Analysis on the Advantages of Apparel Outsourcing

Editor's note: From the wait-and-see, to the flock, and then to the frequent hits, the traditional companies get involved in the network gains and losses. Dedicated to professional people, what kind of service model can e-commerce outsourcing companies provide for traditional enterprises? Can this curve strategy achieve the close cooperation between traditional companies and the Internet?

From the wait-and-see, to the rush, and to the frequent hits, the traditional companies get involved in the network gains and losses. Dedicated to professional people, what kind of service model can e-commerce outsourcing companies provide for traditional enterprises? Can this curve strategy achieve the close cooperation between traditional companies and the Internet?

After years of development, China’s e-commerce has become the driving force behind the development of China’s Internet economy. The Ministry of Commerce clearly pointed out in the “Guidelines for the Development of Electronic Commerce during the Twelfth Five-Year Plan” that by 2015, China’s above-scale enterprises will use more than 80% of e-commerce, and online retail sales will be equivalent to more than 9% of total retail sales of consumer goods. . Driven by both policies and markets, traditional enterprises have touched the net, but most touch-enabled enterprises have quitted the market because of lack of Internet genes. More and more companies have begun to choose to allow e-commerce outsourcing service companies to provide them with operational services. With perfect online sales channels, e-commerce outsourcing has become a curve strategy for traditional enterprise touch networks.

The traditional company's e-commerce pain fashion apparel company's state purchasing network under MTS Bonweis was formally launched at the end of 2009. At that time, it was very optimistic to declare that “fashion and happy shopping began with state purchase!” “No matter where you are With a mouse click, rich and diverse, fast-changing fashion items will allow you to experience surprises and shopping pleasure for the first time.” But neither resource allocation, logistics and distribution, nor marketing operations can meet the development needs of the state purchasing network. In particular, the competition in the face of professional B2C appears to be inadequate. With no help, the state purchasing network could only end up in October 2011 after over 6,000 million yuan wasted.

In addition to advancing with the times, the traditional enterprise touch network is more of a helpless move. As the offline market is continuously squeezed by online pressure, it has to re-select the e-commerce that has hurt them. In an unfamiliar e-commerce market, traditional enterprises are a bit at a loss. Several major difficulties are hindering development.

The first is the lack of awareness of e-commerce. Traditional enterprises do not lack core competitiveness. What they really lack is the understanding and understanding of e-commerce. They regard e-commerce only as online sales, but they did not think that it changed the whole supply chain model. The traditional supply chain is product-oriented sales. In the Internet era, enterprises need a sales process that is based on the end consumer demand.

The second is the lack of professional operations team. The traditional enterprise contact network lacks a strong team. They more often integrate the original sales team into the e-commerce department. However, they do not know that in addition to the traditional sales team, they also need a customer marketing team, an excellent technical team. , Jingdong's logistics team and Dangdang's operating team. With the development of the e-commerce industry, the ability to have scarce talent has become a key factor in the success of e-commerce. Excellent teams have been scrambled by professional B2C companies. At the same time, electric merchants are expensive.

The third is weak hematopoietic function. Traditional enterprises do not have the hematopoietic function of e-commerce. They do a good job in e-commerce strategic planning. They even invested tens of millions of funds to build a branded B2C website. In order to be able to quickly go online, they would not hesitate to spend a lot of money on their talents. They advertised and the results were not yet available on the website. Millions of dollars have already been burned in half, relying solely on offline revenue support, but there is no profit on the line or little revenue.

The fourth is the lack of sustained investment. There is a general "premium" mentality for traditional enterprises, and they want to invest less in high returns and withdraw one vote. As in the past, when everyone saw the successful model of Vanke, they rushed in. However, the expectations of traditional E-commerce business investment time are relatively short. We hope that the short-term investment will yield long-term revenue, but E-commerce is like highways. The tires are broken and you can't slam on the brakes, otherwise the car will die.

Faced with various difficulties, can e-commerce outsourcing this curve strategy enable traditional enterprises to successfully reach the net?

Touch network curve strategy - e-commerce outsourcing e-commerce outsourcing, what are the advantages?

In the mature European and American markets, traditional enterprises have always been the protagonists of the e-commerce industry. According to the data, more than 80% of the U.S. online retail top 500 brands are traditional brands of online business. Of the top ten e-commerce websites in the United States, except that Amazon is a pure e-commerce company, most of them are automatically upgraded by traditional retailers, and more than 60% are operated by e-commerce outsourcing companies.

