Red Star and Beauty Lele "plagiarism" Behind the storm

(published in the March 2014 issue of the sellers issue)

At the end of 2013, home electric dealers finally broke the dull almost a year, with the traditional channel leader Red Star Mei Kai Dragon and is known as Home electric Trader Black Horse of a "plagiarism" storm, to meet the people of home electric business development curiosity and hope, and thus opened 2014 years home electric business line under the online game of the prologue.

The ins and outs of the "plagiarism" storm

December 16, 2013, held the annual China Household Industry Development Summit Forum, Red Star Mei Kai Dragon Chairman Chei said: "He himself is not opposed to the electricity quotient, but against the electricity quotient of plagiarism." "Like on the line to do a good beauty Lele home on the line to see which is good to copy, and then let the factory processing to large-scale production." ”

Red Star Chei about the United States Lele plagiarism of speech by the United States Lele strong protest. In the letter to the Red Star Mei Kai Lung, the United States Lele think the other side of the statement is inconsistent with the facts, is deliberately vilified, to make an apology, and reserves the right to further investigate the relevant legal liability.

Red Star United States Kai Long keep silent. It is understood that the United States Lele may take further legal action.

Red Star Mei Kai Dragon and the United States Lele This "plagiarism" storm, caused by the major network media attention. Sina, NetEase net, Phoenix and Xinhua have done a special report.

See this, we can not help but ask: Beauty Lele is what side of the Holy Spirit? Why home channel boss Red Star Mei Kai Dragon will be so concerned about beauty Lele?

Beauty Lele's past life

The story of Beauty Lele is basically how the internet makes Cinderella a princess.

Beauty Lele originated from Amoy brand. Its founders are program apes, Ben out with furniture. Because in Guangdong, and because there is Taobao, so there is Taobao beauty Lele shop, and now Taobao cat hundreds of furniture shops, like Taobao, selling furniture.

But and other Amoy brand is not the same, the U.S. Lele in access to capital injections, left Taobao began to operate independent website, and opened the online experience shop, at the end of 2013 has opened more than 270 online experience shop. This is the so-called O2O mode of today's rage.

Beauty Lele's "Online yell, offline sales" of the O2O model has won unprecedented success, turnover rate is staggering: 11 200 million, 12 600 million, 13 nearly 2 billion. Less than 6 years, the United States Lele has steadily ranked among the top 5 domestic sales enterprises. But its momentum is still growing.

It can be said that the United States Lele is the only way to get through the line under the channel Home electric business enterprises. As you all know, home goods because of the need for pre-sales experience and after-sales service after the pre-sale of features such as online and offline needs. This line of the online business process, which is what we call the O2O mode. Beauty Lele Online Web site and online experience shop system combination, completed the electricity business live commodity consumption required O2O process, and thus won the favor of consumers.

There are several numbers that can better illustrate the efficiency of the US-Lele O2O model: One is the size of the United States Lele experience shop, generally only about 500 square meters, but bear thousands of SKU merchandise sales; the other is the United States Lele Experience shop general location is far away from the city center, so rent cheap; three is the beauty Lele experience shop customers, 90% from online Four is the beauty Lele experience shop's ping effect can reach 1-1 20,000, but the traditional home channel's ping effect may only be 34,000.

However, the success of Beauty Lele and its products have how much relationship? Beauty Lele products, really like to be accused of that is from the traditional mall plagiarism?

Mei Lele really have "plagiarism"?

Know a little domestic household industry, the small partners know that furniture design "plagiarism" is a problem can not be problematic. The intellectual property of furniture design is the patent of exterior design. But in the face of the industrious and courageous wisdom of the Chinese, this design patent is simply the inspiration of their own design: You are straight, I will point radians; This is based on the predecessors of the "invention", How is "plagiarism"?

Original design problem has always been a major concern of lofty in the household industry. But "plagiarism" is a difficult legal problem.

So, the United States Lu Lezhen rely on the "plagiarism" of traditional shopping malls furniture products development?

First of all, so far, the online household consumer groups are still basically separate. In other words, the line of good selling furniture online does not necessarily sell well. Because the United States Lele currently more than 90% of customers are still from the line, so it is difficult to imagine the beauty Lele to the traditional shopping malls to find best-selling furniture and to imitate.

Second, and online sales are different, we stroll traditional furniture shopping malls, in addition to the guide from the mouth, it is difficult to know what kind of furniture is consumers like. However, the guide's words and how credible?

