Touch The "Electricity" Business Is The Loss Is Earned Must Adhere To

E-commerce, transformation and upgrading are the hottest two hotspots in the field of production. Foshan, which is famous for its traditional manufacturing industry, has stepped up the pace of transformation and upgrading, and the electricity supplier has been listed as an important way of transformation and upgrading. Nowadays, the voice of the electricity supplier can be heard at any forum or gathering on the development of enterprises in Foshan.

What do you think of the electric business enterprise? As long as hi PI Di calls a "pro", there will be a large number of fans visiting the door, waiting for the shop to receive money, or locking the brows to arrange the homepage, hoping that the "pro" people visiting the shop will be forced to shop in the second place?

Sample: Sister Flower Underwear

Brand type: traditional brand

Characteristics: at present, loss adjustment, management direction, emphasis on brand building.

Basically, the more you sell, the more you lose.

Pan Chuwen is the general manager of Foshan sister flower Underwear Co., Ltd., who returned from Australia in the 1980s and inherited the family business.

By the end of 2010, sister flower set foot in the electricity supplier, equipped with Tmall, Jingdong, Dangdang three business platform. At the very beginning, there were only 5 people, second to 30. 2012 is a year for enterprises to develop electricity providers vigorously. It is also the highest annual sales volume of electricity providers, which is about 10 million yuan, but it points out that about 5000000 points are not worth making, including manpower, warehousing, promotion fees, commission and operation management expenses. "Basically, the more you sell, the more you lose."

Pan Chuwen is not very satisfied with the online retail sales that he has made great efforts to win. At present, the highest monthly sales volume of sister flowers is about 1 million yuan, and last year the highest price of double eleven days is about 500000 yuan. Compared with peers, sister flowers are lagging behind.

　 Continuous trial and error to explore suitable business models

"Most enterprises in the industry have already set foot in the electricity supplier. Enterprises without electricity suppliers are also concerned about, thinking about and studying e-business. E-commerce is the trend of the times, this sales channel can not be lost, we choose to constantly trial and error, constantly changing the error, I hope to explore a suitable business development of the road of electricity supplier. Pan Chuwen said frankly, when the enterprise initially developed e-commerce, it was somewhat aggressive and took a lot of detours.

"Distributors usually deliver goods in batches, each time with a large quantity. For instance, the provincial agents issue orders for more than ten million yuan each time. The warehouse is issued 20 times a day, which is enough. But online retail is usually shipped on a one-piece basis, and each item may be different. It has to be packaged and distributed, and docking is needed. " He said that when just doing business, the online retailer and the traditional dealer's products receive and deliver goods in the same warehouse, resulting in poor accounting, slow delivery speed, low efficiency, and easy disruption of goods. In order to avoid this problem, enterprises set up independent warehouses for e-commerce providers, and all online shopping products are shipped from here.

　 It's wrong to focus on sales and not brand maintenance.

After the company touches "electricity", Pan Chuwen has strengthened the learning in the field of electric business, and has also studied other enterprises' gameplay. He found that some of the industry's very well established brands in the traditional channels, after setting foot in the electricity supplier, blindly pursued sales and hurt the corporate brand greatly, resulting in a substantial shrinkage of the physical stores.

In addition, consumers are accustomed to promotional prices, only to promote sales, and no longer buy positive products. Without profit, the production of enterprises can not keep up, and the quality of products also has problems. This vicious circle has brought enterprises into a difficult position.

These problems let Pan Chuwen calm thinking about the future path of enterprise electricity supplier. "For a company with certain brand value and mature online channels, it is wrong to make an electronic business with heavy sales and not heavy brand maintenance. The brand is not maintained well, the sales volume is higher, it is also a poison to quench thirst, sooner or later the enterprise will have trouble.

At the end of last year, Pan Chuwen was right. enterprise Business direction has been adjusted, he began to shrink the front line, from the original use of electricity suppliers to sell, adjust to brand promotion.