As early as 1999, the United States GSI company has begun to get involved in the e-commerce outsourcing service industry, service companies have reached 500, known as the "originator" of e-commerce outsourcing. In 2000, this kind of e-commerce model was introduced to China. As the traditional enterprises accelerated the pace of e-commerce, the e-commerce outsourcing industry ushered in the spring, and more and more Internet companies joined the e-commerce outsourcing industry to provide for traditional enterprises. E-commerce outsourcing services to quickly increase the penetration of e-commerce applications. What problems can e-commerce outsourcing companies solve for traditional enterprise touch networks?

First of all, it helps traditional enterprises to solve the problem of low level of internal information management. E-commerce relies on electronic information technology and takes process management as the standard. The entire e-commerce process involves front-end sales, large-volume order processing, supply chain capabilities, distribution and transfer capabilities, all of which require strong information systems to support it. Traditional enterprises rarely have e-commerce systems, and e-commerce outsourcing companies can use their own developed system programs to open up all systems such as CRM, WMS, and ERP, and realize seamless integration of the front-end and back-end of the entire e-commerce supply chain.

Second, it helps traditional businesses solve the problem of scarcity of talent. Today, with the rapid development of e-commerce, talent has become a scarce resource for various e-commerce companies to scramble. Whether it is a professional e-commerce company or a traditional enterprise that just touches the net, it regards talent as the core competitiveness of enterprise development, and at high prices. Digging talents everywhere, millions of people are hard to find talents for operations. For e-commerce service companies, they have professional operational talents, a strong logistics and distribution team, and more effective management teams that have been in the e-commerce industry for many years. These talents serve the e-commerce development of traditional enterprises.

Third, help traditional businesses solve the problem of lack of operational experience. The status quo of the development of e-commerce has prevented many companies from offering longer periods of “tolerance.” They generally establish online channels through existing sales teams. However, they have always been engaged in the development of offline channels, and they have a thorough understanding of Internet marketing strategies and operational ideas. There is no concept but mistaken decisions are made. E-commerce outsourcing companies have e-commerce operations teams with years of experience in the Internet and retail, which can allow traditional companies to reduce the time and capital cost of entering e-commerce.

E-commerce outsourcing full-service mode E-commerce outsourcing services have experienced 10 years of development in China. The new service model featuring on behalf of operations has been sought after by brand owners and capitalists. E-commerce service-oriented enterprises have stood behind the traditional enterprises. before. In the face of the complex environment that plagues the e-commercialization of traditional enterprises, outsourcing companies can adapt their measures to local conditions and formulate constructive plans based on their current business conditions and business objectives. At the same time, powerful e-commerce service companies can provide full-scale outsourcing services for traditional enterprises.

Logitech Group (NASDAQ:LOGI) announced in April 2011 the establishment of the Logitech (China) official mall, which is another important e-commerce strategic decision since Logitech established an official flagship store in Taobao. However, it did not choose the same proprietary platform as Logitech's Taobao flagship store. Instead, it chose to cooperate with Xingda Cinda, a well-known e-commerce service company in China, and to manage the Logitech sales platform. According to data from Logitech, the mall has been online for 7 months, and the website has received 300,000 visits per day. The number of daily orders has reached 200, and the daily turnover has exceeded 60,000 yuan.

Channel planning and website building. According to the current business status and business objectives of traditional enterprises, combined with the e-commerce environment, e-commerce outsourcing companies develop e-commerce channel building plans for brand owners, including platform selection and staged sales targets. Products and technical teams are established according to established plans. The platform does website planning and technical support, ensuring a good user experience and a safe trading environment for the website. Through the analysis of the current situation and strategic objectives of Logitech's network business, service providers helped Logitech create an independent network sales channel plan, with new product launches and a one-size-fits-all strategy to solve the online and offline channel conflict problems, and use the independently developed PEC e-commerce system. Create a sales-oriented website for Logitech that can withstand tens of millions of visits, so that the website can keep pace with all aspects of the process.

Marketing planning and brand maintenance. Outsourcing companies rely on professional marketing teams to customize network marketing plans and marketing plans for each period according to the customer's market goals and the characteristics of Internet marketing. They will follow the plan to take into account the brand and sales, implement marketing programs, and report regularly to the e-commerce executives of traditional companies, which guarantees the effectiveness of each cost expenditure. According to Logitech products and market characteristics, service providers have made cost-effective network integrated marketing plans for Logitech Mall, making the overall ROI (Input-Output Ratio) better than 1:5.

