Lining Is Unwilling To Be Hijacked By Taobao To Enter The Retail Market.

The e-business website, known as "Lining's official mall", has quickly become the new growth spot of the top Chinese sporting goods manufacturer since its operation in April 2008. Sales increased by 12 times in one year, and the number of mall members exceeded 60 thousand in mid 2009. The charm of this virtual store is that it combines the pleasure of the flagship store in the traditional channels with the pleasure of online browsing products. Some fashionable but uncommon products can be found here, such as the Lotto brand of Lining's agent, which sells for 1250 yuan, and the same badminton racket used by the Chinese national team players. These hot items are often the focus of the Lining interactive forum.

　　 Lining Guo Jianxin, chief operating officer of the company, told the "Global Entrepreneur": "the e-commerce department began to make profits in the fourth months after the formal establishment, which is really unexpected."

Like Lining, many consumption Traditional brand names are all new to e-commerce. Although Internet vendors such as Amazon have been successful, they haven't realized the necessity of setting up e-commerce websites for a long time. To a certain extent, they seem to be right: network The retail market is flooded with discounted prices, goods and unknown brands, and is out of tune with companies like Lining who try to create a unique brand personality.

However, companies eager to find new revenue growth points do not want to miss the booming online shopping boom. According to initial forecast data from AI consulting, last year, the scale of China's online shopping market has reached 248 billion 350 million yuan, an increase of 93.7% over the same period last year. The proportion of total retail sales of social consumer goods is expected to rise to 1.98%, and the penetration rate among netizens has further increased to 28.2%. online shopping, which is one of the most negative sectors of the economic crisis and has the best growth potential.

Another hidden problem is that many manufacturers' brands worry that they will lose the right to speak in the online retail market. They naturally do not want to see some comprehensive shopping websites become WAL-MART or former Gome's strong channel providers.

Various factors have led Lining's manufacturers to enter the online retail market boldly, though it has been more than 10 years behind some companies. In addition to the surprising sales figures, Lining has found that this attempt has effectively enabled them to effectively contact another attractive consumer group: middle and high income earners who work long hours but have no time to shop. Just like Adam. Smith pointed out that the origin of economic activities comes from transactions, and all transaction costs are related to the cost of information acquisition and the transportation cost reached by transactions. Online shopping just satisfies these two conditions.

E-commerce sites can also help Brand Company cope with another headache that causes them: the counterfeit products sold on the Internet. It is because of the lack of online sales of genuine products that consumers have to click on other websites, but it is much more difficult to identify the authenticity of products on these websites.

But the challenge is to shift to online stores and force Lining to reconsider his understanding of customer service. The key to success in a physical store is to provide excellent shopping experience, but for online shoppers, it is good service to complete transactions in the shortest time. At the same time, from the sorting of goods, logistics and transportation to financial settlement, these basic supply chain management has also made Lining headache. {page_break}

Learn from disasters

On a Thursday morning in April 2008, the office of Lining Agel Ecommerce Ltd in Shanghai was as noisy as the stock exchange hall. On this day, hundreds of clothing, footwear and accessories products will be launched on Lining's official website. Lining, director of e-commerce department, is full of confidence. In order to shop online, she and her team spent 8 months in the early stage to conduct product and market research.

But the accident happened. Only two customer service personnel rushed into the office panic stricken to tell Lin: when they were dealing with more than 50 people online enquiries at the same time, the computer crashed.

Lin Guo ordered that the system be restored as soon as possible, and all the people in the office, including the receptionists, should be added to the "operator". Soon, more than 200 orders came. But even more embarrassing things happen again and again, warehousing and logistics managers call, and some are annoyed to say that they are trapped in the vast ocean of packages and can do nothing about it. In the case of goods pickup, it was barely finished when 50 single or 100 orders were accepted, but when he reached 200 or 300, he was mad and even did not know how to sort the goods. In the next few days, everyone was terrified by the sudden snowflake internet order, and the experimental Internet sale just broke down in a few days.

On line, running even failed to complete, the background system was also paralyzed, which made Lin Da angry. The stagnation of shipments is a disaster. In the face of the piled up parcel in the warehouse, the forest is like a needle felt. These bad situations have attracted the attention of Lining, chief operating officer of Guo Jianxin. Guo has begun to realize that the problem is that e-commerce has challenged Lining's previous business model. Lining, who used to focus on offline channels, is a wholesale mode, while e-commerce is a retail mode. The whole operation process, financial settlement mode and logistics system are far from each other.

Taking logistics as an example, Lining can deliver more than 6000 offline stores only through a delivery system. It does not require retail capacity, no single distribution capacity, and no sorting capability. But electronic commerce requires three abilities to be possessed simultaneously, and the response speed is faster.

As orders from remote areas such as Tibet and Guizhou are increasing, Lining has to establish business contacts with several logistics companies and understand the comparative advantages of each logistics company in detail. This new business mode has also brought Lining a new way of settlement. For example, the valuation of single logistics and wholesale logistics is not the same. For individual parts, sales companies must have a variety of external payment systems. In the past, sales companies focused on invoicing customers once a month, but now they need tens of thousands of invoices every day. For former financial personnel, this is unthinkable. "Process reengineering is the core capability. The scale of business determines that the process will need to be adjusted continuously." Lin Li said.