At the June regular meeting of Laogao Crown Club in 2015, Lao Jin, the founder of the home textile Taobao brand Jinxilu Home Textiles, shared some unique secrets of his store as an invited guest. We need to snowball accumulation, three-dimensional competition, and we must rush to the pace of e-commerce...
Lao Jin’s sharing this time has many lessons learned from exchanges for millions or tens of millions of tuition fees, so everyone must take a good look.
Three principles under fierce competition in e-commerce
In today's e-commerce development environment, the order brushing is very strict, the price war is fierce, the payment is expensive, and the competition among peers is very serious. How should we do it under various circumstances?
The first point is snowballing , which requires us to accumulate. Many times, we take one step back and forth when doing things, and there is a lot of interference in the middle. We will forget our original goal and have no future accumulation.
The second point is that competition is three-dimensional . For the mosquito net product, we have entered the inventory of 100,000 quotas before the Spring Festival. We invested tens of millions in this product. Some of the products sold will have poor evaluations. Then we will conduct a full inspection. There will be several problems for every 1,000 quotas. Handle this 1% problem and retain one percent of customers. We will strive to improve the conversion rate through telephone customer service and online customer service. All the 2,000 calls we called out on that day were targeted at this product, including old customers and customers who can buy this product, and do our best to improve the conversion rate. We will try every channel, don’t just look at one point.
The third point is that rhythm is the key . No matter how big a merchant you are, you are just a ship in the ocean of e-commerce. You must follow the rhythm of e-commerce and don’t be conceited. In fact, many times, no matter how much you do, others don’t see your efforts.
Our company has departments such as operations, personnel, finance, warehousing, customer service, data, product research and development. The most powerful thing about our company is the data department. Data is very important, and product research and development is also very important. As long as the product is good enough, you can have many consumers.
Take the ultimate cost-effective route
We have been here today and have been incubated for three years. The concept of our company is to follow the concept of ultimate cost-effectiveness . Only businesses that take several routes can survive.
The first one is the cost-effective route , which is also the most difficult.
The second is small and beautiful . Your team is smaller and the competition is relatively low. You can also provide customers with good differentiated services.
The third type is to build international or domestic first-tier brands . Under such cruel competition, the ones that can stay must be three-dimensional competitive businesses.
Then the ultimate cost-effectiveness is not the lower the price, the better, but to improve the quality of your product, reduce the price accordingly, and ultimately achieve the ultimate cost-effectiveness. You also need to reduce your cost, improve your efficiency, and lay a solid foundation.
How do we achieve low cost? Last year, our advertising expenses accounted for 3.5%, our deductions were lower than those of our peers, and our staff salary and other expenses accounted for relatively low proportion. Our customer service center was established in Hefei, with employees salary of about 2,000, because the customer service will have a bottleneck period, and he will leave himself after a period of time. We have strict control over prices in the supply chain. If the supplier's quotation is too high, I will immediately look for other manufacturers, so their quotations are very suitable. Of course, you also need to have enough funds, enough amount and good reputation to support it. The products we are now producing are all produced by our own factories, so the cost will be reduced and the quality can be guaranteed. These are our core competitiveness.
Our employees’ salaries are still very high, but why is the proportion very low? This is because their per capita output value is very high, our team building and performance appraisal mechanism are established very scientifically, and employees can treat the company's affairs as their own. Before e-commerce, e-commerce talents did not exist . Now e-commerce has gradually matured, which has invisibly raised the threshold of this industry. I am under a lot of pressure now.
When you think your employees are calculating, you must be more calculating than them. It is normal for employees to regard work as work. All the problems are the boss's problems.
Value and Dreams, Three Directions of E-commerce in the Future
We believe that e-commerce platforms are still growing, and it is still a bonus period. I have only started to have the habit of online shopping, so I still have customers. The layout of multi-channel and multi-platform may have been focused on Taobao in the past, but now there may be JD.com, No. 1 Store, etc., and I have basically done all the platforms.
I think our future direction,
The first is brand, to improve quality and image.
The second is to do cross-border aspects.
The third is to do mobile Internet .
I think any platform that wants to exist must have its irreplaceability. With the expansion of product line, I only completed 80% of the users' needs, and I didn't care about the remaining 20%. With the expansion of multi-brand and multi-business models, we are now working on brand cooperation, and the better the brand building effect, the better the promotion effect. Focus on user experience and accumulate user base to achieve better development. More than 50 million people have visited our shop, 3 million people have bought our products, and 800,000 people can have a good interaction with them, and ultimately create value and realize their dreams.
Q&A session:
Member 1:
Hello, I am a child's clothing company. You just said that your office in Shanghai has only 30 people with more than 600 square meters. I want to know whether your warehousing and products are produced by yourself, the delivery method and the supply of goods.
Lao Jin:
We only have an operation center in Shanghai, only visual planning, etc., and we all graduated from prestigious universities with high quality. Why is it so big is actually for future development, and the budget is enough now. The warehouse is in Nantong and the customer service is in Hefei. 40% of the products are produced by ourselves, 60% are produced by the outside world, and our own factory is also in Nantong.
Member 2:
I just want to ask one question, which is how many people are in your data center.
Lao Jin:
Two people, one supervisor and the other assistant. If someone is particularly sensitive to data, you can compare with the five of you.
Member 3:
Hello, I am a uniform workwear company. We do not do activities in this category. No one wants to get free orders for diamond exhibitions before, so I want to know how to solve it.
Lao Jin:
Many e-commerce problems are now unsolvable. This problem lies in you. We can communicate with other skills in private.
Text/@Laogao E-commerce Circle Organized
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