Tips For Fast Internet Brand Expansion: Small Breakout Concerns Market Segmentation

Bags, underwear, socks, home textiles, diamonds, furniture...

These existing e-commerce giants have no time to take care of or ignore the "small" business, is causing more and more.

The fast expanding e-commerce market in China not only attracts the attention of overseas investors and WAL-MART, such as the world's largest retailer, but also subdivides more market blank areas outside the traditional B2C platform market.

Dream bazaar, blue MIU, wheat bag, MASAMASO, as well as cotton, elegance 100 wait later, are looking for greater breakthrough opportunities.

These expectations to create the Internet fast fashion brand quickly won the user at the same time, also won the favor of capital.

A few days ago, the founder of New Oriental co founded Xu Xiaoping, the first "VCOTTON" brand that came from micro-blog at the level of tens of millions of yuan. Earlier, Taobao's children's clothing sales champion "green box" won the first round of financing from the 20 million venture capital of Zhixin capital. In September last year, Ye Haifeng, President of the Taobao fashion bag, which sold more than 300 million of the Internet fashion bag, announced that it had invested 30 million dollars from DCM and Lenovo venture capital.

Small commodities market

What market can we sell socks on the Internet? Lin Wei, the founder of cotton, often has to face such doubts.

"This is a relatively narrow market, seemingly small, but the mass market."

The data he gave is that the annual output of socks products has reached 11 billion pairs, with sales revenue of 21 billion -220 billion yuan, and the average annual growth rate has reached 26% over the past 5 years.

Moreover, in recent years, personal products have been gradually moving from durable goods to fast moving consumer goods, and the consumption cycle has been greatly shortened.

The products that appeal to the brand of fast fashion are not only socks, but also underwear, household clothes, gloves, hats and so on.

In 4 and May this year, the website will launch underwear products, and August will launch home clothes.

"We are lucky to catch up with the last bus in the tide of e-commerce."

In Lin Wei's eyes, the clothing brand market is still in the initial stage of extensive development, and there are still lots of subdivision blank areas in the market.

Compared with the huge market space, the professional operation team that has the ability to support large-scale independent official website retailers is extremely scarce. Most of the traditional industry operators lack the experience of Internet brand marketing operation, and are often constrained by the inherent marketing methods and channels; only the e-business brand still keeps busy in its main battlefield, and has no time to take care of the new market blank.

According to the data provided by CNZZ data center, 81.18% of B2C in 2010 was specially designed for a certain field, which was higher than that in 2009. This is mainly caused by the large number of small and medium-sized enterprises entering the B2C market. Many single commodity producers directly enter the B2C market.

History has proved that traditional retail businesses like Tam carpenter comb, JOCKY and Shu Ya can achieve success in a more sophisticated market.

Lin Wei believes that these subdivision areas also meet the characteristics of online shopping, such as high gross profit, high customer price, high repeat purchase rate, high fault tolerance rate and low replacement cost.

Similarly, the Internet luggage brand, Ye Haifeng, the founder of wheat bag, told reporters that at present, the market of luggage and bags in China is around 200 billion, of which the middle and low end products account for more than half.

"Many people asked me if I would expand product categories, and I said no.

We will focus on the category of bags to integrate the fragmented needs of users, resulting in scale effect.

We are more concerned about the industry status of brands and segments. "

He said, "the bigger the booth is, the more people will be attacked.

The question is whether we should build a big castle or a castle that is easy to defend.

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Fast brand fast fashion

Narrow meets the brave.

"On the Internet, if the buyer is not satisfied with you, it will take 5 seconds to find your competitors."

Heller Will, an analyst at Deutsche Bank, said that compared with the US, China's online shopping users have higher expectations.

Ye Haifeng, President of wheat packaging, believes that creating brands and traditions on the Internet is different. The online shopping crowd is different from the traditional ones. The online products have higher cost performance requirements, richer product models, and faster styles.

This is also a major reason why many traditional brands have been frustrated in the Internet.

High cost performance, new style and fashion become the most consumers' demand for the Internet brand. This is also the reason why Internet brand enterprises put forward the fast brand and fast fashion.

