Preparation Of 60 Billion Clothing Dream Dangdang Future Mode Of Change

Dangdang held a fashion show in autumn and winter, and at the same time announced its clothing category in 60 billion of the 600 billion clothing market.

Coincidentally, this year, e-commerce companies seem to be moving closer to fashion, whether it is Tmall's strategic theme of "buying Tmall", or Jingdong's slogan of "still Jingdong".

What about it?

If you compare jumei.com and Dangdang's two quarter earnings this year, you know the reason.

In the two quarter of this year, jumei.com's net revenue was $154 million 400 thousand, while Dangdang was $316 million 100 thousand, while jumei.com's market value was as high as $4 billion 700 million.

Only $1 billion 193 million (data closes on August 20th). Why is Dangdang's revenue two times higher than jumei.com's and its market value less than its 1/4?

The secret is in the category difference, jumei.com's category is cosmetics, clothing and other female users, while Dangdang network is mainly books.

In fact, another vip.com focusing on clothing has already realized the market value of more than ten billion dollars, and it is also known as "evil stock".

By comparing the two quarter gross profit margins of Dangdang, jumei.com and vip.com, 18.3%, 46.3% and 24.8% respectively, we can see the magic of women's products.

Another important feature of clothing category is the high rate of repeat purchase and the large user stickiness.

According to the data of China Electronic Commerce Research Center, the purchase rate of clothing shoes and caps reached 76.3% in 2013, and it is estimated that in 2014, the online shopping rate of clothing and footwear category users will exceed 80%.

It can be said that users do not always buy books, but they all need to buy clothes. The huge demand not only promotes the business scale of clothing business, but also increases the stickiness of users.

From 2 years ago, Dangdang began to carry out category expansion. Its performance was good, and its growth rate exceeded 100% in 6 consecutive quarters. This rate was even higher than that of Tmall and vip.com. Sales surged from 500 million yuan in 2012 to 2 billion 700 million yuan in 2013.

Dangdang, who has tasted sweetness, has begun to firmly expand its pace towards clothing category.

In the field of electronic commerce, the clothing market developed earlier and gradually became the main product of consumer online shopping.

According to the China Electronic Commerce Research Center, the overall size of China's clothing online shopping market in 2014 was 615 billion 300 million yuan, an increase of 41.5% over the same period last year, accounting for 22.1% of the scale of the nationwide online shopping market.

At the same time, the penetration rate of clothing industry is still not high, the figure in 2013 is 21.7%, which means that there is a larger number of users buying clothing habits from offline to online.

These are opportunities for Dangdang's pformation.

The clothing business market is particularly attractive, and it has also led to competition among enterprises.

Tmall is the boss of this market, and Jingdong is also trying its best to exploit vip.com. With the help of buyers, the team focuses on limited time sale, as well as the beauty, mogujie.com and so on, which are pformed from socialized shopping guide.

This year, an important feature of clothing business is the expansion of clothing industry from upstream to downstream.

Taking Dangdang network as an example, by expanding the professional fashion editor group, buying team, visual experience and user experience team, it will become a fashion consultant guide for users. Through strategic cooperation with the China Fashion Designers Association, we will invest 100 million yuan to create a Chinese original design support platform, and will enter the fashion design chain.

From books to clothing, Dangdang talked about a story of category expansion. Entering clothing category is not just a category, it adds some income, but more importantly, it has entered a rich ore with income and profits, and established a brand new growth mode.

From the income potential, Dangdang, with its 2 years of pioneering experience and expansion of the industrial chain, will occupy 10% of the 600 billion market share in the future. Grabbing 60 billion income is not just a dream. Dangdang will be able to raise gross profit margins from the profit margins. In fact, Dangdang has a great relationship with the expansion of clothing categories over the past two years.

From the sales growth rate of clothing category, Dangdang has been even higher than Tmall and vip.com in the past two years, which means that its future growth mode will be a brand new way.

What's more, Dangdang's expansion of clothing category is a gold mine for female users.

Whether vip.com or jumei.com's market capitalization is soaring, or mogujie.com, who has just pformed the electricity supplier, has completed a new round of US $two hundred million financing this year, with a valuation of up to US $1 billion, which is a story about "her economy".

Female users have become the main body of consumption. Their shopping is more impulsive and more focused on emotional satisfaction.

Dangdang activate this group, will be able to activate other categories such as cosmetics, food, mother and baby outside the clothing category, so as to lay the foundation for the future integrated e-commerce platform.

In this sense, Dangdang if it can maintain the pace of expansion in clothing category over the past two years, strengthen the research and deep tillage of clothing category, and enhance the marketing and promotion of female users, will undoubtedly change the image of the old book boss, and get a share in her economy, and it will also open up the future growth space of the stock price.

Obviously, Dangdang's current stock price is underestimated. Even if it can't reach vip.com's billion dollar market value, the market value of jumei.com's $5 billion will no longer be a dream.