Jiangsu And Zhejiang Shoe And Clothing Enterprises Are Realizing Their Brand Dreams Online.

The lesson that this crisis brings to Chinese enterprises is profound. Therefore, some quick response enterprises have begun to ponder over new development ideas, and think that instead of doing their own processing for others, it is better to follow the path of "creating their own brand".

But for export enterprises, "self created brand" is also a new subject, which is different from the brand building of some powerful foreign trade enterprises. Some small and medium-sized enterprises in Jiangsu and Zhejiang are trying to realize their brand dream online.

Mr. Chen (a pseudonym) of Nanjing is one of them.

Over the past year, Mr. Chen has changed his mind on the way to create a brand, and has changed many ways of thinking. Based on his economic strength and status quo, he finally chose "online brand creation".

Mr. Chen is the owner of a garment factory in Nanjing. He mainly produces down garments for export to northern Europe, and more than 90% of them are exported.

In 2009, Mr. Chen's export orders had been reduced by 30%-50%, while the domestic market was growing against the trend.

At that time, Mr. Chen also had 5 clothing stores, which was a franchised store in China.

"Now is an opportunity for domestic sales, I want to be the terminal of the industrial chain -- expand the shop."

In the second half of 2009, Mr. Chen said more than once.

After making the decision, he visited many cities more than once.

At that time, Mr. Chen repeatedly counted an account for the reporters. The investment of a street shop was about 20-30 yuan, and the pfer fee and decoration cost increased almost 200 thousand, so the investment of a shop was around 500 thousand.

According to the sales situation of the original store, the net profit of one year is estimated conservatively to be 20-25, or 2 years.

When we get to 20 stores, the net profit will be around 400-500 yuan per year, which is much easier than making orders.

According to this ideal state, 2-3 years later, Mr. Chen can fulfill his dream of life - to own his own brand.

"I have calculated that the initial investment of a brand is about 20 million, and now I am expanding the store to make channels for my future brand."

Mr. Chen said.

Half a year later, goodbye to Mr. Chen.

He is looking for a big house to make a brand store on Taobao.

Half a year, from reality to virtual, why did Chen's idea change so much?

Mr. Chen said, "now the rents of city street shops are getting higher and higher, occupying more and more.

Last year, besides street shops, I also wanted to enter the department store in China.

But there are difficulties.

"The paction mode of export commodities is relatively simple, mainly based on sample orders, single order, cash on delivery.

But the rules of the domestic retail industry are much more complicated.

Mr. Chen analyzed that the domestic terminal consumption channels mostly adopted the way of "joint operation and joint marketing". These terminal consumption channels set up a property to attract famous brand manufacturers or agents to enter stores, allowing them to sell their products independently, and department stores earn profits through "deduction".

And for the domestic and foreign trade enterprises that only engaged in production and had no domestic sales channels in the past, it is very difficult to enter the shopping mall to accept strict selection.

"After the interview, I found that there were 15 items of fees, such as promotion fees, salesmen's clothing fees, cleaning fees, etc.

Although most supermarkets in China are buyout businesses, they need the suppliers to advance the commodities and settle them with suppliers after certain accounts.

This kind of business like "buy on credit" has a short account period of twenty days in half a month and one or two months in length.

Mr. Chen said that for himself, there is no hope, no resources and no channels on this road.

If the enterprise can bypass the middle channel providers directly to the terminal buyers, it will not only save the cost of intermediate links, but also reduce the price. Buyers and sellers also reduce the "disconnection" situation.

Taobao mall just provided such a platform.

According to Mr. Chen, entering the mall must be a production enterprise and must have the right to use the trade mark.

There are two kinds of stores and flagship stores. They are pre staffing, 2 promotion, 2 customer service, 1 shipments, 1 operations 6 people, and the operation cost is about 1-2 million / month.

Mall costs about 6000 yuan.

Taobao's annual deduction to a ladder nature, about 1 million of the sales discount point of almost 5%.

In order to invest in new production lines and plants, Mr. Chen expects his investment to be about 5 million.

It includes the personnel and equipment of the proofing center, clothing designers, graphic designers, photography, makeup, customer service personnel, sales, logistics, business personnel, factory dormitories, canteen, plus raw materials turnover, advertising investment, office supplies, decoration......

"Online brands have been successful, but not many.

Most people are standing on a starting line, with little difference and the probability of success will be greater. "

Mr. Chen said.

All the friends around Mr. Chen are doing it. He said: "people in Jiangsu and Zhejiang are entering, no matter whether they are doing domestic trade or making models outside the market."

Yan Qiao, director of Taobao's business, confirmed the rapid development of Taobao mall with a set of figures.

From 2008 to now, the number of enterprises entering the mall has increased by more than 100% per year.

Yan Qiao said that there are two reasons behind this rapid growth: first, the e-commerce platform is favored by everyone, is the future direction of development, this is a change of marketing mode, and is also the result of enterprise pformation and upgrading.

"Small and medium-sized enterprises have to survive, and there is not much money to trial and error. Taobao mall provides them with another platform."

Yan Qiao said, "now the big brands also value the channel of e-commerce. Last year, the sales volume of this platform was 200 billion, accounting for 2% of the total volume of the whole society."

Expert opinion

"Online + offline" integration and development

The entry of physical enterprises into the Internet market also requires changes in thinking.

Experts say that how to integrate the sales and differentiation of online and offline businesses requires new marketing thinking of physical enterprises.

Gu Guojian, a professor at Shanghai Business School, believes that virtual retail and physical retail are two types of retail competition. Under certain conditions, these two types of retailers can achieve reorganization and coordination of business chains.

In the initial stage, the entity retailing enterprises should make clear the overall strategy of "entity stores and network stores", so that online retailing should become a supplement to physical retailing.

"The development of online retailing by physical retailers can pform the substitution and competitiveness of the two types of business into complementarity, and make use of the characteristics of the development of online retail business to force the entity retail business to adapt to the reform of consumers' change and get the common development of retail business under the Internet."

Gu Guojian said.