2010 Second China Clothing E-Commerce Summit Interactive Dialogue

On the morning of May 27th, the 2010 Second China garment e-commerce (EC) summit was held in Hangzhou today.

Xu Xiaofu, Secretary General of the Hangzhou municipal government, and other government officials, such as Lining, seven wolves, Taobao and other enterprises in the field of clothing and e-commerce, attended the summit hosted by Zheng Wang consulting.

The picture shows the interactive dialogue session of the second China Fashion e-commerce summit.

The following is a pcript of the dialogue:

Host: OK, thank you.

Next is our interactive dialogue.

How should traditional clothing enterprises treat e-commerce? What kind of strategic planning should be carried out, what strategic goals should be set, and what difficulties and challenges the clothing e-commerce will encounter are our concerns.

Let's welcome our guest of conversation with warm applause.

They are:

Lining, Ms. Lin Lin, Agel Ecommerce Ltd

Mr. Jiang Tao, vice president of seven wolves company

Kappa Gu Haolan, manager of e-commerce Department

Zhang Tielong, general manager and information director, Department of online shopping,

Lin Yunhua, brand propaganda minister of Bo Yang Group

Mr. Lv Bowang, who is looking forward to consultations, chaired the discussion session.

Lv Bowang: OK, our conference has entered the interactive forum.

This morning, from Han teacher, until the smile of Taobao, all gave us a very wonderful speech.

I feel that there are so many wonderful places that I don't know where to start.

Sitting on the stage, I was thinking about such a problem.

All of these are brand clothing enterprises.

Our e-commerce, clothing e-commerce is not the beginning of the brand clothing enterprises.

The first is the individual seller who sells goods from the wholesale market, and then sells tens of billions to hundreds of billions of dollars a year.

Have you ever been worried about whether you want to enter the field of electronic commerce? Is there any concern that this background will impact the development of traditional brands to the Internet? Is there any concern?

Lin Yunhua: let me introduce myself first. I am from the Bo Yang Group.

We have three major projects in Bo Yang Group.

One is real estate investment, the other is the earliest one we set up, which is endorsed by Angie Chiu. Another is our Tonlion, which is a very young clothing brand.

We entered into an e-commerce trial operation in February last year. In July, we set up an e-commerce company.

We are a subsidiary company under the costumes of Bo Yang Group, making e-commerce online.

Our Tonlion clothing brand is even higher than Czech Jones's sales.

Just now, Lv Zong said, "from the perspective of brand, we are not afraid of shocks. What are the advantages of our traditional brands? Taking Tonlion as an example, why did Tonlion experience and start doing business in the mall? By third months in November, it ranked third because of the brand factor of 15 years.

In this way, we grew rapidly after we sold once online.

Second, we want to thank Taobao.

Taobao has a group of customers who are relatively young, and those newly graduated white-collar workers are very receptive to the Internet.

Therefore, he is in the positioning of our brand, just in line with the network group.

Just now, Professor Han talked about the supply chain. Our Tonlion, whether in stock or in the right line, has a large quantity of orders.

We will not worry about promoting the shortage of goods, but we still have to thank our supply chain.

Can our fast sellers respond quickly to whether our fashion products can react quickly?

{page_break}

Just now, Jiang talked about the problem of counterfeiting. I personally have an idea.

Why can Jones of Czech be in the first place? They are actually later than we do.

But the first time is the first place.

Why did the seven wolves and our Tonlion accidentally row to third or fourth? Actually, I think Taobao is the earliest, very C seller, and many people are selling fake products. We want to thank these C sellers for cultivating the market for our brand. I have done Mercedes sales before. I was once HR human resources director. When I was doing these things, LV gave me an example. LV can see that there are many fake goods in the street, and there are also fake behaviors, but it is not important to do these things.

Always focus on your own brand culture.

Let's think again. Let's take the seven grid as an example. On Taobao, the C seller has a higher monthly sales volume than the six brands we are in.

One major contribution is how to cultivate these network groups and be loyal to online shopping.

Lv Bowang: to cultivate the market well, you can have such a platform to lay up the platform. Can you go up?

Lin Yunhua: that's not intentional. In fact, the advantage of the brand is the strong supply chain, what is the disadvantage, the mechanism is lagging behind, the reaction speed is slow, this is our disadvantage.

