Hundred Li + Excellent buys the network, the electricity trader appears the new pattern

At present, is the biggest challenge for the network is to whether in sourcing, capital and talent, etc. after the first advantage, to find the foothold of continuous innovation. Recently, the online with more than 10,000 proprietary shop "shoe king" hundred Li, the same "channel for the King" and "multi-brand management" thinking, so that online sales performance by leaps and bounds.

July 15, 2011, by the Hundred-Li investment of its footwear platform-type consumer shopping online line, only less than 1 years, the daily average of the purchase online more than 7000, and sales of nearly 600 million yuan. At the same time, the hundred Li in the cat's 5 official flagship stores also performance, the target will reach 800 million yuan.

In the face of the traditional enterprise to do the power of such a rapid momentum, this is the hundred-Li E-commerce after nearly a year of low-key adjustment, to kill into the overall situation of the new strategy. In the industry's considerable concern, there is also a team of excellent network: Hundred Li CEO Assistant for many years, is responsible for the emerging business Xuejun the CEO of the network, the former Jingdong mall vice President Xu and Van Zhangxiaojun vice president of the network to join the management team, respectively, as a network of excellent purchase CMO and COO.

Footwear in the vertical field of E-commerce, a high-quality sourcing, financial support and talent team, can quickly attack striking? How to find a better innovation to maintain sustainable competitiveness? Hundred-Li's e-commerce is undergoing such a test.

Strategic layout

In the field of e-commerce, the race enclosure determines the speed and altitude of the future development to some extent.

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, as well as Taobao and the platform's distribution system as a supplement. 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 purchase Network", the current amount to the account of 100 million U.S. dollars. Excellent purchase of the network is a wholly-owned operation, the future does not exclude the introduction of external capital--CMO Xu stressed that the capital here must be to the company's operations to help strategic investors, not just financial investment. For example, investors who can bring in huge flow, or the supply chain to swim up and down.

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 men and women shoes, excellent purchase network has a number of hundred Li's 10 brands of natural advantages. For sports footwear more than the agent brand, Belle Strategy is can be distributed, but only two methods, one is to take the open platform route, by the hundred-Li unified delivery, and the second is the distributor can directly buy goods. And the fact is that these two seemingly relaxed conditions, in order to Nike, Adidas and other distribution channels and no obvious advantages, on the one hand, we are not willing to give their own customer data, on the other hand, for various types of financial chain tension of the consumer, very few people will directly pay for stock. And all this strategic adjustment, led to the hundred Li Electric Company now almost suspended distribution business.

It is not difficult to see that the vagaries of the electric business environment to make hundred Li's electric business strategy constantly adjusted. Recently, the cat's official flagship store strategy is the case. With the mechanization of Taobao gradually replaced by the second small two to combat corruption, Xu told reporters, this is a big brand of the damage to the business is very high. "Taobao store Once the difference is more, small two a look at and technology say hello said limit flow." So in order to ensure the flow, reduce the difference in the evaluation, the current Taobao return rate than the superior purchase is still high. ”

In fact, the hundred-Li Electric business is basically rely on the Sky Cat, Cat flagship store's goal is the size and growth-the days of the cat is equal to use hundred Li's gross margin to do the electric business, need to advertise, but do not need overwhelming, profitability is very strong. But in the future, hundred Li think that since Taobao shop has profitability, to do profit and loss-oriented, 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.

If you encounter an extreme problem: If a batch of goods, the cat, you can sell, sell all good, priority who? "This business is very clear, because the entire hundred Li Electric business's future, the real is in the superior purchase above." "Xu bluntly, let both large scale growth is difficult, this case, the cat shop on the profit and loss to ensure a certain profit margin; you buy nets to do scale, because it is to fight for new users, can endure short-term losses. All the priority to buy the network.

Synergy of advantages

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. "The Cat and the best Buy is actually a inventory, we from a node in the system apart, essentially like shared warehouse." This efficiency is the highest. "Xu said.

"The website hundred Li Independent brand of shoes, we share the hundred Li supply chain replenishment mechanism." So we also do not have to order a lot, really sell a very good time, you can hurry to fill the list. ”

The life cycle of footwear products is usually 3-4 months. Back to the hundred-li this tree's excellent shopping network, fully the advantages of synergy to the line. Theoretically speaking, the hundred Li traditional line replenishment mechanism can do 20 days, the network can do 1 months-although slow more than 10 days, but this is compared with many enterprises, has a considerable advantage. Because the shoe industry itself is a futures system, set how much is how much, many enterprises simply do not have the means to supplement the goods. "But we sell for two weeks, we can see which style is very good to sell, can calculate whether need to replenishment." According to Xu revealed that the current hundred Li Independent brands are usually 10% of the SKU will be the replenishment.

