Henan XuchangyouIt is said that one third of the local people are engaged in wigs or related industries. They have their own business experience and this business also supports nearly 200000 local people. Now, taking advantage of cross-border e-commerce, Rebecca and other enterprises have further opened up online sales channels and sold wigs all over the world.
on-lineProportion of sales10%, Rebecca continues to make efforts
Around the world80% of wigs are produced in China, that is, every 10 foreigners buytophaveAll 8 are "Made in China".
Chinese wigsIndustrial beltMainly focused onFour regions, namely Xuchang, Henan, Guangzhou, Guangdong, Heze, Qingdao, Shandong and Taihe, Anhui. Among them, the wigs in Xuchang, Henan, account for about 60% of the global production, manufacturing and export of hair products.
The largest wig enterprise in the region——The wig giant Rebecca was listed on the Shanghai Stock Exchange in 2003, becoming the first stock of hair products in China. With the change of consumer demand, Rebecca and other domestic wig enterprises have also shifted from OEM and OEM to building their own brands.
At present, Rebecca focuses on the R&D, design, production and sales of hair products. Its main products include craft spring, chemical fiber spring, human hair wig, chemical fiber wig, teaching head, and composite fiber materials"Rebecca", "Sleek", "NOBLE", "JOEDIR", "Magic", "QVR" and other independent brands. The products are mainly sold to North America, Africa, Europe, Asia and other regions, accounting for about 80% of the company's export revenue.
In recent years, wig enterprises have begun to explore more new sales models and channels. Zheng Wenqing, Chairman of Rebecca, introduced thatIn 2015 and 2016, many traders opened up e-commerce channels, and some of them did well.
In 2017,Rebecca has also started to expand its online sales channels. Because many of its consumer needs are overseas, it mainly engages in cross-border e-commerce business. At present, the company has made layout on mainstream platforms such as AliExpress and Amazon.
In the first three quarters of this year, Rebecca achieved total operating revenueRMB 1.05 billion, a year-on-year increase of 24.39%; The net profit attributable to the parent company was 45 million yuan, with a year-on-year growth of 366.07%. Zheng Wenqing said that in 2021, the company's online channel sales are expected to account for about 10% of the company's total revenue. The online channel is currently growing, but it still needs some time. In the future, the sales proportion of this channel will gradually expand, and its proportion should be between 20% and 25%.
In addition to Rebecca, other domestic wig enterprises are also selling their wigs online, exporting their wigs to all parts of the world through Amazon, AliExpress, self built independent stations and other channels. According to quick sale data, on average, one wig is bought every two seconds. Among them, the annual growth rate of the turnover of wigs in European and American markets is about50%, the African market will have a growth rate of 100% - 300%.
Moving from offline to online is not easy. Rebecca, a wig magnate, has also stepped into some holes. Zheng Wenqing jokingly said"We have some experience of failure".
Open up online channels, and Rebecca's problems continue
As a traditional hair product enterprise, Rebecca faces many difficulties in opening up online channels. However, after various adjustments, Rebecca currently has a dedicated cross-border e-commerce team to operate online business, and the development is relatively stable.
Ms. Zhang, head of Rebecca's independent brand, introduced that, specifically, the difficulties faced by the company mainly include two aspects：Channels and products.
The difficulties in channel can be traced back to the production link.Rebecca has always been in the traditional supply mode. Previously, products were shipped in large quantities at one time, which is basically a large import and export mode. However, online e-commerce is actually a small batch, multi batch mode, which is just the opposite of the previous mode. In addition, consumers in online channels have obvious demand for differentiation, and the market has also responded quickly. In the early days when the company specialized in online channels, the company made adjustments in many aspects, but the adjustment takes time, and this process has taken some detours.
When opening up online channels, the company also gave strong support, opening up a green channel for e-commerce teams, and later opened a professional production line to meet the needs of online personalization.
The product difficulties are relatively complex, according toMs. ZhangThe introduction of mainly includes the following three points:
1. Adapt to the changes of B end and C end.Taking the human hair of certain products as an example, Rebecca has many brands, especially in Europe and the United States. The types of online and offline products are different. Previously, traditional offline supply was mostly directed to suppliers. In order to maintain profits, suppliers did not pursue high-quality products. But online channels, Rebecca is directly facing consumers. It is also a human hair product. The color and range of online and offline are completely differentFrom B-end to C-end, the positioning of products in terms of quality and standards is quite different.
"In the early stage, we have made great adjustments based on the changes of the C-end. We have also taken many detours in terms of products. Compared with offline channels, the quality and standards of online products are different, so we need to adapt to the new needs of online consumers again." Ms. Zhang, head of Rebecca's own brand, said.
After going through some detours, Rebecca kept growing through trial and error. Based on the new changes in the market, it made adjustments to the products for one or two years in succession, and then differentiated the online and offline products.
2. The online product supply speed and quality fail to meet the requirements。 Online product supply is required to be faster, and the production of traditional factories is difficult to achieve rapid circulation. In addition, with different quality requirements, the products made by factories often fail to meet the requirements.
