Hundred Li's new strategy: Apply the experience curve to the electric business platform to purchase the network

"I draw a timeline, the leftmost is January, the most right is December, draw three curves, representing the distribution of the different time in the year, I would like to ask, three lines which line good?" "Excellent purchase of online shoe City COO Zhangxiaojun on paper drew a map of coordinates, asked the reporter with interest, among them, the deposit ratio is a traditional apparel retail enterprises commonly used in the index, the definition is that the current inventory divided by the ratio of sales, reflecting the current inventory sales ratio, the ratio is too high, occupy too much money, And the risk of inventory depreciation increases, the deposit and sales ratio is too low, it is easy to stock up, lost earning opportunities.

Excellent purchase network is the shoe giant hundred Li International investment in the electric business platform, in July 2011, as of March 2012, you buy online shoe city has more than 100 footwear brands, its 2012 sales volume is expected to reach 6.7 billion yuan. In Zhangxiaojun view, hundred Li gifted to buy the network not only in the capital, but more importantly, "stealth knowledge", such as a trend towards a perfect ratio of the distribution curve, no years of clothing retail industry experience can not talk about. And hundred Li years of brand, retail experience and the annual sales volume of tens of billions of determines that its optimal selection curve is probably the best empirical curve, "Hundred Li will be the industry's best experience curve applied to the optimal purchase network, however, according to the characteristics of the electric dealer sales, to revise, optimize it, and ultimately achieve reasonable financial goals.

Strategic "Insurance"

Traditional enterprises involved in E-commerce is not new, but the independent construction of a cross-brand corporate platform is not uncommon, and hundred Li International investment Network, its ambition in the Internet is not only to increase a sales channel so simple.

Belle is a "vertical integration" strategy of the footwear giant, covering product development, procurement, manufacturing, distribution and retail and other aspects of the whole. Companies are divided into own-brand footwear business and agent brand of sports apparel business, according to the Chinese Industry Enterprise Information Center Statistics, 2010, to sales of domestic women's shoes market ranked top 10, there are 6 brands belong to the company's own brand, Sen-Men's shoes in the market ranked first Agent Brand sports apparel field, including the first-line brand Nike and Adidas, the second-line sports brand Kappa, PUMA, Converse, Reebok, Mizuno and lining and so on.

Hundred Li 2011 Earnings disclosure, footwear business 18.533 billion yuan, sportswear business for 10.412 billion yuan, attributable to the shareholder net profit of 4.255 billion yuan, the current company's market value of more than 125 billion Hong Kong dollars. In terms of income ratios, Belle played a lot of roles as a retailer, and as of 2011, Belle had 14,950 proprietary retail outlets in the country, and was well aware of retail management. It is precisely because of such close proximity, a wide range of contact with consumers, hundred Li on the changes in consumer demand is very sensitive.

But inwardly behind, hundred Li has the profound sense of crisis. In fact, the Shong brand, the whole chain of business model, and China's general merchandise industry "commercial real estate" profit mechanism is closely related, shopping malls commonly used "water inverted" form, not too much involved in the operation, hundred Li do a good brand, can be negotiated with the market, in the vicinity of the rent bunk, and then a brand, Forming the polymerization effect. Now, things slowly change: a large number of international department stores using "buy hands", by the market for brand operation, before, hundred Li own or agent of the brand more powerful, become a must election, but as the brand increasingly diversified, competition day drive fierce, Nike, Adidas and the like because the lower point is no longer for department stores sought after. So is this going to shake Belle's standing?

Under-line retailing changes are taking place quietly, so Belle is particularly concerned about the value of E-commerce. According to the CMO Xu Introduction, in fact, Belle early in 2008 began to test the water line on the business, "first to do is Taobao, hundred Li is Taobao Mall opened on the first batch of the traditional brand to enter, but also Taobao shoes first; After a period of time, began to do the consumer distribution, to some consumer platform supply , and then it will do a separate official website-Amoy show, Amoy show positioning is the official E-commerce site, a bit with Haier Mall, Lenovo Mall similar, until the first half of 2011 only sell their own products, agents are not sold. ”

When good buy, Amoy and other professional footwear consumer platform appears, hundred Li's decision-making began to think, itself can have the conditions to do similar things? If so, is the CEO looking for a professional e-commerce person? According to the company insiders said, at the beginning of 2011, Belle decided to run an independent business platform by a more experienced operator, and chose Xuejun because "Zhang, who has been a CEO for many years, has a great advantage in resource mobilization within the group and has long been in charge of emerging businesses, In the group's internal understanding of the electrical business is in place. April 2011, Xu and Zhangxiaojun joined the management team of the network, prior to their respective positions as Jingdong Mall and the vice president of the goods.

In the hundred-Li line strategic layout, excellent purchase network is undoubtedly an important piece, but not the only. In fact, Belle's online strategy chooses the three-party layout, Taobao's electricity business is still continuing, and there is no stopping the supply of other platforms, "the network is one of the hundred 3 parallel electric business projects, and the existing storage facilities are shipped to two other items at the same time," Xu said. The significance of Tesco to Belle, roughly equivalent to the purchase of a strategic "insurance", in the drama of change in consumption form to ensure that they will not be absent.