Clothing Business: Focus On Brand Or Channel?

CEO, Bi Sheng, threw out "e-commerce is impetuous, facing a huge competition in the Red Sea, and no money making business is a bubble" at the business school tour of 2011 Chinese economic leaders.

Many people in the industry believe that most of the business people are deceiving themselves, while they burn money on the other side, but they do not talk about profits. They are deceiving themselves in the future, but many electric providers still enjoy it.

Impetuous society also nurtured many impetuous business enterprises.

"This industry is impetuous in China, this is not an industry that drinks coffee to enjoy leisure, it has been in the cold winter".

The former COO Huang Ruo of Taobao mall founder and Dangdang network is more pessimistic than Bi Sheng, who throws the electricity supplier's cold winter theory.

Compared with the domestic electricity providers who are willing to gamble heavily in gambling, they only sell BlackSocks, the European e-commerce website selling black socks, for 10 years.

BlackSocks's products are surprisingly simple and the models are very conceited.

In the past 10 years, it has successfully sold 10 million pairs of black socks in Europe, and now it is entering the United States.

Only four black socks, each of which cost about $10, become its users and even have to pay an annual fee.

But such an incredible website has won high user loyalty.

Its founder, Sami lyre, has a clear mind and focuses only on business people.

But in China, there is hardly any household appliance manufacturer who is clear and contented as BlackSocks.

Domestic electricity providers or abandon brands to scale, or own

At home, according to statistics from AI consulting, the overall market size of online shopping is expected to reach 772 billion yuan in 2011. The size of the apparel online shopping market is expected to reach 204 billion 900 million yuan, up 94.7% from the 105 billion 240 million yuan in 2010, and will continue to maintain rapid growth in the next 2~3 years. It is estimated that by 2014, the scale of clothing online shopping market will reach 519 billion 500 million yuan, and the penetration rate will reach 27% in the overall online shopping market.

The future looks very beautiful, but on the other hand, it is very regrettable that the big cake is only painted. Now the card battle has ended and the leading array has been fixed, leaving two or three lines of electricity supplier with little choice.

Scale or brand, which is not to be seen in the eyes of Huang Ruo.

As long as we are free brands, we should not think big or big. Once bigger, the risks will be even more uncontrollable.

"When the enterprise is not ready, it should not continue to rush ahead.

Just thinking about expanding the scale, actually it's even closer to death. "

In Huang ruo's view, business and retail business is a molecular business.

The old way of burning money is to enlarge the size of the plate and increase the denominator. But in fact, the efficiency has not improved, resulting in a lot of ineffective sales, for example, from 2/5 to 3/10, the investment is much more than the actual loss.

Burn money and burn high output

"The so-called burning money does not burn money, want to quickly expand the category, we must try, first try wrong and try again."

Fan sold its own Miook (Miao Ke) brand cosmetics, and repeatedly ploughed "V+ strategy" and open platform to continuously distribute channel brand.

Jingdong mall and Amazon have also been developing their commodity categories horizontally, gradually enriching department stores.

Originally, only the men's socks and underwear have been expanded to 11 horizontal related categories, from socks, underwear, towels, collar and so on.

CEO Lin Wei believes that the greater the number of categories, the greater the risk. "The higher the demand for talent, the more important for the entrepreneurial team is the rapid expansion of the team and the lack of management."

What he has to do every day is meticulous operation.

"When e-commerce websites are expanding rapidly, they can only first pull people up and run.

This is the normal business behavior of the enterprise, which is classified as burning money.

In fact, CEO is also talking about this problem, but trial and error always try, marketing is always done.

Lin Wei said that high input does not necessarily mean high output, but there will be no high output without high input, and low cost expansion is completely without opportunity.

"The so-called burning money does not burn money, want to quickly expand the category, we must try, first try wrong and try again."

In addition to the expansion of the operating width, the electricity supplier has been unable to extricate itself from burning money or mire.

Holle, Jingdong mall and Amazon emphasized that they still insist on free shipping in 2011 and continue to expand the category of goods.

As a result, advertising marketing costs and logistics distribution costs are increasing significantly. They may expect to fight their rivals before they consume themselves.

In addition to B2C bigwigs, group buying websites still cling to their advertisements.

The glutinous rice net, which is "not bad money", has chosen to throw 200 million yuan into the CCTV and the local satellite TV and its popular TV programs first, and hopes to seize the commanding heights of the market.

Unlike the glutinous rice net, the US group network, the 24 coupons and the handshake net are all independent group buying websites, but they are no less ambitious in the advertising market.

At the end of last year, Wang Xing, CEO, announced the advertising plan of RMB 130 million yuan. As the first person to eat crabs in China's group buying industry, Wang Xing obviously did not want to take a step in marketing.

The 24 voucher is more quietly during the Spring Festival to sponsor CCTV Spring Festival series to more public.

The handshake network, which has always been "the largest group buying website in China", is now catching up with buses in major cities with overwhelming speed and momentum.

Wu Bo CEO used to rapidly expand his shape. As early as last year, the handover network had launched a large advertising campaign, and said that the $50 million financing it had received would be one of the highlights.

"Now group buying websites are expanding. Both urban layout and marketing need financial support.

In the past, there was no longer a low threshold for group buying, and there may be strong funds to win in competition.

Chen Shou Shou, an international analyst at Analysys International, said.

Huang Ruo said to this phenomenon: "the second tier electricity providers that have emerged in the past two or three years only have to give up their pursuit of scale and perhaps have the hope of living."

Choices always seem risky.

In this cold winter, they each have their own ways to exercise.

Scale or brand, burning money or keeping a clear conscience, whose path is better, so far, there seems to be no standard answer.