3、Incomplete communication。 Traditional enterprises are different from systematic and information-based companies. In e-commerce channel sales, there will be some problems in communication and connection. The communication and connection system of Rebecca's online product production is not perfect.
With problems in various channels and products, Rebecca has stumbled forward all the way.Ms. Zhang saidOn the way forward, we may encounter problems all the time. After we see the existing problems, the company will actively help to improve, which is the way to expand online channels.
As the helmsman of the company, Zheng Wenqing also attaches great importance to online sales channels. She said that if we want to do this channel, the first thing we need to do is to set up a special team, find professionals, and then cooperate with the selected products. In terms of products, we should pay special attention to quality. In fact, consumers have switched from offline to online, because the quality of offline products has become uneven, and some consumers want to find better products. However, at present, online channels have also flooded with some low-quality products, and some products have been shoddy, undermining the development order of the industry.
For hair product enterprises to expand online channels, Zheng Wenqing suggested that everyone should enter the market with the belief of taking care of their own feathers and provide high-quality products. Because manufacturers can directly contact consumers through e-commerce platforms, we must cherish consumers and live up to the trust of the platform and consumers. Only with this attitude, can businesses give consumers a better experience and go forward in the long run.
Through the unremitting efforts of the e-commerce team,The sales of Rebecca in recent yearsA growth rate of more than 50%.
However, since the outbreak of the epidemic, the whole cross-border e-commerce ecosystem has changed dramatically. Rebecca has also felt the warmth of online sales.
Online sales of wigs are cold under the epidemic
Wigs are a popular product exported by China's cross-border e-commerceA wig was bought in two seconds,Climbing to the topFirst place in overseas traded goods.
Rebecca has also laid out this hot channel. At present, the company's sales in Amazon, AliExpress and other e-commerce platforms are considerable. companyMs. Lu, leader of e-commerce teamIn terms of online channels, the company accounts for a large proportion of sales on the Amazon platform, and wigs belong to a sub category under a secondary category on the platform, so the overall wig size is not particularly large in Amazon. The company's superior products on the Amazon platform are not expensive wigs, but relatively low-cost headgear products, especially chemical fiber headgear products, which are still relatively ahead of the sales.
After the outbreak of the epidemic, due to changes in the supply chain and overseas demand, wig sales faced considerable challenges on the e-commerce platform.
Affected by the epidemic, many Europeans and Americans lost their jobs and their consumption capacity declined. With the decline of their consumption capacity, many people used their savings to buy necessities.
When demand changes, to some extent, low value products are relatively popular. Taking the Amazon platform as an example, many businesses reported that platform consumers began to compare prices and choose cheap products for purchase. Many consumers even found businesses to ask if they could exchange favorable comments for free or low-cost products.
On the one hand, the consumption demand decreases, on the other hand, the seller's operating costs increase sharply. This is caused by multiple factors, mainly including:1. Logistics channels are blocked, cross-border logistics costs rise again and again, and freight costs remain high. The logistics costs of many cross-border businesses have increased more than three times; 2. Competition among e-commerce platform merchants such as Amazon is intensifying, and advertising costs are rising; 3. The exchange rate fell. The exchange rate of the US dollar and the euro fell again and again this year, and merchants lost a lot in exchange.
The operating costs of merchants have risen, and the product sales have also encountered certain bottlenecks. This is a common pain point for cross-border merchants. Rebecca feels deeply about the great changes that have taken place in the cross-border e-commerce market this year in terms of online sales channels.
Ms. Lu's analysisThis year's cost increase is reflected in the internal and external environment. The internal environment isThe cost of various marketing has increased a lot,for exampleAmazonPlatform,Whether it isVarious forms of advertising, such as storage costs and operating costs, are increasing, and the costs of other platforms are also rising. In terms of the external environment, the logistics cost and labor cost are the main factors. This year, the logistics cost has increased significantly, and the cost has been increasing. In addition, the labor cost in the supply chain production link is also rising. To sum up, this year's online channel costs are increasing.
According to RebeccaIn the 2020 annual report, the company's annual revenue reached 1.33 billion yuan, a year-on-year decrease of 26.92%, and the reasons can be summarized as follows: First, the global economic recession and insufficient market demand caused by the COVID-19; Second, normal commercial and social activities in many countries around the world are limited due to epidemic prevention and control, poor logistics, and extended order delivery cycle, affecting product sales; Third, the product sales mix was adjusted, and consumers turned to low value products.
In the context of rising costs and consumption degradation, Rebecca made adjustments based on its own situation, and the adjustment measures are mainly reflected in two aspects.
IStable supply of high-quality products.The epidemic has blocked overseas logistics, and many sellers have run out of stock. Rebecca pays more attention to the stable supply of consumers, and has been steadily supplying high-quality products to improve customer service as a whole.
"For overseas consumption, if we want to buy a wig on Amazon, we want them to buy it not only today, but all the time, and always buy products of the same quality. We still have advantages in product supply, so we can ensure the stability of supply. For us, the stability of the supply of important products, including the stability of quality, has always been the most important." Ms. Lu said.
