The Electricity Supplier Aims At Gross Margin, And The Prospect Of Its Own Brand Is Difficult.

After van guest,

Own children's clothing brand "DangDang Baby" and its own home brand "Dangdang good products" low-key on-line, set off the business gathering to enter the curtain of its own brand.

According to reports, Jingdong mall has also set up a "private brand Department", and then, in Suning 2011 electrical performance briefing, Suning Appliance secretaries Ren Jun disclosed that in the second half of this year, Suning online shopping mall suning.com will launch its own brand clothing.

At the same time, Le Tao also publicly stated that it will gradually launch its own brand.

The online Legion has set off a wave of developing its own brand. Once again, the electricity supplier, which is considered to enter the cold winter market, is booming again.

Aiming at high gross profit

When it comes to private brand, we must mention it.

The forerunner of clothing --

。

In October 2007, after leaving the network of excellence, Chen founded the PPG mode.

After more than four years of development, now the customer is already a clothing industry's whole industry chain company, it has opened up the traditional clothing industry, the Internet platform, marketing, warehousing, distribution, data management and other links.

According to the latest data released by customers, last year, customers sold 10 million T-shirts, while the sales volume of the whole Chinese brand T-shirts was 50 million, and that of all customers was 20%.

According to statistics, over the past 4 years, the sales of clothing have exceeded 100 million.

Fan CEO Chen has publicly pointed out that selling clothes is much more profitable than selling books.

Lei Jun, chairman of Xiaomi technology, said when he talked about customers in the 2012 global mobile Internet Conference (GMIC) in May 10th, as an investor, he knew that the gross profit margin of customers was over 15%, otherwise the brand clothing would not play.

Although everyone looks very beautiful, advertisements with "spring doesn't matter" can be seen everywhere, but customers are not making profits or even huge losses.

According to reports, the final operating income of van guest in 2011 was about 3 billion 500 million yuan, which is far from the 10 billion yuan target of the old plan.

It was estimated that everyone lost 600 million in 2011.

Since the first crab eating customer has not been out of the woods, why are so many electric providers getting involved in their own brands?

Dangdang annual report shows that the total revenue in 2011 reached 575 million US dollars, an increase of 59% over the same period, but the net loss in the same period was about US $36 million 300 thousand, which is far from the net profit of US $30 million 800 thousand in 2010.

Therefore, it is imperative to adjust the marketing strategy, and its own brand has become the first choice for Dangdang.

Relevant data show that the electricity supplier owns its own brand clothing.

Generally, it can reach 30%-60%, and the gross profit rate of brands of daily chemicals can be as high as 60%-65%, and the gross margin of its own shoe brands also has 55%-60%, while the gross profit margin of large online shoe cities is only about 3%.

Last year Dangdang's gross profit margin was 13.8%, while Jingdong mall's gross profit margin was only 5%.

By contrast, the profit of private brand can be 10 times that of the agent brand.

For most of the electricity suppliers who are losing money at the moment, private brand is undoubtedly the most powerful weapon to increase profits.

Li Chengdong, a former network analyst, said in an interview with advertiser magazine that the gross profit margin of his own brand is an important reason for Dangdang to enter its own brand.

Dangdang, as a platform, has been in the leading position in the book industry. Expanding new users and increasing new markets is an inevitable trend of its development.

At present, most of the electricity providers have the tension of capital chain. When Dangdang launched its own brand, it can make better use of the existing platform traffic to expand the volume of pactions, help it continue to attract the old customers at low prices, and improve its profitability. It can also cultivate the selling point of alienation to attract new customers and open up new battlefields.

Xu Dehong, E COO and senior electricity supplier manager, pointed out that the main reason for the introduction of self owned brands is the introduction of private brand to enhance the product premium capability and enhance the overall profit margin.

Lin De Gang, founder of the spring water hall, also expressed the same opinion on micro-blog. He believed that the platform had accumulated enough popularity with the help of the brand's capital propaganda and the discount of commodity discount, but it was an inevitable trend that there was a lack of profits and a gradual increase in private brand profits.

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The prospect is difficult.

As early as 2007, Dangdang has not yet listed on the PPG model, has launched its own brand "BondStreet", the sale of men's shirts.

But because of poor management, it will soon be off.

Now, it is obviously a deliberate result to make a comeback to its own brand again.

However, many people in the industry accepted the advertiser magazine's interview, saying that they were not optimistic about their own brand, and the funds, inventory, supply chain and product quality were all the problems they faced.

Dangdang's advantages in the field of books, and its ability to maintain the leading position in the book industry is due to the fact that Dangdang has been working on suppliers and procurement channels for a long time, and can obtain goods at a lower price.

One of the most important problems in building a brand in the field of clothing is the design talent of its own brand and the foundries produced by the manufacturer.

Dangdang can only take "OEM" at the early stage of its own brand clothing. It is difficult to differentiate products, and because its production is relatively small, the ability to negotiate with factories is much weaker than that of customers, so it is difficult to make some customized products.

In contrast, customers have been working in the field of clothing for more than four years. Behind them, they have more than 400 foundry factories and 140 thousand workers. They have successfully restructured the production line of clothing standardization. These are the guarantees for all customers to achieve their achievements.

Nowadays, most enterprises such as customers are facing a serious problem of product backlog. It is foreseeable that the chance to overcome this difficulty by selling books is far less than that of customers and other enterprises.

How to deal with the relationship between private brand and merchants is also a problem to be solved in Dangdang and other B2C platforms.

For example, Dangdang, as an open e-business platform, should consider how to deal with the relationship with its importing businesses if it runs private brand goods at the same time, otherwise it may cause conflicts between products.

Platform mode in addition to traffic, the most important is neutral, if this area is questioned, its platform will be greatly reduced to the attractiveness of the business.

All customers adopt the newly built V+ platform to attract other clothing brands to enter, while Dangdang has its own brand on the existing platform, and the merchants settled will inevitably question Dangdang's traffic slant.

Xu Dehong believes that e-commerce platform should focus on technology and internal optimization, play a good "electronic" expertise, set up a good platform operation rules, do business services and user experience, business parts should be mainly to allow businesses to play expertise, and do the special task.

"In the short term, e-commerce enterprises can build up their own brands to a certain extent, which can raise gross margins. But in the long run, the electricity providers want to make platforms and want to make brands, which are contradictory things in themselves."

Xu Dehong said.

He pointed out that Dangdang, Suning and Jingdong are all DNA genes of the Internet. The introduction of private brand in the supply chain and quality control needs a very professional traditional industry talents to control. The quality of e-commerce brand is very difficult to match with the large garment enterprises. He personally doubts the prospect of Dangdang launched its own brand clothing.

He suggested that the B2C platform could make its own brand, and it would be a good choice if it could buy a well-known two or three line brand, because the traditional enterprise's ability to grasp the supply chain can complement each other with the marketing and communication ability of the electricity supplier.

In addition, capital, brand trust and positioning are also the problems faced by electric providers in making their own brands.

Although the gross profit margin of private brand is high, the market input of early brand building is very large. The construction of brand itself is not completed overnight. It takes a long time. At the same time, it needs to accept competitors' customers and challenges such as UNIQLO, Metersbonwe and so on.

Whether the channel brand value of the mainstream e-commerce platform in China is already familiar with and accepted by consumers? Whether their private brand has brand appeal is unknown. The market prospect of products is obviously unpredictable.