Wang full reverse electric business dream: From Bowser to the Great Park

In August 2012, after leaving the Bowser network near the Rui Da mansion in Shijingshan district of Beijing, Zhiquan began his second electric business venture in Shengjing International mansion, 4 kilometers west.

With the last time to do platform business, this time, Zhiquan choose to do brand, and the industry fixed in home textile industry.

It is understood that home textile category is a relay home appliances, clothing, mother and child after the field of electrical business and a hot pursuit of the industry. 2012, Taobao "Double 11" big promotion, this category becomes a "new Dark Horse", in the top ten of the sales of enterprises, home textiles accounted for 3 seats: Raleigh Home Textiles (002293, shares bar), Mercury Home Textiles and rich Anna (002327, strands) home textiles.

However, compared with the rapid expansion of the platform business, brand-makers need to slow down malt. Billion Power network editor-in-chief Jia Pengrei that, "the platform is often the winner takes all, the brand is a pluralistic state, as long as a part of the crowd, you can survive." "In scattered small and weak home textile industry, brand business is so."

More importantly, the current electric business industry, for new entrepreneurs, flat Taiwanese companies have no chance. Therefore, the choice of brand, become the choice.

And Zhiquan's heart, Bowser did not complete his electric business dream, he hoped that he "can create a live more long enterprise", now, carrying his dream is the big Park net.

Chaos Home Spin Opportunity

After leaving Bowser in early 2012, Zhiquan saw a number of industry reports, including: Furniture home, ceramics, glass and cosmetics, and finally he chose the home textile industry for entrepreneurship.

In Zhiquan's view, the industry "opportunity is not small." At present, the whole home textile industry, showing the characteristics of scattered, small and so on.

According to the open market report, including four pieces of bed, towels, pillows, etc., the entire Chinese market size reached more than 400 billion yuan, the first Raleigh home textile sales in 2012 only 2.72 billion yuan, accounting for 0.67%. The top 10 companies in the textile industry occupy less than 5% of the market share.

In addition, with home appliances, it digital and other standard products thin profit, home textile industry's gross margin is relatively high. Zhiquan told reporters, online, home textile industry pricing rules are 1:5, and some even 1:8, for example, the ex-factory price of 100 yuan, through layers of channels, to reach the end of the consumer prices are 500 yuan or 800 yuan.

It is understood that the home textile industry's first brand of the home textiles Luo Lai's gross margin of 38%, which is not counted on the intermediary channel prices. The high cost of the channel also provides an opportunity for a flat internet.

Zhiquan told reporters that the big park net fare increase is about 1:1.5, such a price is to reach the price of consumers, including the cost of the channel.

In addition to the existing characteristics of the home textile industry, consumer demand for quality has also created opportunities for new Internet brands.

China's textile industry quality standards than international standards. For example, the Chinese regulations for adults to use the skin direct contact with clothing, towels, bath towels and other formaldehyde content of not more than 75 mg, but the Japanese standard is less than 20 mg. For infants, our country stipulates that the formaldehyde content of the clothing that the skin touches directly is not more than 20 mg, but the Japanese standard is below 16 mg, some even is 0 mg.

"All of our home textiles products are formaldehyde not detected, hit the quality card." Zhiquan that quality is the key to improving the quality of life that consumers demand.

In addition to formaldehyde, the "sensitive" factor, the big Park also uses another standard to play quality cards. In Japan and the United States offline market research, Zhiquan found that many home textile brands will thread count (fabric latitude and longitude density, that is, textile one square inch warp and weft root number of the combination, referred to as "TC") as the quality of bed products. The higher the TC value, the finer the fabric is, the better the quality.

However, there is no such value in the product label for Chinese fabrics. And, most of the fabric of domestic manufacturers will be TC to do 100 to 300, of which 200 is mainstream. Few businesses do 400, 600 of the business is less.

Zhiquan found in a trip that China also has a lot of consumers who know about TC. A fellow tour group Friend told him that he had travelled all the way from Macy's in Hawaii to buy 600TC of bedding, and that Chinese brands did not have that quality.

Although the Chinese standard is inferior to international standards, but, with the life of the world's best manufacturers in Japan, glass products in Europe and the United States, the world's domestic textile supply chain in China, suppliers have the ability to produce products in line with international standards.

Zhiquan feel, "TC this standard belongs to the bud, a push on the fat." As a result, he will be TC also as an important indicator of the network products. It is understood that the large network of products mainly by the use of 400TC A-class fabrics (suitable for infants and children) production.

