Who is the chance of E-commerce? Article

Recently prepared to write a second, about the development of private brand, just this afternoon with Michael Baobaofang Total in-depth talk about the afternoon, but also the development of own brands have some in-depth thinking.

The most important problem of the channel is: burn money to the scale, homogenization of competition, and mature brand bargaining power is weak, and even the scale of the sale of the brand will be "low price disturb the market" reason cut off the source. In contrast, the development of private brands on the channel to the problem of the people, it seems a lot easier.

Definition of own Brand:

Mainly refers to the mature brand network derivative brand, network emerging brand, with Taobao words is "net goods", to own brand as the representative: Wheat bag, Justyle, Lanmiu, grass set, etc.

Network own brand products can be defined independently, whether it is style design, sales channels, or cost control, are firmly in their hands. From the point of view of brand sales, relying on the internet gradually penetrate to a variety of terminal channels, the basic space can be said to be infinite, so nearly two years to get financing, is not the channel, and more is its own brand.

Self-branding has several notable advantages:

1. High profit margin: similar to M2C (factory to terminal), the way to reduce the middle of the channel link, independent pricing, independent control costs, most of all, gross margin is definitely profiteering.

2. Multi-channel sales: Most of its own brand operators, are more adept at operating Taobao, and for the early days, as long as the ads, Taobao can play an immediate effect. Taobao is one of the channels, other channels of business is also sales network, and channel is to the brand "working". The wheat bag is to extend the sales channels to any place where the bags can be sold, such as physical stores and department stores.

3. Control the price system: The biggest problem of the mature brand NET is that the network low price shocks the offline channel, so the brand is very worried about the price system of Taobao confusion. Private brand out of the network, but also good at controlling the point, because the pricing system is around the network sales, and the market price is basically the same name, but the sale has developed a network of shopping discount habits, a look at 50 percent promotions, buy. Some people disturb the price, directly under the notice on the Internet OK, really do not warn or break the goods.

4. Master Consumers: Private brands generally have a clear brand attributes and characteristics, because these special attributes attract and maintain a loyal consumer, which is completely different from the homogenization of the channel, consumers will be cheaper because of which price, and in several channels to jump on the company.

But the challenges facing the network's own brands are also numerous:

1. Entry threshold is getting higher: do a brand is not difficult, difficult is the backstage has the strength to control, the front desk has the entity input. In fact, it's no different from real business, prepare a millions of tens of millions of goods is a very basic thing, advertising investment is necessary, cast accurate, cast ruthless, cast skillfully, can quickly on the volume, no advertising input, affirmation 1 orders are difficult, and such a threshold of investment is now more and more high.

2. Trading means more important than money: see more than too many traditional enterprises with a lot of money into e-commerce, finally folded wings and return. We must understand the background of traditional management, also be good at brand marketing, but also familiar with the network, more importantly, you must master Taobao, otherwise do not do this business, I have seen all of their own brands, in addition to VANCL, other all start and grow in Taobao, Taobao brand is the opportunity. But the method is more important than money, there is no way, the money is basically wasted.

3. Difficult to increase the brand pain: Rome is not built in a day, although this is a fast brand era, but the network can accelerate, but not change the time of the brand precipitation. We all know that every day in the CCTV5 advertising peak, appearing in front of us every day, we are very difficult and Nike, and even compared with Li Ning, in the network cast billions of advertising vancl, we can hardly imagine with Youngor to compare. This is the network brand born with the brand low-end impression, high quality, low prices, good price, and this is doomed in the eyes of the consumer brand is difficult to rise, or consumers need more time to verify the growth of a brand, the road of Endless brand.

In my opinion, own brand has very good development opportunity at present stage, but I am more optimistic about the mature brand of the new network brand, coupled with the mature network operations team, rather than the group composed of internet people, take the wind to do the brand, it is more like a speculative behavior, PPG is a typical representative.

Finally this model returns to the traditional business, facing the processing production, facing the quality control, face the product every detail, only the quality of products to do a good job, can win the trust of consumers, and network, E-commerce is accelerator, only kind of marketing tools. Have a mature brand background of the derivative brand easier to obtain consumer trust in the brand, the Department of the family, quality is not bad to where, and this and fabricated brand background, it is difficult to compare. Have a strong brand background, high-quality control of the backstage, as long as there is a suitable network of proficient team, a fast growing network brand is soon born.

Talk to the channel yesterday, the competition is very tragic, the final competition to the top 3 of the company, under pressure or profit margin, it is entirely possible to enter the private brand field, is not only a channel, but also has its own brand, retreat can pull high profit margins, into the extension of their own brand of the company, domestic wheat bag is an example. If you can control the sales ratio of your own brand and balance the relationship, the channel will usher in the second season of spring.