O2O in Traditional Clothing Enterprise Transformation Faces Difficulties

Explore the provenance of O2O

O2O analysis expert Yiuou Wang CEO Huang Yuanpu said: "In 2010, O2O began to be proposed in the United States. In August 2011, the O2O concept entered China. It began to heat up in China because of Kai-fu Lee and other celebrity communication effects." Earlier in the e-commerce business, After peeking into the initial O2O form, Internet companies began to break through the single-line development model to break through the development bottleneck, and began to sink channels, open up online and offline, and transition to O2O mode. After this, traditional companies have also begun to explore the O2O model.

Traditional clothing enterprises explore the O2O road

In recent years, local apparel companies have experienced dismal business operations, revenues have continued to decline, and high inventory problems have prevailed. In the face of difficulties, garment companies are also looking for new ways. They will turn their attention to O2O. However, the O2O transformation of garment enterprises is not as beautiful as it was imagined, but it is difficult.

One of the difficulties: the mentality of the company is impetuous and the direction is chaotic

As clothing companies continue to suffer losses in revenue and inventory levels remain high, managers of enterprises need to find new breakthroughs. The emergence of O2O has become a life-saving straw for some apparel companies. Without a full understanding of O2O, the blind transformation will only result in investment. The human and material resources have failed to achieve results.

Huang Yuanpu told reporters: “Traditional apparel company executives still do not recognize the importance of online, still do not have Internet thinking, corporate managers either too despise O2O, or too much attention, eager to achieve. Managers are still not accurate The direction has led to deception.” O2O is both a trend and a future. However, traditional enterprises must be willing to sink in their minds, change their thinking, and find the right direction to view O2O with peace of mind instead of treating it as a straw or a straw. A scam.

The second difficulty: online platform construction, offline shop upgrade

O2O is a combination of online and offline integration, but traditional clothing companies develop more complete offline stores, online platforms are relatively weak and some companies do not have online platforms. The establishment of an online platform requires professional technical support, involves the storage and processing of large amounts of data, and these are no small challenges for traditional enterprises. Moreover, with the development of the times, the mobile Internet has become more and more important and has become the mainstream. The combination with the mobile Internet will determine the long-term development of the company's future.

In addition to online platform construction, the informationization of offline stores, especially the data visualization and visualization of inventory is the key point. Huang Yuanpu said: “Under the line upgrade is a must to do, online and offline integration requires offline data Convergence.” Offline upgrade is the basis for getting online and offline, and integration of online and offline integration can realize O2O and achieve efficient configuration of resources.

In order to upgrade the store's experience, offline stores must also be upgraded. Taking Smith Barney as an example, Smith Barney has conducted a store experience upgrade for its direct stores and put forward the concept of “One City One Culture, One Store One Story”. It takes a lot of resources to upgrade the store. Whether the traditional clothing company has the determination and ability to carry out shop renovation is also a difficult point in the transformation of the company.

Difficulties 3: It is difficult to solve the problem of distribution of channel interests

The distribution of the benefits of direct-operated stores is relatively simple, but franchise stores will have the problem of distribution of benefits. There are multiple modes of operation of O2O. Each mode involves different interest distribution issues. The rational distribution of O2O's success depends on whether or not the interests of different channels can be properly dealt with.

Group purchase model

This model attracts consumers to offline stores through online price cuts or discounts, completes the online diversion effect, and consumers experience and then place orders online to complete purchases.

This model can help companies digest inventory, but Huang Yuanpu said "this model brings the two profit distribution points between the franchisee and the family, 1. If the consumer is offline to try to buy clothing in the franchise, online orders In the end the benefits should be considered who? 2. Franchisees do not agree with price cuts how to do? This distribution of interests is not good, online and offline fusion is difficult to do a good job."

Online and offline homogeneous price model

This model can well protect the brand from the impact of price cuts, but whether franchisees are willing to unify prices, and the attribution of interest in online orders has become a factor hindering corporate transformation. Huang Yuanpu analysis said: "Online and offline homogenous same price is very easy for companies to ignore the importance of getting online and offline, but this is precisely the key point of this model is also difficult. Only when the online and offline can truly reflect the value of O2O, can we achieve The efficient allocation of resources.” Opening up online and offline, and rationally distributing the benefits are the difficulties that are placed on the road to transformation.

Huang Yuanpu also told reporters: "Either model has an impact on the interests of the purchasers of traditional enterprises. Consumers cannot buy on-line purchases. This will inevitably lead to a decline in the quality of service of the shopping guides, and will affect consumers. The shopping experience will ultimately have an impact on the brand.”

Although the traditional O2O transformation of garment enterprises is difficult, it is not without a solution. Although the road is twists and turns, the future is bright. Companies can gather fans through online platforms to attract consumers, interact with consumers to collect feedback and consumer location information and use it to improve services, guide marketing, guide production, and even guide store locations. In addition, the O2O Experience Store can also solve the expensive pain points of physical storefronts.

Huang Yuanpu said: "O2O or mobile O2O is the future development trend of apparel companies, online is the infrastructure, the line is the main body, O2O can do a better grasp of the location of properties, grasp the spatial scale, the online unified resources, offline Only by sub-regional shipments can the characteristics of the market economy be met, and resources can be efficiently and reasonably configured."

However, no matter how mature the O2O model is, the key is to look at the quality of the product itself. This is the fundamental foundation of the company.

Copyright Statement: This article is a reprint of online media, and it only represents the author's point of view. It has nothing to do with this site. If news articles and comments infringe your legal rights, please call us and we will handle it in a timely manner.