On the electronic business of traditional enterprises

Recently, a lot of people traditional business owners asked me, E-commerce can do, when to enter is the best time, how to enter the least risk. I think this is the general concern of the industry as a whole, it is necessary to explore, combined with their years of experience to talk about some of their views, hoping to help you.

E-commerce development to now, the overall market has a lot of growth, last year, the share of the retail sales of 3.2%, this year is expected to be more than 4% will reach 5%, the overall sales are expected to reach 890 billion, compared to last year's growth of 78%, the growth momentum is still very strong, Taobao mall double 111 days sales reached 3.3 billion, This also surprised many experts in the industry to anticipate, with the growth of sales, independent business general loss of the industry, the recent Lok Amoy Network CEO Bi Sheng, who has been Dangdang COO, Taobao Mall Operations Center Vice President of the Huang Jo also outspoken in addition to Taobao Mall, no one really has a long-term investment in business value, They do not have the value that is currently being evaluated. These are undoubtedly to the whole industry a scoop of ice water, so that everyone to the e-commerce daunting, do not make money in the industry, who do ah?

I have always thought that e-commerce, the early heavy electronic, late heavy commerce, this is inevitable, the core of E-commerce or sell products, so as more and more traditional industries to join the electrical industry, the future of traditional industries will be the mainstay of the electric industry, which is the characteristics of the retail industry decided.

But, really want to let the traditional enterprises come in, there are many problems have to consider, first of all, the risk problem, I have been the view is, do one thing, first of all, do not want to succeed after what? But first of all to consider, this thing to do after what will bring negative, if negative play to the extreme, we can not bear, we have to admit that the current access to E-commerce is risky, I decided mainly the following points:

One, the malicious low price brings the brand risk: At present, online sales, if the demand for sales, must have a price advantage, otherwise no one to buy you or talk about sales is difficult, this is the habit of the online consumer for many years, but also the result of industry competition, you do not reduce prices, others price, there is no way. This is bound to damage their brand image, if you care, you need to consider, if you do not pursue sales, it can be done without a tube.

Ii. line Offline channel conflict risk: At present, the main channel of traditional enterprises or offline, under the line is vested interests, the annual number of sales are numerous, manufacturers, agents, franchisees, retailers before business relations are agreed moralize, now suddenly to an online shopping, and there is no border, This will inevitably give the formation of a relatively stable contract relations, will inevitably damage offline agents, franchisee, retailer's interests, especially at present, rent, the general rise in labor, competition is increasing, how to ensure that the interests of partners is the biggest problem, We can't hurt our whole life for a few percent of the performance.

Of course, this is relative to the offline channel is relatively strong, the volume is very large, regional coverage of a very broad enterprise, if the line is just under the start, or is the regional brand, this is no risk.

Third, the listed companies are facing the lower income, the stock fall, the risk: The United States is a typical example, why the end will give up, really is not optimistic about or no funds? These are not, the most critical upfront investment is too big, can not bring the expected income, directly affect the company's overall income, diluted profits, and ultimately affect the stock price. This is the root cause of the withdrawal of Mattel from E-commerce.

Four, do not enter the risk of marginalization: if not to enter, but also worried about marginalization, after all, the internet has been the most influential media, if the media can not make a sound, this let the traditional enterprise boss dilemma, after all, the Internet to the brand's power has not been overlooked. It's not even possible to leave.

As for how to assess the risk, this needs to combine their own business situation, the beholder benevolent. The right to decide is in the boss.

To enter the electrical business another must be considered, that is to know the difference between e-commerce and traditional marketing channels, why some enterprises into the electricity business, very smooth, some twists, difficulties, E-commerce is a trick, it and the traditional retail has a very big difference, this point I need to speak very thoroughly, if you do not know their difference , hasty March, must die very hard to see:

One, the sales place, the way completely different: one is in the physical shop, one is in the virtual network, this is the biggest difference, one is visible, touch, real, one is visible, touch, illusory. It is doomed that their rules of operation are different.

