E-commerce: Discussion on traditional brand network sales agent model

This article was published in the second issue of 2010, "Sales and Marketing" (Management edition), reproduced please famous from Cao Fanghua blog (http://blog.sina.com.cn/ivu1314)

There is a saying in world finance that "banks that do not yet have financial operations in China will be forgotten by the world in 50 years". This sentence used to the brand's Network marketing communication field is also appropriate, that is "now not net brand, 10 years later will be forgotten by consumers."

After several years of market cultivation, the entrepreneur's understanding of the nature of the network is increasingly rational and scientific. From the perspective of brand communication, the network is only a channel of information dissemination, but this channel integrates all the traditional media forms, while aggregating a large number of young consumer groups; from the perspective of product marketing, the network is a channel of marketing and communication integration, In the network media to spread and sales of the distance further closer, that is, the realization of brand communication and product sales integration.

It is based on the network media on the integration of communication and sales, E-commerce is more and more attention to enterprises, on the one hand, through E-commerce model NET, so that the effect of network marketing more intuitive and direct; On the other hand, based on E-commerce, the communication between brand and consumers is more direct, especially with young consumers

The challenge of traditional brand expanding network new channel

November 11, 2009 Taobao and Jack Jones launched a joint 50 percent promotional activities, Jack Jones Taobao Mall shop to create a single shop single day 5.22 million yuan sales performance, compared to 50 online stores a day of sales. But in terms of operating costs, the operating costs of online sales are less than one-tenth of the offline operating costs.

The Network marketing channel is impacting the traditional brand's marketing thinking with lower operating cost, quicker reaction speed and wider sales area coverage. In the face of network sales without shop rent cost, no dealer Yahuo, no intermediate cost advantages, more and more enterprises are eager to network marketing.

So how do traditional companies operate online sales? There are a lot of problems that companies have to face.

Macroscopically speaking, the network sale is the information flow, the capital flow, the logistics, the omni-directional integration of the flow of people; Therefore, it needs a strong e-commerce team for the enterprises to carry out e-commerce, but there is a shortage of e-commerce talents with professional combat ability in Chinese market at the same time, China's e-commerce talent training mode lags behind the practice of electronic commerce seriously, The use of E-commerce industry in a word is: the current university training of E-commerce personnel are semi-finished products, understand the business does not understand the electronic, understand the electronic does not understand business. Therefore, the formation of professional E-commerce team is a difficult problem for enterprises.

From the marketing environment, the characteristics of the network changed the traditional marketing model, in the traditional marketing model, the channel for the king, the terminal to win, so the traditional enterprises often to store number as an important indicator of its competitiveness, but the network has completely overturned the "channel for the King" of the traditional marketing concept. On the network, the number of sales shops and sales are not necessarily linked, so the core of the network sales is how to aggregate the flow of people, integration to upgrade the conversion rate of consumers and customer orders. This poses a huge challenge to traditional brands: first, the number of terminals is no longer, the consumer's choice is bigger; second, the information between consumers and brands is more balanced, which makes consumers ' buying behavior more rational and scientific. So this requires traditional brands from the traditional relatively extensive marketing model to switch to precision depth marketing model, which is a difficult problem for traditional enterprises.

Network sales and traditional offline sales of an important difference is the "breadth of marketing" and "deep marketing" difference, in the traditional marketing model, as long as the brand spread wide enough, strong enough, spread the goods channel is wide enough, the coverage is large enough to be able to retain a large number of consumers. But in the network marketing mode more is the deep marketing, because the network consumer's network consumer behavior's monitoring and the user real information availability, this has put forward the higher request to the enterprise Customer relationship management ability, The good network customer relationship management is the main measure to enhance the user's network consumption experience satisfaction and share the network shopping experience, which is also an important measure to improve the net sales and people's traffic. This is another difficult problem for the traditional brand of the line store as the core sales channel for the network customer relationship management.

Although there are many problems, but there is no doubt that as the Chinese netizens continue to grow, E-commerce market share will continue to grow. The new channel revolution brought by electronic commerce is the general trend. So why can the network sales of Li Ning, 361°, Kappa and Jack Jones be successful? This should be a focus of traditional enterprise research. Behind the success of these enterprises is the rise of a new model: The network sales agent model.

Network sales Agent: Enterprise E-commerce service provider

What is the network sales agent mode? In the network agent sales model, the network as a product sales channel, and this channel by the corresponding agents to operate, network agents like offline agents, responsible for the channel's product sales. At present, the domestic E-commerce agent model is mainly divided into two kinds: one is the brand of network sales outsourcing to a certain strength of the network sales agent; One is the company responsible for product control, the other specific operations outsourcing.

At present, the market has more influential network agents: Gusing (agent Li Ning and other brands), Wuzhou (Agent Kappa, Jack Jones, the United States, such as Granville), Mening (Deputy 361°, QQ sports, NBA, etc.).

