Home >

The Road To E-Commerce: Chengya Traffic Loses

2022/12/26 19:47:00 1

Taobao Brand

With the support of emerging e-commerce, new brands may seize the opportunity in the future and stand in the "C" position like the previous Taobao brand. But only by building a solid advantage beyond the flow, can the brand become an endless river, rather than a "front wave" slapped on the beach.

01: The weakened brand of Taobao

Another once famous "Tao Brand" is going to be closed.

Recently, the once Taobao menswear brand "Huashengji" announced that it would close on the last day of this year.

With its unique Chinese style design, Huashengji, born in 2008, has become the leader of the Chinese fashion brand, and has been loved by many consumers. Even Ma Yun, Jackie Chan, Guo Fucheng and other celebrities have also worn Huashengji clothes to attend events for many times.

After 10 years of establishment, Huashengji's annual sales growth rate exceeded 300%, becoming a high-quality brand of Chinese style men's wear.

However, the glory of Huashengji failed to continue. In 2020, Huashengji announced that it would enter a "dormant period", and all existing products would be shut down. Finally, it was closed at the end of this year.

The Huashengji, from the infinite scenery to the closure of the store, is just a microcosm of the Taobao brand.

More than a decade ago, it was not mature traditional brands that were the first to receive Taobao's flow dividends, but "Taobao brands" that started from factories.

In 2008, the newly established Taobao Mall was faced with the problem of lack of brand settlement, so Taobao changed its strategy to show the value of the platform by incubating its own brands.

In the following years, well-known brands such as Handu Yishe, Inman, Qigege, Lebo, Yunifang and Three Squirrels began to emerge.

At the peak, Taobao brands occupied half of the list of Tmall's Double 11, and attracted a lot of capital. For example, Maibaobao completed four rounds of financing from 2010 to 2012, and Qigege obtained more than 100 million yuan of investment

In 2016, under the joint name of Taobao brand merchants, Tmall even set up a "Assisting Merchants in Listing Office" to help these brands connect with listing.

However, the highlight moment of Taobao brand also stopped here. Brands such as Handu Yishe voluntarily withdrew after submitting their IPO applications, and few enterprises were finally listed successfully. After the successful listing of the three squirrels in 2019, the share price has shrunk by about 75% compared with the historical peak, and the market value has decreased by more than 26 billion yuan.

In addition to these struggling Taobao brands, they are more like Huashengji. After the special price clearance, they quickly closed their stores and quietly disappeared in the e-commerce world.

02: Chengya traffic, Lose traffic

At the most brilliant time, the founders of Taobao brand, who frequently sold tens of millions or even hundreds of millions of yuan a month, had ambitious visions of the goals of the coming year, and were determined to shake up the entire Chinese Internet and build a large online retail brand.

How did these Taobao brands go from being determined to shake the Internet to going downhill?

From the perspective of the platform, an important factor in the rise of the Taobao brand is that it has taken advantage of the information gap. When traditional brands and large manufacturers have not yet realized the power of e-commerce channels, Taobao brands have grasped the traffic gap during this period and received the traffic support of Taobao Mall.

"It used to be that Taobao wanted to change its image, so it would give strong policy support to the brand, and would give away a large amount of free traffic monthly or even annually." Standing on the wind of the times, with the flow dividend, Taobao brands successfully took off.

However, as Yu Minhong said, the busy business model based on external platforms has strong vulnerability.

The easy traffic makes Taobao brands only seek growth, while the basic supply chain and brand building issues are ignored.

Take three squirrels as an example. From the beginning of its establishment, the three squirrels spent most of their money on marketing and promotion. At the production end, they quickly realized business expansion by "OEM".

However, the production mode of completely commissioned processing has led to frequent food safety and quality problems of the three squirrels. On the Black Cat complaint platform, there have been nearly 2000 complaints about three squirrels, most of which are product quality problems.

Similarly, cosmetics brands such as Yunifang and Memfashijia are also looking for OEM products, while clothing brands such as Handu Yishe and Qigege also lack the ability of original design and rapid updating of the supply chain. So when the Taobao brand developed to a certain scale, many problems emerged in quality control, turnover, inventory and other aspects.