Second, the product experience, the way of expression is completely different: traditional sales are in the shop, things good and bad, a look, touch, a smell, a test can feel, good is good, bad is bad, true real dishonesty the slightest bit false, after the sale also don't worry, out of the question directly to find you on the line. E-commerce is not the same, I think it is offline retail virtual reality, offline can do the real, online only through words, pictures, sounds, video these show. This is a new science. Offline sales, each quarter, each year may only need to engage in a brand product album, quarterly out of a few posters on it, but every product on the line need to be photographed design, even details, small places need to reflect, you embody the more realistic the better, and a product a story, you have to tell the story round, You have to find sufficient, undeniable reasons for the consumer, and the more reasons, the better, so that there may be orders.

In the past few days, said the more is Guo Meimei opened Taobao shop, one day PV18 million, incredibly a product is not sold out. 180,000 do not have to spend a penny, this to the line in the electric business would not want to think, but Guo Meimei did, this can what? Products are still not sold out, the same day I said on the micro-blog, the layman is a layman, speculation may be a master, but playing electric dealers may not be so, in a strong, on the other hand may be weak. How can such a shop have sales ah, the ultimate damage is their own market.

I have always thought that it is not easy to do a good job, it is easy to do something real, but it is not easy to do the virtual things, this is the biggest challenge to the electric business.

Third, the replacement of the new style of frequency requirements are different: Offline entity shop, the number of customers on the * door is limited, a person can not go shopping every day, nothing on the shopping, and every day to the same store running, on the * door cost is relatively high.

But online can, a customer once become your loyal customers, can come every day, or a few days to come once, very easy ah, knock on the keyboard can be, do not need to leave, work at the same time can, imagine, if one, two times to see the same, no change, you think he may come again? This is why Taobao many big sellers are very hot, he has new products every day, weeks out of the new AH. Just as Zara is so popular, one of the core reasons is that the new model is fast. His loyal clients will go almost every week. But to do so is not easy, the design, the overall supply chain challenges.

Four, E-commerce market looks very big, in fact very small: many electric businessmen in the communication with the traditional enterprises, will say that the electricity market is very big, blowing to the sky, but what is the real situation? Very small, this small point two levels:

A the actual online consumption of the proportion of the group is very small, electricity quotient of the traditional ratio is very small: mainstream online shopping group accounted for more than 20% of the internet group (I said is the mainstream), pay attention to what I said is the proportion of the Internet group, not all the proportion of the consumer population. The proportion of sales of electricity dealers to the consolidation of retail sales may exceed 5% this year. Is that big?

b The brand, the Merchant Unlimited, the customer choice range is very big, divided into each brand or merchant is very small: light Taobao merchants more than 6 million, and these 6 million shops crowded in a shopping mall, this online is not possible, but on the internet is very normal, open account, you open 10 dozens of can. No restrictions, lots of space, now it's cheap. This results in a small flow of traffic to each store, some almost no, not to mention the Independent mall, this is the reality, this is why the independent consumer is rushing to burn the money reason, to someone to Ah, now bring a customer cost is 150 to 200, this is the average, the new brand is much higher.

Five, traditional channels to form local advantages easy, e-commerce difficult: traditional channels into a new market, as long as the best way to seize the local area of the best shopping district, outside a few billboards, it can be. Can it be in the field of electronic commerce? Taobao merchants more than 6 million ah, how many people a day in the line to advertise Taobao, not you have the money on it.

If you do a stand-alone mall, get traffic is even more difficult, the author has written an article "Why the domestic electricity dealers do not have a good business to do" on the point, to do abroad in Google to obtain traffic is relatively easy, because he left is free, we can optimize the technology to do the site's keywords, this cost is not too high, but, domestic, You want to get traffic through Baidu, you have to give high advertising fees, because he left is charged, this is the reason.

Six, product sales polymerization effect is different: the traditional channel sales are basically predictable, and different styles of sales will not be too big, the supply chain relatively good to do. Online can not, all the wife know a trick, is to do the explosion, a one months sales of the explosion of thousands of tens of thousands of is normal, but more ordinary money is not necessarily, very unstable, and some one months to sell a piece is also very normal. This puts a higher demand on the supply chain, which is a new subject that you need to study to adjust your supply chain and inventory structure to accommodate this change.

Seven, the traditional channels of customer access easy to keep easy to retain, the electrical business flow to obtain difficult, retain also difficult: offline a consumer consumption of the region is relatively fixed, will not span too large, in a region once the formation of a brand loyalty, it is not easy to change. But online will not, the new online changes are very large, from one shop to another shop, from one site to another site is easy, every day at any time in the face of different temptations, it is difficult to form a high loyalty to a brand, so online shopping repeat purchase rate is difficult to improve.

