Smith Barneys: return to the store as a brand does not

According to the Voice of Economy "The World" company, Shanghai Metersbonwe Fashion Co., Ltd. announced today that it plans to stop the business of the e-commerce platform state purchasing network. Meibang Apparel stated in the announcement that e-commerce, as an emerging retail model, requires a very large investment in logistics distribution, marketing resources and information systems. The pre-financial risks are uncontrollable. Although the company began to try to build its own e-commerce platform from the end of 2009, it has not been able to make large-scale investment in e-commerce platforms, logistics supporting facilities, and fixed assets required for this business, and the e-commerce business has failed. Effective development. Therefore, the company plans to stop e-commerce business operations.

Shanghai Metersbonwe Fashion Co., Ltd. was established in 1995 and is a listed company that produces and sells local leisure apparel. Target consumers are young people aged 16 to 25 years old. According to the previous disclosure of the US state apparel, the state procurement network's online time is December 18, 2010. At that time, Meibang Apparel stated that in 2011, it will step up the construction of e-commerce platforms and market expansion, and build the state-owned purchase network into a new platform for Internet consumption and experience. In just nine months, the listed company will hand over the e-commerce business to the parent company.

For the e-commerce business that is scheduled to cease operations, the U.S. apparel industry said that the investment in e-commerce business in the previous period was mainly reflected in salaries, technology development, logistics distribution, and advertising and promotion expenses, totaling about 60 million yuan, which was included in the company’s profit and loss report. in. The suspension of business in this area does not involve the disposal of assets, nor does it increase the company's expenditures. The domain name previously used by the e-commerce platform state purchasing network is registered under the investment name of the holding company, and will be retained by the company afterwards. It will also authorize Huafu Investment’s wholly-owned subsidiary, Shanghai AiSangbang Information Technology Co., Ltd. The company distributes branded products on the Internet e-commerce platform.

It is worth pondering that Zhou Meijian, chief executive of Smith Barney, said: "The traditional store sales model is still the main object that the company relies on." This contrasts sharply with nine months ago, and it also seems to be slightly contrary to the industry's future trends. The domestic venture capital research institute Zero2IPO has just released a research report and stated that e-commerce has become one of the most growth channels for sales of apparel products. In the second quarter of 2011, the scale of online retail transactions for Chinese apparel (000902, stocks) category was approximately RMB 46.9 billion, which represented an increase of 17% from the previous quarter. It is estimated that in 2011, the online retail market for China's apparel products will reach 170 billion yuan, an increase of more than 50%. E-commerce channels will become one of the most growth channels for apparel sales. The following commentary by Zhang Chunwei, the voice of special commentator on the economy, is interpreted in this regard.

Smith Bark Broken Arms: Do Brands Don't Make E-Commerce

Moderator: The e-commerce platform of Mebon clothing is just 9 months after the company plans to stop the business. How do you think of the company so quickly made such a decision?

Zhang Chunwei: If you are someone else, you may think what the problem is. However, I think that for Zhou Chengjian, he has always adopted a light asset model, and now he chooses light network. I think maybe some people would say that this is Metersbonwe's visionless approach, but I think it might be a strong man's broken wrist.

What is the core goal of Metersbonwe this year? Create new domestic products. This is to make Metersbonwe brand from the previous young people brand, he stressed the concept of his new domestic product. For him, creating a brand at the moment is more straightforward than doing a small business for e-commerce. Even in a sense, going to the next big game in the traditional field is more direct than he is in the area of ​​e-commerce. I think from the perspective of pragmatism, this exploration in the field of e-commerce is just a trial and error of Metersbonwe. Since its current trial and error has made him feel impractical, a contraction he adopts is a relatively straightforward approach for companies to face reality.

Second, Metersbonwe is actually the most comprehensive enterprise using IT technology. After he tried to understand very clearly, now the e-commerce more need to burn money, rather than bring about direct cash. At the same time it should be seen that for Metersbonwe it is already a multi-brand operation. As for the e-commerce brand's increase in the number of points he gave, and how much the overall promotion of him in the end. From the current list of listed companies, Metersbonwe is still doing more important part of the self-employed channel. The profit that the self-operated channel brings him is far more than his franchise effect. At this time, he must take back the five fingers he had stretched out, and then go back to the e-commerce field. So I think that his choice is more to return to his traditional field, and it is back to him this year's focus is to be a brand, not an electricity supplier. The e-commerce channel is too small for him.

Moderator: But we have also seen that the current scale of online retail transactions in apparel is now up by 17%, and it is expected to increase by more than 50% in the future, and more and more companies will put some of their products online. To come and go business, to open up this area of ​​shopkeepers.

Zhang Chunwei: As for this, Metersbonwe now emphasizes the concept of new domestic goods. Everyone on the Internet is not exposed to new domestic products. Even the chances of connecting to touch domestic goods are very few. So, in a sense, the Internet is also a place where sales can be completed very quickly. However, it is not a good place for the birth of a brand, and the incubation period is too long.

Moderator: It may be that the incubation period is too long, and the current decision with him is inconsistent, so it is a decision to break the wrist.

Zhang Chunwei: So I think you can say that he has no vision, but I think that there are too many trial and error in the field of e-commerce. How many mistakes Taobao tried in 8 years, and there is still a bit of Taobao is a platform, you have to use all your resources to focus on creating a channel, the investment is really too great. So I think that instead of doing a more powerful exploration in this way, it would be better to recover the money, because we see that this year, regardless of whether passengers or other old people have reduced the original expected size. why? It is our dream that is far from reality and gives us more direct impact.