Third, now many home enterprises also began to sell online furniture products, and most of the use of the network for goods. Therefore, these household enterprises online selling good furniture products, generally will not display online shopping malls. That is, the United States Lele want from the furniture business there "plagiarism" sell good furniture, in the traditional shopping mall is also not found.

Four, the United States Lele has been optimizing their supply chain. 2013 began to seek cooperation with the domestic brand enterprises to produce their own furniture products. So if the United States Lele really see which products, can fully and produce the product of the enterprise can solve the problem.

Five, the annual domestic and foreign furniture industry has a lot of exhibitions, it should be to observe other people design to obtain inspiration for the better place.

Finally, the United States Lele is now online furniture sales boss, generally only others "plagiarism" Beauty Lele. (Interestingly, it is beautiful Lele "have the truth" to point out that Red Star electric dealer in the "plagiarism" Beauty Lele merchandise display, and even special to the United States Lele to dig people. ）

In addition, according to the development trend of beauty Lele, it should be listed in the United States. Therefore, the operation must be cautious, should not be "plagiarism" such small things and mistakenly listed events.

Therefore, the United States Lele to the offline shopping malls "plagiarism" furniture design logic should not be established, it is estimated that it is more impossible to find proof of its "plagiarism" of legal evidence.

So why is the Red Star openly accusing the United States Lele "plagiarism" its shopping malls furniture online sales?

The focus of game under line

In fact, if we seriously study the conversation of Mr. Chei, we can see that the real concern of the Red Star is not the "plagiarism" of the United States Lele, but the electric dealer's "locust"-like invasion. Beauty Lele is only a representative of the electrical business.

Mr. Chei to the home enterprise countermeasures, the "locust" to describe the behavior of electric business enterprises. He warned household enterprises not to produce products for electric dealers, otherwise the electricity will be like locusts to infringe the interests of domestic enterprises, and even make home enterprises bankrupt.

We are beginning to close to the essence of this "plagiarism" Storm!

Mr. Chei a few times before the end of the year on the "electric dealer is a trap" speech, said that the electric business is the life of the market, the life of the factory, leather dealers life. I think the electric business is the life of the market and the dealers, not the life of the leather factory, because the home factory can choose the electric business channel and get new development vitality. Therefore, I suggest that home enterprises should build the Internet era line under the integration of the distribution system.

And offline shopping malls are worried about, it is under the line of shopping malls at home commodity brands to choose the development trend of electric business channels.

We took the lens of observation to the height of history to see the problem. Originally only a traditional home channel alone, home enterprises must pay rent in the traditional home channels for sale. When the home enterprises have not yet grown, the traditional channels for them to provide the endorsement of the brand. With the development of household brand, the relationship between channel brand and commodity brand becomes more and more delicate: home enterprises should rely on traditional channels and hope to get rid of the shackles of traditional channels.

At this time appeared the Internet, appeared Taobao day Cat, also appeared the Beauty Lele. Originally home electric dealer is grassroots cock Silk, just sell some humble cheap furniture on the net, and traditional channel This tyrants compare up, basically is not similar, the business does not cross. Settled into the traditional channels of home enterprises, also did not put the electricity quotient in the eye.

But in the blink of an eye the electric business grew up. Although the sales and offline ratio is not much, but its inherent momentum of development to the home industry everyone shocked. Household enterprises started online to do electric business, the cat and home enterprises to form a strategic alliance. The United States Lele the Internet's small partners also began to make friends with the tyrants of home enterprises, and home enterprises are happy to make friends such as beauty Lele. At the end of 13, the United States and lele a number of furniture industry with a number of front-line brands signed a strategic cooperation agreement. Beauty Lele not only let the first-line brand for its processing products, but also to organize a line of brand products in the United States Lele channel sales.

First-line Home brand online integration, the traditional channel is the most worried. Know that the pricing system of online dealers is completely different from the pricing system of offline channels. As far as furniture is concerned, the general online pricing is 1.5-1.8 times times the ex-factory price, while the traditional channel pricing is at least 4 times times the ex-factory price, of which 1/4 or more are traditional channels of rent. In other words, the price of the product sold by the online dealer may only be enough to cover the rental cost of the traditional channel.

The same brand of products, or the same brand of products produced, but the price is so wide disparity, this is called the traditional channels under the line of love why? Why is the product sold?

This shows that the Red Star and the United States Lele This "plagiarism" behind the storm, is actually the traditional and electrical competition for home business interests game.