For online business, many traditional enterprises as sales of tail goods, cleaning up inventory sales channels. Excellent purchase network now has 20,000 SKUs, of which sports footwear accounted for 5000-6000. Hundred Li Independent brand shoes 70%-80% are new, Agent brand Nike, Adidas is more than 50% new-there are two reasons: a Nike, Adi is an agent, agents are not as strong as the control of their own brands. In addition, Nike, Adi's products are not fashionable, relatively standardized some. "Basically we have 80% of new goods, and the remaining 20% and 30% are doing some special deals." "Xu said.

Many traditional enterprise net encounter the price system conflict is not uncommon, they mostly from dealers and agents of the interests of the complaint. For hundred Li to build the channel to sell the company, itself offline gene has been weakened agent distribution business, no doubt to the line to manoeuvre more space.

There is also a problem is that footwear products of the season, regional obvious. In the early May, new sandals began to begin in the northeast, and South China had already begun to cut prices. It is not possible to do the same price in the country at the same time, "We are going to follow the delivery price when we just got online." "and hundred Li Independent brand has a characteristic, is its own men and women shoes, each large area of goods coincidence rate not more than 60%, excellent purchase network is the national coverage, to some extent also alleviate some of the problems."

At the same time, a strong supply chain to the hundred-Li E-commerce brought convenience. Women's shoes Fareno, male shoe is the best brand on the Internet. Their models and production are all by the hundred Li Traditional supply chain completed, that is, the hundred Li Electric Company to choose their own money after the improvement to create different styles. The cost of the conversion itself is relatively low, quality is guaranteed, but will be cheaper to market-oriented, breaking the original price system restrictions.

How to Innovate

There are always people in the electric circle ridicule, excellent purchase network is not relying on goods, money, people hit down? Only "Monopoly hundred Li Independent brand" one, it is enough for a period of time to check and balance like good buy, Amoy such a footwear platform to the consumer. How to evaluate a traditional brand enterprises to do E-commerce level? "I think it depends on the company's control and understanding of the electrical business." "Xu said.

In the business world, any enterprise to make full use of its own advantages to the victory of horse Rodeo is understandable. But from the point of view of the electric business, the early start, by virtue of good goods, capital background and talent to speed up the pace of rapid development in the short term to accelerate the formation of potential energy, catch even beyond the previous participants, is not a matter of peace and worry. When the enterprise develops to the middle and late period, 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, must have the more solid supply chain and the team level operation talented person.

"For example, when you start to have experience, but when the business is bigger, it is not what we can expect, we need the help of the whole team." The same is true of goods, at this stage, the independent brand accounted for 35%, the future goal is to include agents and the independent brand, Belle goods below 35%, at that time to see you have not, like a channel brand to go with other non-Belle brand to talk about procurement agreements, take goods and do sales forecasts. Xu Frankly, this is an excellent purchase network needs to face a ridge.

Within the pecking order, Xu and Zhangxiaojun are already implementing several inferred models. such as control, user consumption value Index, marketing budget and so on.

Take cost prediction and control as an example. Xu to reporters on the whiteboard to demonstrate the logic of the purchase, at present, one of the highest cost of a business enterprise: Marketing costs, logistics costs, customer after-sale costs, human costs and so on, "we clearly know a business enterprise at different stages, the cost of the composition of the scale and profit and loss, How should these cost changes change? ”

There are many empirical values for the cost. Their models will be adjusted according to what the boss says they need to make a profit, according to a reasonable estimate of what the sales will be in the year. "We have so far, although Tesco has done less than a year, but every month to achieve sales forecasts and profit and loss forecasts, which I believe very few companies can do, the forecast is very good." "Xu said.

The other thing is that Tesco is doing a consumer value index. Xu said that the company finally through orders, sales to reflect. But in essence, by the user to complete the order and generate sales-excellent purchase within each month will make a user table, through dozens of indices, 7-8 large dimensions of 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? What is the frequency of use? Some of these will be extra points and some will be cut. But by scoring and sorting these users, they 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.

"According to user consumption capacity, frequency, loss to cooperate to make a real next year's Sales Forecast table, and then to the various categories." For example, based on this forecast, coupled with market costs, we can calculate the assumption that next year's target of 1 billion of sales, the amount of each category, so as to guide everyone to order, the accuracy will be higher. "Xu.

For Belle, e-commerce strategy is a long-term strategy. "We do not pursue short-term interests but pursue more benign and controllable business," said the chairman. In terms of sales, or strategic development. Under the circumstances, the learning cost of the network is lower than that of other peers, but how to pursue the scale under controllable circumstances, hundred Li also needs the continuous innovation practice to express their understanding and control of E-commerce.