Seven wolves enjoy a good harvest in online retail: revenue will account for up to 10%

The domestic menswear brand Seven Wolf expects that the proportion of online retail revenue this year will reach 10%. According to the company’s revenue of 2.1 billion yuan last year, online business may exceed 200 million yuan this year.

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The cautious attempts of traditional companies to become involved in online retailing have begun to gain positive returns. The domestic menswear brand Seven Wolf expects that the proportion of online retail revenue this year will reach 10%. According to the company’s revenue of 2.1 billion yuan last year, online business may exceed 200 million yuan this year.

At the Footwear E-Commerce Forum held in Jinjiang, Fujian, Zhou Shaoxiong, Chairman of Seven Wolf Company, stated that the company’s target for e-commerce business this year is 10%, but current investment in e-commerce is not large. He disclosed that the operating expenses currently invested in the e-commerce business are only around 10 million yuan, but the personnel, distribution and logistics outsourcing costs have not been included in the statistics.

Seven wolves men's physical store

The Septwolves casual brand launched its online retail business in May last year. In a marketing campaign in November, the company announced that its single-day sales reached 5 million yuan.

Although there has been a boom in revenue, the company is still cautious about the planning of the business. Zhou Shaoxiong said that e-commerce will become one of the channels for future circulation, combined with the offline approach. However, because of the different shopping experience, online channels cannot completely replace offline channels.

For brands, the biggest concern in developing an online retail business lies in how to balance online and offline channels, without impacting current business and revenue. Zhou Shaoxiong believes that the current conflict between e-commerce and traditional channels is gradually improving. In his view, the current relationship between online and offline is mainly the problem of brand image and pricing. Mature and management improvements will be slowly resolved.

According to Lin Xiaofei, sales director of sports shoe brand Anta, the question of e-commerce placed in front of traditional enterprises has changed from the multiple-choice questions “Do or not?” in 2009 to the question of “filling in the blanks”.

She said that in the future, e-commerce will not only be a channel for inventory sales, but will play a more important role. E-commerce can help solve the problem of high costs offline.

According to a set of data cited by Wang Dongzhu, chairman of the footwear industry's B2C website, Wang Tao, Anta's revenue last year reached 7.4 billion yuan, with an average single-store revenue of 1 million, but store rents accounted for 20%, labor accounted for 15%, plus renovations. With the cost of utilities, the profit margins under the line are being squeezed.

Anta is also actively working to solve the above problems. In 2010, the company set online retail as one of the three major strategies. It set up a team in February and launched sales in Taobao in April. It completed its annual sales target in half a year. . However, the current proportion of this business is not large, and the company expects that with the gradual increase in sales, the business will have a positive impact on the company's stock price in the future.

Although attitudes towards e-commerce are still more cautious, most companies have already set up teams to expand. In addition to using online channels to process inventory, some companies have also begun to launch products exclusively for online sales. Belle, a womenswear retailer, is one of the pioneers. The company officially started online retailing at the end of 2008, with an annual growth rate of 300% and sales of 100 million yuan. At present, 70% of the company's online products are individually designed for online customization, but also retained 20% to 30% of the products and line under the same, and explored an effective pricing strategy.

According to data released by the company, the total retail sales of footwear industry last year was about RMB350 billion, the online sports shoes market was 6.5 billion yuan, women's shoes were 7.5 billion yuan, and men's shoes were 2.5 billion yuan. It is estimated that in the next five years, the online retail market for footwear will exceed 100 billion yuan.

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