Eight, the traditional channel returns the rate is small, consumer time cost is also high, the enterprise cost is low, the electricity merchant returns the rate to be high, the consumer time cost is low, the enterprise cost is high: the traditional channel, because can see to touch, also may try, therefore generally buys after not to change, the retreat is also very few. To return is also very troublesome, but also get the shop. Online is not the same, a return on the site to 10% to 30% of the ratio is very normal, independent of the basic support of the delivery of goods to the payment, so the order is easy, no payment, return is also very easy, there is no reason, is not want to, on the back, this in the electrical business industry is normal, Taobao good point, At least you need to pay first, even if there is no merchant account, but after all he has paid.

Nine, the traditional channel is the receipt of money shipments, cash cash, E-commerce is not necessarily: Taobao is required to customers receive confirmation, to the money transferred to your account, independent mall is the basic goods to pay, the author has tried to cancel the goods to pay, the price is too big, orders less than 90%. Because it is the goods to pay, 99% of the mall will not build their own logistics, it is necessary to collect the logistics company, and so you sell the goods need to wait half a month, one months after the paragraph to the company account. Some more outrageous, EMS slowest, and some remote areas, incredibly six months, a year are very normal. This must be the capital flow requirements are very high, the early stage of goods procurement, advertising fees, operating costs, staff wages, rent and so on have to first out, the money also need to sell out for half one months. This is not the average enterprise can afford.

Cod is also a major feature of China's E-commerce, international E-commerce in addition to Japan have goods to pay, other countries are the first payment, after the delivery.

The above said more, we do not think that I am alarmist, the fact is that, the electrical business is not fun, if not enough psychological preparation, it is best not to try easily. So do you want to get into the electricity business? How to operate on long-term and short-term benefits, how to do less risk? If you still want to come in, then you need to focus on how to choose.

First, the strategic choice:

A is a farmer or a landlord: the current E-commerce field of three types of topics, one is like Taobao, Huaqiang North Online These are the landlord type, their own set up to let others act in an opera, collect rent on the line. The other is like Beijing East is the type of peasant, what is done by themselves. The third is to be both farmers and landlords, like when, both their own operation of the category, there are businesses operating their own category. Other basic is to sell water, do third-party services, such as payment, logistics, on behalf of operations, some software companies. Do landlords need to have the industry appeal, capital requirements are relatively high, do farmers have a lot of small, can be.

b) self-built or acquisition: Since the construction cycle is long, the time cost is big, the key is the team to build needs time. Acquisition team cut fast, but there are risks, the core of E-commerce is a person, one is the system, the fear of acquisition over, nothing, this is the risk.

c) Do or outsource: they can accumulate experience early, after all, sooner or later, it is better to do it earlier, bigger and small are their own decisions. Outsourcing also has the benefit, may learn, to see others how to do, the line words again exerting force, cannot oneself also does not have much loss.

D to enable the new brand or follow the old brand: The new brand does not exist on the line of the conflict, can be completely open to do, there is no concern, a piece of white paper how to do. If you use the old brand, there will be the conflict under the line, how to balance the line under the relationship, is the main problem, do not make a bad one.

E product differentiation operation or product exactly the same, mutual cooperation: product line under the distinction between the offline, relatively to the offline impact will be smaller, at least to the offline purchase and online purchase of the group have found a reason, not the same thing, the price is not the same as normal. If the exact same, you need to form a line under the linkage effect, this to the company system, team collaboration requirements are very high, the general enterprise can not do. It doesn't matter if the line is small.

F Short-term sales inventory or long-term development: if it is short-term sales inventory, there is no need to specialize in a website or online shop, find a channel on the Internet to supply on the line, relaxed not so much.

G only the pursuit of brand value derivative, new products test water and research do not seek sales, or the pursuit of sales, the formation of new business growth.

The above is a reference to strategic choice, specific how to choose the need to combine their own strategic objectives, enterprise resources, strengths, weaknesses, specific considerations.

If you have a certain understanding of the electrical business industry, the strategic choice is clear, the decision or want to own, this involves specific operations, not impatient, can not make a great leap forward, my proposal is divided into five steps:

The first step: Team formation, product online: Team building is built or acquired, the front has been said, the combination of their own situation, their own decision, with the team is the product selection and packaging online. Products I suggest from the current product line to select a part out of the line for online sales.

