Matthew Effect In The Internet Field, Letao Takes The Lead In Transforming Into A Footwear Brand

After half a year's dormancy footwear B2C e-commerce Letao began to become a brand business. The company launched five independent footwear brands at one go, including ChanceChance, LavisLavie, Imosii, MANWELL and C+.

According to Chen Hu, the vice president of Letao, Xu Jinglei, the actress, is the spokesperson, targeting white-collar women in the workplace; Le Wei is represented by actress Yang Mi, who is aimed at young urban women; And Moxi is mainly Japanese style. Maiwei is men's shoes, and C+is canvas shoes.

"We tried five brands, hoping to increase the number of products and categories, so that users can repeat purchases." Chen Hu told reporters that, consistent with the traditional practices of brand owners, each brand of women's shoes is targeted at segmentation users.

In June 2011, Letao obtained the brand authorization of Angry Birds, and innovatively launched "bird shoes" in the industry, among which slippers cost 69 yuan, low top canvas shoes 149 yuan, and high top canvas shoes 159 yuan. When the bird first went online, it sold more than 1000 pairs every week.

"The profit of these self owned brand shoes is higher than that of international brands such as Nike and Adidas Big name sneakers The profit is higher. " Chen Hu said frankly that the bird shoes brightened Letao's eyes and began to further try. Later, the sales of private brands such as Bird Shoes, Fruit Ninja Shoes and Taigu Daren Shoes accounted for about 10% of the overall sales of Letao shoes.

This laid the foundation for Letao to transform into a brand business. According to Le Tao, Le Tao has cooperated with movies and games such as Spider Man and Plants vs Zombies to launch corresponding canvas shoes. "In the search for brand authorization, we will sign a shorter cooperation authorization with these manufacturers, which usually lasts for one to three years." Chen Hu told reporters that the games on the mobile Internet change rapidly, and users' brand of each game will also change. "Our approach is also to make fast and slow, and use constantly updated brand sports shoes to shop."

"It is Letao's third venture to transform into a brand business and reach the upstream of the industrial chain." Chen Hu admitted, "The road is hard to go, and you have to go, otherwise there will be no way out." According to his introduction, the founding of Letao in 2008, which focuses on online toy sales, is the first venture. In 2009, the supply chain model of transforming into B2C footwear and making full use of inventory and consignment sales is the second time for entrepreneurship.

Letao has opened a flagship store on Tmall and recruited relevant personnel in Hangzhou. In order to enter the state of Taobao platform as soon as possible, Letao also invites experienced Taobao agent operators to operate. As for Tencent's e-commerce platform, Chen Hu said that currently, Letao is promoting five private brands to enter Tencent's e-commerce platform. In the opinion of Jia Penglei, chief editor of Ebon Power, it is not easy for Letao to transform itself into an Internet brand. Many Taobao brands are familiar with the rules of Taobao, and Letao still needs a period of learning.

According to the official disclosure of Letao, in the past 30 days, the sales of its five private brands on its official website, Tmall flagship store and other platforms throughout the network have reached 5 million yuan. "Although this is not big, it is a good starting point. Taking the brand business line is to bring a good enough gross profit margin." Chen Hu admitted that before, the turnover of channel B2C was often tens of millions of yuan, but the gross profit margin was too thin. Including logistics costs, staff salaries, and market expenses, there was only a big loss.

"Thinking about offline business form changes and online Electronic Commerce The reality is that in the past few years, the path to profitability can be achieved. We believe that brand owners are the best path. " Chen Hu believes that in the future, China's offline commercial real estate form will move to online. In addition to the "Matthew effect" of the Internet, only large channel operators will survive in the end. Some sub industry channels without "personalization" requirements in logistics may not survive.