Excellent purchase network: A new idea of vertical electric business

Whether in sourcing, capital and talent after the first advantage, to find the foothold of continuous innovation, is the biggest challenge for the network.

July 15, 2011, by the hundred Li Investment shoes platform-type consumer purchase online line. Less than 1.5 time, the network has realized the cumulative purchase of 700,000 users, sales of more than 2.4 million items, daily orders more than 6,000 single, is expected to sales nearly 600 million yuan this year. If add hundred Li in the 5 official flagship store on the day cat, it is expected that 2012 hundred Li Whole net sale target will reach 800 million yuan.

The rapid outbreak of the network, although there are hundred Li Line brand, channel and supply chain of strong support, but it in the electric business layout of the strategic choice also played an important role. In the face of the traditional enterprises become more ferocious tide of electricity, the rise of the electric business can not only make Belle not online channels behind others, but also it to maintain business growth is an important investment direction.

Backed by Belle

In 2008, Belle found that E-commerce is a traditional enterprise must go to the path, at that time through the sale hundred Li Independent brand "Amoy Show Network" to kill into the power of the army, at the same time Taobao's official flagship store and the distribution system of the platform to assist. However, after several years of changes in the electric business sector, the company's net strategy has intensified and restructured.

The new e-business strategy of the whole Belle group can be divided into two parts.

The first is independent business-to-consumer. In order to accommodate more hundred Li Products, including independent brand and agent brand, hundred Li Group invested 200 million U.S. dollars set up a footwear consumer platform "excellent shopping Network."

The second part is the day cat. Belle in the cat has a total of 5 core flagship stores, taking the 4+1 operating mode. "4" respectively refers to sales of women's shoes, men's footwear, sports and other footwear products shop, "1" refers to the March this year just on the line of the best shopping day cat official flagship store. These days the cat's shop, completed in 2011 less than 200 million yuan sales, is expected this year will double to 400 million yuan.

In fact, the hundred-Li Electric business is basically rely on the day cat, the cat flagship store's goal is the size and growth, but in the future, Belle think since Taobao store has profitability, on the basis of profits and profit and loss, no longer the pursuit of scale growth. Because the purchase of the Internet, it can be in the "Chong scale" on the open Xinjiang expansion. Day cat to make up for the loss of the network.

The formidable strength of the Belle group comes from its own brands and other brands, and it is a business model with few distributors and all proprietary shops. Years of accumulation so that the company fully occupied the channel and supply controllable advantages, the supply chain of strong resources to make too many companies difficult to contend with.

Because of the large amount of the network, it has now begun to use the group's supply chain advantages, into the various groups of the order phase. For example, hundred Li a total of 10 regions, in the new goods order, the network can represent the hundred-Lai electric power to become the 11th region to participate in, to set the annual purchase plan, quarterly procurement plan.

Innovation and Development

There are always people in the electric circle ridicule, excellent purchase network is not relying on goods, money, people hit down? But in the business world, any enterprise to make full use of its own advantages to the victory of horse-enclosure is understandable. Electric business enterprises in the early stage, by virtue of good goods, capital background and talent advantages to speed up fast, can form accelerated potential in the short term, catch up with even beyond the previous participants. When the enterprise develops to the middle and late stage, the goods good, the money is many, the person strong marginal advantage will gradually decline, this requires the enterprise must maintain the strength, has the innovation.

Within the Tesco, CMO Xu and COO Zhangxiaojun have been implementing inferred several models, such as cost control, consumer value Index, marketing budget and so on. Take cost prediction and control as an example. The number of various costs have a lot of experience value, the net will be adjusted according to profit expectations, according to reasonable projections if the earnings of the year will be how much.

In addition, the network is doing a user's consumption value index. Within each month, you will make a user table, through dozens of indices, 7~8 a large dimension measurement, to the current strategic development to the user rating. For example, what is the maximum amount of user orders? How much is his gross profit margin? Did he use coupons? By scoring and sorting these users, you can clean up the increase and decrease in orders and sales and the quality of the users every one months.

For example, Tesco now has 350,000 users, after scoring will be a large sort, according to the horizontal axis fractional value, ordinate number of the shape of the numbers, to get a like normal distribution of a graph. If you find that April is more than the March curve above the right, it shows that the user's quality is also improving while the user is increasing, whereas vice versa. This approach, in conjunction with monthly promotions and activity plans, can be a good predictor of the quality of a particular marketing behavior and help with sales forecasts.

Due to the market's query of vertical business, Zhangxiaojun said that the network has no longer insisted that only the vertical electric platform as its only direction, its other development goal is to become a vertical category of channel brands, including both Tesco, but also in the days of the cat, when the integrated platform for the purchase of the flagship store. And as more and more traditional enterprises to develop electric business, excellent purchase with the accumulated operational experience, technical system capabilities to assist them to enter the electricity business channel is also its next to develop one of the business.