What I want to share today is the e-commerce entrepreneurship story of Tianji Pavilion members. Tianji Pavilion is one of the classes in Laogao E-commerce Club. The students in this class are very "informed". They have an unwritten rule that the sharers will send red envelopes in the group. Whoever receives the largest red envelope will continue to share e-commerce information or entrepreneurship stories the next day.
There are more than 70 e-commerce bosses in Tianji Pavilion class, and they have countless entrepreneurial stories. We have posted two issues before, and today we are posting the third issue.
Mr. Lai: Starting a business is as deep as the sea
In October 2009, Mr. Lai bought some goods in Yiwu and started his Taobao journey. At that time, Mr. Lai and her husband were in a rental house in Shanghai. When she recalled that her husband was carrying a cardboard box upstairs, she felt distressed and reluctant to leave.
In the twelve years of starting a business, I have experienced many disasters . The first disaster was that in 2013, he had no money in his hand, accumulated goods from a large warehouse, and successfully registered a Tmall store. As a result, the employees suddenly resigned collectively and applied for labor arbitration, saying that they did not pay social security. Mr. Lai was particularly scared at the time, so he withdrew from the Tmall store and returned to his hometown in Henan from Shanghai.
From 2013 to 2017, it was the era of Tmall's rise. Mr. Lai and her husband could only guard the Taobao store, imitating the pictures and products of their peers, and at a lower price, they wanted to become the second peer, but they still ended in failure.
She has always purchased goods from others, and Mr. Lai feels that she is always restricted, so she has the idea of running a factory herself. At the same time, we also added embroidery and handicrafts to the products, which tasted some sweetness, but we couldn't apply to the Tmall store, which made Mr. Lai, who was pregnant, almost depressed.
After giving birth to the second baby, he talked with a colleague and saved Mr. Lai . She pointed out a clear path to Mr. Lai and recommended Laogao E-commerce Club to her. After joining, she participated in several events. When she came back, she discussed with her husband and bought two Tmall stores with the only 1.2 million yuan she had, and then the sales exceeded 10 million.
The second disaster was that in 2019, she bought two Tmall stores. She and her husband were responsible for one store. The products were sold in a crazy manner, and the goods in the factory were not available, and the stores were not enough to sell. As a result, the operations of the two stores competed for resources. Whether to give up their own shops or their husbands' shops, Mr. Lai did not have a balance, and there was a big rift between the couple, and there was still a scar.
With the advantages of the product, both Tmall stores have achieved first place in small categories. Mr. Lai had the idea of opening multiple Tmall stores, but as more and more stores are more and more inventory, the products are out of date very quickly. Later, the store stabilized and there was some money in hand. Mr. Lai joined a milk tea shop. After more than a year of hard work, he ended the closure and lost more than 1 million yuan.
I have been in e-commerce for almost ten years. My husband said he wanted to do what he liked, changed careers and started a major category, started a children's clothing and down jacket category, and started his own factory and designed it himself. He invested a lot of money and was still on the way now.
Now doing e-commerce, we focus on short videos. Mr. Lai feels that if you want to live well on Tmall, you must be the first in product research and development. If you don’t have good product, you won’t be able to promote it no matter how you promote it. However, Tmall’s traffic is not friendly to small sellers at present, so it is necessary to combine product and marketing in multiple dimensions, or to transfer the battlefield.
Douyin focuses on entertainment and marketing. With the increasing competition, Douyin's online duration and culture are more likely to touch people. Mr. Lai wants to let the art team learn to tell stories, from previous photo editing and design products, adding illustration storytelling, from simply selling goods to gathering customers and remarketing and selling goods.
Pinduoduo's profits are low because of the low customer orders of the crowd, but the competition is large. The traffic has increased this year. Recently, malicious competition has also become obvious, and many simple and crude ways have emerged. If you want to do a good product well, you must have technical barriers, such as applying for copyright.
Mr. Wang: Products and services are the king
Going back to fourteen years ago, in 2007, Mr. Wang had just graduated from Chengdu Academy of Fine Arts, and then he joined an advertising company and stayed for a year. Since 2009, Mr. Wang has started selling computers, and this has been sold to the present. In a full 12 years, it has become a brand that many people across the country have bought.
In Mr. Wang's eyes, how many single businesses are in the e-commerce era and whether they can make money depends on performance. Nowadays, most business models are basically multi-brand, multi-store, multi-channel, or focusing on single brands, multi-store, and multi-channel. No matter what business model, if you sell the goods well, you must create a star model, that is, a hot product. Only from one hot product to a hot product group, the business will be alive.
Mr. Wang has experienced this process, from a single product link to a total of 500,000 computers, and finally to multiple popular products to form a product structure - traffic, profit, image , etc. According to the situation, the three product lines play different roles. When there is little competition, the traffic model is not only a traffic model, but also a profit model.
