E-Commerce O2O: Do Or Not Do? How Do You Do It?

Since 2010, almost all Clothing enterprises They are constantly asking, should we vigorously develop e-commerce? How to develop? The difficulty of the previous question lies in how to achieve online and offline balance. The latter question involves the unification of online and offline sales channels. In general, the choice of e-commerce model for middle and high-end brands is relatively easy, that is, most e-commerce stores are inventory clearing channels, while the choice of mass brands is less obvious.

A domestic popular men's wear brand was first shocked in the industry. It has established a complete e-commerce business department, and has an independent team from commodity group to sales channels. The company treats e-commerce as well customer The implementation of order system ensures the strategic position of e-commerce. At the same time, the conflict between online and offline channels has been partially solved by releasing online distribution rights and developing online exclusive contributions. As a result, its e-commerce nature has developed from a pure sewer 10 years ago to a strategic focus today. Its business mode has changed from agency operation to independent operation, and its performance has also increased from zero to more than 500 million today online retailers The score of the answer sheet is high.

However, a domestic popular women's wear brand is much more cautious. It recently entered Tmall and intends to control its scale. In order to position e-commerce, the brand carried out a consumer survey. The results show that consumers still believe that clothes need to be tried on, even for affordable women's clothing. They believe that "the pictures on the Internet are very beautiful, but it is totally different to get them". This view is recognized by most consumers in the survey.

It can be seen that deliberately shifting the focus of business to online does not conform to consumer behavior trends. Since we do not want to discount online new models, let alone conflict with offline prices, it is a conservative but stable way to develop e-commerce prudently and wait for further changes in the industry.

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The private factory of a high-end women's wear brand in China is responsible for about 70% of the production tasks, mainly producing products with high quality requirements and brand characteristics. With its own factory, on the one hand, it is convenient to improve the collaboration in the implementation of production plans, and can quickly adjust orders with sudden changes; On the other hand, the brand company took some of its own factories as a pilot to build a special flexible production line, which is responsible for quickly responding to the demand for orders in the season. However, at the same time, the operation of its own factory will bring a lot of initial investment and interim operation and maintenance costs, which will put pressure on the company's asset liquidity.

A foreign popular clothing brand has a highly centralized and integrated supplier echelon. About 100 suppliers contribute 70% of global revenue orders. The brand has also formed a supplier management system that meets its own product needs, and the supplier has grown up through cooperation with the brand.

The seemingly beautiful strategy brings some hidden risks: how to ensure that suppliers will not cheat customers? How to ensure that core suppliers do not flow out? To maintain the long-term stability of this model, the business relationship has already broken through the simple relationship between supply and demand, and developed into a real partnership, sharing weal and woe. In the current business environment of "survival of the fittest, profit oriented", it is not easy to build such a relationship.

The difference is that a popular clothing brand in China has various styles and high requirements for quick response, so the suppliers are scattered, and nearly half of the suppliers are small, giving the brand more selectivity and dominance in order distribution. The advantages of small suppliers in plan flexibility can also support the implementation of fast tracking. In conclusion, centralized suppliers are for low cost and stable quality, while decentralized suppliers can bring speed advantages and avoid the risk of putting eggs in a few baskets.