Next we will focus on this improvement.

Gu Haolan: I am from Kappa, Gu Hao LAN, and also from e-commerce.

As a matter of fact, as early as 2005, we had raised the question of whether to do the field of electronic commerce. At that time, the focus of the company's work was still on the supermarket.

So we did not carry out this business.

In the early June of last year, we decided to go to the field of electronic commerce after a very long discussion.

Mainly see two things, one is our internal mechanism is relatively perfect, second think, Taobao has such a large sales volume.

Our company used to do Kappa marketing, which is relatively low-key, accounting for 4% of the total income of our total.

We are very worried that on Taobao, these consumers of Kappa products buy fake products, and there may be some very pure fake products, which worry that they will affect the brand awareness.

So we say that we Kappa want to do our own e-commerce.

Lv Bowang: in fact, that is to say, a very important motive for Kappa to enter Taobao to do e-business is to curb counterfeit goods and occupy the market.

Gu Haolan: there is such a reason.

Lv Bowang: Thank you.

Jiang Zong.

Jiang Tao: our point of view is that some luxury brands that LV just said, buying fake consumer groups and buying genuine consumer groups are totally two concepts.

In fact, in terms of a product, a product that is stronger in our company is basically sold for two hundred or three hundred yuan, and there are thirty or forty counterfeit products on the Internet, but in fact, it is different to actually use it.

If you buy it online, you can't wear it one or two times.

Because of brand advantage, there is a brand premium.

We also do not worry about what is the reason. The economic development of China as a whole and the income of ordinary people will also increase rapidly. Now, this country has begun to pay attention to income distribution and will gradually increase the income of ordinary people. Now the proportion of per capita wages to GDP is very low.

The whole country in China has already attached importance to this matter, and the income of ordinary people is rising slowly, and the chance of buying fake goods will be less.

We feel that their group may still be that group of people, sooner or later, they will switch to our brand.

If you buy a real product, you will feel that it is really so good, the fake is so bad.

Lv Bowang: so they are also products of brand clothing enterprises. After a few years?

Jiang Tao: Yes, we still need to serve the real consumers.

If it is not yet our consumer, his fake products are also promoting our propaganda.

Zhang Tielong: let me introduce myself first. I'm from nine herd king. My name is Gu Haolan.

Honestly, we are not afraid of them. We communicate with them, they are not terrible, and they are very cute.

What I am worried about is our organization, the nine herdwang group. Because of the development of these nine decades, our current brand names are like black swans. It is very difficult for them to dance. E-commerce is a revolution for traditional enterprises, and it means that your business can enhance your competitive edge and compete in the market. Is it necessary to have e-commerce?

And more importantly, the overall sales performance.

For example, e-commerce now accounts for less than 1% of the sales of traditional channels. It may be said that most of the enterprises are below 10%.

The value of business driving is slow at the moment of change, and the brand has just the advantage.

Now, the brand name just drives the traditional enterprises and affects the traditional enterprises.

Traditional enterprises, before they did it on Taobao, our company has also opened e-commerce, and has been exploring how to do e-commerce, but they have given us proof of fact.

{page_break}

Lv Bowang: just now, Professor Han said, if the brand on the Internet sells clothes, the supply chain will be correspondingly fast. The highest level is like the small sellers of Taobao.

Now you are the information director of the nine Mu Wang, who is also responsible for the supply chain management. What points do you mention in Professor Han's speech, which gives you great inspiration? Or do you disagree with Professor Han's point of view?

Gu Haolan: it should be said that in order to create a fast response capability of the entire supply chain system, they will make the rapid response capability of the supply chain into one of the competitiveness of the enterprise.

We need to launch new products quickly, increase our customer groups faster, and turn our non customers into our customers.

Of course, this requires support from the supply chain, but our definition of it is a faster introduction of new products. In the clothing industry, it is very difficult to replenish the goods, because the industry itself is such a one.

But new products can be launched more quickly, because selling products is not sold out, but they can be filled without goods.

It means that new products can be launched more quickly to occupy consumers.

Lv Bowang: you must be not afraid of any fakes.

Your e-business has been established for two or three years. Under your leadership, a great change has taken place in a few months. I don't think you should be afraid. You are the leader, but I think you are very confident. You are not afraid of others to catch up with you or exceed you. You may have reached the point where no one has me, and others earn me.

