diversified purchase experience and convenient components, such as Gap, Zara and so on.

Whether the electric business channel succeeds also must see the brand influence, the good brand has the youboy effect. The one-month sale of Zara online stores has been nearly as close to the monthly revenue of Nanjingxilu stores as it started in September. At the beginning of this year, coach in the Cat Mall on the test water. In the one-month collaboration, it attracted 3.5 million visits. According to the electricity business industry personage discloses, Uniqlo's daily sales volume in 300,000 to 400,000, once has the promotion activity, the sales can surpass 1 million, the whole year sales can achieve about 200 million.

In addition to the online sales potential, creating brand image is also a foreign brand to do the electric business Channel One of the important reasons. They usually have few stores in the two or three-line city, and through E-commerce they can enter the market to test the water and create a brand effect. For example, Zara's online sales platform also pulls down the line of business consumption, more convenient for consumers to browse and select styles at any time, and thus promote the purchase of physical stores.

Foreign brands are more cautious in setting up digital secondary channels in China. Coach in the cat's test water, learned that Chinese consumers to do a lot of online shopping habits. "We understand the positioning of our online customers and their expectations of the brand in the online shopping and payment process." "said Rich.

On the Sky Cat platform, coach only offers Alipay and credit card payments. But in the process, coach found that China's online shoppers are more willing to take cash payments. As a result, when coach launched its own official website, it increased the "cash to Pay (COB)" service.

"In the course of the trial operation of the cat, due to the consumers in advance payment, so our return rate is relatively low." But after increasing the cash to pay function, the return rate may increase, or may not change, we are not sure. "said Rich.

But even so, coach is willing to take the risk, because it represents the luxury brand is willing to provide consumers with a better experience. In addition, coach will design the site more concise, to minimize the consumer from the selection of goods to the shopping cart payment steps.

The official website is also a better opportunity to build a brand image. The popularity of coach in China is far less than in North America, compared to 80% of the popularity of coach in North America, 60% of the visibility in Japan, the survey shows that the Chinese market although the repeat purchase rate is high, but the visibility is only 16%. Therefore, in the official online, coach plan to add more brand history as far as possible and product information introduced, which is not formed for the brand to educate consumers a means.

In the process of promoting the official website, in addition to the search engine input, coach also use their original official website and Sina Weibo for marketing. Last year, coach's website in China has reached 9 million visitors, and Sina Weibo has more than 540,000 fans.

"The layout of the official website as a sales channel, in fact, is relatively short-sighted." "The official website should be to communicate with consumers and listen to the interactive platform," Mintie said. The final decision of the official website sales performance or bad brand. ”