At present, in order to use inexpensive characteristics to train users to understand the TC, the network of a TC is 300 of the four-piece set price of 499 yuan. The sale price even drops to 399 yuan. Zhiquan admits that this price is basically not making money, but in order to cultivate user habits, so "the loss of profit yell" things worth.

Stringent supply chain controls

After the quality requirements are put forward, strengthening the control of the supply chain is also one of the key points in the brand operation of the network. From the knitting density to the formaldehyde test, from the raw material collection to the production control, the big Park net has the strict control to the supplier.

"The vast majority of the color of the net bed is plain, because each use of a dye, the corresponding will be infected with a little formaldehyde." "For example, the dye with the highest formaldehyde content is red, blue, and black," Zhiquan said. And Chinese consumers tend to like big red. ”

The world can produce formaldehyde content is not excessive dyeing agent company has three, but because of the increase in costs, the national textile standards are relatively low, the vast majority of home textile enterprises do not choose these staining agents. With such a dye, the average price of each finished product is about an increase of 2 to 3 yuan. Wang said.

At present, the large Network SKU (inventory unit) is probably more than 300, because of small size, each SKU supply chain operation is relatively healthy.

For example: a four-piece product of the smallest production unit is 3000 meters of cloth, and a four-piece cloth is more than 8.3 meters, then, one-time to do more than 200 sets of four pieces. "This year, four-piece sets are 4-month turnover, so the turnover speed is consistent with the line." In the future, you can make a 2-month turnaround time. This is almost home textile industry, the fastest turnover speed, because the production cycle of home textile industry at least 40 days ~60 days, the need to purchase cotton and other raw materials, woven into the yarn, and then into cloth, can enter the factory production. "Zhiquan said.

In addition, the price regulation is also a big network of supply chain management lever. When demand is in short supply, the network can increase the price to reduce requirements.

At present, the large park network or small-scale dynamic production, accounting for raw material procurement costs, production scale and quality requirements, compared with other home textile manufacturers, the cost of the network has increased 11%~13%. These costs can be sustained, Zhiquan said.

In addition to the strict control of production links, in the distribution side, the network is also the layout of high cost control. In order to enhance the user experience, in Beijing, the current sales accounted for the 20%~30% volume of the region, the network used by the Shun Fung Express. "Shun Fung of the same city Express fee is 13 yuan, and the cost of a four-pass is about 5 yuan." The use of Shun Fung is mainly to give consumers a better experience. "Zhiquan said.

Learn from the lessons and turn to stability

Zhiquan the network as "those who pay attention to the quality of life, have time to improve the quality of life." For example, the central government, state-owned enterprises, teachers, civil servants and other groups, the age of about 25 to 45 years old, the focus of the crowd is 30 to 35 years old. "This group of people have internet buying habits and have a demand for quality of life," Zhiquan said.

"We sell these quality things to users, not to sell a towel, a bath towel, but to sell a quality lifestyle." "Zhiquan said. At present, the network has towels, bath towel, four sets, underwear and other categories, the future, will be expanded to household clothing, tableware, kitchenware and other categories.

To Zhiquan personally, Bowser did not complete his electrical business dream. Bowser net has the scale but does not have the cash flow the status quo, finally lets it sell to the Gome.

This experience has made the network stable in business. Big Park will start from Word-of-mouth marketing, step-by-step promotion. For example, Wang plenary sent "Egyptian Cotton bath Towel" (one of the main products of the network) to the electric circle of opinion leaders, let them experience, and gradually expand the impact.

The urge to get users through Word-of-mouth marketing makes it less intense for the internet to get new users by buying traffic on a large scale. In the first 4 months of this year, the park net only lost hundreds of thousands of yuan.

It is reported that access to tens of thousands of Yuan venture capital of the park, will reopen the end of this year a new round of financing. "We are looking for a new round of financing in order to open an online experience shop, and increase development efforts." ”

In the interview, Zhiquan repeatedly passed a steady mentality. Once Bowser net has the scale finally "Duanliang" the lesson, lets the Wang whole operation Big NET to be more inclined to be conservative.

Zhiquan told reporters that this year to the network marketing amount to do 30 million yuan. Such a goal is not high, only in 2012 Taobao "Double 11" Day, Raleigh home textile sales close to 100 million yuan.

"Every step, we will be slow and steady, good supply chain management." Zhiquan said that the nature of the electric business is retail, go too fast, the future will need to spend more time to repair, sometimes may not be able to make up.