Clothing Enterprises Want To Reduce The Proportion Of New Products In Electronic Mall

The most controversial issue for traditional enterprises to develop e-commerce is how to balance the channel conflict between online and offline businesses. At the second China clothing e-commerce summit, a number of well-known clothing brands said that the way it adopted was to reduce the proportion of new products (about 10% or so) in electronic shopping centers, thus maintaining the low price of electronic stores (low discount of old goods) and not affecting the interests of distributors under the line.

Most of the online shoppers in China are trained to buy things online. The motive is to find the same quality but cheaper products than the offline ones. Because e-commerce eliminates the multi-layer distribution links under the line, this direct selling mode also makes the price reduction possible. But for traditional enterprises, if the price of the same commodity is lower than that of the offline store, the dissatisfaction of the distributors will result in confusion of the channel system.

In order to meet the low price demand of online users, the current practice of clothing companies that have opened online stores is to reduce the proportion of new products in electronic shopping centers, around 10%, and strictly regulate new products, such as no discount within one month, and 10 percent off discount within two months. By contrast, the discount in the online shopping mall can reach 50 percent off, 70 percent off or even lower.

Thus, the average price of online goods is much lower than that of the offline, and it does not affect the channel system under the line. The line is mainly based on old goods, with new products under the line and differentiated operation. Another way of doing this is to launch products exclusively for online stores. This is a completely differentiated approach, which reduces the price comparison between online goods and offline products to zero, and reduces the conflict between online and offline channels to the minimum and ensures profits. At present, all garment enterprises are planning, and will be launched in the second half of this year.

At present, the low rate of new products in the online shopping mall is a flexibility of traditional clothing enterprises to the online shopping environment (pursuit of low price). The responsibility of e-commerce executives of various traditional enterprises indicates that with the maturity of online shopping environment, the proportion of new products will gradually improve.