Yali Technology provides Internet services for small and medium-sized enterprises. Photo by Nanfang Daily reporter Dai Jiaxin
“Double 11” is approaching, and Dongpeng Tiles advertises in subway stations.
Photo by Nanfang Daily reporter Dai Jiaxin
The annual “Double 11” is just around the corner, and e-commerce sellers are gearing up for the annual shopping carnival.
In recent years, Foshan e-commerce brands have created a series of sales miracles in “Double 11”, and a number of star enterprises such as Lin’s Wood, Xiaoxiong Electric Appliances, Weiyi Custom, and Camel Clothing have emerged. Through observation, it is not difficult to find that most of these star companies are from the two manufacturing areas of Nanhai and Shunde, in contrast, the development of Chancheng’s e-commerce industry is quite “low-key”.
As a central urban area, Chancheng is constrained by land resources, and the direction of industrial development has gradually changed from heavy scale to heavy quality, which is reflected in the development of the e-commerce industry, although there is a lack of star-level enterprises, but some Chancheng e-commerce enterprises have changed their thinking, focusing on the “soft power” of enterprises, using big data to improve the sales and production mode of enterprises, from “selling products” to “selling services”, and a number of service-oriented enterprises such as Yali Technology and Bajie Youcai have emerged; In addition, combined with its own industrial advantages, through the creation of a number of industry vertical platforms such as Zhongtaolian, the traditional industries of Chancheng have achieved the development of the e-commerce era.
Liu Donghao, secretary of the Chancheng District Party Committee, has repeatedly mentioned in public that Chancheng should take innovation-driven as the core, promote the smooth conversion of new and old kinetic energy, make concerted efforts, and find the direction and way of converting old kinetic energy. By grafting Internet resources, traditional industries are accelerating the way to find the integration of new and old formats, forming an e-commerce development model with a variety of flowers in the central urban area.
Written by: Nanfang Daily reporter Liang Zhiyi Sun Jingfeng
Big data applications lead the new trend of e-commerce development
In the past few years, riding the east wind of the Internet, Foshan’s e-commerce industry has developed vigorously based on the advantages of local manufacturing, and a number of star-level enterprises such as Lin’s Wood, Xiaoxiong Electric Appliances, and Weiyi Custom have emerged, occupying a good market share in various market segments across the country.
Taking Lin’s Wood as an example, in the “Double 11” pre-sale list released by Tmall Meijia in 2016, Foshan Nanhai e-commerce famous enterprise Lin’s Wood ranked first. This furniture e-commerce company from the Tao brand has maintained explosive growth since its establishment. On the “Tmall Super Brand Day” on September 25 this year, Lin’s Wood achieved a single-day omni-channel transaction amount of 150 million yuan in 2017, setting a new transaction record for the Electric Beauty Super Product Day.
The secret behind the explosive growth is the high integration of traditional manufacturing capabilities with the Internet. Relying on Foshan’s advantageous industries such as home appliances, furniture, and textiles, it realizes the grafting of the Internet and traditional industries, expands sales channels, and enables Foshan’s high-quality industrial consumer goods to go out of the country and deliver them to consumers across the country through developed logistics and transportation.
The chemical reaction generated by the combination of the Internet and traditional industries is also reflected in Chancheng. In the context of the relocation of the production links of enterprises and the retention of corporate headquarters and sales departments in Chancheng, more and more traditional manufacturing enterprises in Chancheng have begun to use e-commerce channels for sales in recent years. According to the statistics of Foshan E-commerce Association, as early as 2015, Chancheng e-commerce enterprises have exceeded 15,000, with a transaction volume of nearly 100 billion yuan, and a number of high-growth e-commerce brands such as Xiwu clothing, Perland mattress, and Aibei women’s clothing have been born. For example, Chancheng’s local women’s clothing brand Ai Beiyi, in only 5 years, the annual output value has exceeded 100 million yuan, becoming a well-known “Tao brand” of domestic women’s clothing.
However, in the past two years, with the release of e-commerce dividends, this development logic of simply “selling products” through the Internet is quietly changing. More and more local e-commerce companies have begun to drive design and production transformation with sales changes, and solving many pain points in current e-commerce through the application of big data technology has become their common choice.
In order to solve the pain points of logistics and transportation of furniture products, this year Lin’s Wood announced that it cooperated with Cainiao Alliance to launch a large-scale logistics tracking system to accelerate the layout of digital warehousing, and goods can realize fully intelligent operations from warehousing, replenishment, picking, distribution to warehousing, and improve the efficiency of warehousing operations.