Lin Wei CEO said: "behind the fast is the supply chain management mechanism, and the resulting cost control results and user experience."

Relying solely on micro-blog marketing, in November 2010, the sale of cotton on the line that day, the sale of 100 single, in January 4th this year, breaking 1000 single day, sales "fast" from behind the management.

Electronic commerce expert, President of the generation, Xing Kong Yu, said at an electronic commerce conference that friends who want to do e-commerce must remember that they should be quicker when they start running.

"A set of products must be fast from online display, customer order, purchase, sale to logistics."

Ye Haifeng said frankly, similar to WAL-MART's import and export management, the supply chain management system of wheat bags is automatically displayed on the handheld terminal of the responsible person in various links such as purchasing, production, warehousing, logistics and other aspects through the network order driver.

Through handheld terminals, the employees of wheat bags will understand the requirements of consumers for their own links and complete their own tasks accordingly.

Accordingly, the company not only understands the demand of consumers for certain special products, but also effectively reduces the cost of warehousing and logistics.

In this way, "fast" has become an important means to create the brand of Internet fashion bags.

"We sell 10 thousand to 20 thousand orders a day, 20-30 new products and bags every day, and 15 days for a product from research and development to product shelves, and our target is 7 days."

Ye Haifeng's idol business -- ZARA can do it for 7 days.

Obviously, the precise management of the supply chain will become a weapon for future confrontation between e-commerce enterprises.

In addition to product display, price concessions, shop creativity, they need to compare the whole value chain behind the competition companies, including the precise management of orders, the low cost operation of purchasing logistics, and the reduction of inventory as far as possible.

Supply chain management has made the "fast" of e-commerce become a reality, and at the same time, it has also reduced the cost and laid the foundation for the user's good experience.

Full link competition

The turnip is fast.

While many websites are busy with the enclosure, the "pornographic" storm encountered by Jingdong mall and the refurbishment of new egg net have made quality problems, logistics problems and after-sale services become the focus of attention again.

According to the survey report of 2010 Chinese Internet users' online shopping behavior and satisfaction, more than 70% of consumers choose online shopping because of low price factors.

In 2010, the number of B2C websites increased from 10 thousand and 100 at the beginning of the year to 11 thousand and 800 in December. The growth rate reached 20.45%, which surpassed the growth rate of the whole e-commerce industry in CNZZ.

At the same time, the pursuit of low prices and the increasing number of new entrants make the market environment more complicated.

In the eyes of many people, how does the niche market grow into a big guy? In this regard, Lin Wei said that the goal of Wei cotton is to be a fast fashion brand, so we will adopt a quality leading competitive strategy rather than a cost leadership strategy, that is, use the Internet platform to create a good and reliable brand image and provide cost-effective products.

Products in the style, color, design, raw materials use, quality inspection standards, comfort, wear resistance and other aspects of the first-class level, in terms of quality and taste equivalent to foreign products such as CK, CottonRepublic and so on.

"A lot of companies are going to encircles the ground first, and then turn back to do the quality. Maybe it's right. Who knows?" Ye Haifeng focused on the user experience.

Because the tradition of brand practice is that we can not sacrifice others for short-term interests.

"In the future, we are still fighting products, good service, good shopping environment, e-commerce eliminates physical distance, but builds a strong psychological distance."

Ye Haifeng has his own view on competition. "Early is a single point of breakthrough, your long board determines how far you go; the future will enter a comprehensive competition, which link is weak, will drag the legs."

The discovery of short boards depends on data.

"I am most concerned about four positive data on weekdays, one is sales, which determines your scale; two is gross profit margin, which determines your profitability; three, the rate of repeat purchase determines your value; there is a conversion rate of orders.

And two negative data, one is the return rate, the two is the customer complaint rate.

To meet the personalized needs of consumers marketing mode will gradually replace the vicious price competition, which will become the inevitable trend of the healthy development of e-commerce.

Ye Haifeng said, "the threshold of e-commerce is very high. It is almost far from it. It looks a little bit, but it has to do a lot of work."