E-commerce: The PK battle between network brand and traditional brand

In a few days ago, "domestic two or three line brand competition is the network brand" issued to go, and constantly have friends and I explore this question: Network brand will KO traditional brand, or traditional brand will be a victory over the network brand? This question Cao Hua will answer in the following.

In Bowen "Local two or three line brand of E-commerce development strategy" I proposed the traditional brand development of E-commerce two foothold, ready network brand potential energy, the layout of E-commerce in the future.

Facing the fierce network brand, the traditional brand of eager, the market will be a kind of lake? All this is based on a basic premise: how should enterprises conduct e-commerce?

Cao Fanghua that network brands in the development of E-commerce advantages:

1. Flexible pricing strategy. Network brand based on the network, so only in the network like a brand, if the traditional brand value assessment, these network brand is just a trademark, a logo just, if it is a brand, it is only a very small minority of the brand.

Because of the grassroots of the network brand, he can operate more flexibly. The traditional brand's tone is to be both a prostitute and a memorial arch, network brand is for sales, is to make money, so there is not much concern.

and network brand sales channels exist only in the network, there is no intermediate link cost, so can be based on seasonal changes, consumer hot transfer, consumer word-of-mouth and other factors flexibly adjust prices.

2. Flexible product strategy. Network sales of the core consumption hot key is the price and style, the previous mentioned network brand has a flexible price strategy, in the product style also has a flexible strategy.

In traditional marketing, there is a proven way to beat competitors, that is, the same function, the price halved. This tactic is often seen in the PK and nice of Procter and Gamble.

But in the online marketing market, let model competitors come more quickly and timely, and there is no intermediate link, so can be copied competitor's best-selling products, and then take the price winning way to win the market.

At the same time, based on the grassroots of Network brands, network brands can do to let luxury no longer crave, how to do, it is to imitate the international big-name products, the price of these big one-tenth.

3. Light Company operation. Since the emergence of PPG, Light Company has become a topic of conversation, but after PPG accident people have been reflecting on whether the light company can not afford the heavy business.

But the emergence of network brands to the light of the company's advantages played to the extreme. They do not have a huge offline sales system, no strong production plants, they have only fashion buyers, network marketing, supply chain management and other links.

So Light Company operation on the one hand to enhance the company's operational efficiency, on the other hand for the product price and product line adjustment more flexible, there is no offline channels to contain.

The above three advantages for the traditional brand is the network brand competitiveness, then the traditional brand is not dead? There is a very solemn fact:

The current core market of local brands is mainly concentrated in the 234-line market, while the core consumer of online shopping is in one or two-line cities. There is a big dislocation. Recognize that you are a brand of consumers not online, online consumers do not recognize you are a brand. This determines the traditional brand of Internet access is very difficult, but network sales is a big market, who do not want to miss the market opportunities? What about the traditional brands?

If only to achieve the brand online, then the inevitable price war is inevitable, we simply think about it will understand that many of the local brands in the hearts of consumers itself is not like a brand, why do I pay for your pat added value?

What are the advantages of traditional brands in developing E-commerce? Cao Fanghua that the following points:

1. Capital Advantage. The traditional brand capital operation ability generally is stronger than the network brand, therefore has carries on the electronic Commerce The fund safeguard, the local brand carries out the electronic commerce to carry out the millions of advertisement budget, even the Fujian certain sports brand outside the so-called 2010 year electronic commerce advertisement budget is 10 million.

And for the network brand, their funds are rolling, perhaps next month's advertising costs to rely on this month's sales, bet the wrong one on the face of funding shortages, cash flow fracture problem.

2, Production advantages. Traditional brands generally have their own relatively mature production line or agent processing enterprises and product management system, so in product development and production than network brands have more resources can be integrated.

3, the traditional enterprises to carry out the high starting point of E-commerce. In addition to capital, generation and so on, the traditional brand E-commerce can be introduced from the beginning of a sound brand management system, to standardize the operation, and the network brand more is to take a step to see.

But in the network sales of this world, we see a network brand bag, a sales of more than 1000, a network of shoes a brand of sales hundreds of double On the other side we have seen a lot of traditional brands pay high salaries to recruit E-commerce Director, High-profile launch of network sales, but the results are probably not enough for the director's annual salary.

Price war for the network brand is a killer, but for the traditional brand is a double-edged sword, on the one hand hurt and brand image impact offline sales system, on the other hand it seems to be the traditional brand to expand e-commerce life-saving straw. What to do?

Cao Fanghua that the traditional brand and network brand direct competition, the last injury must be the traditional brand, because for the network brand, barefoot is not afraid of shoes. How does a traditional brand win this PK battle?

Cao Fanghua suggested that local brands must first look at their own status when conducting E-commerce:

If the traditional brand as a local brand, such as sports brand Li Ning, clothing field of the Seven wolves, their e-commerce strategy should be a network of special funds, based on the characteristics of network consumers, the development of a dedicated network sales products. Use the Network Special section to layout the big future of electronic commerce, without hurting the brand image and offline system.

If the traditional brand of the local two or three-line brand, then his approach should be to establish a network of direct brand, traditional brands and network direct Brand Independent, through the integration of the advantages of traditional brand resources, effectively expand the network direct marketing market share. Through the traditional brand flagship line fashion, sub-brand flagship online market, written in the market encirclement, the layout of E-commerce in the future.

Network brand is fast rising, traditional brands are eager to, the traditional brand and network brand PK War will be in 2010 fierce war, if you do not want to die in the network, please think twice.

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