The question I want to ask you is that Taobao is the pronoun of online shopping. Now you open your own official store, our original idea is like this. Because China has Taobao, Taobao can become a synonym for online shopping. Few people would think of visiting. Taobao has already accumulated a traffic volume, and people think of the first thing is Taobao. So how did you build the electronic commerce official mall? For example, I am a consumer of Lining. When I may sell Lining's clothes, I may think of going to Taobao. How do you think about this situation?

Lin Li: actually, objectively speaking, Taobao's market share is very large.

You can see from the data just now that there are more than 70% of the market share.

So from our own Lining e-commerce, we are also making an analysis of the proportion of channel revenue.

Our development even today, Taobao platform is not a single Taobao flagship store, including all the channel partners can account for the overall proportion is probably less than 60%.

So it's still over 50%.

This also proves that in fact, the final choice of our efforts here is still in the consumer.

So, consumers are willing to buy on that platform or his own choice, and my data also prove this.

There is also a spillover effect of Taobao.

With the development of e-commerce becoming longer and longer, consumers of online shopping and consumer psychology become more and more mature.

He thinks Taobao may be his best shopping search platform. Of course shopping is definitely the biggest shopping platform, or a bigger shopping platform. After finishing these homework, it may overflow.

Our actual data also prove this point. Probably in April 2008, Taobao's business was my everything, accounting for 100% of my total, then the proportion was gradually decreasing, not representing Taobao itself.

The process of market change.

I will make a lot of efforts in my own official mall.

In addition to shopping search on Taobao, consumers will go shopping on Baidu and Google to do various shopping searches, so there will be plenty of purchasing power to search Lining in four clubs. That is to say, the sales volume of official mall is also increasing.

And different shopping platforms, its target consumer groups will still be different.

I don't think that Jingdong's users are totally overlapped with Taobao's users. It is definitely some vertical clothing stores such as the possible shopping network, some of which may be positioned as luxury brands, some of which are more popular than those of Taobao.

Similarly, users who buy Lining also have their own needs.

You may choose Taobao, you may choose Jingdong, or you may choose others.

{page_break}

In the first stage of e-commerce, our first stage is as long as there is a sales platform, as long as there are online stores, I will do it all in a serious way.

I think traditional enterprises have great advantages in doing e-commerce, not just that there are many shops under my line, that is, many of the business models under my line can be learned from the Internet.

On the Internet, on every platform, Lining's online shop is also making a distinction between location, flagship stores, discount stores, and specialty grade shops.

I feel that all the people who like fashion are attracted to this store, so we also make further separation of the location of the network, and attract the target audience to my official website through accurate Internet marketing.

Lv Bowang: Lining, how do you think of Taobao? Will it leave Taobao alone?

Lin Li: This is a very interesting topic. In fact, I went through with CEO of Taobao.

I strongly agree with Xiaoyao's view that this is still a competition in the market, not that Lining is willing to leave, but whether he can attract the target group of Lining to spend on it. This is what consumers choose.

Lv Bowang: there is another question. I would like to ask Mr. Li and all the guests to answer.

They are very concerned about selling new products online, how to make new products, and how to coordinate prices with offline.

Jiang Tao: we are like this now. Actually, we see that some of our seven wolves are on sale at the price of new products on the Internet.

We have made requests for them in past dealer conferences in the past two years.

We are not allowed to make any discount within one month of listing.

During the whole sales period of the new product, for example, it should not be less than 15% off within two months.

There is no discount from the official website.

Why do you buy things on the website? One is cheap, one can compare the price. It is easy to know which is cheap, so the biggest advantage on the Internet is the price.

We are going online, and so are we. Our new products can not be discounted.

Now we are on the Internet, the main thing is to sell our discount products.

Another, we will be in the past one or two years, through the analysis of the entire consumer, will do some online products for sale, is offline shop there is no.

There is no price comparison for these goods. I have a certain advantage in the price of products that I shop on the Internet.

So we will make some adjustments on the whole price, and there will be a lot of margin space. We will know that this is actually a very substantial commodity, and of course, the market needs to be nurtured.

I want to start from next year, we will adjust the management of the whole channel.

