Vertical electric business Life and Death Bureau: Le Amoy transformation brand electric business industry or niche market

There has been a flurry of recent news about vertical electricity dealers.

Last month, Lok Tao Network transferred Beijing team to Zhuhai, and a large scale of layoffs. At the same time, there is news that the footwear consumer good Tesco is looking for a sale because of financial constraints, is in talks with Suning Tesco, but the news has not been confirmed.

Some people in the industry to the "Daily economic news" Reporter said, under the pressure of the platform, due to high cost, management risk increasing, as well as declining profits, vertical business may eventually become a "niche market."

Lok Tao official website cut off consignment business

Amoy in May 2008 by the original president of Baidu Assistant, marketing director Bi Sheng founder, and the former CEO of Jinshan Group Lei as a director.

The website soon after, then by the toy electric business transformation for the shoe electric trader. According to the data disclosed by Amoy, the company's 2011 sales were the first in the industry.

However, Amoy was exposed to massive layoffs by the end of 2012.

Lok Amoy Network announced that, based on cost control and other factors, Lok Amoy Network is the Beijing team transferred to Zhuhai, while leaving the relevant personnel responsible for the docking with other electrical platform, to ensure the normal operation of the whole network of Lok Tao business.

Lok Amoy Network Vice President Chen to the "Daily economic news" reporter said, Lok Tao from the channel to switch to brand electric dealers, some of the original departments did make layoffs, the company has focused its business focus on the production and sale of its own brand products.

"Lok Tao's design and production centers are in Zhuhai, the Beijing team moved to Zhuhai to be closer to the source of production, while reducing the cost of dispersed personnel." Chen says the cheaper workforce in the south is also one factor in the move.

In fact, Amoy in June 2012 began to plan to brand electric business transformation, has launched five own brands. July, the company released data show that the company's monthly sales of more than 5 million yuan, profits than before doubled. At the same time, Lok Amoy began to come into the cat, Beijing-east, Amazon China and other open platforms, the official website only sell their own brands, cut off the original consignment business.

The transformation of Amoy to brand electricity is not uncommon in the vertical web site, after the United States excellent products also from the group to convert to the company's cosmetics manufacturers, and then transformed into a brand electric dealer.

And in the past, the mode of distribution, Lok Tao after transformation into a set design, sales as one of the brand company.

Chen said, "Lok Amoy through the integration of resources, to build a hand-made production, sales model." These buyers are the product managers who lead the team in the design and development of the product and then give the project to the OEM manufacturer. A team of buyers ranging from several to more than 10 people, usually a batch of products to be designed one year ahead of schedule, six months or a quarter of production. ”

Chen further points out that although Amoy had established a partnership with a number of factories before doing so, it was still very difficult to really operate the brand. "From a niche market cut into, and strive to small market bigger, is our current direction." ”

Hanbing to the daily economic news reporter, said, can become a successful independent online brand, design, market, production and other resources and capabilities far more important than it technology. "The cycle of building a brand is likely to be longer than the cycle of developing an e-business team." ”