O2O Business Frenzy Bravely "Reverse War" Brand To Open A Physical Store A Dead End?

Recently, H&M, ZARA, NEWLOOK and other retail giant crocodiles have been stationed in Taobao and Tmall. Affected by the impact of the electricity supplier, traditional retail giants have tried to get through the O2O business mode, which seems to be the trend of the times.

　　 Amoy brand Nor do I want to miss the feast of the transformation of the business model. Many Amoy brands such as Inman, South Korea's clothing house, SBTI card, crack and silk, and initial language have set up offline stores, trying to land from the net shop, and fighting bravely in the O2O frenzy, but the rent is high, the management hardening, the marketing mode urgently needs to be transformed, and all kinds of problems come face to face. Amoy brands open shop, does it mean a dead end?

Amoy brand What kind of test is under the water line?

In recent years, the rapid development of the electricity supplier is staggering. Last year, "double eleven" Tmall 35 billion turnover is still fresh in memory. As the leader of Taobao platform, the Amoy brand is making money. However, these Amoy brands seem to be able to earn money lying down. Is there really a lot of scenery?

The answer is No. The domestic electricity supplier environment has gradually entered the Red Sea class from the blue ocean. According to statistics, as of the end of 2013, the number of domestic e-commerce enterprises has reached about 29000, and this year it is expected to grow to about 34000. The number of individual online shops has been difficult because of the fierce competition, and the number has begun to decline since 2012.

Secondly, the cost of electricity providers increased. Unlike in the past few years, Tmall no longer used capital flow concessions to boost the brand's worry free promotion. Now Tmall is more inclined to support traditional brand businesses, but has abolished the support policy for Amoy brands. Taobao's focus promotion site has cost more than 100 thousand yuan per day, which has led to a substantial increase in operating costs.

Moreover, the traditional brands are stepping up online to suppress the electricity supplier. Last year, double eleven Alibaba data showed that among the top ten of sales, nine were the flagship stores of traditional enterprises. In the 2012 double eleven electricity supplier war, the men's wear section became the home show of GXG and JACK&JONES. The threat of traditional brand online can be seen as a threat to the pure brand.

People in the industry say that if the coverage of the line is less than that of the line, if the brand is finally trying to make a brand, it must develop the market under the line. Consumers have a face-to-face appeal with retail brands. If offline stores are opened, they will help consumers to get closer to consumers. Visible, laying line under the channel, perfect O2O Closed loop is undoubtedly the only way for Amoy brands to get through the online and offline mode.

Under the circumstances of being attacked by both sides, the Amoy brand had to start a new way to find a way out. As a result, many Amoy brands including Yin man, Han Du Yi she, Si Di Jia, Ru Bo, Chu Yu and so on have set up offline stores to increase their offline sales experience and enhance their brand image. In addition, according to statistics, as of early November of last year, Mcglaughlin opened 406 stores, 19 dream bazaar, 23 diamonds, 12 diamonds and 3 orchids.

The road below is dangerous.

However, under the brand line, there is no smooth way of traditional brand line. According to the analysis of the insiders, the traditional brand has gained a better brand effect under the online, it is easier to get consumer trust. If it opens a shop and plays a suitable price, it will easily win the transaction. The supply chain of online brand is not as good as traditional brand, so there is no advantage in online price war. The high cost performance of its online brand will be challenged.

Just as the industry is concerned, it is difficult for channels to control and store rental. There is no real store operation experience of the Amoy brand, the way down the line can be toured stone crossing the river, the crisis is everywhere, the example of Amoy brand touches the wall is everywhere.

For example, the famous clothing brand Amman suffered a major setback. When launching promotional activities, the channels are not well communicated, and online goods and prices are flexible, but the franchisees are not well matched. In 2012, sales of Inman increased 3 times compared to the same period last year, reaching 300 million yuan, but little contribution was made under the line.

However, the low price of the brand and the weakness of its premium capability make it under great pressure under the expensive rentals. From Fujian, the brand of the brand, aarenberg, has more than a dozen stores in the country, but it has concentrated on the two or three line cities and is deterred by the first tier cities. Moreover, the traditional brands are strong enough to sell online, such as camel costumes last year, the promotion cost of double eleven days is 6 million. In contrast, the operating costs and publicity costs of offline stores are luxury for many Amoy brands.

The survival of Amoy brand stores is worrying. In 2013, he began to focus on online and gave up offline development. Coincidentally, the Mcglaughlin store has shrunk sharply, while the wheat bag has publicly stated that it will no longer bring up its business in the short term. Amoy brand from the collective open shop to the collective launch line business, the story is full of twists and turns.

Amoy brand Landing should be "think before you leap."

As we all know, how to deal with rentals is a difficult problem for Amoy brands, and this is also an important reason why Aaron Castle avoided the development of first tier cities. At this time, the real estate developers aiming at this business opportunity set up a bridge of marriage. For example, the brand rent free scheme provided by Foshan creative industry park.

It is understood that the Foshan Creative Industry Park, in the form of "rent free sharing", introduces famous brands such as Tmall, Taobao and other electronic business platforms to set up physical stores in the park, through the "rent free", "no logistics", "no flow advertising", "format compliance", "collective marketing" and other special points to boost the brand. Such an alliance is a gospel for Amoy brands, but it is also a drop in the bucket.

Gong Hai, director general of Guangfo Zhicheng, said that the biggest problem that the online store will encounter is two aspects: management and marketing. First of all, from the Internet mode to the offline retail mode, the arrangement and layout of goods will be very different. The beautification of the original Internet store is picture beautification, while the store store is three-dimensional space beautification, and the requirements for building capacity are different. Secondly, online is cross regional marketing, not affected by location and wide coverage, while offline stores can only carry out marketing to surrounding business circles, which means that physical stores need a certain line of marketing capabilities, such as bundling sales and holiday promotions.

Gong Hai believes that opening offline stores is the only way to develop brand names, because the essence of business includes selling, selling, and after-sale services. Only online prices and pictures are not enough. In order to achieve a complete commercial closed loop, e-commerce must return to business. He suggested that comprehensive, rich, and display brands are more suitable for offline stores. If you do not meet the requirements of brand names, think twice before you go.