How to transform traditional industries?

Traditional brands often don't know much about e-commerce. Most of them regard it as an extension of offline channels, as a new sales channel, and what's more, they only regard it as a channel to clean up inventory. In fact, there are basically no successful cases in enterprises with this kind of cognition. Because e-commerce is facing a brand-new crowd market, although online shopping consumers will have a certain understanding of the brand, they are actually newer, more fashionable and pay more attention to the online shopping experience. At the same time, due to interconnection, the comparison and selection of related products are more convenient, which requires traditional brands to brand-new positioning of online shopping consumers and build brand-new operating models and service models. We can also see that domestic traditional brands operate the e-commerce department as a separate company, which often develops at a faster speed.

Second, commodity unification.

For traditional brands, the core question of commodity operation is: are online and offline commodities differentiated or extended offline? How to price the same goods as offline? In the early days of e-commerce business, we suggested that offline goods can be sold directly online, including off-season goods' discount clearance, but at the same time, we also need to develop a small amount of special funds for online shopping as experience funds for online shopping consumers. At this stage, the online and offline pricing of new products needs to be consistent, and other products sold online can be discounted to facilitate the rapid accumulation of online users. However, in the middle stage of development, online and offline goods should be differentiated, and differentiated goods generally account for 60-70%, otherwise they will be excessively interfered by offline price system and franchise system, which is not conducive to rapid development; At this stage, for non-differentiated goods, unified pricing is needed to enhance the brand realism.

Third, self-built B2C.

Do you only do channel platform distribution or do you want to build your own B2C direct platform? This depends on the development goals of traditional brands for e-commerce. If you only consider selling goods, you can distribute them through Taobao, JD.COM, V+, Zhuo Yue, Dangdang and other comprehensive shopping platforms to achieve sales. However, if we consider greater development in the future, self-built B2C direct selling platform is an inevitable choice. By operating the B2C direct selling platform, we can continuously accumulate our own users and make them large-scale, which also makes it possible to split the listing. We suggest that these two channel models need to be considered. In the early stage, channel platform distribution will be the mainstay, and in the middle and late stage, self-built B2C direct selling platform will be the mainstay. For example, Belle's e-commerce centers on the direct B2C platform, and also opens stores on various comprehensive shopping platforms, providing different product combinations and promotional activities according to different resources and user group characteristics.

Fourth, self-built distribution.

Our offline operation is a mode of bulk purchase and bulk delivery (franchisee system), and online operation is a mode of bulk purchase and single delivery (including single return). This is a brand-new topic for traditional brands. At first, we often choose distribution outsourcing, but we will find that the service quality of distribution is uncontrollable. Therefore, in order to stabilize the service quality and improve the user experience, enterprises with a certain scale will consider whether to build their own distribution. However, from the perspective of investment, only when the order volume reaches 1 10,000/day can a reasonable cost balance be achieved. It may be necessary to strengthen the user experience in the early stage to quickly break through the bottleneck of 1 1,000/day. At this time, we can work closely with the outsourcing distribution company to develop the distribution management system, track and feedback the whole distribution process, and at the same time do a good job of return visit and management of distribution in combination with the call center system.

Verb (abbreviation of verb) brand extension

The initial brand pertinence and influence of traditional brand enterprises are limited to offline, but with the rapid development of online business, consumers are becoming younger, more personalized and more fashionable. For these emerging consumers, the influence of traditional brands on them is limited to knowing the brand's style, cultural connotation and sense of value, but it can't guide and follow the crowd in online shopping. Therefore, brand extension is imperative for traditional brand enterprises to expand the online market and occupy a dominant position. However, many traditional brands stick to their original positioning and often get half the result with half the effort. As for how to extend the brand, we can refer to the practice of many internationally renowned enterprises: redefine and evolve the brand with different market environment and consumer cognition. Such as Lenovo, Li Ning, Coca Cola, etc. In China, it is more common to make an online secondary card, such as LOVO in Luolai, which can solve the problem in a short time, but it is actually difficult to succeed.

Although traditional brands are facing challenges, after all, they have experienced ups and downs, and traditional brands can't fail. With the development of the Internet, we believe that traditional industries can quickly adapt to the development of e-commerce and do their best, and the future of traditional industries entering e-commerce will be even better.