The typical case that uses the network sale business outsourcing is Li Ning and 361°. Li Ning's e-commerce business has three core agents: Beijing Wuzhou Online, ancient star E-commerce, shopping Network and so on. These three core agents in Sina Mall, ebay Mall, Dangdang, Pat Net and Taobao opened a number of Li Ning online stores, by the three agents to agent Li Ning brand on the network sales business. 361° Choose Mei Ning, Ding Prudential, such as four network sales agents are responsible for 361° brand products in the network channel sales business.

The typical case of operating outsourcing is Japan's Uniqlo, Uniqlo was involved in E-commerce in the Chinese market in April 2009, while online with China's official shopping website and Taobao flagship store, the current Uniqlo Daily Online turnover of about 300,000 yuan, the equivalent of its offline performance of the best entity store in a single day sales.

Excellent Uniqlo will outsource all the functions of outsourcing, their own grasp of the core competencies, Uniqlo's own E-commerce team is responsible for including the brand and marketing, promotion, annual planning, quality and other aspects of commodity control work.

Network sales agent model of the rise, for the hope that the net enterprises to provide a fast lane, enterprises as long as the control of the goods can be, the specific network sales of actual operations by the network sales agents responsible for implementation.

How does the network sales agent model work? At present, mainly by the network sales agents directly facing the consumer sales model and the development of the network by agents to join the shop to face the consumer b2b2c mode.

Business-to-consumer Network proxy mode: Network replication of brand direct marketing model

Business Network Sales Agent mode is the network agents directly facing the consumer agent model, its advantage is to effectively shorten the distance between the enterprise and consumers, quickly and effectively start the brand network sales business.

In this mode of operation there are several important aspects to consider: the choice of sales platform, network marketing function positioning and product strategy, marketing promotion, store operations, logistics, after-sales service and customer relationship management.

(1) Network marketing platform Selection

There are two choices on the platform: self-built platforms and third-party consumer platforms, but taking into account the technical requirements and funding requirements of the platform, more consumer network sales agents adopt Third-party Network sales platform, which reduces the capital pressure of project start-up, On the other hand, it also accelerates the process of starting network sales. Of course, self-built platform and the use of Third-party platforms have advantages. Taobao released on December 18, 2009, "Amoy Outside" system, let self-built platform and Taobao platform data between seamless docking, so this for the enterprise integration of the platform and the advantages of Taobao platform to provide a good channel, enterprises can be "Amoy outside" from the establishment of shop platform, while sharing Taobao data and user resources.

(2) Function orientation and product strategy of network sales

The positioning of the network sales function is clearly related to the sales strategy of the product, and different functional positioning determines the different product strategies. From the current United States and Li Ning Taobao mall on the shelves of goods, most of the online sales of goods is inventory, priced more than 50 percent, and the sale of good merchandise is also these discounted goods, accounting for the overall sales of about 70%.

If the network sales function is only to clear inventory, then its product strategy should be low price promotion, to take the main; if the network as a product sales of a new channel, then the inevitable establishment of image products, cash flow products, running quantity products reasonable product matrix, otherwise blindly low price promotion, Not only can not bring the continuous development of brand network sales business, and the damage to the brand is quite large.

(3) Marketing Promotion

The advantage of network media lies in the integration of brand marketing communication and product sales, so the effect of network marketing communication is more effective and direct. The Network marketing strategy is to promote sales, improve conversion rate as the core purpose, so the network media resources and dissemination of information should follow the principle of 20:80, that is, 20% media resources for the promotion of brand image +80% Media resources to promote sales advertising.

(4) Shop operation

The so-called shop operation is the overall image of the shop design, product equipment, product description and customer service, such as specific shop operation. Marketing promotion Just solves the problem of the people in the shop, therefore, through the design of the store style to convey the brand image and value, through the consumer psychology of product equipment and persuasive product description and customer service guidance to stimulate the consumer's purchase behavior, improve the conversion rate of the store consumers, so that more people buy and buy more.

(5) Logistics

The network sale is different from the traditional consumer model "the hand pays the money single-handedly to deliver", therefore the logistics distribution speed is one of important indexes which determines the consumer experience. At present, there are basically two modes in solving the problem of logistics distribution: first, warehousing and distribution are outsourced, the advantage of this approach is the use of third-party companies in the warehousing experience, rapid and efficient delivery of goods warehousing, in the beginning, not only low-cost, but also will not affect the user experience. Second, warehouse self-built, distribution outsourcing. This is the way the current major consumer Web site generally adopted, and in the key Cities Self-built Logistics Distribution team, the advantage is low cost, can achieve rapid distribution, customer experience good.