Order processing and call center. Outsourcing e-commerce, traditional companies do not need to set up another online customer service team, the larger e-commerce outsourcing companies, there is a call team of nearly 100 people, with professional quality of business, adhering to the "customer service" service concept , To provide online consulting services for online shopping consumers, skilled handling of each order, to ensure that each order is synchronized to the warehouse logistics department. It is for this reason that the service provider guarantees the professionalism of the customer service consulting and order processing of Logitech Online Mall.

Customer management and data analysis. Traditional companies engaging in e-commerce lose 50% of their customers and sales opportunities due to lack of operational data analysis capabilities. Professional e-service providers will use professional systems to manage new and existing customers, and conduct data analysis based on site-related data for e-commerce platform operations. Decisions provide the basis. Logitech's service providers constantly analyze and optimize their operational strategies by analyzing various data such as Logitech Mall traffic and sales, and manage new and existing customers through the CRM system.

Commodity management and warehousing logistics. In order to ensure that each order can be issued in a timely manner, the outsourcing company will lease or build a warehouse, manage the products exclusively for online sales for traditional enterprises, manage each SKU scientifically, and use the WMS system to support the synchronization of orders and logistics, and improve the products. The efficiency and accuracy of delivery. In addition, self-built logistics is difficult for both traditional and outsourced service providers. Outsourcing companies generally adopt long-term strategic partnerships with major domestic logistics companies to ensure the convenience and security of commodity logistics.

In cooperation with full e-commerce outsourcing service providers, traditional enterprises no longer have to worry about the security and technical failures of the sales platform, and they no longer have to pay for low-cost online advertising because they are not familiar with online marketing rules, not to mention that online services are not in place. Complaints, but only need to appoint one or two project managers to negotiate with outsourcing companies, greatly reducing the operating costs and investment risks.

E-commerce outsourcing development bottlenecks e-commerce outsourcing will become the third wave of e-commerce development. It is not only a catalyst for the e-commerce of traditional enterprises, but also the core link of the entire e-commerce industry chain, helping brands to explore and nurture networks. market. However, there are still some bottlenecks in the current situation of the e-commerce service industry.

First, the game between e-commerce outsourcing companies and brand owners. Many traditional companies are trying to enter the e-commerce mindset. Without affecting existing offline channels, they choose to cooperate with e-commerce outsourcing companies and regard outsourcing companies as e-commerce “enlightenment teachers”. After familiarizing himself with all operations, he will abandon the operating companies and fly alone. This is the biggest bottleneck for the development of e-commerce outsourcing companies. Beijing Wuzhou Online was once a well-known e-commerce outsourcing company and operated on behalf of many well-known clothing brands in its online channel development business. However, in 2010, Beijing Wuzhou Online quietly chose to abandon full-scale operations and only focus on logistics and warehousing outsourcing services.

Second, the limited ability of e-commerce outsourcing enterprises to operate on behalf of the company. Due to the rapid development of the e-commerce outsourcing industry, and the outsourcing company's own operating costs and risks are much smaller than the pure sales e-commerce platform, it has attracted many small and medium-sized Internet companies to enter. However, many small and medium-sized outsourcing service providers have different levels of awareness of retail and e-commerce, and their actual operating capacity is limited. This has caused traditional companies to lose confidence in e-commerce outsourcing because outsourced service providers have failed to achieve the desired results on behalf of their operations.

Third, traditional enterprises lack the determination of a protracted e-commerce campaign. Most traditional companies choose to develop e-commerce channel expansion plans because they follow the trend or are under the pressure of the online market's offline influence. They lack the in-depth knowledge of e-commerce, and the resources provided by the two parties to cooperate are insufficient, resulting in electricity and electricity. After the cooperation between the outsourcing companies and the companies, they will not see the results within a short period of time and the contract will be rescinded. The contracted outsourcing companies will face the crisis of closing or restructuring.

The above three factors that restrict the development of the e-commerce outsourcing service industry are in essence the crisis of trust and mutual benefit between traditional enterprises and outsourcing service companies. For traditional enterprises, it is necessary to make clear today that the division of labor in the society is becoming more and more refined. E-commerce is the strategic standard for the development of enterprises. Only professional people can do professional things, and e-commerce of enterprises can go further. . For outsourcing companies that provide services for traditional companies, only focusing on the e-commerce industry and improving service levels can gain the trust of more brand owners.

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