He also no longer asked the electricity supplier manager to take the volume, rather than simply checking the sales team with the sales volume. The number of teams has also been adjusted to 15 from the peak of 30. "Do not see how much money is sold, it depends on whether the product can sell a good price." When he was facing the electricity supplier team, he put it on the lips.

How big is the investment in electric business? The enterprises surveyed say that they are not cheaper than offline.

Located in Shunde, the all purpose safe is Tmall double eleven, the day of the comprehensive office equipment sales rank fourth. It is the first place in the domestic safe net sales.

Li Zhengyi, general manager of the omnipotent safe, counted the reporters: at present, the team of 20 people is responsible for the operation of the electricity supplier, with an average wage of 60 thousand yuan per person per year, and the total number is more than one million yuan. This is not the main cost. Transportation costs, Taobao's Commission and promotion fees are the main reasons. All the expenses add up to 25% of the total sales. Due to long-term operation, there is a sound foundation, the cost of sales is relatively low, and online investment is far greater than offline.

Pan Chuwen also said that online marketing costs seem to be low, and no need to rent or shop, but the commission fees drawn by Taobao are very high. The cost of advertising and promotion in Taobao is not low, plus personnel, distribution, warehousing and other inputs. In addition, online prices are low and gross margins are not high. However, there are more than 20% gross margin in every channel under the line, and there is also a gross profit margin at the terminal retail level.

　 Voice: no matter whether it is a loss, it is to earn electricity and not to give up.

In the interview with reporters, the enterprises that touched the "electricity" all indicated that whether it was compensation or profit, the online retail business should be valued, and the road of e-commerce would not be abandoned.

Pan Chuwen is a firm member of the business outlet. He said that he will change his way in the future and take advantage of e-commerce to attack corporate image and brand building.

In addition, even those who did not set foot in the electricity supplier also revealed concern, observation and Research on the electricity supplier. "At present, there is no successful electricity supplier mode in ceramic industry. Once there is a suitable mode, enterprises should follow up." Foshan's first ceramic company to visit Hong Kong shares, Dongpeng tile official revealed.

Reporters also found that some enterprises do not do electricity providers, mainly for fear of offending dealers. Enterprises to do business, easily lead to confusion in the price system, is not conducive to the operation of the dealer line, traditional enterprises must rely on distributors in a short time to gain a firm foothold. Foshan electric business association responsible person said that the development of electric business enterprises should deal with the relationship with distributors, but dealers should not become a "stumbling block" for enterprises to develop electricity providers. Distributors can expand the experience channels of products, so long as enterprises comb out the price system and interests, there is a greater prospect in the field of electricity supplier.

Experts: promoting transformation and upgrading with e-commerce

What role does e-commerce play in enterprise operation and enterprise transformation and upgrading? The relevant person in charge of the Foshan electronic commerce association thinks that the electricity supplier has added a new sales channel, which can help manufacturers to digest excess capacity, and can also break the geographical restriction by using the advantages of the Internet, and push Foshan manufacturing to a broader market. At the same time, the rapid development of electricity providers, conducive to transformation and upgrading of enterprises.

Jing Linbo, vice president of the financial and Strategic Research Institute of the Chinese Academy of Social Sciences, pointed out that e-commerce is no longer a purely electronic transaction, but a new productivity revolution. It is a new mode of production and a way of life. "E-commerce revolution brings great benefits and transformation to traditional enterprises, which can greatly reduce costs. The marketing cost can be saved by 55% and the channel cost can be saved by 47%. Foshan's traditional industries are reliable through the upgrading of electricity providers, and opportunities can not be missed.

Ding Li, an economics professor of the Guangdong Academy of Social Sciences, said Online retailers It can provide consumers with the highest utility in the value chain with the lowest cost, and at the same time, the pulling effect of market demand has become more direct. Ding Li thinks, nowadays, the brand of electric business is much more difficult than the traditional business mode. For the future development of the electricity supplier, Ding Li said, "the electricity supplier is" electricity "and" business "," electricity "technology is more and more standardized, the core problem is" business ", it is the terminal service you provide.