Dangdang Pushes Its Own Clothing Brand: What Is Its Intention?

Dangdang was very excited recently, like eating several Viagra's excitement.

The cooperation with the Gome mall has just come to an end. Dangdang has begun to enter the garment industry.

In fact, Dangdang's intention to cooperate with Gome is very obvious. It takes advantage of Gome's power to crack down on Jingdong, because Dangdang does not have any advantages in the field of home appliances.

So what is the purpose of pushing the independent clothing brand this time?

In the circle, Dangdang has been known as the book B2C in the industry, Jingdong is called home appliance B2C, and everyone becomes a man's B2C.

The reason for this is because Dangdang started by books, and Jingdong started by appliances.

Looking at today's Dangdang and Jingdong, it can become a comprehensive department store and sell everything.

Selling t-shirts and men's clothing all the time, even selling mops, this really gives people a sense of being out of business.

For Dangdang, Jingdong and fan customers, this group uses the term "cross-border" to describe the expansion of the electricity supplier.

Cast aside

As an old book B2C, Dangdang's advantages in the field of books are unmatched, which is an indisputable fact.

Dangdang's successful listing is closely related to its near monopoly market share in the book B2C market.

However, Dangdang went public with Jingdong in a price war, and its losses intensified.

According to the financial report, Dangdang's net loss amounted to US $36 million 300 thousand in 2011, which far exceeded the US $30 million 800 thousand in 2010.

Increasing losses have forced Dangdang to seek new profit growth points.

After the book business encountered the ceiling, household appliances and clothing became the best choice for Dangdang business expansion.

As we all know, digital home appliances are not the advantages of being Dangdang, they are the advantages of Jingdong.

After listing, Dangdang once built its own digital home appliance channel. After a fierce competition, it was difficult to compete with Jingdong.

After a painful decision, Dangdang adjusted the strategy of "cross-border" to digital home appliances, and joined hands with the appliance giant, Gome, to compete with Jingdong instead of fighting alone.

Dangdang's expansion to the digital home appliance industry is not simply competing with Jingdong, but wants to expand Dangdang's market scale in B2C.

At the moment, Dangdang once again "crossover" to enter the garment industry, its purpose is to expand the scale of the market.

In addition, Dangdang also wants to increase profit margins through cross-border activities.

From the point of view of operation, the more product categories are Dangdang, the lower the operating cost of its single class products will be.

For example, if Dangdang only sells books, its operating costs are almost the same as those of the three commodities selling books, household appliances and clothing.

Therefore, B2C, such as Jingdong, fan and Dangdang, have "crossed" expansion.

However, the prospects for Dangdang to enter the garment industry are not so good.

For Dangdang itself

The private brand clothing business and the electronic business platform mode are completely different industrial chain models. Whether they are the form of outsourcing OEM, or the establishment of their own design, typing, production and other teams, clothing is clearly not good and familiar with Dangdang.

However, the real challenge is the promotion of independent clothing brands. Dangdang does not have any experience, which is actually the weakness of all independent brands. After all, the crossover between books and clothing is too big.

At B2C