In Chancheng, there is also a wave of big data applications, and Xiwu clothing is one of the leaders. By establishing a big data platform, analyzing the popularity and sales volume of design elements such as necklines and button shapes, and guiding product design and sales strategy formulation, Xiwu clothing can design more “explosive styles” and minimize inventory. This local e-commerce brand in Chancheng has created a series of sales miracles in the past few years, rapidly growing from 300,000 yuan at the beginning of its establishment in 2009 to more than 1 billion yuan last year, an increase of 3,526 times.
Change your mindset from “selling products” to “selling services”
As a central urban area, Chancheng has always been an important commercial and trade town in Foshan, with complete supporting resources such as urban commerce, transportation construction, and public services, attracting a large number of e-commerce enterprises and young practitioners. Based on its own advantages in the service industry, Chancheng’s e-commerce industry has transformed from “selling products” to “selling services” and exploring more diversified e-commerce development models.
In order to promote the transformation of traditional manufacturing thinking to Internet thinking and meet the needs of traditional enterprises for professional Internet services, a number of “Internet service providers” for enterprise customers, including Guangdong Yali New Media Information Technology Co., Ltd. (hereinafter referred to as “Yali Technology”), Foshan Bajie Youcai Network Co., Ltd. (hereinafter referred to as “Bajie Youcai”) and a number of “Internet service providers” for enterprise customers have emerged in the central urban area, becoming an important force to promote the innovation of business models of traditional industries.
Among them, as a complete set of Internet solution providers, Yali Technology proposed the goal of building the entire “Internet + ecosystem” service for small and medium-sized enterprises as early as 2015. “Internet + Ecosystem” covers PC websites, mobile smart websites, mobile apps, WeChat platforms, popular directories, Internet practical training and other network-wide platforms.
“In the industry, an Internet company completes this complete set of Internet solutions for enterprises, with a cost of more than 500,000 yuan, which is a large number for small and medium-sized enterprises that have difficulties in production and operation, and also prevents many small and medium-sized enterprises from becoming Internet-oriented.” Wu Jinjun, chairman of Yali Technology, introduced that Yali Technology only charges a small service fee to provide platform construction services for enterprises and help enterprises achieve rapid communication and sharing of internal and external information, thereby greatly improving the efficiency of operations.
In addition to a full range of Internet-based services, the Internet transformation of traditional industries also needs a number of professional service institutions as support. For example, Chancheng’s Internet finance and tax service famous enterprise Bajie has a fortune, which is the demand for professional financial and tax services in the initial period and the process of Internet transformation.
“Most of Foshan’s start-ups and small and medium-sized Internet enterprises outsource their financial statements to intermediaries, but these intermediaries are difficult to provide high-quality services to enterprises due to their small scale and insufficient personnel.” Chen Rongfeng, general manager of Bajie Youcai, said that through the Internet to provide corporate finance and tax services, Bajie Youcai has served more than 1,000 entrepreneurs and start-up enterprises in Chancheng, and adds 200 new customers every year.
Build a vertical e-commerce platform to achieve industry group development
Building a vertical e-commerce platform deeply engaged in traditional industries is another path chosen by Chancheng for the development of the e-commerce industry.
Last year, 14 ceramic enterprises in Foshan jointly established the Zhongtaolian Industrial Platform, grafting “Internet +” elements, and committed to building a big data supply chain platform for the ceramic industry. According to the plan, Zhongtaolian platform will be expanded and improved in phases, forming a series of new industrial formats such as centralized procurement supply chain sub-platform, smart logistics sub-platform, cross-border e-commerce sub-platform, financial supply chain sub-platform, technological innovation and certification sub-platform, O2O service sub-platform, etc., and finally build a win-win ecosystem for upstream and downstream cooperation in the ceramic industry.
With the release of the development dividend of the e-commerce industry, insiders believe that it is difficult for a phenomenal enterprise such as Lin Wood to appear in the e-commerce industry, and the emergence of vertical e-commerce platforms is the general trend of the development of the e-commerce industry in recent years.
Combining the advantages of ceramics, stainless steel, knitting and other industries, Chancheng is stepping up the development of local “Jumei products” and “Vipshop”. In addition to the Zhongtaolian platform, last year Shiwan Street officially implemented the Lanshi “Internet + Stainless Steel” project, through the implementation of the Lanshi “Internet + stainless steel” three-year plan, to build a stainless steel innovation town, to plug in the traditional advantageous industries with “Internet +” wings, and explore ways to solve the problems faced by the industry for many years such as manufacturing relocation and weakening of offline trade.
