Dangdang launched the Battle of profit margin increase when the best product

Dangdang as the leading domestic consumer mall, has been the majority of users support and love. And recently, Dangdang is to improve its own gross profit margin to take a series of new measures. In the digital business, the introduction of "Shop Shop" mode, Dangdang own brand "when the excellent product" also recently launched.

When the excellent product is Dangdang under the clothing, bedding and other manufacturing plant OEM, Dangdang brand authorized Business website, and Dangdang sell other brands of goods are different, when the main sale of excellent products are printed "When excellent product" logo brand.

At present, when the excellent product has been operating for nearly one months, sales of more than 3 million yuan, is expected to grow next month to 8 million ~1000 million.

Push OEM Product Platform

Dangdang own brand division general manager Jiangqiang revealed, according to when the excellent product set the growth plan, when the excellent product is expected to reach the end of this year 100 million yuan sales. According to Watson, Taiwan Tesco similar to the ownership of the structure of the brand, when the goal is to be able to account for the overall Dangdang sales of 20%.

Earnings Show, Dangdang 2011 annual revenue of 3.6 billion yuan, if this static calculation, when the best products to at least 700 million yuan of annual revenue, and the plan is expected to be achieved in the next two years.

Jiangqiang said that Dangdang's own brand, mainly for the pull-high platform gross margin considerations.

Data show that Dangdang's first quarter of 2012 gross margin of 14%, compared with the same period last year, 19% of the gross margin has slipped, and in the past year, Dangdang gross margin not only showed no growth trend, but in the fourth quarter of last year fell to 10%.

In addition, Dangdang in the third to fourth two quarter last year, the loss of 73.37 million yuan, 129.8 million yuan, plus the first quarter of this year's loss of 99.5 million yuan, Dangdang in nearly 9 months has accumulated losses of 300 million yuan.

Dangdang's chairman, Yu, has said it is considering cutting costs and has taken a series of targeted measures, including handing out the lower-margin categories to third parties to operate and guaranteeing the profitability of Dangdang through commissions.

Specific measures include the March this year will be the power of the category of the operation of the Gome Online mall, Dangdang called its "store shop" operating mode this April, Dangdang began in the wine category and other categories of the model to expand replication. In addition, the introduction of digital publishing business, in the hope of saving the logistics and distribution links to pull higher book publications profit margins.

The first guarantee not to lose money

Jiangqiang said that Dangdang's own brand launched, but also in the various measures to improve the gross profit margin. However, the domestic business owner of the brand electric dealers where the loss of goods, it does not seem to support the own brand to the gross margin of the pulling effect.

In this respect, Jiangqiang said, and Fank, such as their own brand electric dealer, Dangdang to do its own brand, the first thing to ensure that the money will not lose. He pointed out that, where customers do brand is "from scratch", the need to purchase traffic, its market investment accounted for 20% of the total cost, and when the advantages of the platform with Dangdang advantage does not need to purchase a separate flow, more traffic resources from Dangdang 6.1 million active users per quarter.

In addition, users in the Dangdang parent platform of the associated purchase, but also for when the excellent product brought order transformation.

At present, when the main category of excellent products around the high margin of clothing, bedding and so on, and will not involve too many varieties.

Jiangqiang said that the choice of clothing is mainly because of its high gross margin, and such as food, mother and child category, its health indicators require a higher production control of manufacturing plants also require higher. When the best products will be soft materials to the main category, which to a certain extent also can save the cost of logistics and distribution.

According to Dangdang forecast, in the apparel category, when the best product is expected to become the second only to the end of this year, after the next fan of Internet apparel brand. At present, when the excellent product category has reached 300, by June this year will be more than 1000 to complete the year-end expansion of more than 2000 needs. Apart from the different color factors, when the best products on the on-line style only hundreds of kinds.

However, when the introduction of private brands, but also caused some concern in the industry. Insiders believe that Dangdang launched its own brand will impact on its open platform of third-party interests. In this respect, Jiangqiang said that this year, Dangdang's own brand will not exceed the total Dangdang's gross sales of 10%, the future will be controlled in the 20% range, and this size is not enough to have a greater impact on third-party brands.

In addition, because Dangdang is not to be when the excellent product to create a separate domain name platform, so in the early days, when the brand of excellent product audience, to a large extent also by the impact of Dangdang platform users. This leads to when the brand positioning of excellent products must conform to Dangdang main station of the user temperament, not easy to diversify the brand.

Another worry is that, because clothing does not belong to the books of standardized products, the required supply chain is completely different, which will give Dangdang the future operation of pressure.

However, it commentators Li Chengdong that, although the current when the introduction of private brands will encounter such a problem, but with the domestic electric business competition environment more and more intense, the electric business platform side relies on the introduction of its own brand to pull high gross margin of the practice is worthy of recognition, after Dangdang, Perhaps more platform electric dealers will join the establishment of their own brands.