IIConduct marketing education for consumers.Rebecca has done a lot of offline education, cooperated with online celebrities in sales destination countries, promoted through some websites, etc., to educate consumers and improve the sales force of products. At the same time, the impact on the brand is also improved. In this way, Rebecca's product value continues to increase.
After making relevant adjustments, in the face of the price war crisis in the cross-border e-commerce industry, Rebecca did not conduct price reduction promotion like other merchants to ensure sales and product ranking at the expense of profits, but appropriately raised the product price according to the increase in cost, which was acceptable and recognized by consumers.
Keep an eye on the online and stand independently as the focus of work
The epidemic has lasted for two years. Zheng Wenqing believes that, on the whole, the impact of the epidemic on e-commerce is multi-level, not just positive. Although consumers have stayed at home longer and online shopping has improved, the epidemic has also had a huge impact on the global logistics system, with the logistics costs of overseas merchants being significantly increased; At the same time, the supply chain of many industries has been disrupted, and the impact of shortage has penetrated into all walks of life.
"In terms of supply chain, we have also experienced some challenges. There are some problems with some high-quality products in the supply business. Therefore, e-commerce does not mean that the epidemic has become particularly good, which has led to a very complex situation."
In terms of consumer demand, Zheng Wenqing said that the demand side of wigs will not have a downward trend. At present, its overseas consumers need to change a product in two or three weeks. This frequency and consumption demand have not seen the possibility of decline.
The product strength is strong, but Rebecca also has weaknesses, such as its understanding of the market."It is a difficult challenge for any enterprise to let consumers spend the most money to buy a product. I think our company's ability in production, manufacturing, research and development, including layout, is OK. The relatively weak ability in the overall ability is the ability to understand the market, which is the goal that every brand should unremittingly pursue, and also the challenge that our team hides behind the economic indicators."
Only by understanding the market and consumers can businesses understand the products provided by other competitors and the differences between the products they can provide, and finally make consumers willing to takeIt is difficult to buy your own products for $100 instead of just $50, which is also the ability that Rebecca's team needs to improve.
In China, the traditional manufacturing industry faces some challenges. With the increasing number of overseas factories, Rebecca planned to activate the output of overseas factories through overseas dealers last year to increase the output to meet the market demand. They hope that overseas factories can better play their role.
Previously, Rebecca positioned overseas factories to meet its own sales needs, but these factories30% - 40% of sales still come from American customers with brands, which is different from expectations. At present, Rebecca's international e-commerce products are mainly manufactured domestically. Zheng Wenqing hopes that in the future, the production and manufacturing capacity of overseas factories can meet 60% - 70% of the overseas market demand, be close to the local market, reflect the market faster, and provide more popular products. Under such content division, China can focus more on the R&D and production of products with higher quality and value.
Cross border e-commerce has developed rapidly, and Rebecca continues to be optimistic about online channels.
hisMs. Lu, the person in charge of e-commerce platform, said that,In October, Rebecca carried out a three-year plan, hoping to reachOEMOEM and self owned brandFor healthy and common development. As far as the independent brand is concerned, the company hopes to achieve the ultimate goal of sharing the world online and offline. The online channel directly contacts the terminal consumers, and the requirements for products and operations are more diversified. The importance of independent stations is self-evident. The company's requirements in this regard are that the proportion of sales of independent stations can be reached three years later25%-30%。
epilogue
Like many domestic manufacturing industries, wig OEM has supported many factories, althoughThe profit left by OEM orders is not rich, but it is enough for these factories to accumulate a certain amount of capital and live a relatively healthy life. Therefore, when cross-border e-commerce entered the wig industry, most companies with OEM advantages chose to stand on the sidelines. The reason is that, on the one hand, they have adapted to the simple and large amount OEM mode, and on the other hand, they have to avoid robbing customers from dealers, which may cause them to lose the OEM orders that they depend on for a living.
Therefore, the race track for cross-border e-commerce is notThe wig enterprises with OEM advantages have opened stores on platforms such as QuickConnect and Amazon, directly reaching the end consumers, and attracted a large number of buyers through the price and product advantages of e-commerce. As a result, the OEM orders for some wig products have shrunk or even disappeared.With the help of e-commerce sales channels, some unknown sellers achieved curve overtaking, and the later ones took the lead, thus changing the original pattern of the wig industry.
With the change of the market, more manufacturing enterprises began to test the water line. As Zheng Wenqing said,Around 2016, many traders have opened e-commerce channels, and Rebecca has also accelerated the layout of cross-border e-commerce and brand terminal retail models.
After several years, the proportion of Rebecca's online sales has reached about10%, but Zheng Wenqing, the chairman of the board, believes that the ideal number of this proportion should be 20% - 25%. After the transformation from a traditional manufacturing enterprise, despite twists and turns, the wig giant continued to be optimistic about online channels and insisted on strengthening its e-commerce path.