Achieving industry group development by building a vertical e-commerce platform is becoming a new trend for Foshan’s traditional industries to explore Internet transformation. Last year, Lecong Steel World Stainless Steel New City was officially opened, and it was specifically mentioned at the opening ceremony that in addition to offline channels, Lecong Steel World will also revise and upgrade the steel world network, create and improve the O2O e-commerce platform, and open up new markets and new customers through the Internet.
The emergence of vertical e-commerce platforms has effectively mobilized industry resources and opened up the industrial chain with the help of the Internet, opening up a broader imagination space for the upgrading of traditional industries in Chancheng. Since its establishment, Zhongtaolian has gathered top experts in the industry to formulate 108 raw material standards and 36 testing standards for ceramic production, successfully promoting the development of industry standards and promoting an average increase of 3 percentage points in product excellence. Through the establishment of the Zhongtaolian platform, the ceramic industry has realized the integration and development of informatization and traditional industries, and won 24.4 billion yuan in orders in less than a year.
■The voice of the industry
Online costs are rising, and enterprises are accelerating offline layout
Social e-commerce has become a new trend in the future
“After several years of rapid development, domestic e-commerce has been very mature, the overall base is relatively large, and the development will tend to be stable.” Liu Mingming, secretary-general of Foshan E-commerce Association, said that compared with the whole country, Foshan as a manufacturing city, e-commerce development still has great potential. He revealed that according to the random inspection survey conducted by the association, Foshan’s e-commerce transaction volume last year was about 505 billion yuan, and it is expected to increase by more than 20% this year.
Liu Mingming said that as the growth of the e-commerce industry tends to stabilize, there are currently some new development trends in domestic e-commerce, and these new trends have brought new opportunities for the development of e-commerce in Foshan. “The development of e-commerce will gradually return to the fundamentals, the most important of which is the improvement of the product supply chain, for e-commerce brands, no matter how good marketing is, it is inseparable from a strong product supply chain.”
As a manufacturing market, Foshan has a strong industrial foundation and a complete industrial chain, and the physical e-commerce has highlighted the value of Foshan manufacturing, including Alibaba, Jingdong and other e-commerce giants have accelerated the pace of local industrial resource integration, including in September this year, the country’s first Tmall industrial e-commerce service center landed in Chancheng.
In line with this trend, Liu Mingming believes that some new models have emerged in the current development of Foshan e-commerce. “One of them is that more and more pure e-commerce brands are penetrating from online to offline, including local e-commerce brands such as Xiwu Garments and Aibeiyi, which have begun to deploy offline experience stores, and offline sales are growing rapidly.”
In this regard, Zheng Weiyuan, head of Alibaba’s Foshan Industrial Belt, expressed a similar view, he believes that with the rise of the overall operating costs of the C-end, enterprises will gradually become rational for promotional activities such as “Double 11”. At the same time, accelerating the layout of offline physical stores is becoming a common choice for more and more e-commerce brands, “After several years of e-commerce boom, consumers are paying more and more attention to offline experience, in order to comply with this trend, more and more local e-commerce brands have accelerated the speed of offline layout.” ”
Liu Mingming introduced that the second trend in the development of Foshan e-commerce is that traditional industries have achieved the development of industry groups by integrating industry resources and creating professional B2B platforms, and Zhongtaolian and Qihua.com are typical representatives of them.
Liu Mingming said that after the “electric shock” boom in previous years, Foshan’s traditional industry’s understanding and understanding of e-commerce has been greatly improved, and the road to e-commerce transformation of the industry has become clearer, “Zhongtaolian is a good model, through the establishment of a mutual aid platform to save the overall cost of the industry and improve efficiency, this model can be copied to Foshan’s other ten pillar industries, like Gaoming established Zhongsu Union.” ”
In addition to the development of industry groups, Liu Mingming believes that the industrial and talent policies introduced by various district governments to encourage the development of e-commerce also play an important role in promoting the combination of Foshan’s traditional industries and e-commerce, “For example, Chancheng has built seven or eight parks with e-commerce as the theme, and then it is necessary to focus on creating a number of benchmarks to create a good atmosphere for e-commerce development.” ”
Looking ahead, Liu Mingming and Zheng Weiyuan both said that social e-commerce is becoming an important trend in the development of e-commerce, “The social e-commerce model built through channels and means such as WeChat, live broadcast, video, and Internet celebrities has achieved rapid development in the past two years. Zheng Weiyuan said that Foshan’s traditional manufacturing industry needs to follow this trend and adopt a whole-network marketing approach to expand marketing channels, “For e-commerce can not be one-sided to understand, e-commerce in addition to facilitating transactions, but also has the functions of communication, promotion, publicity, etc., in addition to the C-end, enterprises can also try to expand the B-side channel, seek more possibilities.” ”