The Balance Of Interests Of Home Textiles Online And Offline

If there are many reasons to support home textiles, there are many reasons to support it: offline channels can only break through the region, e-commerce can occupy the national market at a time, offline stores are subject to space constraints, e-commerce provides unlimited price theoretically, and the operating costs under the line are high, resulting in the high gross profit of home textiles, leaving room for the survival of e-commerce.

It must be pointed out that: Electronic Commerce First of all, it is a channel, but it is not just a channel.

Channel's influence on brand image

Home textile on-line time is mostly around 2008. E-commerce was also synonymous with low prices during that period. Even with the development of e-commerce, the label of low price has not yet been released. And several large brands in the home textile industry are located in high-end.

Because consumers' demand for home textile personalization is not too strong, the long tail market has limited living space. As a close fitting product, consumers will pay more attention to the quality of products. In a barbarous business world, consumers are more eager for real brands.

Therefore, the offline competitive textile industry has become an industry with a high degree of concentration.

Home textile brands should be on-line, on the other hand, they should try to reduce the negative impact of e-commerce on brands. A feasible solution is differentiation. Most home textile brands have set up sub brands on line, such as Lovo of Luo Lai and Mrs. Lara of fuanna. Or develop online offerings. More than 90% of products sold on the Internet are differentiated products.

　 Balance of interests on line and offline

Until the offline brand is launched, the real interests are involved.

In order to protect the interests of the franchisees in the regional market, brand dealers usually control the dealers' turnover. Branding will also prohibit affiliate from selling products through Internet or TV direct selling to avoid trans regional operation.

Therefore, after the home textile line is launched, how to allocate profits to online franchisees is a real problem. Luo Lai's practice is to distribute the sales volume to the franchisees under the line according to the address of the online production order, and give the cash rebates of the franchisees directly under the direct sales volume.

The two key variables to implement such a scheme are the strength of the franchisee under the line and the determination of the brand. An extreme case is that all businesses are directly under the line, so the development of E - commerce can be promoted as long as the company's top leaders are determined.

The most classic case of brand determination is Bo Yang. Bo Yang Home textiles The online market's influence is far from that of Luo Lai and fuanna. However, because Bo Yang has been very active in the development of e-commerce business, he has been leading the coquettish online.

Online development needs two pronged approach

As of September 2012, the official flagship store of Tmall has been operating for nearly four years, and there is still no vigorous development of online distribution. But without official authorized distribution, sales of online distribution account for most of the products. In 2011, the sales of rolls brand reached more than 200 million on Taobao, but sales of official flagship store were only about 50000000. In 2012, the daily flow of the brand was about 1 million, about 800 thousand of which came from the Taobao bazaar.

The sales volume generated by Taobao fairs is partly from offline dealers who are fleeing goods. This part is at least true. And the rest is fake.

The first part of products can be regulated by channel control, but fake products are the most troublesome part of online distribution.

Distribution or non distribution is only an enterprise strategy. The root of the problem is that e-commerce has gone through the stage of barbaric growth, and now it must be incorporated into the formal channel management system.

In this regard, home textile brands have chosen a two pronged approach in channel development, which is to clean up online channels while initiating distribution business.

For brands on-line, distribution is a shortcut for low-cost rapid expansion.

Looking closely at home textile category, it is not difficult to find that it is actually very suitable for online sales. Home textiles belong to standardized products, and the specifications of quilts and four piece sets are not different, unlike home. clothing I will worry about it. Moreover, the product can be delivered through the express delivery area without the need for logistics. It is this standardized product that allows distributors to introduce simply and clearly to consumers, so that they can not communicate poorly.