Touch Net = Burn Money? &Nbsp; The Pain Of Garment Enterprises In E-Commerce.

One side is a huge line.

A long list shows the first time for traditional enterprises.

On the contrary, VANCL, which has the Internet gene, has grown into a Sample Firms that is well deserved in the field of vertical B2C in the doubt of losing money.

Another cruel fact is that, for traditional industries, e-commerce is undoubtedly a subversive business model. Traditional enterprises dare not take it lightly. However, up to now, there is no successful case for traditional industries to enter e-commerce in China. Why do traditional enterprises fail in e-commerce?

Not long ago, Smith Barney made a decision that was not too hard but enough "disgraceful". Its announcement said that because of the inability to guarantee profits, the company decided to stop operating "Bong" e-commerce business, thus becoming the first traditional listed clothing company to announce the outage of e-commerce business, and to pfer its business to non-listed company group.

For the decision of the US state dress, Zhou Chengjian, the chairman of the company, explained to the outside world that it is difficult to protect profits and fear the confidence of investors in listed companies.

The industry said, "playing with money, the United States can afford to play but dare not play", the pressure is attributed to the state investment input-output ratio is too low.

According to the US bond bulletin, up to now, the state investment has reached 60 million yuan a year, and the sales volume of this year is only 200 million yuan, compared with the 3 billion 800 million yuan sales in the first half of this year.

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The experience of Bong is reminiscent of the Millennium search network, which has been hailed as a Korean investment in China by SK Telecom.

In 2009, SK announced that it plans to invest 500 million yuan in China and build a thousand search network to enter the B2C field, hoping to build China's largest online brand clothing mall.

However, its development is not smooth.

On line less than two months, coach Guo Hongchi left, and after that, Qian search network abandoned SK group, unwilling to continue to inject capital, and finally to be acquired by Jingdong mall.

Informed sources said, this is like "Chuai ten thousand yuan and one hundred yuan to the same restaurant to eat" mentality is different.

SK group overestimated the beauty of e-commerce business, and found that e-commerce investment was too large, affecting the profits of listed companies and had to stop.

The founder of Holland, Lu Ming, summed up the traditional industry in e-commerce.

Lu Ming said that the growth rate of e-commerce enterprises is very high, but in fact, it may start to earn more money than traditional enterprises, and the break even point directly affects the decision-making of traditional enterprises.

In his view, the length of time that traditional enterprises invest in the business of electricity providers is an important factor in determining success or failure.

According to CNNIC statistics, as of the end of 2010, 43% of Chinese enterprises intending to enter or have established e-commerce services, or have already entered the e-commerce market.

However, there are indications that traditional enterprises are compared with the huge sales system under the line.

In September 2010, the largest liquor retailing website was built by Shanxi coal company's first investment of 100 million yuan.

After two months of operation, Ye Xiaoli, a CEO of brewmaster online, handed over a report card with a loss of 9 million 800 thousand yuan and suffered a "class break".

In April this year, brewmaster net got two joint venture capital injection from 20 million well-known international venture capitalists, according to Zhao Yanping, vice president of brewmaster network.

Wu Rongzhao, vice president of Hongxing Erke, told reporters that the ratio of sales and sales under this year's online and offline sales is less than 2%.

Hongxing Erke hopes that in the next 3 years, online sales will reach 10%.

In fact, for the vast majority of traditional enterprises, e-commerce as a new business mode, is affecting the interests of offline channels, which makes more and more enterprises feel a dilemma.

Professionals believe that traditional enterprises are mainly engaged in e-commerce, such as lack of talents, technical loopholes, fleeing of goods, fakes and so on.

The first two problems can be solved by outsourcing and training talents, and the most fatal is the contradiction between online and offline channels. The so-called "fleeing" is a direct reflection of the pricing conflict between traditional channels and e-commerce channels.

Prior to this, good Lok announced a strategic partnership with the Crocs brand, becoming the only authorized partner of the latter. Not only will it buy Crocs's official website e-commerce platform, it will also provide a nationwide distribution system for Crocs.

