Lok Bee Net founder Li: From zero to 400 million hard undertaking

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In Jingdong, Suning, Taobao and other Bai electric power company under the pilotage, vertical electric business How to survive? Own brand is a favored road. and cosmetics vertical electric business Lok Bee net original brand "static Good", in four years of time from zero start to do annual income of 400 million yuan of scale, which became a model of the pattern. Le Bee Network CEO Wang Licheng very directly to do the reason for its own brand, "This is very simple, cosmetics sell third party standard goods do not make money, bigger own brand is our core resources." ”

From the music Bee will own brand to take shape of the case, to do their own brand needs unique resources and doorways.

To do the original brand from the Shen advice

Le Bee net founder Li recalls, originally decided to do own brand is 2008, when she founded the Oriental popular just got a sum from Sequoia Capital of the first round of financing, after a board of directors, Sequoia Capital Shen proposed should do own brand.

"In fact, this brand has done a particularly hasty, Shen said at that time, the electric business is shopping malls, and shopping malls sell other people's things do not earn money, to make money will do its own brand." I knew the mall didn't make money for L ' oreal, so I started to decide. Li recalls.

In that board, Li first thought can do products, is essential oil, only because "street people know what is facial cleanser, and do not know what is essential oil, so the market is very big." ”

After that, Li began to learn from the editors of the fashion industry and other business friends, and then a little bit. The instructions for the first product were even written by Li.

From this, le Bee Net's own brand "static Jia Jplus" starts to create. And because Li has been doing the host, independent television programs, such resources let it have a group of people trust their own audience, the concept of the people's brand to go out the first step.

The way to save money for the talent brand

Li confidently said that he is a master of shopping, but because of capital problems, how to grow and develop? The static good brand began its own talent brand mode.

"Find the most famous star, and then from what his fans like to start doing research, and then develop, so that we save a lot of advertising costs, and not so blind." "Li said.

From Li oneself to create the static best brand, makeup industry, small p teacher is the first development of BB cream products, because the relationship between people, the product sold on the volume. The music Bee network began to replicate such a pattern, including the Jcare, Chihuahua jmixp, muscle age Jlynn, net muscle jskin, qi muscle jmiracle and other star brands have been created and fully into the electrical goods category.

Le Bee network Another development of its own brand idea is a social shopping guide. Li that make-up is the natural needs of women, and provide community counseling and shopping guide will gradually become the exclusive advantage of Le Bee.

Wang Licheng in charge Bee network operation, the promotion of community "bee to the standard" construction. The community will also be free to use, star makeup experience, user interaction and so on, try to build a consumer and business communication platform.

Star mode is also constantly in the new recruits, 2012 Xie Na's own brand has entered the Lok Bee Network.

Price war and drainage resources tilt to own brand

The price war is the key word that the electric business operation cannot evade, but Le Bee CEO Wang Licheng said, the price war main function or is draining, but the company does not care too much about the rapid growth of the scale, but is unceasingly to the own brand development.

Since 2012, the Lok Bee Network began in March to do a "Peach Blossom Festival" promotional activities, this year Le Bee network for the second "Peach Blossom Festival" prepared 400 million of the inventory and a large number of market launch. This is the same as the cosmetics of the vertical electric quotient of the United States excellent products together, forming a vertical electric business fierce price war.

"The purpose of the campaign is to let users know that Le bees, in addition, in the promotion of the same time, users will slowly become aware of their own brand, and then start to buy." "Wang Licheng explained.

Le Bee network inside the operation, resources will tilt to its own brand, including public transport, subway, television, many of the promotion of their own-branded goods. At present, 67% of users have bought their own-brand products.

On the other side, the resources of the Lok Bee network are also tilted to its own brand. 2012, the Lok Bee Network announced the acquisition of a 40 million-dollar B-round financing, this part of the capital in addition to logistics construction, a lot of the investment in Shanghai's static brand cosmetics research and development center, to increase research and development strength.

According to the data given by Wang Licheng, the Lok Bee network in 2012 its own brand revenue of more than 400 million, while the private brand revenue and Third-party brand revenue ratio of about 1:2, both annual growth in the proportion of about 30%.

Traffic is getting more expensive, but building brands requires long-term commitment

Although the shape, but Lok Bee Network is also facing the common challenge of the electric business industry, that is, more and more expensive to do the promotion of the market costs more and more, but most of the electricity in the promotion is often in the price war itself does not make money, or even lose money, so the electricity quotient pressure.

Lok Bee Nets also adhere to the various types of platforms, including Beijing-east, the cat and so on have been settled, so that the use of Third-party platforms also brought some of the flow. But money still depends on Wang Licheng's own brand.

Similarly, creating a brand in the cosmetics category is not easy, although many international brands are also named after a person's name, but also from a small step, but Shiseido has 30 billion of the sales today spent 147 years, Emory 16 billion of the scale of 60 years, the brand needs long-term investment.

Wang Licheng said, is currently 400 million of the scale, if the Lok Bee network in 10 years to achieve 5 billion of the scale has been very happy, and the difference between the product is the core of competition.