The Old Brand Breaks The Logistics Cost Limit By Suning Platform Low Price Net.

about Time-honored brand Enterprises, the electricity supplier has always been a piece of "want to bite dare not bite" bones. On the one hand, the consumption network has become a reality. Online shopping as a battleground of retail enterprises, the proportion of total retail sales of consumer goods is increasing year by year. On the other hand, the unfamiliarity of online consumer groups and online marketing methods makes it difficult for traditional enterprises, especially the time-honored brand, to control the scale of online investment. In the view of time-honored enterprises, Suning's "three exemption mode" just relieves the worries of enterprises, so that time honored brands can contact online channels at a lower cost. At the same time, how to build a high-quality platform for consumers, build a sound system and attract more consumers has become the focus of time-honored enterprises.

Proposed on-line "old brand polymer"

As an established brand in 1853, it was once the first choice for the royal family to go to the people's carts. In the name of the inner League, "inside" refers to the imperial court. "Liansheng" is a sign for customers to wear the boots made by this shop, which can be prosperous in court. Now, the 160 year old brand is working hard to develop online sales channels. A few days ago, it has been upgraded to a number of open platform operation online stores such as Tmall, Jingdong, Amazon and so on. It has also entered Suning open platform recently, becoming one of the first 300 contracted enterprises.

According to the internal League promotion, it has talked with Suning that it hopes to make a time-honored brand into a "polymer", breaking the "industry distinction" according to category, and presenting the "old brand area" alone in the urban channel.

Jiang Junxian, President of the time-honored brand association, believes that the accumulation of old online brands is not only a marketing channel, but also helps to show the positive image of the old brand enterprises themselves in innovation, fashion and keeping up with the trend of the times, so that more young people realize that the old brand is not backward and lacks competitiveness.

And others Electronic business platform The difference is that Suning open platform launched the "three exemption" policy, so that enterprises can basically "zero cost operation". In the aspect of internal promotion, the "three exemption" policy is not the only advantage to attract internal upgrading. "Compared with other e-commerce platforms, Suning has a strong reputation online, and there are 1600 stores in the country. These are unique marketing resources." Cheng Xuru, assistant general manager of Beijing inner union shoe industry Co., Ltd. He also believes that the users of Suning open platform are closer to the inner League itself in terms of age, and the proportion of mature users over 30 years old is even greater.

Zheng Yan, CEO, general agent of Beijing Yuyi Technology Co., Ltd. believes that the proportion of platform fees to brand businesses is very small, almost negligible. "From the cost point of view, the enterprise pays attention to the cost of drainage, and hopes that the platform will support more traffic for the time honored brand enterprises. Besides, the building of a business environment is also very important. Suning's current "limited investment" system has found many regular manufacturers and has a clear auditing mechanism. This can well control the entry threshold of merchants, and at the same time, the competitive environment of resource allocation will be better.

Offline experience helps

While launching the "three exemption" policy to attract businesses, Suning's O2O strategy is also in line with the online platform strategy. Suning's "cloud business" model has just started, but in the aspect of internal promotion, its attempts at O2O are also very suitable for online startup of time-honored enterprises. "For the settled enterprises, Suning's every line can be a marketing platform, and Suning is also pushing the O2O mode to integrate offline stores and online platforms." Cheng Xu said.

In the eyes of the industry, Suning Behind the "three sides" model is the demand for scale and retailer quality, as well as the early layout of logistics, supply chain and other value-added services for the future. The company also said that enterprises would initially open their own shops on the platform and make self operated shops. When the conditions are ripe, they will probably use Suning's warehousing, distribution and other value-added services. For Suning, who has just launched an open platform, we think that everyone is not very experienced in this new business model. "Cloud business" mode itself is a pioneering move. Businesses and platforms need to explore the mode and rhythm of cooperation.

There are time honored enterprises, which say that apart from self promotion and distribution in the stores, Suning's online and offline interaction still has enough imagination. But that does not mean that these goods need to be retailing online. Zheng Yan said that the idea of Wu Yu Tai is to create two relatively independent systems online and offline and do not want the offline customers to turn online. "But Suning has a super store and offline resources matching, and it may become another important business platform after Tmall and Jingdong." Zheng Yan said frankly, although Wu Yu Tai has also entered the first shop, Dangdang, Amazon and other platforms, but sales are not ideal, "because these electricity providers do not attach much importance to POP, or they are self-employed. And Suning's attention to the POP platform will enable businessmen to invest more in the store operation.

In addition, a number of time honored enterprises executives said that an important reason for the importance of Suning's open platform is to consider that their control over brands is more stringent than most platforms. Enterprises go back to examine brand qualifications, form a higher entry threshold, and do well in the intellectual property protection system of time-honored enterprises.

Logistics constraints are expected to crack

According to the reporter's understanding, at present, there are a few cases of "old net" touching the net. Since 2007, the time honored brand has begun to frequent electronic commerce, and even regarded online sales as a kind of "self rescue" action. Among them, there are both self built official websites or enterprises that hold together and set up stations. There are also many enterprises entering Tmall, Jingdong, Suning and other open platforms. For the time-honored brand enterprises with good product quality, marketing thinking, capital and logistics will undoubtedly become the three major constraints that restrict the "touch net" of time-honored enterprises. After the transformation of marketing thinking and the support of funds, logistics is still a chronic disease of old brands and even many traditional retailers.

Jiang Junxian also mentioned that with the support of the Beijing Municipal Commerce Commission, the Olympic sales network platform after the 2008 Olympic Games has been transformed into the first time old e-commerce platform in China -- the old shop. But it is difficult to insist on it now. "This is mainly because there is only one network platform at present, but the problems of logistics and capital flow have not been properly solved." In Jiang Junxian's view, a large retailer like Suning has formed an extensive network and has certain advantages in logistics.

In the industry view, the modern logistics, storage system and supply chain system of leveraging platform is a shortcut for the old brand to "light up and quickly develop". Generally speaking, old brand enterprises are mostly local specialties, such as Quanjude, Wu Yutai, Tongrentang and other brands are developing better in Beijing. The brands such as Shuang Mei, Xie Fuchun, Wu Fang Zhai are quite popular in Jiangsu, Zhejiang and Shanghai, and the brands such as Huangshang, Bao Sheng Yuan and so on are well known in Southern China. A pastry old person in charge said that through the network channel, the time-honored brand enterprise has broken through the regional bottleneck which has been difficult to cross, let the commodity open the national market. "The size of the time honored enterprises is generally not too large, and it is difficult to build factories in many parts of the country. The supply chain is also hard to reach far away areas, but the flexibility of online shopping is strong. As long as the courier can reach the place, consumers can taste authentic authentic old food, which is actually the biggest gain we get from the electronic business platform."