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E-Commerce In Garment Industry Faces The Next Bubble

2011/7/16 8:41:00 74

E-Commerce In Apparel Industry


  


 

 


"The bubble of e-commerce will definitely be broken in the first half of next year."

Li Yong, founder of private tailor and CEO of sutier underwear, told reporters directly.

The Tsinghua graduate student has many stereotypes of e-commerce practitioners: Institutions of higher learning, science and Internet brands.


However, Li Yong did not seem to be affected by the expected impact of the bubble burst.

"I am a full dress man, just making clothes on the Internet."

This is Li Yong's position for himself now, and also the reason why he is so strong.

Going deep into the industry, researching the industry, studying the development history and trend of the industry at home and abroad, studying the supply chain, studying the operation of the successful brand, and studying the consumers, Li Yong's business ideas are almost two different from those of the traditional clothing enterprises.


Then, as for the crisis that the bubble of e-commerce bubble will break, it is clear that we need to start from the internal mechanism and future development of the garment industry, and make the interpretation according to local conditions.


Who will be affected by the bubble rupture?


To some extent, traditional clothing enterprises are still at a long distance.

At this time, whether the single day trading in Taobao mall breaks through 900 million, or if Ma Yun talks about the collapse of the e-commerce bubble, it will cause great ripples in traditional service companies.

Bubble will break will affect the future development momentum of e-commerce? This is the most direct problem of many traditional clothing enterprises.


In fact, approaching the field of e-commerce, we will find that the collapse of the bubble does not mean a global collapse.

This bubble is more of a bubble caused by overheated investment.

Its rupture will mainly affect three kinds of people.

One is VC, VC has invested a lot of money for the industry, but most of the investment will end in failure, and it is difficult to get the expected return from the projects that are frantic; the two is the professional managers who can not create the corresponding value. After the investment bubble burst, the owners will tend to measure the input and output of each person and each post, and not create enough value for the enterprise to create enough talent for the unemployed. Three, it is hard for the media to get the high advertising cost in the period of the crazy expansion of e-commerce.


To sum up, bubbles exist in the capital field, not the whole industry of e-commerce. The crisis triggered by the bubble burst will not bring disaster to the development trend of the whole industry.

Because in the field of e-commerce, enterprises that rely on capital investment to achieve growth are still few.

In other words, although the enthusiasm of VC capital is very high, most e-commerce companies remain calm.


"In the past few years, VC has studied more about the concept of e-commerce, and we have studied more about our clothing industry, first studying industries and customers, then e-commerce."

Li Yong said.

Almost at the beginning of private tailors' business, VC was in touch with Li Yong because of the concept of "electronic commerce", but he never found a sense of cooperation with VC.

In 2008 and 2009, VC focused more on e-commerce, not enough attention to industry and brand, and lack of in-depth understanding.

Without a deep understanding of the industry and consumers, we can not agree on this point, and it is hard to achieve a real brand.

So private

Tailor

No cooperation with VC has been made.


Prudent attitude did not let Li Yong lose the chance of development. On the contrary, private tailors earned excellent public praise and rapid development by intensive cultivation of professional skills.

Fabric

The supply chain has been redefined in various aspects, such as board making, production, quality control, logistics and so on. The supply chain system with the most rapid response has been established in China, thus laying the foundation and core competitiveness of the private tailor becoming a high-quality cash cow.


Now, VC is paying attention to e-commerce and brand, and has begun to study industries and consumers in depth.

In pursuit of greater dreams, Li Yong sold some of his private tailor's shares at the end of 2010 and founded Suzhou's underwear.

In the process of deep communication between "sutier underwear" and VC, he found that apart from the topic of "e-business", they had more common topics on industry, consumer, brand and supply chain.


"The burst of capital bubbles will actually be good for enterprises that we have always insisted on doing, and of course it will also be good for traditional clothing enterprises."

Li Yong believes that the collapse of the capital bubble and the withdrawal of some e-business enterprises will yield part of the consumer group and expand the customer base.

At the same time, after the new round of shuffling, the company's structure and operation basis will be further improved.

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In fact, the reshuffle in the e-commerce field is very similar to the development track of that year's website.

At the beginning, there were many websites with sina, Sohu and NetEase. After a round of shuffle, many websites began to choose the development direction of personalization and niche. Even the three major portals began to focus on each other.


Yang Dayun, President of UTA Fashion Management Group, believes that the reshuffle after the collapse of e-commerce bubble will bring more diversified and personalized business enterprises, which is a fine adjustment process in the industry.

Compared with the unlimited Internet audience, targeted targeting is also the development needs of e-commerce in the future.


It is imperative for enterprises to catch the net.


When e-commerce is shuffling and adjusting, is it a good time to touch the net? This is another problem that many traditional service companies are concerned about.

Li Yong's answer is: "whether it is a good time or not, traditional service companies must enter the field of e-commerce."

Van guest

Zhong Kaixin, President of V+, gave the answer: "every time is a good time, and actions speak louder than words."


With the opening of the experiential shop under the Amoy brand line, the role of consumers in building brand through the Internet is more and more obvious.

The two-way nature of network brand is quietly causing a thorough brand revolution.

The era of enterprise leading brands is coming to an end, consumers begin to define their own brands, and the market has shifted from the mainstream consumption to more personalized consumption.

If we insist on one-way value output, then the traditional clothing brand will soon be hard to call it brand.


Because the era of co operation of brands by enterprises and consumers has arrived.

The Internet is the catalyst for this new era.

The role of netizens' participation in reviews and interactive activities has been matched by various media advertising and soft language.

For the traditional clothing enterprises, the huge network consumer group behind the electronic commerce is the new battleground that we have to occupy.


From the point of view of basic business, e-commerce is no different from traditional sales rules.

Its trajectory is product - Channel - promotion, its core is to make good products.

This is quite different from the logic of a few e-commerce companies listed on venture capital financing.


In fact, the most important thing for traditional enterprises to touch the net is to choose their own ways according to their own purposes, such as distributing, building up their own official website and so on in the Taobao mall.

Taobao and pat can share huge user groups with brands. Jingdong, Dangdang and excellent platforms can provide experience and resources in storehouse, logistics and so on. Independent official website is conducive to forming its own brand radiation circle.


But at the same time, these platforms also have special requirements for brands.

For example, Taobao's official flagship store, in addition to its own brand and product capabilities, also needs the brand to skillfully use Wangwang to communicate and communicate with customers.

For many traditional clothing brands, there were more open stores and agencies in the past. How to face the online communication between Taobao and patted consumers is a great change in concept.


In addition, B2C's warehouses and logistics are different from those of B2B. If enterprises do not have the capabilities and conditions such as customer service and logistics, the cake of e-commerce will become a bait on the trap.

Originally, the brand influence of the enterprise in the traditional channel is very high, but in the face of customers directly, when the distribution, if the system and operation processes and services can not keep up, it will cause huge damage to the brand.


In the face of this situation, Zhong Kaixin gave a suggestion in the seminar on new media marketing under the new consumption environment: "cooperate with the third party service companies specially targeted at Taobao and patting, do not despise the Internet for a while, and finally make the network service not in place, damaging the brand that is hard to manage."


The difference or difficulty between e-commerce and traditional sales is in the specific way of operation with the nature of Internet.

The Internet has a unique way of behavior and expression. It needs traditional enterprises to break through the original concept, fully respect the unique attributes of the Internet, and fully believe in professional e-commerce operators.

Do things well and do everything within your means, so the electronic commerce is like Li Yong said: "as long as you don't want to lose money, you will not lose money."

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