In addition, after the first Double 11, big brands realized the "power" of e-commerce channels and rushed into Tmall with their original brand advantages and mature supply chains.

Compared with the Taobao brand, the big brands accumulated offline for many years are more powerful in brand influence and supply chain management ability, and large-scale operation also enables the big brands to have stronger bargaining power than the Taobao brand, which can not only bring consumers real high-quality and inexpensive goods, but also further enhance the brand influence of Tmall.

At this time, the traffic of the platform began to incline to international brands and traditional brands. In addition, the overall decline of the internal traffic of Taoxi e-commerce, the cost of customer acquisition became higher and higher, and the Taoxi brand began to decline.

These Taobao brands, which once played an important role in the Double 11, have gradually disappeared from the list of the Double 11 since 2013. On the Double 11 in 2020, with Handu Clothing House falling out of the top 10 list of Taobao women's clothing hot sales, Taobao officially announced the withdrawal of the whole line.


In addition, like the "Taobao" above, the sales channel of Taobao brand is too single, and its offline popularity is far less than online. However, under the restriction of "choose one from the other" of the early e-commerce platform, Taobao brand cannot operate on other platforms, and can only rely on the traffic of Taobao.

In a word, thanks to the early traffic dividend of Taobao, the brand of Taobao rose rapidly, but when the tide receded, the problems covered by the rapid growth were exposed, and under the weight of hard work, the brand of Taobao finally declined.

03: Taobao brand seeking a way out

Under the influence of the tide, the surviving Taobao brands are actively seeking a way out.

Aware of the problem of too single channel, Taobao brands began to lay offline channels. In 2015, Inman put forward the plan of "thousands of cities and thousands of stores", and started the layout of offline stores. It took three years to complete the "online+stores+logistics".

The three squirrels have opened brand stores offline since 2016. By the end of 2021, the three squirrels have opened 140 direct stores and 925 franchise stores. At the same time, the three squirrels have also moved from the entrepreneurial era with e-commerce as the core to the adult era with nut supply chain as the core, and constantly built the brand supply chain.

In addition, after the "one out of two" restriction of the platform was broken and omni channel operation became a trend, Taobao brands also started multi-channel operation.

For example, after the rise of short video and live broadcast, Handu Yishe, Inman and other brands have gone out of Taobao to conduct short video operations in Diaoyin, and opened shop broadcast, taking Diaoyin as a normal sales channel.

However, under the impact of the rising new consumer brands and big brands, even though Taobao brands actively carry out omni channel operation and marketing, they have little effect and are difficult to regain their previous popularity. However, for the Taobao brand, the most important thing now is to survive.

However, when the momentum of Taobao brand weakened, Tiaoyin and Fasthand started to follow the old path of Taobao and began to vigorously support "Tiaoyin" and "Fasthand".

Diaoyin E-commerce launched the "special support plan for Diaoyin brand" to help 100 new brands sell more than 100 million yuan in Diaoyin within one year; Quickly allocate 23 billion+dividend flow to support fast brands, and support 500+benchmark fast brands

With the support of emerging e-commerce, new brands may seize the opportunity in the future and stand in the "C" position like the previous Taobao brand. But only by building a solid advantage beyond the flow, can the brand become an endless river, rather than a "front wave" slapped on the beach.


  • Related reading

Why Is The Scene Of Offline Physical Stores Not Available Online

Entrepreneurial path
|
2022/11/16 15:22:00
10

National Textile Skills Competition In Higher Vocational Colleges

Entrepreneurial path
|
2022/11/15 1:03:00
6

The Road Of E-Commerce Entrepreneurship: The Post-95 Xueba Sells Clothes

Entrepreneurial path
|
2022/11/9 14:39:00
5

There Is No Holiday For E-Businessmen. This Year'S Winter Double 11

Entrepreneurial path
|
2022/10/11 16:28:00
191

School Enterprise Industry University Research Docking Meeting Successfully Held In Lutai Group

Entrepreneurial path
|
2022/8/12 17:09:00
23
Read the next article

Chinese Traditional Culture And Clothing Fabrics Kesi Royal Fabrics

K è silk, also known as "carved silk". It is named because the gap caused by shuttle changing between colored weft and colored weft is like that carved by a knife. Kesi has been the royal family since the Song and Yuan dynasties