Lativ: Not the boss of the electrical business logic

The starting point of Lativ's business model is to focus firmly on the two key words "Taiwan" and "National costume". "Taiwan" is the cornerstone of the Lativ business model and the starting point, almost all of the design of the model tightly around the Taiwan two words to unfold. and "National Costume" is the brand core value which lativ meticulously constructs, through the product design, the price range and the brand image creates its very distinct brand recognition degree.

Lativ: Not the boss of the electrical business logic

Shi Zhang Qiang Bunan

Lativ, the Chinese name of the international, is called in recent years in the electric business of a wonderful flower. Founded in 2007, the Garment Electric business enterprise, in the establishment of the year's turnover of only 10 million NT dollars (about 2.13 million yuan), the following year turnover rate of 1000%, the third annual turnover has reached 370 million NT dollars (about 79 million yuan). By the year 2011, Lativ garments sold up to 14 million, with turnover exceeding 4 billion NT dollars (nearly 1 billion yuan). Why is the Lativ business model getting nearly 10 times times a year, and how many mysteries are there? is well worth exploring.

Lativ's business model, the author believes that the key to its success is not how sophisticated its products, not how cheap, not how efficient operation, but its positioning precision and focus.

The starting point of Lativ's business model is to focus firmly on the two key words "Taiwan" and "National costume". "Taiwan" is the cornerstone of the Lativ business model and the starting point, almost all of the design of the model tightly around the Taiwan two words to unfold. and "National Costume" is the brand core value which lativ meticulously constructs, through the product design, the price range and the brand image creates its very distinct brand recognition degree.

Positioning: To Taiwan as the cornerstone of the national costumes for the brand tone

Lativ is not going anywhere in Taiwan, and is meeting Taiwan's most mainstream 25-45-year-old urban wage earners. It seems that the age span of this group is large, but this group of Taiwanese consumers not only the aesthetic and consumption habits are very high, but also represents Taiwan's mainstream consumer habits. and its "National clothing" brand image, is also constructed in this group of consumers: on the one hand, to meet the needs of these consumers is to meet the needs of the mainstream community in Taiwan, but also on the "national", on the other hand, in response to this group of people's living habits and consumer demand defined and created the selling points and characteristics, also fully embodies its "National Sex".

Products: Taiwan to make less style low-priced

Lativ is also in the satisfaction and sublimation of this group of consumer demand based on the construction of products and even the company's selling point. Makes its brand very consistent with its positioning and distinctive features:

"Pure Taiwanese manufacturing", Lativ promises that all products are produced locally in Taiwan, while satisfying consumers ' potential for quality, (Taiwanese consumers think "local manufacturing" is synonymous with "reliable quality"), on the other hand, this selling point implicitly implies Taiwanese consumers ' love of local sentiment, This sentiment gives Lativ a lot of extra points.

"National style", lativ not chasing fashion, but sales of perennial best-selling money. For example, Lativ's men's long-sleeved polo shirts have 28 SKUs, all of which are based on the same design, but differ in color and pattern. These styles are not going to make a big adjustment every year, and fine-tuning the existing models, a product-line strategy similar to Uniqlo's, is proving to be a good fit for the mainstream middle-class community in Taiwan. So that lativ do not have to spend every year chasing the trend, but can focus on product quality control, more importantly, these "national style" to lativ the entire industrial chain operation in a relatively stable state, reducing the new members because of the new link to the cost of the running-in.

"Low price", for Taiwanese families who have been affected by successive economic downturns in recent years, the attraction of low prices is undoubtedly very strong. Even if all of Lativ's products are produced in Taiwan, the price can still be controlled more cheaply than the mainland counterparts. A similar style of ladies down coat price of 266 yuan, and every customer similar products for 299 yuan to 509 yuan. And its a long T-shirt equivalent to RMB 30 yuan, this price even in the mainland is very competitive. The reason to do so low price, one of course is Lativ product line width control properly, make the product purchase quantity stable, the experience curve achieves the low point, also saves the very big design cost to be related; But more importantly, Lativ did not put a large amount of advertising, also did not invest the big cost in the logistics, did not have the establishment shop, Propaganda, logistics three huge cost, the price of natural more calmly.

Operations: An operating model rooted in the characteristics of Taiwan's local market

From the operation mode, Lativ completely according to its own positioning and Taiwan's market characteristics to build a core advantage and outsourcing business model, in short, there is nothing to do. There are: website operation, marketing, product line control and customer service, there are not: advertising, production, logistics.

Lativ is a pure "electric business" enterprise, around the electric business, Lativ will be a large number of resources into the operation of the site, product quality control, Word-of-mouth marketing, outsourcing relationship maintenance and customer service. Product design, price, quality no longer repeat here. In the website aspect, the Lativ website design is concise and sprightly. Architecture completely around the consumer's shopping habits, level two page only men, WOMEN, KIDS, style four, so that consumers enter the site after very convenient to find the goods they want. All the Merchandise page, then used a lot of space to introduce each of the details of each product, and even include how to match the different costumes, very much in line with the contemporary female otaku online shopping habits. And in the color of the page and the choice of the model is also very exquisite, Taiwan's local model is the main page, while browsing for a long time will not hurt the gradual gray. These details are configured so that the entire Lativ site presents a very pro-folk style.