If you just want to sell their products, there is no integration of the industry's ideas, then I suggest that there is no need to build independent mall, even if built, but also as a façade to treat, there is no need to focus on tossing, unless your money has no place to spend. The main focus on opening Taobao flagship store and QQ mall flagship store. In addition, warehousing recommendations online warehouse based on the establishment of a separate small warehouse, convenient management and accounting.

Step two: Test: Taobao Mall flagship store and QQ mall flagship store opened with a model, the second step will need to spread the test channel, the so-called channel, with the line is not much different, set up a channel commissioner, to Jingdong, when, buy, limited time snapped up the site, such as only goods will, there are some other mainstream mall supplies, Test consumer preferences for products.

Focus on operating Taobao and QQ Mall, why should I say QQ mall? QQ Mall is not very competitive at present, if the brand and products are good, easy to get QQ mall support, Taobao's advantage is that people flow, the results will be relatively fast. Testing is mainly measured flow data, advertising a small range of ads to see the ROI of different ads, UV, PV, order conversion rate, for the next step to prepare for the future, do know, and constantly optimize the product page, advertising design, testing the effects of various promotions. These are malt, need to continuously optimize, at the same time, optimize team's collaboration, internal service flow, system function, design, supply chain, warehousing logistics coordination. Gradually enhance the advertising and participate in the frequency of activities, testing the endurance of the team, once you think you can force again.

The third step: when the team building, internal processes, departmental collaboration, system support, shop operation, supply chain, and so on, as well as the conversion rate of the order, advertising ROI These basic to meet your expectations of the time, you can start exerting force.

Product category, the new line of the cycle, the frequency of participation in activities, advertising efforts, marketing expansion (BD), including online EDM, community, Forum, micro-blog, sms, blog, search and other marketing methods, how many tricks with how much tricks, ads to the platform to launch mainly, the author after testing, external advertising to Taobao, The conversion rate of QQ mall is much lower than that of the interior of the platform. All advertising, activities to do data analysis, timely detection of problems, timely processing, and constantly optimize.

Outside the platform to BD, buy, channel-oriented, speed up the efficiency of product turnover, and constantly optimize the operation of the team to improve efficiency. Pay attention to the maintenance of old customers, improve customer return, and continuously reduce the rate of return, seize a variety of holiday promotion opportunities and create opportunities.

E-commerce to the last play is the system, playing is the efficiency, how to form their own core competitiveness in the system and efficiency, which is the eternal pursuit of electric business retail.

Fourth step: The establishment of a completely independent business system, do strong and big: multi-brand operation, to the line derivative: When the online sales reached a certain proportion, or monthly sales reached 5 million to 10 million, you can consider the line completely independent, and gradually began to operate more brands, The traditional field of Procter and Gamble Company's multi-brand operation is the most successful, E-commerce development also gave us a chance, the wheat bag on the operation of a very successful, although he still has a lot of imperfect places, but his mode of operation and thinking is worth our study.

In addition, can also consider the network line derivative, offline derivative is not in the traditional sense of the same as the offline entity shop, but to experience the main shop. We always have to spread around the line, offline is also for online services.

Fifth step: To establish their own independent mall or new product release and social platform: when their own brand to a certain number of products, thousands of, you can consider the platform. The future development direction of electric business is C2B, how to say, only grasp C, can have the market, we must consider how to effectively establish the brand and consumption of effective communication between the mechanism, the formation of brand business circle, Offline Circle is more difficult to form, but the line is relatively easy to get together, to find ways to let consumers become a part of you, The deeper the penetration of brands and products, the higher their brand loyalty will be, and only then will your brand be evergreen.

After more than 10 years ' development of electronic commerce in China, at present, the stage has been basically set up, the protagonist of the opera is the traditional enterprise, which is why Taobao Mall will change the rules, the key development line has the strength of the brand's main reason, Taobao if the mainstream of traditional brands can not be integrated in, then any strategy will be an empty talk. The future of the electric business is a traditional industry, the traditional industry will eventually become the main role of the electric business, very simple, because the traditional industry is the best understanding of the market, consumers. In the future only the real understanding of consumers, and truly meet consumer demand and even personalized needs, and grasp the trend of the industry to become king.