O2O mode: the new born of traditional brand clothing enterprises

E-commerce has created a new era. With the explosive growth of online shopping, this new channel has become very important for clothing categories. Statistics show that in 2013, the scale of China's e-commerce transactions reached 9.9 trillion yuan, of which the total size of clothing online shopping has exceeded 400 billion yuan, and the proportion of online shopping apparel sales to total clothing sales increased from 1.8% in 2008 to 2013. About 23%.

In the past two years, the hottest keyword in the apparel industry is undoubtedly the “Online To Offline” “Online Experience Online Purchase”. The O2O model expands new channels for traditional clothing brands, integrates online and offline links, and reverses offline sales. The downturn brings new opportunities. The Taobao (Alibaba) O2O model is based on the closed loop of transactions formed by mobile payments, while JD.com hopes to build O2O with its own huge logistics system. The difference between the two is that Taobao allows customers to pay by mobile phone first, and then the partner merchants send people to distribute the goods. Jingdong is delivered by its own courier or partner merchant and collects the goods at the door, but the payment method is different.

Last year, “Double Eleven” was a year of success in the collective campaign of traditional clothing brands. The top ten sales figures were almost all captured by offline brands. The ultimate competition on the line will be the competition of offline entity brands. Most of China's branded apparel companies rely on the franchise model to quickly develop and enter the online competition stage. The huge loose franchise system becomes an obstacle. The franchisees believe that the growth of online sales is based on the robbing of the offline share. Therefore, the opposition is strong. The O2O mode can lead online customers back to the line, so that online and offline can be integrated and promoted. It is an inevitable trend for brand and franchisees to jointly create O2O closed loop.

Mobile terminal shopping is a new trend, which not only provides new ideas and channels for e-commerce companies and e-commerce for offline clothing brands. The consumer traffic and online experience brought by mobile terminals, as well as its unique changes to the consumer lifestyle shopping model, have brought new growth points to apparel brands. The clothing brands settled in mobile terminal platforms such as Micro Amoy (Mobile Taobao) and WeChat Mall, which not only can seize the mobile shopping market, but also paved the way for apparel companies to build O2O platforms to collect customer order data.

At present, the O2O model of traditional Chinese clothing enterprises is in the exploratory stage. Many clothing brands have “congenital shortcomings” in the implementation of O2O strategy. For example, the proportion of franchisees is high, the integration of IT systems with online and offline resources is weak, and the supply chain responds. Slowly, the O2O model puts higher demands on the company's innovative transformation of Internet-based business strategy, Internet-based management model, and Internet-based values. To develop O2O in the apparel industry, one must have enough consumer touch points. Traditional clothing brands have a number of offline stores, making it easy for consumers to access product information anytime, anywhere. The second is to have a mature supply chain management system, including inventory management, logistics management, employee management and information system management to ensure the perfect shopping experience for consumers. Traditional offline brands are more mature in these areas.