Who's going to be the next PPG

07 E-commerce is the hottest thing should belong to PPG's rise, it is said that during the peak period, PPG's shirt sales reached tens of thousands of pieces a day, orders peak time sales have surpassed the 8-year history of Dangdang and excellent network.

PPG's rise, to the industry has brought a huge surprise, for a time, the market emerged dozens of shirts selling companies, including excellent network former executive vice president of the founder of the Vancl, including the good news bird investment Bono. At the same time, PPG mode to the traditional production enterprises and retail enterprises to bring great ideological shock: Since the shirts can be sold online so good, the traditional enterprise products can not be sold online? Is it the main way to carry out the online retailing to compete with competitors and improve their core competence?

In 07 this year, I have contacted a lot of ready to do or have begun to do e-commerce in the traditional enterprises, these enterprises have to sell mobile phone channels, there are sales of digital appliances retailers, there are sales of diamond stores, as well as regional book retail enterprises and so on. They are in the traditional industry or encounter a strong and difficult to surpass competitors, or has entered the development of the bottleneck, anxious to get through other means to achieve breakthroughs, PPG and Vancl's vigorous growth provides them with a model to learn from.

Traditional enterprises to enter e-commerce environment is really mature, let us analyze:

By the end of 07, China's internet population has surpassed 210 million, and it has been growing at a high rate every year, with more than 40 million successful online shoppers, and the country's mainstream consumer groups have become accustomed to or rely on online shopping.

Integrity, Dangdang, network excellence and Taobao has gradually established the online shopping integrity of the environment and service standards, in the field of consumer goods to pay, to provide users with convenience and security, so that users can rest assured in the online shopping, and the introduction of Alipay, a thorough solution to the integrity of China's poor environment to pay security problems, Let Taobao have an explosive growth.

At the same time, the popularization of online payment to the logistics cost has a substantial decline, if not involved in the collection, the domestic current inter-city freight and service capacity has not constituted the threshold of e-commerce.

In addition, with the efficiency of the search engine promotion, online promotion of the conversion rate is also more and more high, the search engine and CPS has gradually become the mainstream of the promotion of the form.

The reason that China's online shopping environment and users have matured, because of the convenience of online shopping, more selective and online shopping brought about by the low price, has made many netizens, especially the urban mainstream consumer groups on the online shopping path dependence, online shopping market has entered the outbreak point.

Correspondingly, the challenges that traditional enterprises face in existing business are also increasing, which are shown in:

The production costs of enterprises are increasing, especially the rapid rise in the price of capital goods and the growth of personnel wages. Previously, the labor cost is the traditional enterprise biggest advantage, but now the situation is different, for example, Dongguan many companies because the human cost is too high to close down or transfer to the West or Thailand and other neighboring countries.

As the renminbi continues to appreciate, export costs for exporters have also grown rapidly. China is a manufacturing powerhouse with an average profit margin of less than 5%. During the year, the renminbi rose 15%, the corresponding export price increased by 15%, or the profit was greatly reduced.

And the domestic traditional from production to final retail in the middle of the link too much, leading to those who want to enter the domestic retail industry must pay a higher price. To Toys for example, Shantou Chenghai is the main toy production base, and Yi and Yiwu are the most upstream of the wholesale center, after the regional wholesale market, Provincial wholesale market, regional wholesale market, and then to the mall, the price of toys is basically already 3-5 times the factory prices.

The traditional terminal now cost is also outrageous, return point, settled fee, shelves fee, gift fee, promotion fee, festival fee, holiday fee, channel fee, kickbacks and so on rising. Some time ago encountered a "sales and marketing" of an editor, he said that they a customer's goods spent 15 million to do the main supermarket in Beijing Channel, 1 years later, because the cost can't keep up, they withdrew.

Obviously, to improve their competitive position, we must establish their own control of the new retail terminals, reduce the cost of each link, increase profits.

In fact, online retailing has many advantages over traditional enterprise retailing, customers can buy goods at home, very convenient, online retail to reduce the middle link, not only to create low-cost customers, but also to bring more profits to the enterprise, no rent costs, no shop assistant and other operating costs; no space restrictions, merchandise display unlimited, order Processing can be unlimited In addition, network operations can be based on user's browsing behavior, effectively judge the needs of users, carry out the recommendation of revenue products, dig deeper into customer demand, and the network through the detailed record of customer purchase behavior, can carry out member management and member marketing, through Low-cost marketing methods such as mail, 0 cost communication, reduce network marketing costs. Since so many advantages, do not surf the internet really look after the perception.

But there are also a number of bottlenecks for traditional companies to get involved in online sales, such as: P lacks enough knowledge and understanding of the Internet and E-commerce; P lacks professional e-commerce applications and marketing professionals; P has no reserve of technical power; p lack of experience and resources in internet marketing P e-commerce and the gap between traditional operating models create a culture of management gap, and so on. In addition, how to borrow their traditional channels and resources, how to collaborate with the existing business, p network retail business positioning, strategic status, goals and matching goals. Only if we can solve these problems, can we define the goal of our online retailing and the strategy of implementing our own network retailing.