Home e-commerce should focus on improving core competitiveness

Author: Yuan Min

Deng Huajin, President of Shanghai Qijia Information Technology Co., Ltd.

In 2009, the overall performance of the home furnishing industry was very good. However, all the prosperity was a hidden crisis. All the crises gave birth to a new beginning. Behind the boom created by price wars is the market's doubts about low prices, and it is impossible to achieve sustainable sales growth through the low-cost route, which poses challenges for the development of home e-commerce.

Deng Huajin, president of Shanghai Qijia Information Technology Co., Ltd., pointed out: “The challenges and opportunities coexist, and the prospects for home e-commerce are good. The key to seizing the opportunities lies in whether it is in every subdivided area, such as in the field of distribution, supply chain management, In the field of warehouse management, marketing and talent strategy, it has unparalleled competitiveness."

Develop new distribution system through the Internet

The home industry's supply chain management is less efficient, with various costs and channels. For example, to open a new store, the headquarters will be very concerned about the geographical location of the store, as well as the extent of coverage. In contrast, the American Home Depot company does not need to rely on geographic coverage to seize the market from manufacturers to retail terminals. This is because e-commerce is boundless, and the system is beyond borders. Deng Huajin said: "We can find a brand new distribution system through the Internet. In other words, it is through the e-commerce platform that manufacturers can find their regional distributors as quickly as possible."

Optimize the supply chain by selecting logistics companies

Deng Huajin introduced: “When suppliers ship, they must be screened among multiple logistics companies. If the logistics business is packaged to a company, it is not conducive to optimizing the supply chain.”

If the supplier requires logistics companies to be safe, they can select this kind of logistics company in the background of the Shanghai Group purchase website of this website, and then continue to select according to word of mouth rankings. In addition, logistics companies have their own merits. For example, during the Spring Festival, some logistics companies do not go to work, and some logistics companies can continue to deliver during the Spring Festival. Vendors should pay special attention when selecting logistics companies to ensure that goods are delivered to users in a timely manner.

Sometimes, logistics companies are even related to the fate of the company. For example, in 2009, the collapse of a logistics company caused many companies to lose money, because in the field of e-commerce, consumers like to choose cash on delivery, logistics companies collect payment is very common, the operating period of the payment is usually two months If the logistics company fails, it means that the company's payment cannot be recovered and it will result in a loss. Just because the logistics company plays a very important role in the supply chain, Deng Huajin said: “The Shanghai Group purchase network of this website will negotiate with many logistics companies in the future and introduce good logistics companies to optimize the supply chain.”

Throttling through system enhanced warehouse management

Many suppliers do not make warehouse receipts and delivery notes when the product is in storage. There is no optimization plan for the warehouse. The most important point is that the warehouse data is never entered into the report, and sales cannot be promoted through data analysis. Profits have been lost in large numbers unconsciously. Assume that there are 2,000 single items in the warehouse. Usually, 20% of single items are sold, and 80% of single items are not sold. This is mainly due to the fact that some products have not been put up in online stores, and some of the products, despite shelves, are difficult to generate due to high pricing or poor display. The saddest thing is that there are still a lot of sales that can never generate profits. For example, many people place orders, but there is no such product in the warehouse and the stock-out rate is high. All of the problems listed above are the problem of the issue of the newly developed supplier sales management system of the Shanghai Group. Deng Huajin stressed: "Entrepreneurs must earn more profits, there are only two ways: open source and throttling. Money is saved out, and saving money depends on the system."

E-commerce should focus on word of mouth marketing

The website of this group's Shanghai group purchase network forum, the highest flow and posting volume is the decoration diary, decoration diary high traffic and high postings reflect the user's consumer psychology. Before the decoration, the user will look at the decoration diary, where users will introduce how to choose a decoration company and how to choose a brand of building materials. This helps users to filter out satisfactory decoration companies and building materials brands. However, postings will sink in forums, and it is not easy to attract long-term attention. In order to effectively develop this kind of user experience resources, the online shop of Shanghai Tuanwang.com has launched a “case” function to allow consumers to watch the household brand. After the word-of-mouth, reviews, and consultations, you can also see the entire installation process and experience texts that have been consumed by users, providing a comprehensive reference for users to make purchase decisions. Deng Huajin said: "Word of mouth is one of the core competitiveness of e-commerce. The Shanghai Group Buying Network of this website provides a variety of ways for word of mouth marketing for suppliers."

E-commerce talent strategy

E-commerce is different from traditional stores, so long as recruiting able salespersons can promote sales, he needs a variety of talents to work together. Deng Huajin believes: "To do e-commerce well, suppliers' online shops need excellent followers to track orders. Professional online shop decorators are required to create wonderful single product displays to attract consumers. Photographers need to take beautiful products. The picture requires the artist to perform PS on the basis of the photographer's shooting in order to produce excellent product pictures, and the editor needs to edit the keywords of the individual product to improve the probability of being searched.In addition, the supplier's physical warehouse needs two The positions of warehouse personnel do a good job in inspection and review, and professional logistics personnel are also indispensable.Of course, suppliers can consider fostering composite talents so that they can have several job functions. The Shanghai group purchase network of this website can provide relevant training. ”

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