BELLE suddenly stopped its original cooperation plan with the shoe B2C platform including good Lok, and suspended the licensing of its own brands such as STACCATO, BELLE and Tata shoes.

This is a reflection of traditional manufacturers' entanglements in e-commerce channels.

For this entanglement, brewmaster network CEO Hao Hongfeng has a deeper understanding.

A liquor industry practitioner who asked not to be named told reporters that the circulation of liquor, especially the circulation cost of liquor, accounted for about 50% of the selling price, while a bottle of wine came out from the distillery to the consumers. The traditional channel was at least 3~5 links, and each link was about 15%~20% profit. This also meant that more than half of the profits of a bottle of wine had been given to the circulation channel.

According to the reporter, the business mode of brewmaster net is that there is only one link of liquor consumption in the future, that is, brewmaster net.

From distilleries to brewmaster net to consumers, at least 3 links have been reduced. Brewmaster network has saved 15%~20%'s gross profit, and consumers have gained more benefits.

This idea is considered by the traditional channel to disturb the price system of traditional liquor industry.

Hao Hongfeng said earlier that because the reduction of the intermediate circulation level of the increase in price, so that the liquor price on the Internet is even lower than that of wholesalers, and many retailers turn to get goods from brewmaster net.

This kind of "fleeing" behavior has been resisted by the traditional liquor distribution channels. Some liquor dealers began to join the "Shang Shu" distillery, opposed the brewery and their cooperation, resulting in some products of brewery net nearly out of stock.

Hu Jun, the new channel manager of the seven wolves, has also said that complaints from distributors are already an unavoidable phenomenon. The biggest problem encountered in the process of electronic commerce of the seven wolves is that commodities are fleeing and selling fake products on the Internet, often lowering prices and affecting the rights and interests of distributors.

Zhou Bin, executive vice president of Hongxing Erke, said that Brand Company will face the problem of channel conflict. Hongxing Erke's strategy is to relocate products online and offline. The commodities sold in the two channels are not the same, avoiding fleeing from the source.

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Dancing with shackles

Mei Tao, vice president of the vice president of yuan yuan, described the traditional enterprises as "electric fishing", which was like fishing in the ocean, and they were willing to spend money on building luxurious fishing boats. However, they did not think they could afford to spend money to clarify where the white fish were. They went out into the sea in a muddle. When they flew around the sea without headflies, they found that the fish did not catch two, and the oil money (operation expenses and promotion expenses) had been spent quite a lot.

"If e-commerce is only a channel to increase sales, then for traditional enterprises, the probability of success is very great. Once e-commerce is taken as a new business growth point, the cost of output will be very large."

Lu Ming said that the most important factor for traditional enterprises to engage in e-commerce is the "mechanism". "Traditional enterprises do not dare to burn electricity suppliers."

Jiapin network CEO Yang Peifeng said that traditional enterprises are developing e-commerce through self built websites. The disadvantage is that they invest heavily in the early stage, and because there is no experience and talents in e-commerce, they often have big thunder and little rain.

Analysys International analyst Chen Shou pointed out another way out -- self built e-commerce platform or gain more than losses, the third party platform is a good choice.

In fact, more and more capital favors these third party platforms.

In June of this year, Holle bought $50 million from Tencent, and Jiapin announced that it had completed tens of millions of dollars from Intel investment (IntelCapital) and other institutions.

In addition, the network such as Xiu Xiu, Ju Shang, vip.com, Jiapin, Shang pin, Milan net, diamond bird, Kelan diamond and Qiao Wu Qiao have all received more than ten million dollars of money.

The rise of E-business on these platforms provides another option for traditional enterprises.

In the view of Xing Kong Yu, President of the Dai Dai network, the cost of acquiring Taobao from traditional enterprises is far lower than the cost of acquiring B2C by independent enterprises.

For example, the cost of acquiring a new user on an independent B2C is around 300 yuan, while the cost of acquiring a new user on Taobao is only 40 yuan.