Why is the electric dealer a "locust"?

What is even more frightening is the large increase in sales caused by the low price of online electricity dealers, resulting in "mass production" and further reductions in production costs and transport costs resulting from mass production. Thus there is the power of the electric quotient as "locusts" as terrible argument.

I am in another article entitled Why is the life of the electric dealer in the leather home market? "The article pointed out that the traditional home shopping malls are based on commercial real estate development needs to build up the abnormal home sales channels. Whether the total area of home shopping malls or the volume of a single home shopping malls, or the number of household goods brands, are far greater than the actual needs of the home market. Home Shopping Malls The fact is that many home goods brand shelters: As long as you pay the mall rent, I let you become branded goods. Therefore, the traditional Home shopping mall operation mode is the household market brand is extremely dispersed, the main reason for high commodity prices.

A serious consequence of brand decentralization is the decentralization of commodity production, which not only leads to low production efficiency, unstable product quality, but also high transportation cost because of the dispersed transportation of goods. Coupled with the high rents of shopping malls, this constitutes the traditional home channel commodity prices remain high pattern.

The electric dealer has broken this low efficiency high price situation, but the US Lele has done particularly well in this aspect. Many people think that the success of Mei Lele is only because of the success of its online experience shop. This view is biased, because the success of the United States Lele today, to a considerable extent, but also rely on its excellent supply chain system. And this new type of household goods supply chain, but also represents the development of new home electrical business direction.

We know that beauty Lele itself is not a production plant, all of its sales of products are commissioned by other furniture enterprises processing production. One of the big advantages of this model is "global sourcing". After getting rid of the early Amoy brand in Guangdong to seek the processing of the primary supply chain stage, the United States Lele began to seek better quality, cost-effective processing enterprises. For example, now beauty Lele's solid wood furniture from Vietnam, and its soft furniture by the Jiangsu and Zhejiang area of the first-line brand enterprise processing.

Obviously, the United States Lele has started in its Amoy brand stickers "Tyrants gold"!

And the United States Lele sales still follow the network Shang "explosion" sales method. How is the "explosion" method? Online Check the beauty Lele sales records, will be surprised to find: a sofa sold more than 38,000 Zhang, a bed can sell more than 18,000 Zhang! There are so many sales, the United States Lele how will not become the first-line brand of household enterprises in the eyes of the "good little partner"?! These first-line brand of home enterprises how would not be willing to lower prices to the United States Lele this small partner to provide their products?

Another advantage brought about by mass production is centralized transport. Furniture is a large commodity, transport costs in the total cost of the proportion is very high, but also the loss of transport. Through scientific product design (without affecting the product quality based on reducing packaging volume), reasonable warehouse layout and transport planning (such as the choice of sea), the United States Lele can reduce the cost of transport 40%!

Mysterious Big data in the US Lele supply chain to build also played a key role: through the accumulation of data, the United States Lele know what products better sales, can be scientifically forecast the number of sales of each product and the distribution of sales in various locations, thus placing orders and arrange transportation to the warehouse. Then, through the local sales and real-time monitoring of the number of warehouses, flexible adjustment of promotional prices (can be accurate to each store), timely clearance and arrange the next stage of the order.

In the traditional marketplace, this is not a locust. Such large-scale production, but also sales and shopping malls of the same manufacturers of products, factory costs than shopping malls dealers to get low, lower transport costs, and then with the market price compared to the waist or even knee pricing.

The only thing the traditional shopping malls can do is to call on the first-line home brands in the shopping malls do not work with the United States Lele representative of the electric business, for the electrical processing.

At this point, we should be able to understand a more comprehensive understanding of Mr Chei about the "electric dealer is a trap" and blame the United States Lele "plagiarism" of the meaning contained in the remarks.

2014 is the beginning of the confrontation between home electric dealers and traditional channels. How should the traditional home channel deal with the contention of the online electric dealer to the home enterprise? How can online dealers get rid of the traditional channels to control the home enterprises? How does the household enterprise develop and perfect its distribution system in the game between the traditional channel and the online electric trader? This is the Red Star and the United States Lele This "plagiarism" controversy behind the plot development.

Home electric Business Line under the game drama Curtain has been opened.

Tang people, home electric business practitioners and explorers, focused on the traditional household enterprises in the development of electric business strategy and implementation. More articles, please Baidu "Chinatown home Electric Dealer."