Our entire collection system is also being set up. It is going up to the carton, and it will find out which company and which dealer are in what city.

The specification of Internet channels has also invested a lot in technology. Our goal is still the same, that is to say, there is no discount on the whole normal business.

Lin Yunhua: we are like this in the control of new products.

So far, we have sold less than 10% new products.

We now account for 10% of our network.

That is to say, offline stores are not.

The online special edition is based on the analysis of the existing consumer groups, the interval analysis of market prices, and the online promotion version of our Tonlion online. This is our current situation.

In the future, we will have a huge distribution system to do it.

If you integrate your brand culture and brand power, I believe that many of the preferential groups loyal to our brand will still choose our stores and flagship stores.

If a small number of people are willing to pay ten yuan less, because Tonlion's value is not high enough to buy at small stores or fake stores, we can't sacrifice our own products.

The new product string is basically the same as the price below the line.

Gu Haolan: when we start to shop, there will be new products.

The discount for new products will not be less than 10 percent off.

After a while, we will find the dealers are happy. They wrote to us and said they had flagship stores.

We also know that some of the counterfeit goods may be very low prices, in fact, affect their reputation.

For the proportion of new products, at the beginning of our electronic commerce (e-commerce channel), we have clearly told the company that e-commerce is a new consumption channel. There are many articles that can be done, rather than offline sales channels. Therefore, in the last 2 months of November, when we just started e-commerce in September, we made a marketing cooperation.

First, our online game, that product, we achieved 70% in a short time. This is one of the elements to strengthen the game, but it is also an attempt by us.

We later wrote to a rock singer, who designed some of his own activities in our flagship store.

We are also doing this in an attempt to enhance the image of our flagship store in the minds of consumers.

We can buy new products in flagship stores and enhance our brand.

{page_break}

Lv Bowang: the new product is currently on the flagship store in the Internet. The proportion of official sales does not seem to be very large. It looks like 10%.

Is it possible for us to look forward to this? Two or three years later, or 35 years later, the new product can exceed 50%. From the beginning of Zhang Jun of the nine shepherd kings, I still don't know how much the king of nine took up.

Zhang Tielong: look at brands, different brands, the proportion is not the same.

We should discard the cost in the middle to repay our customers.

Our next step is to integrate online and offline, and we hope to drive the rapid growth of the whole business through the channels of the Internet.

So we are also gradually guiding consumers to the Internet platform. Of course, it is absolutely impossible to replace them online. E-commerce is also a business. It is impossible to divestiture our business from now on. Therefore, our proportion of new products has been increasing.

Another brand, it is a bit like this.

Its proportion is basically 90%, and it will go faster and better.

Lv Bowang: as an Internet user, I still hope that our online shopping consumers are not just buying cheap goods.

I also hope that since Internet e-commerce has lost an intermediate link, it will introduce links.

Now we may have concerns about the cost savings. Because this price can not conflict with the channel price below the line, so the price can not be discounted, or only ten percent off or 15% off. I know this is a pitional period in the development of e-commerce.

So I think this pitional period is two or three or 35 years?

Lin Yunhua: how can we solve the problem of profit distribution after our new product and future price? Once the problem is solved, we can integrate online and offline.

Both South Korea and Japan have such examples of e-commerce.

Lining now has other vertical brands, including Taobao.

The way to reduce the warehouse is to learn from Amazon, which is to establish a large logistics system to make his company flourish.

What is Korea's return to Japan? What is he doing?

Here is the order, and it will be home in two hours.

Physical stores, such as our Tonlion, we have more than a dozen outlets and shops throughout the country. If we can deal with after sales problems and logistics problems, we will be able to handle these two problems well.

But so far, it has been idealized.

I expect this problem to take long, and it will take 8 to 10 years, but this vision and vision will not be long for the future.

Because today's customer group can be known that 25 is less than 30 years old, my baby is 7 years old now and may buy him a toy online, so I can wait for ten years.

Jiang Tao: we want to have a bar code for each commodity.

The second is management.

Another is the way that depends on the consumer.

Like a new product, or like a discount, may have a lot to do with the habit of the consumer.

And it also has something to do with our entire product design.

If the new product design is very beautiful, very fashionable and leading the trend, he will accept it.

There is a brand which is basically sold at 35% off, but its profit is very good.

