“I am more optimistic about the integrated industry and trade model in the future, but how can factory sellers in second- and third-tier cities successfully transform To be a cross-border e-commerce company, how should the factory’s product supply chain adapt to the e-commerce operation model?” said Lin Shiyun, head of Chengyang Network.
Chengyang From 2018 to 2021, the Internet has experienced a shift from distribution to boutique products, and then to self-built factories , To develop towards the integration of industry and trade. Currently the main tool category, with Amazon is the main platform, e-commerce operations Team There are only more than 10 people, but they have achieved annual revenue of more than 70 million. The gross profit of the US station is as high as 40%, and the staff efficiency is extremely high.
For these two transformations, Lin Shiyun believes that as the cross-border e-commerce industry continues to mature, it is difficult to make money only by information gap, and the barriers to competition created by distribution are extremely low. , The industry will gradually shift to product competition, supply chain competition, user competition. “Industry and trade integrated sellers will gain a great advantage in this process”.
However,What are the transformation difficulties and Pain points? The following is a partial interview of observation with Lin Shiyun.
Cross-border observation:How to smoothly transform from shop to boutique to integration of industry and trade? How to achieve 40%gross profit?
Lin Shiyun:To do cross-border e-commerce, The ultimate goal is to return to the product.
From the shop to the boutique, it is also out of this consideration,Because the shop seller is essentially not operating products, but operating traffic. How to smoothly transform the boutique? Since last year, there have also been a large number of shoppers in the industry switching to boutique models, but they have encountered various types of unacceptable, the main reason is the selection.
My experience is thatPaving goods can be used as a way of SKU to select products with a high order rate and good evaluation feedback, and then subdivide them Deep plowing.
But under the prevailing low-price competition in the industry this year, the challenges faced by boutique sellers are not small, but sellers who distribute goods have opportunities. In the case of a small number of categories, in the face of low-price competition in the industry, the boutique model is difficult to supplement categories and will suffer a greater impact. On the other hand, shop sellers, due to the large number of SKUs in the shop and the high order rate, the price war will not affect them Big, but there are more opportunities.
Of course, price competition is not normal after all,In the long run, I am still optimistic about the boutique model .
If you are a factory yourself, you want to go deeper into the front end of the supply chain, optimize product costs and speed up products at the same time The speed of iteration to meet user needs. Whenever we receive a negative evaluation, we will iterate the product, and the factory is very close to the e-commerce department, and we can make product modifications at any time, such as improving battery performance, redesigning the outer box, and optimizing products Materials, etc.
A lot of efforts have been made in consumer insights. For example:
1. Request the buyer to register for the warranty period through the brand’s official website;
2. Set up after-sales business mailbox;
3. Communicate frequently with buyers and improve according to feedback instructions; span>
4. Translate the manual into four languages;
5. Product pictures are rendered and shot.
Because,Complete cross-border e-commerce supply The chain should go from consumer insight, product layout and development, to supplier development, procurement, stocking and warehousing, to marketing and drainage, brand building, These run through the entire life cycle of the product.
In addition, creating competition barriers through brand building, developing private models, and applying for appearance patents are also important means to ensure high gross profit.
Cross-border eye observation:TraditionalForeign trade What are the difficulties and pain points of the factory transformation to become a cross-border e-commerce?
Lin Shiyun:Traditional foreign trade factories and cross-border e-commerce operations There is indeed a great deal of thinking The difference is that we are transforming from a platform seller to an integrated seller of industry and trade, so it is relatively simple. ButTo transform traditional foreign trade factories into cross-border e-commerce, from toB to toC’s strategic thinking to selection Product, marketing, logistics and other details need to be considered. At present, the transformation of factories into cross-border e-commerce B2C must solve three major problems:
First of all, in terms of market insights. Traditional factories are too far away from the consumer side. They often make products according to customer requirements, and lack market research before producing products. If you turn to cross-border e-commerce and still have no product selection thinking, but only develop and design products from the perspective of the factory rather than the market, then the product is Slow sales are very common.
Secondly, in terms of talents. For factories in transition, talent is essential. At present, cross-border e-commerce operators are in short supply. Some companies still cannot find suitable operation talents with a monthly salary of 20,000 yuan, and cross-border e-commerce operators are concentrated in Shenzhen, Guangzhou and other cities, located in Factories in second- and third-tier cities rarely have an advantage in the process of grabbing talents.
Finally, in terms of operational thinking, it is necessary to realize the transformation from toB to toC thinking. In the past, the factory docked with the enterprise, and only needed to consider cooperation with customers and production issues. But after entering the cross-border e-commerce industry, you are facing end consumers. If you want to compete with sellers in the industry, You must have C-end user thinking and traffic thinking. In addition, the corresponding product design and development, team management, capital preparation and other aspects need to be complete.
So, for factory sellers, the precipitation in the early stage of transformation is necessary, and it must take 1-2 years to see results. This is also mine. I rarely see the reasons for the successful transformation of factory sellers.
Cross-border eye observation:Based on these difficulties and pain points, many solutions have also appeared in the industry, such as On behalf of operation service. Do you think agent operation is a good solution for factories?
Lin Shiyun:I am not optimistic about this model.
First, the generation operating organization and the factory are usually separated. On the one hand, agency operating agencies are often only responsible for sales and operation and maintenance, and do not participate in product selection or product update iterations. As a result, the product homogeneity is high, and there is no timely improvement and innovation, and the return rate remains high; On the other hand,style="color:1296AF; --tt-darkmode-color:1296AF;"> Span> Agency operating agencies and factories have not achieved in-depth interest binding. In order to obtain a large number of orders and burn advertisements, it is not rare that there is no profit for the order quantity. Instead, many factories eventually end up working for acting operations.
Secondly, the generation of operating agencies has high turnover of personnel. There are many agency operation agencies in the industry, but there are not many talents who can truly operate an enterprise e-commerce enterprise, with uneven operating capabilities and very high liquidity. Such a team lacks the motivation and enthusiasm to make a good store.
I think, “Teaching people to fish is worse than teaching people to fish”. At present, Shenzhen’s cross-border e-commerce has reached the stage of technology export. Factory sellers who want to transform can look for business professionals with successful experience, guide the sellers and build teams to realize the transformation of cross-border e-commerce. At present, the industry has also emerged a team incubation model business, through the management personnel to settle in the enterprise, to guide the business model And personnel training, when the team and business grow up, then end the project and move on to another project. This way of personnel stationing can also solve the problem of not being closely connected with the product.
Cross-border eye observation learned that,In addition to what Lin Shiyun said This is a team incubation model, and there is still a joint operation model in the industry. By providing its own operation team, guide the company’s operation direction and ideas, including marketing promotion, Solutions including marketing creativity and overseas media resources. Compared with agent operation, the link and bundling of joint operation and factory cooperation methods are deeper, and there are more thoughts on product selection and distribution.
For product-driven boutique sellers, The product logic of insight into user needs, cutting from product selection to making explosive models, and constantly adapting to product iterations is a path to continuous growth, and this is backed by strong R&D capabilities.
It is foreseeable that with the entry of factory sellers, it may affect the competitive landscape of the industry from the product orientation in the future. For these factories that want to transform, how to adapt to the cross-border e-commerce operation model is worth thinking about.
At the request of the interviewee,”Chengyang Network” in the text is a pseudonym.