Stylish open platform: Dangdang woven 60 billion dream of clothing

September 11, Dangdang held the autumn and winter fashion show, while High-profile announced its clothing category in the 600 billion apparel market to take 60 billion of the target. Coincidentally, this year, as if the collective of the electric business to fashion closer, whether it is the cat put forward "Chantian cat, on the purchase of" the strategic theme, or the Beijing-East proposed "Still Jing Dong" slogan is so, as the book boss Dangdang Why should so resolutely to fashion march?

If you compare the results of this year's two quarterly results, you know why. In the two quarter of this year, the net revenue of Poly-Mei excellent product is 154.4 million dollars, Dangdang is 316.1 million U.S. dollars, and poly-US products market value of up to 4.7 billion U.S. dollars, Dangdang only 1.193 billion U.S. dollars (data as of August 20 closed), why Dangdang revenue higher than the poly-Mei products twice times, and the market value of less than its 1/ What about 4?

The mystery of this is in the category of differences, Poly-Mei excellent product category for cosmetics, clothing and other female users, and Dangdang is mainly books. In fact, another focus on clothing category of the only products, has achieved more than tens of billions of dollars in market capitalisation, but also known as the demon stock. Compared to Dangdang, Poly-Mei excellent products, only the goods will be the two-quarter gross profit margin, respectively, 18.3%, 46.3% and 24.8%, you can see the magic of female category.

Clothing category also has an important feature is the high rate of repurchase, the user viscous large. According to the China Electronic Commerce Research Center data, 2013 clothing shoes and hats user Purchase rate of 76.3%, is expected to 2014 apparel and footwear category user net purchase rate will be more than 80%. It can be said that users do not buy books, but all need to buy clothes, the great demand not only promote the business size of clothing, but also a higher rate of repurchase has increased the user's stickiness.

In fact, from 2 years ago, Dangdang began to expand the category, the practice of good results, 6 consecutive quarterly growth rate of more than 100%, this speed even higher than the cat and the only products, sales from the 2012 500 million yuan soared to 2013 2.7 billion yuan, become the second largest category outside the book. Taste the sweetness of Dangdang began to firm to the pace of expansion of clothing category.

In the Electric business field, the clothing market develops earlier, gradually becomes the consumer net buys the main commodity. China E-commerce Research Center data show that 2014 China's apparel online shopping market overall size of 615.3 billion yuan, an increase of 41.5%, accounting for the national network market size of 22.1%. At the same time, the apparel industry's net-purchase penetration rate is still low, the 2013 figure of 21.7%, which means that there is a larger number of users to buy clothing habits from offline to online migration. These are the opportunities for Dangdang's transformation.

The clothing electric dealer market because particularly attractive, also has caused each road enterprise to scramble. The cat is the boss of the market, Jingdong is also in full swing, the only product will be with the help of buying team focused on the special sale, but also from the Social Shopping guide transformation to the beautiful, Mushroom street and so on. This year, an important feature of clothing electric business is from selling clothing to clothing to the upstream and downstream industrial chain expansion. Dangdang as an example, through the expansion of professional fashion editors, buyers team, visual experience and user Experience team, will become the user's Fashion consultant guide, through the association with the Chinese fashion designers to achieve strategic cooperation, investment 100 million yuan to create China's original design support platform, will enter the fashion design chain.

From books to clothing, Dangdang told the story of a category expansion, into the clothing category, not only a more category, increased some income, more importantly, entered a bonanza of income and profits, to establish a new growth model. From the income potential, dangdang with more than 2 years of pioneering experience and the expansion of the industrial chain, the future occupies 600 billion of the market 10% share, grab 60 billion revenue is not just a dream; from the profit space, Dangdang will be able to enhance the gross profit margin, in fact, Dangdang and the two years of the clothing category expansion has a great relationship From the sales growth of clothing category, Dangdang in the past two years or even higher than the cat and the only product will, which means that its future growth model will be a new way.

More importantly, Dangdang to the development of clothing category, activating the female users of this gold mine. Whether it is the only product, Poly beauty products, the market value of soaring, or just a transformation of the electric Dealer's Mushroom Street this year to complete a new round of 200 million U.S. dollars in financing, valued as high as 1 billion U.S. dollars, are telling the story of "her economy." Female users have become the main body of consumption, their shopping more impulsive, pay more attention to emotional satisfaction. Dangdang activated this group, will be able to activate the clothing category, such as cosmetics, food, mother and other other categories, so as to become a comprehensive electric business platform for the future to lay the foundation.

In this sense, Dangdang, if it can sustain the pace of expansion in the clothing category over the past two years, to strengthen the research and deep development of clothing category, promote the marketing and promotion of female users, will undoubtedly change the image of the old book boss, in "her economy" in a cup of soup, will open the future growth of share price space. Obviously, in this way, Dangdang's current share price is underestimated, even if it can not reach the billion dollar market value, to achieve poly-Mei excellent products 5 billion U.S. dollar market value will no longer be a dream.