More importantly, Lativ has detailed the self-help solutions for various issues on the official web site, and each of the solutions will detail the handling methods in various situations, which embody the service attitude and service spirit required by the Taiwan market. For example, Lativ's return column lists 10 questions to help consumers quickly retrieve them in the form of q&a (see Figure 1). And on some important issues, such as the need for the return of cartons packaging, Lativ also through the intuitive carton size pictures to help consumers better deal with the return (see Figure 2).

Figure -1:lativ Return page index

Figure -2:lativ Return carton specification requirements (7-11, family, Lerfoux, OK Super Convenient channel)

In contrast, although every guest and other domestic electric business enterprise's explanation also in unceasingly consummates, but more is stands in own angle to explain, in the detail grasps and Lativ also has the not small disparity.

The site operates entirely on the basis of satisfying consumer habits that are critical to Taiwanese consumers. I believe Lativ has invested a lot of manpower and resources in its website operation.

But in the dissemination aspect, Lativ did not choose the advertisement to pull the dissemination pattern, but chose relies on the low cost word-of-mouth dissemination to create the brand propaganda pattern. This and its foothold in Taiwan is inseparable: first, Taiwan's society is relatively closed, market information dissemination is very fast; second, the Taiwan market is more mature, advertising more play a role rather than guidance, the role of Word-of-mouth is significantly higher. One of the more distinctive things in Taiwan can soon be spread across the island. And Lativ is the use of this feature, focus on Word-of-mouth construction, will be propaganda in the product and website details to build, both economical and effective. Tencent Technology reported that its website repeat purchase rate in 80%, directly explained its effect.

and logistics outsourcing more embodies the lativ based on Taiwan's strategic characteristics: full use of Taiwan's strong logistics network, to build a wide range of logistics system, to achieve speed and cost balance: Lativ full use of Taiwan's strong Third-party logistics system and the entire island of the convenience of the super system to do logistics, From the speed of the island to ensure that the next day can be delivered home, at the same time logistics all outsourced, do not have to build a DC warehouse, greatly reducing the logistics investment.

It can be said that, rooted in Taiwan, so that lativ in the operation of the more daring outsourcing the part of the not good, and focus on their own needs of specialization.

Revelation: Does electricity business have to be a life-and-death?

It may be said that the Lativ do this from a tactical level, the mainland's electric dealers do, and Taiwan's electricity business is not enough competition, the business environment more mature, so lativ nothing great. Indeed, from a tactical point of view, Lativ is just doing it, and the mainland's counterparts to do a lot. But the author must emphasize that Lativ's success, the most critical factor is not tactical, but the strategic level: not to be the eldest, but to develop a sophisticated business model. Precise definition of the market, the precise definition of their core strengths, not hesitate to outsource, around the market and resource allocation to set management capabilities. Some people may say, this is not the classic STP? Yes, to be the boss of the electric business environment, Lativ adhere to their small and exquisite status, but is to the impetuous era of electric power to provide a new view of their own and look at the market angle.

So the question is: isn't there a high level of consumer groups on the mainland? Does the mainland have a better city than the commercial environment? Does the mainland have no market to build its own logistics? None of them. If we from the positioning analysis of Jingdong, Van, a shop and other mainland China's electric business enterprises, we can find a common logic: I want to be the boss, the boss means the scale, which means that almost all age-level consumers, electric business enterprises have to meet; almost all the urban markets that have the power to consume can deliver the goods, In order to become the boss.

From this point of departure, many of the business model of electric enterprises has become a tightrope: Price is the core of competitive advantage, but large scale to lower prices, in order to do large-scale must put into large advertising, wide logistics, fast response. On the one hand is low margin, on the other hand is big investment, the ultimate only way out is to achieve break-even. But to do this, we have to beat most of the competitors to achieve, so the market competition is to pursue the pursuit of winner-take-all. In fact, I think, from eldest brother to winner-take-all competition logic, is caused by today many electric business enterprises are still making a profit in the key.

and the Lativ business model brings more is a strategic revelation: there is another way back to the essence of the strategy of the electric business: through accurate positioning to provide accurate products, around positioning to add and subtract resource allocation. And at this point, every electric company should think about the question: where is the size boundary of the enterprise?

(Shi Zhang Qiang is the founder of Shanghai Jin-kun Culture Development Group, Deputy Director and Secretary General of Shanghai Modern Service Federation, Bunan the former partner of Shanghai Jin-kun Cultural development Group.) Public micro-letter: Kam-kun brand marketing; Weibo: @ Kam-kun stone strong, @ Kam-kun brand marketing; Email: shizhangqiang@sohu.com