Li Guoqing: Clothing Performance 10 Billion, First Got Its Own Brand.

"At present, clothing Profitability has caught up with books. Our clothing category (revenue) target is 10 billion. Dangdang CEO Li Guoqing seems to be in a position to make a profit without making a timetable, but it is just around the corner.

Choose for customers instead of customers.

Dangdang, a maker of online bookstores, is now the first listed electricity supplier in China. However, it has been unable to meet the long-term development needs of books alone. In fact, as early as 2005, Dangdang began to gradually expand its product line. Now it is mainly divided into three businesses, namely, media, department stores and platforms.

"We choose strategic categories every year. The most important thing is profitability. Even if we don't earn money now, we will be able to earn next year and what scale we can earn." Dangdang CEO Li Guoqing told reporters in the south. This year's clothing category has become the focus, especially in May this year, the end of the line will also flash buying business to do a good job. After just a week after the launch, the sales volume is 100 million, and the share price that Dangdang has been hovering around 4 dollars has soared to 9.46 us dollars at the end of this Tuesday.

In this regard, Li Guoqing explained that, aside from books, clothing department stores average growth rate of 85% in the last quarter, compared with China Online retailers The market is a little higher. "The first choice of clothing is its profitability. From factories to consumers, we can make profits to customers and earn money, which is indeed a good category."

According to its 2012 annual earnings report, Dangdang department store business (self added platform) total turnover reached 1 billion 150 million yuan, the total transaction volume grew 95% annually, for the first time exceeded the book's 930 million yuan, "Dangdang has completed the transformation to the comprehensive shopping platform." Li Guoqing admitted that at present, Dangdang clothing profitability has been catching up with books. There is no doubt that clothing will exceed books next year, while Dangdang clothing category (revenue) target is 10 billion.

According to Li Guoqing, according to the clothing search ranking problem, Dangdang walked out of the way different from other clothing selling websites. Clothing category is not sorted and displayed according to simple search. "It is not buying rank in front, or low price in front, but according to brand orientation. In fact, brand players are very concerned about which brands they are next to, and if you are low, he will not come. We are not only different from high-end positioning in Tmall, but we still choose for customers, not for customers. "

　　 Abandon private brand and start platform business

"Self employed clothes have not been done," Li Guoqing said. The main reason was that the time was too early to launch. It is reported that Dangdang own brand "Dangdang top quality" released in May last year, there are 7 categories of clothing, cosmetics, home textiles, bags and so on. However, in the middle and low end of Dangdang superior products, the design and production of clothing brands were stopped when it was launched less than half a year ago.

Li Guoqing believes that from the retail industry rules, clothing sales only reach 10 billion yuan, it is suitable for its own brand, because this time there is enough user support, in order to make the high value of its own brand value. According to Li Guoqing, at present Dangdang clothing category all introduces third party sellers, positioning the high-end market. However, when making the fashion platform business, it is inevitable to compete with the traditional electricity suppliers. This is not only the competition for users, but also the competition among brands. He frankly said that Dangdang traffic is less than Tmall, but Dangdang conversion rate and customer price are 30% higher than Tmall's. He also revealed that at present, only 20% of active customers buy clothes, and 50% are pure new customers. "When we define brand development, there are several brands of teachers who say that selling clothing must connect the emotions of the original customers buying books with the" why they want to buy clothing ", including tonality. In our key page, we must focus on what not to push, and really push it according to its tonality and the reasonableness of its price.

Li Guoqing said Dangdang's gross margin was also raised. Clothes & Accessories The plate is growing fast. Turning to the question of profitability, he admits, "platform growth brings commission income to profits and then returns to calculate when profits will be made. We are still expanding the market, we are making a balance, we hope to speed up a bit faster, we will not make a timetable for profit, but we will be ready to make profits any time soon. "