Independent brand "Product Micro Cheng" electric business industry 3 years to see

Six months ago, after the Vancl IPO, the boss of the company postponed the IPO, and in the capital market, a failure of the electricity business, China's electric business industry actually ushered in the "micro-Cheng" opportunity.

This is a cliché topic: the brand.

From the home appliance industry, to the mobile phone industry, to the IT industry, to E-commerce, these industries have been supporting the development of China's economy, economic barometer, these industries have never been out of the circle-The independent brand. In other words: The Chinese people in these bustling industry has never really owned independent intellectual property rights, brand ownership of the independent brand.

And now, I think the electric business of the winter just is China's own brand "Cheng" opportunities, we look at the brand growth of the logic, soil problems.

1. The logic behind brand growth: a perfect supply chain

I was fortunate to have been with the most bustling industry in China 10 years ago: Mobile phone industry grew up together. In those days, manufacturing, now said: Assembling the production line is a huge challenge, waveguide Lihua from Germany to buy a set of mobile phone production equipment needs 3 million of dollars, they do not have so much money, so, Lihua used to be a research and development engineer born of the experience with all the engineers hands-on assembly, It took 800,000 yuan to assemble its first production line. And then quickly produce the first batch of mobile phones on the market, to seize the opportunity to market products.

What does this old story tell you? 2000 years or so in the Chinese market, although has been shouting "independent brand", in fact, the domestic matching has never been the soil of their own brands. The production line is not, the component is not, the talented person also does not have, these problems all cannot solve, where can do research and development? Why is there an independent brand growth?

Here's another story: BYD. Motorola because of the advantages on the battery, at that time, the cost of supplying a cell phone lithium battery to the waveguide requires hundreds of yuan, or even thousands of dollars, which is why BYD can grow fast, his price is 1/3 of Motorola, or even 1/4, their quality is slightly weaker, but there is a price-performance advantage. At the same time, he doesn't want Motorola to limit your purchases, and you don't supply batteries when you sell.

After entering the subprime crisis in the 2008, the situation is different. In the traditional manufacturing industry, such as: clothing, home appliances, due to the export market shrinkage, the domestic OEM/ODM capacity of a large number of idle, the original keen on behalf of the processing enterprises are looking for their own brand of the way out. This makes the market suddenly appear a large number of small brands, product ideas.

This gives OEM/ODM to provide the soil, want to do brand people do not need to capacity, production technology problems to torment themselves, this is the first condition of the growth of their own brands.

In fact, observers can see that China's E-commerce currently online brands, such as: Vancl, and so on, are overcapacity, supply chain perfect traditional industry started, which also has: Le Bee's own cosmetics, jingdong small household electrical appliances, Taobao on the thousands of such as lamps, shoes and other brands.

The perfect upstream supply chain is the basic soil that the independent brand can develop.

2. Direct space for brand growth: Low channel

Brand development in addition to representing the brand's products, services, the fundamental problem is to allow consumers to buy convenience (convenience), buy a good deal (cost), this sentence easy to say-all experienced in the manufacturing industry channel development managers should be clear, this means that a huge cost.

China has a very interesting place: Jinjiang, Fujian, the town is the city of China's sportswear, where small to a buckle, large to fabric printing and dyeing have a very good package, such as Anta, 361, and other brands are from here. 2008, I have been wandering here for a few months, and some business owners, to find an astonishing fact, they loan, borrow a private loan only do one thing-put CCTV ads.

This let me baffled action, in deep understanding found: Everything is so natural-no CCTV advertising support, agents do not purchase, no agent channels, brand development from where?

Because of this, I have a well-known leaf surname peer in Jinjiang has a very poor reputation-because he planned CCTV ads have killed several seemingly potential factories, brands.

And the emergence of E-commerce, its essence is a change in the retail channel, which makes a lot of want to have their own brand entrepreneurs see the opportunity. There are three main opportunities:

1. Due to the rise of the power market too fast, the end of the 2012 years are out of the seller's market, as long as you have the goods, especially the quality of some of the goods, electric dealers are flocking to, for example: In the past two years from the rise of the network of foot-kin, 2N, silk Pagoda, etc. in particular, the rise of group buying in 2011 completely let the traditional brand traders see the opportunity. Of course, this opportunity is fleeting, too fast, the traditional brand operators have not caught the opportunity, but some speculators make their money.

2 The electricity business channel because of the lax supervision, to the early stage does not have the mature brand operation experience supplier to provide the short-term opportunity. This led to a rapid growth of a number of brands, such as the growth from Taobao, Royal mud square, wheat bags and so on.

3 Traditional brands are also struggling with online retailing to disrupt their online mature pricing system, to get tired of, and even to boycott online sales-which provides an opportunity to directly create a brand to compensate for market gaps. For example: This period of VANCL is typical.

A word summary: The rise of the electric business Channel, to the independent brand to create a low-cost sales channels, and in the traditional brands have not figured out how to deal with online, offline conflict, the independent creation of the online brand to seize the opportunity of the rapid trend.

3. The root cause of brand growth: increased consumer demand

The above two points are about the internal operating level of the soil, all the brand growth of the fundamental soil or consumers. Taobao has a famous saying: 2004~2008 is "Amoy cheap", 2008~2010 is "Amoy convenient", after 2010 is "Amoy brand", which represents the maturity of the consumer's mind, the three wave of consumer behavior changes brought about by the results: a large number of users under the terminal line to buy Taobao cultivate the habit of online shopping. (Have to say, Taobao is the originator of China's electronic navigation, he has stimulated the development of the industry.) ）

2011, Taobao data show that China's e-commerce scale accounted for about 4.3% of the line of business size, referring to Europe and the United States, Japan more than 7% of the scale, China's e-commerce has a lot of opportunities.

It has to be said that the first characteristic of Chinese consumers is that the consumption of the herd (herding effect) is serious. The current online shopping is thought to be a popular, fashionable way of shopping, even if the bargain is also relish, which will bring far-reaching effects of consumer shopping behavior-gradually let offline shoppers have online shopping characteristics.

My wife is a warm-hearted person, she has a friend to do shopping on Taobao, she one day and a group of friends chatting, friends asked: can purchase from the United Kingdom back to love the new horse? My wife knows how to be a friend of purchasing, and said: no problem. 15 days later, when the new season of love Hermès (equivalent to RMB about 135,000 yuan) from the British purchasing back, the same period in China does not have this style.

From this we can see the net purchase to the consumer influence deeply. As long as I trust you, a large amount of luxury goods can be online shopping. The only thing that will survive.

Also summed up in a sentence: the consumer's online shopping behavior, the development of online shopping trends, will let the emerging brands in the E-commerce channel growth has a broad space.

Conclusion：

Generally speaking, do e-commerce people, people must speak mode, speech mode must speak independent brand. They are far from the low enough to support the long-term development perspective, in fact, the problem has to be the reverse thinking of the operators of electricity: that is: The trend of the rise of the independent brand is electronic commerce, rather than piecemeal, that: gross margin is not enough to develop their own brands, this will inevitably go to the "ditch", until the realization of the "ditch" , back again, late!

To do an industry to meet the Basic Law of an industry, as for the electric business thinking do own brand why not, decomposition.

In my personal view, 3 years time, the independent brand in the electric business channel depth of precision tillage, mastering the law will be the birth of several leading brands, this level, I took office of the Lok Bee Network is one of the explorers. 3 years, the gap will be opened, we wait and see.