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Today, gross profit margin has become the main measure of Tang Lions' online performance. The most direct experience of the new product strategy to Tang Lion is that the gross profit rate has been greatly improved and the customer experience has been greatly improved. The overall DSR score has also risen from 4.6 last year to 4.78 today. It has a lot to do with pushing new products.
The following are some of the experiences of Tang Lions as an e-commerce provider to share with others, hoping to have some references.
The "rich generation" who started the business again
Inside the team, we call ourselves the rich second generation. Why? Because we naturally have a lot of inventory, I believe that as long as the casual wear brand, inventory is generally very large. For example, the number of SKUs under the Tang Lions line can be two or three hundred at a time. We can’t be too light for the second-generation rich. The inventory warehouse must have 18,000 square meters because of high price sensitivity and inventory.
Although early we also wanted to do CRM refinement, it was hard to do it and it was very difficult to do it. At a meeting in Shenzhen last year, I said a little bit that many traditional companies, including Tang Lions, have entered the online market. There are no new products and there is no dominant marketing. The online scale is actually virtual. If Tang Shi made two billion yuan this year, it may only increase by 20 million next year. This is normal. Therefore, we insisted that we should convert ourselves from the rich second generation of inventory to the new generation of pushing new products, which is equivalent to starting a new business again.
Starting a business again does not start from scratch. Online retail can still draw on offline retail experience such as traditional brand positioning and consumer segmentation, and gradually shift from inventory to new product replacement. In essence, it still respects the user's buying experience.
However, improving the shopping experience by pushing new products is still targeted and may not apply to all brands. Returning to the industry where Tang Lion is located is the casual apparel industry. This industry is now facing great changes under the Internet. In the past, it was a very basic and neutral style. Nowadays, the fashion trend of casual wear is very strong. Some time ago to participate in some branding orders, it can be said that some products are even different from before, and this is not afraid to try before.
From the whole company, it is easier to reshape the Tang Lion brand online. Some friends may ask, what if your online brand positioning is not in line with the offline brand positioning? It is true that some people may not understand and think that it will have an impact on Tang Lion’s existing brand, but our boss has a decision, first and foremost, for the target consumers of the Tang Lion brand, online cable, offline and offline. Method, just look at the final result.
From the current point of view, it may be that the Tang Lion brand is made more accurate online. For the boss, the gross profit is higher and the scale is bigger. That Tang Lion is very likely to gradually develop a larger online brand in the Besieged City. This is worth A try, so it is also more open to this one. Of course, the Tang lion is still at the stage of exploration.
The core of e-commerce is still the user
For traditional companies, the most difficult thing to do was to catch users. I used to do market research before. The hardest part is that there is no advanced equipment. It may be necessary to count one data and record one day at the entrance of a store. However, on the Internet, user data becomes very easy to obtain.
A recent hot discussion on Weibo is that Huawei is going to do mobile phones, Ali is going to do mobile phones, and Baidu is also going to be a mobile phone. Do we really expect to make money by selling mobile phones? It is nothing more than wanting to occupy the entrance of future users, and doing e-commerce is essentially relying on the Internet to do this, and then classify management of user acquisition and maintain it again.
This is a basic user operation model that I have organized myself and basically consists of three stages. The first stage is user acquisition. Simply speaking, everyone in the Tmall business basically talks about traffic, traffic, traffic, and where the traffic comes from. It is actually how the user gets it. The second stage is the user's classification focus and precision marketing. What is the user's classification focus is to reclassify all users who come in from Tmall and from Taobao, and adopt different marketing methods to promote them. It is like Tang Shi offline stores will use the men's clothing on the first floor, women's clothing on the second floor, and the third floor sale. The classification is similar. The third stage is user classification management and activation, which is what we have always called CRM. Explaining so much about this model is nothing more than to illustrate that the e-commerce is the most basic one, and I think it is still a user.
E-commerce brings new possibilities to traditional retail
Because I am also a traditional retailer, I know that traditional retailers have had a lot of helplessness before, and they do not want to do it. Some of the concepts are not incomprehension and disapproval, but they have many restrictions after they have been approved, and they cannot be realized. Today, e-commerce has given traditional retailers a Many opportunities.
The supply chain has always been a headache for traditional brands. What is the value of futures, that is, some brands started to invest in a year ago, and when the profit may be very good this year, they began to pile up in the warehouse, resulting in very high pressure on the stock market. This shows that it is not the opportunity but the number. Blind optimism.
One of the changes brought about by e-commerce is the need to calm down big markets. Once talking to Xiao Erjin, he suggested that the Internet should be a small market and a small market. There are some friends who are doing clothing business in Yangzhou. Maybe we just want to do a big market. What are my friends doing? Maternity wear, large-size garments, and old-fashioned clothing each year maintain the top three in the local industry. The gross profit rate is very high. The overall scale is not small, but I have to be exhausted and my friends are very relaxed. Then I began to know that if the Tang Lion wants to expand the scale one day, then I would rather agree that there are multiple brands that make up a brand collection, and ultimately improve the overall sales performance, just like niche brands, this year may be able to do 5 Billion, but similar brands are even harder to survive.
Another thing I would like to share with you is that today's offline includes a lot of casual wear, including one of the many barriers to the apparel industry lies in its commercial real estate model. For example, if I want to be a brand, the biggest pressure is not how the goods will come out and how to operate, but whether or not my shop can be opened. However, there is no such barrier on the Internet. As long as the products have advantages, they will always have Opportunity to do this one.
Another change brought by e-commerce is the construction of fast supply chains. A few days ago, I had a chat with a Taobao men's wear brand. I once proudly claimed that the production and sales ratio of Tang Lion was 80%, but he did it 97%, not to say that his operating ability was worse than he was, but it was simply two operating models. . We need to have 18,000 square meters of warehouse to run, but he only needs a warehouse of 5,500 square meters to run, from this point we can see that the traditional brand to do electricity supplier must break is the original development and production model.
The phased decomposition of e-commerce is not only the “rich second generation†of traditional branded sales inventory, but also the “rich generation†of new online products. This is the purpose of the new product strategy that Tang Lion e-commerce should try in 2012. The so-called new product strategy is to take out 30% of products without inventory, and specialize in new products. This strategy has enabled Tang Lion’s gross margin to increase by 15% in the first quarter of 2012.
The phased decomposition of e-commerce is not only the “rich second generation†of traditional branded sales inventory, but also the “rich generation†of new online products. This is the purpose of the new product strategy that Tang Lion e-commerce should try in 2012. The so-called new product strategy is to take out 30% of products without inventory, and specialize in new products. This strategy has enabled Tang Lion’s gross margin to increase by 15% in the first quarter of 2012.
August 19, 2019