Yang Peifeng believes that when the online shopping market is becoming bigger and bigger and the industry chain develops more and more mature, the speed of entry threshold will increase at a geometric level. This means that the longer the hands-on, the higher the cost, the more intense the competition, the smaller the chance, the higher the risk.

"The advantages of e-commerce can be fully reflected in the economies of scale. The Internet economy has always been a game of" fast fish eating small fish, big fish eating small fish ".

Yang Peifeng believes that engaging in B2C is a capital game at the very beginning, and enterprises need to keep their horses in the field. After that, the future profits will be guaranteed.

This kind of cost regardless of cost is also a headache for traditional enterprises.

Zhou Bin, assistant vice president of hongxingerke, believes that from a cost perspective, take hongxingerke as an example, a set of electronic commerce system, hongxingerke uses it once, while West Street and other e-business platforms are N times, so the platform type company has a much higher cost performance ratio.

On the other hand, over reliance on the third party platform will also make traditional enterprises lose the right to speak.

In Guo Hongchi's view, the traditional network of West Street cooperation, whether upstream or downstream, has the right to participate in the rule making.

If the traditional enterprises accept the service of West Street, they must accept these rules.

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Breaking the trap of "touching the net"

There are various signs that e-commerce has become the trend of the times. Those traditional manufacturers who are regarded as carrying heavy burden on the original mode are not willing to eat up their positions in the "electronic" background.

Even more serious is that in China, the leading online B2C is almost pure electric business enterprises, although many traditional enterprises are already trying to do business, but few are successful.

So, is it possible for the traditional enterprises to pull back the situation? How does the traditional enterprise electric road lacking the Internet "gene" strike the place?

Guo Hongchi said that during the process of contacting with brands, he felt these enterprises' strong interest in e-commerce, but faced with difficulties in pformation.

First, there is no independent supply of products.

Traditional enterprises do e-commerce, the traditional retail goods to support the electronic commerce, no independent electronic commerce goods supply; second is not set up sales channels.

For brands, they often only open a Taobao store. They may not even own their official website. The cooperative relationship between Taobao shop and its thousands of front end shops is blank; third, the lack of initiative in formulating network sales rules.

The rules set by the enterprises are invalid for enterprises without cooperation, and the tension is very weak.

Fourth, it is difficult to establish the characteristics of e-business based on the characteristics of e-commerce. It is also a problem that every family has different ideas, how to implement it and how to integrate it with e-commerce.

To this end, Guo Hongchi gave the 4 step pformation route.

First, the traditional brand enterprises based on the upstream supply chain should establish an independent e-business warehouse, and expand the sale of the whole network based on this.

Second, sort out and integrate downstream network sales system, and gradually establish market rules.

Third, implement a fast supply chain system.

Fourth, the online and offline O2O marketing mode (also known as offline business mode) refers to online marketing online purchase under the line and offline consumption - editor's note, using their own stores and websites to build their own e-commerce customer system.

However, a small number of enterprises have made phased progress in many traditional enterprises that enter the electricity supplier.

Take Luo Lai home textile as an example.

According to the reporter's understanding, the strategy of Luo Lai home textile is independent brand wading electronic commerce, insisting on the research and development of independent products. The price of the products in the e-commerce channel is 2/3 of the quality products under the same line, and the rear end of the products under the online and offline products is unified, but the front end is the sole brand, and the well water does not attack the river.

The e-commerce channel has brought about a burst of sales growth for the home textiles.

Roley home textile was launched in March 1, 2009, and its annual sales volume was 16 million yuan. By 2010, it had gained 62 million yuan sales volume at a speed of 4 times.

However, industry experts generally believe that for traditional enterprises, the success of wading e-commerce is basically based on Taobao and other e-business platforms, such as BELLE and Bo Yang home textiles.

To this end, experts suggest that traditional enterprises can initially choose the "platform for training" of e-commerce platform, and then gradually build e-commerce system according to their own characteristics, so as to reduce risks.