Umbrella customization factories should adapt to the sales boom and shift their focus to online sales
Keyword：Umbrella Industry News Addtime：2019-10-16
The rise of Internet e-commerce has brought a group of traditional enterprise factories that dare to innovate to a blue sky, and this group of pioneers in reform and transformation have also enjoyed the big cake of sharing brought by the Internet. And they have all become classics and legends. There are still many traditional enterprises that have had to change because of the dilapidated thinking mode until today because of the general environment. Today, as e-commerce is becoming more mature, the cake is getting smaller and smaller. .
At that time, online traffic was a blue ocean waiting to be developed. A group of more flexible factory owners took the lead in transforming and opening up distribution channels online. At the same time, many factories began to build operation teams and opened Taobao Tmall stores on their own. At that time, the most popular wealth myth in the market was that e-commerce could sell tens of thousands of orders in a single event.
However, as the online traffic dividend bottomed out, in recent years, factory owners have clearly felt that e-commerce business has not done so well: traffic costs have become higher and higher, and the effects of Taobao through trains have not just begun. So good, more and more refined operations are needed. Some people in the industry invested tens of millions to open Tmall brand stores, but they lost their money.
In May 2018, the anchors successively entered the Guangzhou Shisanhang clothing wholesale market, bringing new variables to the factory owners.
Live streaming has become the fastest growing channel
In the words of Huang Chao, the owner of a factory in Guangzhou Shisanhang, at first, he still looked down on live broadcast, but now, live broadcast has become the fastest growing channel.
Huang Chao has been in the clothing OEM business for more than ten years and owns three clothing wholesale stalls in Guangzhou Shisanhang. The annual rental cost has risen to nearly one million. In the past, the customers who came to pick up the goods were mainly divided into two groups, one was physical stores across the country, and the other was Taobao and Tmall shopkeepers who set up online stores. The physical store owner's method of picking up the goods is to send the whole piece back to retail, cash in stock. Online shopkeepers usually just take samples, take pictures, reserve inventory, and send them to the factory if they have an order.
Huang Chao witnessed a round of reshuffle when the e-commerce boomed rapidly in 2015. Now that the live broadcast enters the factory, new channels are produced, and another round of reshuffle has begun.
The anchors of the live broadcast platform use mobile phone cameras to aim at lower-cost sources of goods, and the noisy scene of piles of goods in the market will be truly transmitted to the fans watching. In fact, it is not just the Thirteen Lines. The Baima and Shahe markets in Guangzhou, Sijiqing in Hangzhou, and the distribution centers of clothing suppliers in various places have become the bases of e-commerce anchors. Due to the hot climate in Guangzhou, there is a concentration of thin styles in spring and summer; Hangzhou has more thick styles in autumn and winter.
At the beginning, the stall owners didn’t really wait to see the anchors, because these anchors just wandered around with their mobile phones, and they even took photos of the details of the products, which hindered business. But now, at the door of many stalls, big print signs say "Welcome to Live Broadcast". The most direct reason is that the anchor's delivery effect has come out. Huang Chao’s stall has 20 to 30 anchors coming in every day, which directly drives his monthly sales growth by more than 20%.
The myth of anchors getting rich is circulating in the market. Some anchors close by sell tens of thousands of orders per day, and those with Wei Ya and Zhang Dayi sell hundreds of millions. These roles in the upper reaches of the supply chain have long been scented by the taste of money, and they have their own magical powers.
The proprietress of the factory even started to go to battle in person to open the Kuaishou live broadcast. Young people are obviously easier to learn new things. As the owner of the shop, Meimei has 400,000 fans on her Kuaishou account. Next door to the store is Meimei’s younger sister born in the 90s. She has more Kuaishou accounts and 600,000 fans. However, not everyone can play live broadcasts and videos, and more people will choose to cooperate with live broadcast agencies.
With the continuous verification of the effect of live broadcasts, a large number of anchors chose to go deep into the supply chain and set up camps in factories, and live broadcast bases came into being.
Leon had a friend operating a live broadcast base in Hangzhou, and he opened one in a clothing center in Guangzhou. The 400-square-meter empty office was used to display all kinds of clothing for the live broadcast. Another area was divided into more than a dozen live broadcast rooms, where many female anchors took turns to broadcast live.
A new operating channel has been formed: the live broadcast base undertakes a series of tasks including training anchors, supplying sources, and venues. At the same time, e-commerce platforms are also heavily involved. For example, the Taobao live broadcast platform provides certain resource entrances to these organized institutions. Just like the "guild" in the game industry, it not only exports anchor talents, but also promotes sales.
Some live broadcast agencies have another cooperation with the base, giving factory owners who can't figure out another choice: to enter major wholesale markets and provide upstream with a series of services from anchor promotion to brand building.
Does KOL make money by "bullying" suppliers?
