When pushing own brand clothing to break the electric business cold winter

BCC network Beijing April 5 News (reporter Tang) according to the Voice of China "News late Peak" report, Dangdang (Micro-Bo) today (5th) will launch its own brand clothing, involving underwear, shirts, jackets, windbreaker and other types, will go to Uniqlo route. At present, the E-commerce industry price war led to a very low gross profit margin, when the launch of its own brand, what is intended?

Earlier, textile enterprises revealed that the company's OEM Dangdang's own brand clothing will be online on April 5, the total brand for "when", the first on-line is when the baby clothing. In fact, the reporter in Dangdang see, clothing is not Dangdang first own brand, bedding "when excellent goods" has been on sale on Dangdang, for Dangdang this E-commerce platform began to do their own brand products, the famous Internet industry commentator Xiaodong think, do own brand can make more profit space.

Xiaodong: Private-label clothing is relatively cheaper than other brands because it's just a sticker. So in this respect, better things to improve costs, more categories will also increase the attractiveness of retaining customers.

Last year (2011) year, Dangdang CEO Guoqing (Weibo) has publicly said that Dangdang will begin to develop apparel, home textiles and household-type brand-name products, the type will reach three thousand or four thousand kinds of specifications. Yesterday (4th), the reporter contacted when the official, although the other side declined the interview, but said it will be in the own brand to insist on trying, and in the recently concluded 2012 China IT leaders Summit, Dangdang chairman Yu said that the future will continue to expand, adjust and launch the product line.

Yu: When the customer group has some shopping behavior. What kind of good products can we bring to these customers within our reach? Choose very good prices and services, we will expand that product line.

From the second half of last year, the field of electronic commerce pervaded the winter. With the introduction of its own brand clothing and other products to improve profitability, can it work?

2011 The total number of e-commerce sites in more than 12,000. The total investment in the E-commerce industry is more than $4 billion trillion, and the media estimates that the losses of all electric companies could add up to more than 2 billion dollars. After the money was burned, several well-known electric-business giants went to the U.S. for an indefinite period. Industry knows: This simple price war as the core of the low-level competition is not a thing. Everyone is figuring out how to make a profit, and investors are admitting that the electricity business won't last much longer. Yan, CEO of SoftBank Asia's Foundation investment fund, said he hoped the electricity business would be profitable quickly.

Yan: In a developing country, the big consumer market like China, India and other countries, the prospects of the electricity business is very good. But the problem is that in the past, Chinese electric dealers have turned to burning their money, ignoring profits, and keeping their basic profit margins at the expense of what they sell. Every guest is not like this, where the customer can, just in what kind of valuation, we would like to do the problem. In other words, if we do not go through that rapid expansion, we will soon be profitable.

E-commerce "from the self-produced model" can profit? In traditional shops, shopping malls, department stores to launch their own brand gross profit margin generally between 30% to 40%. But the electronic commerce enterprise because in the warehousing, the transportation and so on link has the superiority, its operation cost is lower, the joint commodity price also will be lower. If E-commerce enterprises sell their own brands will be gross profit margin of 30%, it is clear that this will greatly diluted the operating costs of enterprises, improve the overall profitability. Is this possible to become a new trend of e-commerce business development? Xiaodong, a leading internet industry critic, believes that it is unrealistic to produce own brands.

Xiaodong: For the time being, when it comes to a very small range of products, it is likely to be an urgent need to expand the category and increase revenue. Like Taobao and Jingdong, they may be out, but they may have a lot of categories. For each family, there are a lot of short boards, so see which one is short board, which is the most urgent problem, solve which problem.