(6) After-sales service and customer relationship management

After-sales service including call center building and return, the user to seek the convenience of after-sales service and exchange policy directly affect the user's brand purchase experience.

At the same time, an important work of network sales is customer relationship management, customer relationship management is mainly composed of two levels of work: on the one hand, to maintain customer relations, improve customer satisfaction; On the other hand, the user data mining, for network sales to improve more accurate database marketing.

Therefore, the Business Network sales agent mode is to copy the traditional brand direct marketing model to the network platform, by the strength of the network sales agent Agent brand network sales.

B2B2C Network proxy mode: Network replication in offline proxy mode

B2B2C Network Agent mode is by the network sales agent to develop subordinate agents, subordinate agents responsible for product sales.

The advantage of this model is to quickly spread the market, enhance the brand in the network sales platform exposure, quickly start the project.

In the model of B2B2C network sales agent, the application process of network sales is still the choice of sales platform, the function positioning and product strategy of network sales, marketing, store operation, logistics, after-sale service and customer relationship management. This mode and the business mode is not the network sales agent more than one development franchisee work, at the same time network sales agents and network Sales franchisee has a certain division of labor.

(a) Network sales agents Division of Labor

In B2B2C mode, network sales agents as a professional e-commerce solution provider, on the one hand for the brand based on the network sales goals to develop a network sales development strategy, on the other hand, to maintain the network to join the system to establish a stable network sales system.

Therefore, in this mode, the network sales agent is generally responsible for the business: the choice of sales platform, network sales function positioning and product strategy, marketing, development franchisee, logistics and so on.

(b) Network Sales franchisee Division of Labor

In B2B2C mode, the network franchisee as a brand network sales directly to the consumer terminal, their brand network sales system in the division of Business: marketing, store operations, logistics, after-sales service and customer relationship management.

In the B2B2C network sales agent mode, through the agent of the enterprise to copy the system to the network platform, through the network sales agents and franchisee cooperation, for enterprises to successfully carry out network sales business to provide professional solutions.

Network Sales Agent Model: the accelerator of traditional brand network sales

For most traditional brands, the main consumer groups have been online, if the effective system of enterprises or offline mode, then there must be a direct deviation between the sales channel of the enterprise and the target consumer groups, so whether the network as an important product sales of new channels to develop, Will determine the future market position and living space of the enterprise.

But the enterprise chooses what kind of way launches the network sale business, will decide the brand network sale business The development speed and the probability of success. Then, the formation of network sales agent model is to accelerate the start-up network sales business of a powerful accelerator, of course, how to use this accelerator, there are mainly the following four areas need special attention of enterprises:

1. Functional positioning and strategy selection

Positioning is the starting point for enterprises to participate in the market competition, but also the basis of marketing strategy. The enterprise launches the network sale also needs to carry on the corresponding network sale function localization, the formulation clear network channel product sale strategy, in order to clear the competition goal, achieves the resources optimized disposition. Because the characteristic of network marketing is different from the traditional marketing, it is more important to make the sales strategy of the products different from the traditional channel on the basis of the positioning of the network sales function The positioning of the network sales function is clearly related to the sales strategy of the product, and different functional positioning determines the different product strategies. At the same time, this is also to ensure that online shop and offline entity store harmonious coexistence, mutual promotion, to prevent the offline entity shop using the network "channeling goods" one of the effective means of balance.

2, optimize the business model

Any kind of business model is the social division of labor under the condition of technology and system. With the development of technology and the change of social environment, the mode of e-commerce will become more and more diversified and complex and complicated in the process of merging with traditional business. Enterprise's network channel and offline channel are not necessarily opposite, the key is how to integrate and balance. Therefore, the enterprise must have the market sensitivity with the times, the modern electronic commerce mode and the traditional marketing mode of innovative integration, in order to distinguish from the traditional channel distribution mode, the use of more optimized marketing methods to meet the needs of market competition.

3. Flexible organization structure

Competition is the fittest, when the environment changes, if any organization can not respond in a timely manner, the final result is only dead. In particular, e-commerce models are also changing and developing. All these require the enterprise that enters network to sell has flexible organization structure.

4. Transaction and integration of resources

The essence of business activities is the transaction and integration of resources. The prerequisite for enterprises to start network sales is to have the ability to fully integrate the internal and external resources of the enterprise, and finally to promote the enterprise to reach a successful transaction in the market. One of the most important aspects of resource integration is the integration of outsourcing agent resources.

Network is becoming a more and more important information channels and product sales channels, the future of network sales market must belong to those who have clear strategy, model optimization, organizational flexibility, resource integration capacity of strong companies.

Reprint please specify the blog from Cao Fanghua: http://blog.sina.com.cn/ivu1314

Cao Fanghua: Director of e-commerce marketing communications

Msn:fanghuacao@hotmail.com