Why do we always have a discount? Because we like new consumers. We made very fashionable products at that time. After our new products went up, some consumers knew that they might be playing seventy percent off in two months, but he liked them, so I think this is related to a consumer's habit and mentality.

So I think it is really difficult to predict the time accurately.

I think I must believe that this interest will not be very high.

If we now make up 10%, maybe 30 and 40% will be very good.

The process will be longer and more tortuous.

To bring more conditions to maturity.

Thank you.

Host: we have live broadcast of sina this time.

Now there are many users on the big screen, and the audience asks the guests questions.

Some of our guests are directly addressed to the distinguished guests here, some of whom are asking questions unanimously.

Jiang, the first question, you answer.

Jiang Tao: in fact, the new brand depends on this company.

Because now brand, the online brand is basically the existing brand.

I know there is a barn grilled forest. He started out doing it online and made it more successful.

It seems that there is no absolute good culture. Look at the strategy of your whole enterprise and its own situation. For example, there are some suppliers, just like some large suppliers, specializing in shirts or specialized in foundry, and can make brands in terms of total technical strength.

So what do you think he is doing online or offline? This one is to see what his whole enterprise strategy is, how the fund is allocated, and what kind of talent reserve it is, not necessarily whether it should be done online or offline at first, according to its own rhythm.

Lv Bowang: do your agents have to give them a space to sell online? In the face of the development needs of Brand Company, physical distributors will face greater pressure. Should they open up this channel and ask Li Ninglin?

Lin Li: first of all, I very much agree with this point. Lining is not doing direct business in making e-commerce.

I have just mentioned that we have direct operation, distribution and consignment modes.

In addition to direct outlets, it has its own network channels, whether offline or Internet itself, which can become our channel partners.

So I have never said that I refuse to compete with our offline distributors.

As a matter of fact, we are now working with some of Lining's partners, a large offline partner, like some dealers in Liaoning and Hangzhou.

Lv Bowang: let's finally let our guests have a look or expectation for our clothing e-commerce, the next three years, five years or even ten years. What do you think of it?

Lin Yunhua: in the next ten years, my personal view is this.

At present, we are all in the stage of being users. At this stage, the more users we have, the bigger the market will occupy.

We are building up our brand culture so that our online users are absolutely loyal to us.

So that we will have very strong sales and profit margins in the next ten years.

Thank you.

Gu Haolan: only eight years ago did this brand exist.

Our company has done a calculation before, in fact, in five years, it has completed ten years of expectation.

This is a traditional channel, and one of the characteristics of the electronic channel is fast and new.

It is hoped that every company will have different internal mechanisms for doing e-commerce, some of them have a single company, others use the resources inside the company.

We hope that we can all play our own characteristics, and hope that we can explore the road of e-commerce together. We hope that in the next five years and ten years, we will develop our own strengths and fight well.

Jiang Tao: we believe that e-commerce is a very new channel.

From the next five to ten years of development, we firmly believe that the users in this channel will continue to grow, and for our company, no matter what aspects will be improved.

We also have no hope that this e-commerce business will exceed the traditional mode of business. At least ten years, it may still have a cushion for traditional channels.

You can't always be the first because everything is being done.

We are going to explore e-commerce channels today, because we first know that this channel will be very bright in the future. We are not saying that we must be forced or helpless because we have seen its bright future.

How much progress will be made in the next ten days? I don't know. I just think there will be a great development in the future.

Zhang Tielong: the future must be beautiful, but we need to be calm.

I hope that in the next five years, we will do better in our existing team.

I do not expect to see two departments doing business in the next five years.

{page_break}

Lin Li: I think the social division of labor in the future will become more and more detailed.

As Lining is doing e-commerce today, sometimes he feels very tired.

Because no professional service provider can be found.

Looking forward to the next five to ten years, there will be a large number of outsourcing service providers who are very professional and very good in every aspect.

These service providers, together with our brand enterprises, are making e-commerce bigger and stronger.

Not only Brand Company, but also those outsourcing providers.

We are making this industry bigger, including consulting companies like Dr Lu, who provide us with very professional consulting services. Thank you.

Lv Bowang: Thank you for your wonderful opinions and experiences. I would like to invite all the distinguished guests to leave.

Moderator: This is the end of the morning forum.