Dangdang Transformation Fashion Electric dealer overweight clothing determined

Absrtact: August 5, Dangdang in its official micro again announced, to do the only one in China has a cultural heritage of the largest comprehensive category of fashion electric. It is reported that September its annual clothing new release will come, Dangdang will be the same Chiu Yujia domestic fashion clothing products

August 5, Dangdang in its official micro again announced, to do the only one in China has a cultural heritage of the largest comprehensive category of fashion electric dealers. It is reported that September of its annual clothing new release will come, Dangdang will be with Chiu Yujia domestic first-line fashion apparel brand cooperation.

Since the transformation of the business sector, overweight clothing has indeed brought the improvement of the operation of Dangdang. However, the industry is concerned about whether the move will create a fundamental competitive advantage. At present, to pull its clothing sales or discount part of the follow-up how to avoid the cat and the only product will be suppressed, find its unique positioning will be the key.

Overweight clothing determined

Last September, Dangdang announced a change to the "fashion electric Dealer". At that time, Dangdang combined 30 brands for the first time autumn and winter new products, its CEO Guoqing also first released its strategy on clothing: The new clothing online sales time further ahead, and the establishment of a full chain of clothing ecological chain. In June this year, in the "tail goods sinks" on the line one anniversary, Dangdang "New Flash purchase" channel is also officially on line, since its construction of the whole chain of clothing sales on the road and a big step forward.

In the industry's view, Dangdang's route changes significantly, the determination of overweight clothing is also more determined.

In fact, the exerting force on the category of clothing also brings new growth point to Dangdang. Recently, Dangdang Network network Vice President Deng received media interviews revealed that Dangdang to the clothing category to give unprecedented capital investment, the two years smashed 200 million U.S. dollars, half of the cost from the book half from the clothing.

Some industry analysts point out that clothing is now gradually become the main category of Dangdang, and the shift of the retail center of gravity is its strategic change. "Dangdang has long ago been preparing for this change, including investment. ”

Electric Business Observer Ruzenwang told the Daily Economic news reporter, Dangdang has been in transition, has been committed to the development of large department stores, but the Department of general merchandise extended a lot, and finally did not bring profit contribution; Follow-up to its search for focus, books, clothing, shoes and hats and mother and child as the main three categories, "after the transformation of good performance, Now clothing has become the second largest category outside the book. ”

In the opinion of analysts, the layout of Dangdang on clothing is expanding. However, the simple use of fashion power to describe it is not entirely correct, after all, the book is still the core.

Need to explore unique positioning

Benefiting from the positive layout of the apparel market, now Dangdang in addition to books, has been the development of apparel category as its goal to achieve high growth strategy category. According to Dangdang's 2013 Q4 earnings show, clothing to more than 100% of the growth rate of six consecutive quarterly increase over the book, the fastest growing category.

Data show that its first quarter total revenue (including Third-party platform total turnover) 2.85 billion yuan, to achieve sustained profitability, net profit of 2 million yuan, gross margin of 18.2%, set a new high since the 2011 two quarter. Category strategy and open platform is undoubtedly the main impetus to support Dangdang to achieve high growth and sustained profitability. In addition to books, clothing category, Third-party platform and flash business to make a small contribution.

However, the industry believes that Dangdang focus on the third party brand, overweight clothing is understandable, but the problem is whether the formation of core competitive advantage.

At present, Dangdang in the clothing or focus on the "domestic brand", committed to high-end, this and the same electric dealer has a big difference. Earlier, Shanghai is seeing brand Management Consulting Co., Ltd. founder and chief executive Tri Hongpo told the Daily Economic news reporter, the high-end is not the main body of clothing, Dangdang move more to seek differentiation, in addition, Dangdang consumer groups and high-end brand positioning is also unknown.

Ruzenwang said, Dangdang "tail goods sinks" also do discounts, but and only the product will be more than three or four line brand, Dangdang is mainly well-known brands. "Because only the goods will buy hand system so that it has the power to seek inexpensive products, Dangdang platform can only let well-known brands come in, at present, as a well-known brand clearance platform is no problem." ”

Ruzenwang pointed out that for Dangdang, to do new products, if the price of high consumers must not buy, the current use of new products to support the brand, pull sales or discount part.

The analyst said that Dangdang has been in transition for three years, operating from the initial confusion to now gradually improved. However, the future will still face the cat and the only product will be suppressed, after all, Dangdang to the clearance of the main. "How to distinguish between the cat and the only product will be more critical, according to the characteristics of its book users to explore the positioning of clothing." ”