Rethinking Macaulay: How Do network brands build a composite channel?

The Internet brands here include the aforementioned customer brands and Amoy brands, which include all customers, Dream Bazaar, Oleno, wheat bags, diamond birds, etc. to establish an independent company for the development of commodity brands, Amoy brand including sheepskin tang. ING, Justyle, Lin Wood, Zokai, Han Duishe, small bear electrical appliances, such as the birth and development in the Taobao platform of commodity brands.

When interacting with peers, there are always two types of views on emerging Internet brands, one is that they created a new brand to build the miracle, because these network brand creation time is short, the sale is big, from Taobao Mall Singles Day promotional data to see, one day time in sales million Amoy brand is Sheepskin Hall Mr. ING, Mann, OSA, wheat bag, royal Mud Square, Kaffrine, Sportica,deeremarchi, American billion, ram, Love made, gainreel underwear, hundred cool down bed products, mixed two times, gracegift,sevnjoen66, art furniture, Austin , Lin Wood, modern miss, Jiuzhou deer Bed products, No. 0th male, Justyle;

Another point of view is that these network brands are not afraid, after all they were born in the network environment, the mainstream of the environment is still dominated by price, and the operators of these brands do not have too many brand building, maintenance and operation experience, and traditional brands than the thickness and strength. Mecoxlane in the private brand stores under the offline expansion is a very unsuccessful case:

Macaulay has always been a DM (mail order catalogue)-oriented sales model, the sales accounted for up to 50% of the current. The friend who has done DM should know very well, the whole cost of its product shooting, page design, making printing to deliver is very high. Macaulay now DM is the use of 105 grams of double-sided printing paper, a total of 100P, in accordance with 3 million to 5 million per month delivery volume, then one-month cost is expected to be around 10 million yuan, spread to about 200 of the single product, each DM on the single product to increase the cost of 100,000 yuan. In such a cost structure, Macquarie DM Business to continue to profit, must reduce the cost of goods, cost reduction leads to quality reduction. Such a pattern is not a problem to be ported to the field of business, after all, the business is also through the beautiful picture and description to sell, but the two models are transplanted into the offline store, especially when a large number of stores are joined the form, the problem arises.

May 2010, Macaulay from the United States and the U.S. apparel dug deputy Wang Hongzheng as the general manager of Macquarie Retail, decided to vigorously expand its own brand--euromoda (OUMENGDA) offline channel system, through the establishment of the store and franchise by the way, in November when the IPO direct 158 stores, joined the store 320, And at this time the hero-Wang Hongzheng in the 3 months before the listing of August quietly left, if only according to Beichun said "personal reasons", it seems a bit difficult to explain the past. In my personal experience, the Mai Lin line shop and online business not only can not form a complementary, its own conflict is very serious, even according to its internal executives and franchisees, Macquarie's entity shop has come to a dead end.

(This article is published in the "Sales and Marketing" channel version 22nd and 23 pages) concern Zhong Sina Weibo more exchanges: Http://t.sina.com.cn/zhuangshuai

For want to walk through two legs, through the line and line of the composite channel to develop the network brand, Macaulay encountered problems have what reference, the network brand in the expansion line under the entity shop will encounter what insurmountable problems?

1, DM and business sales model leads to low cost of goods: looking at the beautiful quality of the goods is not satisfactory, this is I went to the Mai Lin store after the feeling, and to the store customer exchange, we also feel like this, the picture looks very beautiful, can go to the shop after looking feel not good. But why are DM and Business-to-consumer not affected by price/performance? Because in the picture sales process, consumers still need to wait a few days to get the goods, plus the return of goods than the real shop trouble, so for the sale price of only about dozens of of the goods, consumers will not add more than 10 yuan to return to express returns;

2, the gross profit margin is not enough to support the offline entity shop sales: Why do e-commerce? is because the line of profit is too high. Why is the line of profit high? is because to support to store rent, Buckle Point (department stores), franchisee profits of the three major costs. For merchandise gross profit margin only about 10% of the net goods, want to let the line franchisee can open shop to make money, it is very difficult, especially for the more well-known network brand, customer base is bound to overlap more difficult.

3, Talent bottlenecks: As the entity shop procurement is difficult for E-commerce to provide hot goods, like in the field of e-commerce procurement of strong procurement, category, marketing and other personnel, and not necessarily can well support to the physical store selection. From this aspect can be seen, light has enough strength and professional physical shop trader, expand a large number of direct shop and franchise is not enough.

4, the management mode is different: For the Light Company mode of the enterprise, offline business belongs to the heavy mode, this model added to the franchisee management, physical store day-to-day management, logistics management (from the business Logistics model to business-to-business Logistics model), pos\erp\wms\crm\ VRM and other systems and e-commerce business docking management.

5, marketing promotion methods are different: online marketing easier to monitor and adjust, input cost controllable and trial and error cost is low, and offline marketing and media purchase and online difference is very large, and input cost controllability low, trial and error cost is also high. Give a simple example: in the portal site can choose days and regions to target or full network, and it is easy to monitor the advertising of visitors and sales, but in the newspaper advertising is higher costs, the second is not monitoring, the third is regional obvious, four is unable to effectively monitor.

6, the brand establishes: under the Line brand establishment besides considers the entire style, the design, the brand tone, but also involves the business circle to the brand influence and so on aspect research. This process and network brand building process is not the same, due to more extensive coverage, on the network brand and entity brand building can be further written analysis.

If you can not think clearly and have the ability and resources to complete the solution, network brands want to walk on two legs must be like the real brand into E-commerce, the difficulties. As many years engaged in retailing and e-commerce industry, as well as senior experts in China E-commerce Association, China E-commerce Research Center, I think if not two legs walk, then the network brand in the future competition environment will be under the serious impact of the brand under the traditional offline brand because of years of brand precipitation, Once they have adapted to the rules of electronic commerce, can be achieved than the network brand more robust sales, access to a greater market share, from Taobao Mall singles section data, traditional brands such as Li Ning, Adidas, Raleigh Home Textiles, Boyang home textiles, such as sales are network brand (Amoy brand) of dozens of times times! With the continuous maturity of e-commerce, the traditional offline brand in the next three years will be increased input into the line to expand channels, under such pressure, in addition to continue to consolidate online channels, network brands in the avoidance of the above mentioned several major problems gradually towards the line under the construction of composite channels is also imperative.