However, if the category market share is still large, and the current competitive environment is basically a category monopoly, if you want to have good performance and achieve good results, you must achieve refined operation of each module and have unique methods. How to operate in a refined way? Mr. Wang also has some of his own experiences:
1. Store diagnosis
1) Traffic structure model, where does the main inlet traffic come from, and whether there are high-quality new traffic entrances to do;
2) Expense rate, how much expenses can your single product profit support? Compare the unit price of the flow and see how input-output is;
3) Store product layout and product sales rate are as follows: It is recommended that the entire store product sales be sold. It is recommended to cut off products that are not available. Related sales of the main products, and consider whether the traffic path of the same type of products is reasonable;
4) Analyze the competitive store, whether the advantages of the opponent are desirable, whether your method has the opponent, whether your biggest difference can penetrate the consumer's purchasing defense, etc.
2. Our own products
Competitors based on the category's purpose, and package them into their own unique differences. However, you need to evaluate whether your advantages and differentiation are what consumers want, whether there are thresholds, whether absolute conversions can be formed, etc. Ask the company's internal employees and members more. If not, you have to continue to explore and discover a new world. If there is really no development, and if you can't compete after it is developed, you can only face price wars. If you can't win the price war, you will face the result of survival of the fittest.
3. Factors of hits
1) Reasonable pricing, store decoration, brand positioning, profit support, and market acceptance;
2) Pay attention to the details page. Some people say that e-commerce sells products to sell pictures. This is only half true, because even if consumers buy it, the sense of gap will make their experience bad. Once there are too many bad reviews, the product link will not survive. Today, when new media is blooming everywhere, publicity cannot be careless, so internal strength is particularly important.
4. Product conversion issues
After solving the product conversion problem, the next step is to attract traffic, including direct-drilling Taobao on site, official waiter resources, content on site and off site, veterans, experts and celebrities, etc.
Many new brands nowadays cannot be separated from "in-depth promotion". This is a shortcut. Just be a tool. It is good to use it well in sales, evaluation, Q&A, and follow-up reviews. The conversion rate is very good. Using this tool well must be based on products and services.
Mr. Huang: It can make 300 million in 2021
Mr. Huang, born in 1993, is already a veteran of e-commerce. She came into contact with Taobao in 2010. The category she now works as her first job at work. When I first got into e-commerce, I met a noble man. Mr. Huang followed them and opened a Taobao mall. It took 12,000 yuan at that time, but he only had a few thousand yuan on him, and his parents were not very supportive. At that time, he relied on his youth and enthusiasm, and he had to fight for his thoughts to have what he is today.
Mr. Huang is a home fabric, sofa cushion, pillow, and tablecloth. Currently, the company has more than 180 employees. She does not operate many stores. She mainly has two stores, mainly in depth and breadth. These two stores are among the top 5 in the industry.
In the past ten years of e-commerce, Mr. Huang has not expanded his category. She said that this may have something to do with her personality and is less confident. Therefore, she has focused all her energy on what she is best at and what is most advantageous. Mr. Huang's performance has also increased this year. Tmall puts traffic at the top, and they are very focused on re-production and new products. She estimates that it will be about 300 million this year. Mr. Huang’s current time focuses on supply chain integration, products, strategies, company administration, etc., and he doesn’t care much about anything else, just look at the data. In the class sharing, she talked about some of the problems faced by her company and also shared the company's future layout and adjustments.
There are problems:
1. Tmall's traffic has declined severely. Most of the hottest products in the previous stores are from their own stores. They are fighting on their own, which is difficult to increase. They have caused internal competition in the company, poor team atmosphere and poor cohesion.
2. The company’s second curve is not very good. Put all the eggs on Tmall. If one day cat is the same as the entity, then we can imagine the future.
3. Some old companies are not as hard-working as before, occupying an important position, and it is difficult for newcomers to rise.
Future Planning:
1. Pay attention to the choice of suppliers. If the current suppliers are still of this scale in 5 years and cannot grow with us, even if they have price advantages, they should choose some suppliers that are consistent with our values, choose the right person at the source, and choose more than work.
2. We must pay attention to Douyin, adopt the partnership model and platform model, and reduce investment costs, jointly invest, share resources, share profits, and guarantee wages.
3. Open more business consultants, carefully find traffic models like masks, and evaluate suppliers in multiple aspects.
4. If the candidate is right, everything is right. We must strengthen the Human Resources Department, cultivate new people, give new people the opportunity to try and make mistakes, let some colleagues who are more dedicated to learn, contact more young people and help them.
Mr. Huang borrowed the words of Youtai: He is full of gratitude, is present in the present, and practices to the last moment of his life. She said that this is also a realm that she admires very much, and she is willing to try it. Follow the cadres of Tianji Pavilion, continue to work hard, strive for the path she chose until the last moment of her life, and be an excellent Tianji Pavilion person and an e-commerce person.
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