How does e-commerce website of Chinese electronic retailer influence Chinese factory?

Sina Science and technology news July 29 morning, the United States authoritative E-commerce magazine "Internet Retailer" (Internet retailer) recently to "a Chinese electronic retailer E-commerce site How to affect the Chinese factory" (How a Chinese E-retailer Influences Chinese factories) as the topic, reported the Cross-border E-commerce company Orchid Pavilion Set potential (LightInTheBox).

Compiled as follows:

Guo often told his employees not to think of Lightinthebox.com as a local company, but as a global enterprise originating in China. The goal of the E-commerce company is to seize on the fast-changing web trends, use China's vast manufacturing base, produce hot goods at low prices, and sell it to online shoppers across the globe via the Internet.

In the eyes of the Chairman and CEO of the Orchid Pavilion, China's era of mass production at low cost is over, and instead, Beijing's retailers usually give small orders to factories to deal with consumer preferences that may change at any time.

"We do small orders directly from a lot of Chinese factories, so we can provide consumers with a wide variety of goods and, in many cases, custom services." Guo went to disease to say. He founded the Orchid Pavilion in 2007, before being the top of Google and Amazon.

Orchid Pavilion has developed its own technology, designed to find other people are not aware of the trend of shopping. "The web crawler we develop can crawl a lot of websites and find signals on social media to determine what products will appeal to people at specific times and in specific areas," he said. Guo went to disease to say.

The technology helped the pavilion to notice a growing demand for led faucets five years ago. This faucet will change color as the water temperature changes, "the faucet becomes the best-selling commodity." Guo went to disease to say. Although other electric dealers are also selling these led faucets, the Orchid Pavilion is still at the top of Google's natural and paid results.

In order to cope with the change in demand, Guo has to persuade China's factories, so that they according to customer demand to produce some style updates and order less products.

"When we order taps from manufacturers, they keep telling us that the minimum order is 5000 or 10,000 items." Guo went on to say, "I asked them why, they say, molds are very expensive." Why are molds so expensive? They say because they need to make a mold that can make at least 10,000 items. Guo went on to say that he had persuaded the factory to produce molds that could only produce 100 pieces of products. These molds are cheaper and he can therefore test new products.

"People now want to diversify their products and their tastes are changing very quickly," he said. "Flexibility is more important than size and cheapness," Guo said. ”

From the outset, Guo's idea was to sell Chinese-made goods overseas, such as wedding dresses and dresses, because Chinese factories could produce custom-made goods at lower cost. Although the Orchid Pavilion has a Chinese-language website facing domestic consumers, the company's revenue in 2013 was 62.5% from Europe and 18.8% from North America.

Orchid Pavilion is the main power of the site-sales of clothing and household items lightinthebox.com, as well as the sale of electronic products and tools miniinthebox.com, are translated into 27 languages. Not only is the website and product description, even customer service and marketing is also performed by native country employees, Guo said.

In Guo's eye, the global vision is the Orchid Pavilion is very important strategy, which allows him to sell a lot of long tail goods. In any single regional market, these goods may not produce enough market demand and profits, and traditional stores will not be able to purchase and sell. "These long tail goods do not have a large market in a single area, so it is very difficult to use them for offline sales." "But if we aggregate long tail demand on a global scale, we can make these goods produce outstanding commercial value." ”

Guo went on to say that as of the end of 2013, the Orchid Pavilion has 1426 employees, part of the Chinese graduates with foreign language skills, and partly expatriates who come to work in China, who serve consumers all over the world. In addition, they supplemented a number of part-time staff who live mainly in Europe, who will continue to provide localized services after full-time employees leave work.

The Orchid Pavilion has grown rapidly, with revenues rising from $26.1 million trillion in 2009 to 2013 years of 292.4 million dollars, with 4.29 million subscribers and One-third sales from repeat customers.

Based on optimism about the future, the pavilion set up its second-quarter revenue forecasts, from $84 million trillion to $86 million trillion to $86 million trillion-88 million dollars. That means the company's quarterly revenue will grow 20% per cent year-on-year.

Looking to the future, Guo went to see other internet retailers-including Amazon and British clothing retailer asos---in more and more countries do not have to run the physical stores, as the Blue Pavilion set the potential to do the same. "It's a rare thing and a new trend," he said. But I expect it to be the default option for any E-commerce company in 10 or 20 years. Guo went on to say, "We started the Cross-border e-business very early, and I am very optimistic about the future." We are in a unique position. We are the pioneer of this industry, is one of the few listed companies. We have a global gene, and we know about the Internet and the supply chain. We can take advantage of China's cost advantages and have the talent pool in the US and other countries. ”

' That's why he told the staff not to take the Orchid Pavilion as a Chinese company, ' Guo said. (Lin)

Company Profile:

Orchid Pavilion Set Potential was founded in 2007, is an E-commerce company, its lightinthebox.com is China's domestic well-known international trade website. The company has more than 800 employees in Beijing, Shanghai, Suzhou and Shenzhen.