Daphne'S Electricity Supplier Performance Continues To Decline, Shoes And Clothing Companies Wading Electricity Providers Are In Great Trouble.

Traditional shoes and clothing enterprises wading e-commerce has long been a subject to be studied. From the recent setback in the field of electricity supplier, Daphne looks at the dilemma of traditional enterprises involved in electric business. Maybe it can be used as a case. Daphne has been in the field of e-commerce for a short time. Recently, the three chief executives of the e-commerce department were unlucky.

But Daphne officials said they would never give up the electricity supplier, but in the future, they will adjust the operation strategy of the electricity supplier.

In fact, as early as 2006, Daphne had "electric shock", and in 2009 the establishment of a specialized e-commerce company, from the rise to the full bloom, and then to the setback, Daphne spent less than 6 years.

What forced Daphne electric business to make adjustments in turbulence?

Daphne electric business war

"

The frustration of the electricity supplier business is related to its positioning, strategic planning and team execution.

Mo Daiqing, an analyst with China Electronic Commerce Research Center, told reporters.

And others

Like the traditional enterprises, the shoe business brand Daphne's electricity supplier business also has unclear positioning, and online and offline channels are prominent contradictions.

In 2010, it failed to invest in the field of electronic commerce, and even dragged Daphne's electricity business to a standstill.

In May 2010, Daphne's strategic investment business supplier "lit 100" 30 million yuan, accounting for 10% of the shares, while Daphne's electricity business "nightmare" also began, until July and August this year, "Yao point 100" closed down, still owed some of Daphne's loan did not return.

On the other hand, the tradition of other businesses involved in e-commerce.

Similarly, in the process of continuous trial, a deviation of top management decisions may lead to problems in the direction of the entire e-commerce team.

In addition, due to changes in the personnel of the electricity supplier team, the change of core leadership also makes the team unstable.

In September 2011, after the departure of Wang Yufeng, general manager of Daphne electronic commerce, Chen Bingwen, the 100 executive of the original Yao point, was briefly admitted to Daphne electric business and left in a month.

Daphne's electricity business path is generally "Outsourcing - whole network sales - vertical electricity supplier".

At the beginning, due to the lack of experience in the operation of the electricity supplier, Daphne, like most other enterprises, gave the electricity supplier business to the contractor, but the enterprises could not grasp the information they needed.

After 2010, Daphne took the mode of selling the whole network, and signed sales contracts, underwriting or page link contracts with dozens of websites including vip.com, Holle, Le Tao, Jingdong, Yi soon net. Sales rose rapidly, and the electricity business realized hundreds of thousands of Yuan's profits, forming a brilliant stage of Daphne's e-commerce business.

However, when the whole network is sold through low price strategy promotion, Mo Daiqing thinks, for Daphne brand and channel is also "hidden disease", "not all enterprises have the strength to fight price war, Daphne business later suffered setbacks partly because of its price war drag."

Since then, Daphne is still trying to increase the online share by increasing the construction of the official website.

But the revision of Daphne's official website began in April this year. Until today, it has not been completed. Daphne e-commerce has not been able to stop the decline in performance.

Traditional enterprise touches the net difficult position

"The dilemma of Daphne's electricity supplier business also reflects the common dilemma of the traditional shoe and clothing enterprises involved in water business."

The independent critic of shoe and clothing industry, the information and e-commerce observer of the retail industry, Ma Gang told reporters that although the low price competition made the business market scale grow, the expansion of the traditional channel based enterprises was not smooth.

Even suning.com, one of the protagonists of the recent electricity supplier war, has stirred up the electricity business pattern dominated by the original cat, Dangdang, and excellence by virtue of its traditional strength. But the burning of money on the online business has made its share price all the way down.

If we continue to make great efforts to carry out online business, the stock price is also a great pressure for them.

Recently, Suning Appliance and Gome reported the decline in performance, indicating that the huge investment in the electricity supplier and the impact of other business enterprises dragged the two chain giants.

In the case of traditional enterprises' touches, they may choose the way of outsourcing when they lack experience at the beginning. The biggest problem that traditional enterprises encounter is that the contradiction between the price of the traditional channel distributors and the low price of the network is the core issue.

Ma Gang said that at present, some enterprises are exploring ways to launch some specialized products for the network channel, which are different from the traditional sales channels' product models, avoid conflict with offline channels, or adopt a certain proportion of the difference mode, and online channels mainly sell tail goods and stock goods; and set up independent e-commerce companies.

For some electricity supplier price war, some brands also have agreements with the electricity supplier, such as the sale price can not be less than 15% off discount.

Zero mentality

Traditional enterprises enter into e-commerce, though they have inherent advantages from talent reserve, capital accumulation, experience accumulation and more mature logistics system. In turn, institutional defects and personal cognition will become the shackles of traditional enterprises.

Wang Jipeng, chairman of Beijing Ren Da Fang business management consulting company, said: "traditional enterprises do e-commerce as a new venture. They must have all the mentality of returning to zero."

In his view, even now, no one can say that in the field of electricity providers can be called a model, most of the traditional enterprises are still exploring the process.

Whether the business can be done well or not depends mainly on whether traditional enterprises can shift their core competence to the electricity supplier business.

However, traditional enterprises and electric providers are very different in many ways, including the way of thinking, the way of operation and the way of operation. "This is sometimes like driving a four wheel truck to drive two motorcycles, which requires completely different control capabilities."

Wang Jipeng said.

For example, in the shopping experience, the traditional channel may pay attention to the environment of the storefront, the comfort of the light, the on-site service attitude of the salesperson and the feeling of trying on the trial site, etc., and the shopping experience of the electricity supplier channel may include prices, pictures, copywriters, logistics, after sale returns and so on.

Before enterprises decide to do business, they must adjust and plan a good sales channel system and integrate channels on line and offline.

Li Juanjuan, a researcher at China Samsung Economic Research Institute, once told reporters that on the one hand, it should make clear its market positioning and rationally plan its sales channel system, including developing e-commerce mode, online and offline brand, product line, product price positioning, etc.

On the other hand, it is necessary to strengthen the existing channel management, standardize the sales behavior of agents and distributors, and strengthen the online channel planning and choose the best online channel mode.

In fact, even online channels are also a system, including B2C website platform, portal website platform, self built e-commerce website, etc. all channels have their own characteristics, and brands need to make reasonable planning.

However, in Wang Jipeng's view, the most reliable strategy for traditional industries to intervene in electricity providers is not through diversification, but through investment and acquisition. Of course, the premise is that the enterprises you invest in should be one of the competitive leading companies in the electricity supplier industry.