There is a saying in the apparel industry-"live yarn, die cloth, rotten clothing", which is a warning to the upstream inventory of the supply chain. Inventory has always been a major problem in the apparel supply chain. The turnover rate of traditional clothing companies is as long as 1.3 years, and inventory often accumulates for several quarters. So, does the emergence of live broadcast help this problem?
Zhu Jiayong, chairman of LinkedIn Group and co-founder of mass customization, has been in the apparel industry for nearly 20 years. He believes that the emergence of e-commerce has reduced ineffective handling, but manufacturers still have to stock up in advance, and pressure still exists. As far as live broadcasting is concerned, Internet celebrities are just a traffic portal. The core change is front-end sales, and e-commerce has become a "broadcaster."
The live broadcast also requires the factory to make inventory in advance. In Zhu Jiayong's view, "As long as it is not a reverse customization that consumers place an order and then produce, there must be no way to change the inventory problem." However, the anchor adopts a pre-sale model, which is bound to force the response speed of the supply chain to continue to accelerate. It is understood that the production cycle of clothing has been compressed to one week since the previous month.
Zhu Jiayong pointed out that to a certain extent, the live broadcast KOLs also rely on "bullying" suppliers to make money. The interpretation of the word "bullying" is closely related to the "explosive product logic": the e-commerce industry divides products into drainage models, explosive models, and regular models according to their profit margins. Now the KOLs on the head can compare one item easily The single product is "explosive", but the explosive product itself is difficult to make money, and it needs to cooperate with the series of products to truly realize the profit.
The cooperation between suppliers and Internet celebrities is usually based on the "service fee + commission" model for profit distribution. The service fee for a link of the head anchor amounts to hundreds of thousands of yuan, and the commission accounts for up to 30%. In addition, the anchor has the right to speak, and requires that the price of the same product is the lowest in the entire network, which means that even if the sales volume is high, the supplier can hardly expect to make much money.
Once Li Jiaqi had a live broadcast of a product, and later discovered that the supplier gave another anchor 5 yuan cheaper, Li Jiaqi was very angry and directly appealed to his fans to return the product.
Of course, even so, brands and suppliers are still willing to pay the price. Tong Tong, who is in charge of online operations at a food brand company, said that live broadcast redefines the concept of "explosive products": it is no longer a bearer of profits, but a proof of brand communication and word-of-mouth.
Especially new brands can get immediate results. She said: “Choosing a head anchor is generally based on the idea of advertising to increase visibility, even if the first round of live broadcasts does not make money.”
Selection and layout under the "normalization" of live broadcast
Chuangyebang (ID: ichuangyebang) reporters searched for a number of brands and suppliers. They have the same judgment on whether live broadcasting will become a normalized marketing method in the future, and they have begun to develop their plans.
A Guangzhou directly-operated underwear chain brand established its own live broadcast operation team in April this year; another company that is a Tao brand in the Shahe wholesale market has begun to expand horizontally, in the form of "roasted goods" (selling the best-selling items from its peers) Build a live broadcast supply chain.
Traditional suppliers have to overcome many problems when doing live broadcasts by themselves. One is the single style, and the other is that they don’t understand brand operations. The “roasted meat” approach can help them solve the problem of single style. In terms of brand operation, a batch of vertical B to B supply chain platforms such as Pippi and Soupan have begun to provide services.
Since normalization is required, the balance between multiple channels has to be considered. The prices of live broadcast products are kept low, which will inevitably have an impact on other channels. "Channel fighting" is something that sophisticated suppliers don't want to see. What they pursue is to maximize their own interests.
During the development period of the live broadcast channel, some conservative suppliers also tend to protect the traditional "second batch" customers. The "second batch" customers may get a lower wholesale price because of the large volume, and get them a week earlier than the anchors. The New.
However, as the proportion of online celebrity anchors' sales continues to increase, the balance of supply chain resources has gradually begun to tilt towards them. With the increase in the proportion of live broadcast as an important sales channel in all channels, this tendency will become more obvious, and the status of the "second batch" of customers will also change accordingly.
From a certain level, the anchors have obtained the first-mover advantage of information by relying on their appearance, because the suppliers know that from video, live broadcast, to the product packaging of pictures, it will be good to be able to use Internet celebrities as models. They even The samples will be sent to the internet celebrity studio in Hangzhou within a short distance.
On a deeper level, traditional suppliers have a brand dream. Those who have worked hard to earn OEM fees understand that only well-known brands can obtain higher market premiums. In any case, poking the big characters of XX Internet celebrity on the picture is like being endorsed by a celebrity, making them a little closer to the realization of the brand dream.
In any case, as a new channel, live broadcast has become a battleground for all home appliance vendors. The same battlefields include live broadcast internet celebrities, sources of goods, and new changes in the supply chain reconstruction process brought about by new channel changes. chance.
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