From 10 million to 100 million in five years, how to sell lights in this company
● Oslos found five years, it is Top3 business, the growth rate of more than 100% in the first three years, and currently sells more than 100 million.
● The six-family factory has a specialty style, half for its own brand production, half of the external order, the factory must accept its own brand proactive quotation, factory profits are obtained through foreign orders.
● Eusi is one of the first lighting manufacturers to launch a package price, because the cost of installing workers is fixed, and a set of lights is amortized for workers’ costs.
● Due to the low market door of the light, the European is building the industrial fortress to build an industrial fortification, free toiletries, etc.
Text / Tianxia Net Business Reporter Fan Tingting
In 2010, Xu Ming, who just left the Taobao operation, received a Tencent’s offer, and he decided to go to Shenzhen to sign an employment agreement. When she bookmed a ticket, a traditional entrepreneur who was very happy before, he was in Zhongshan, he decided to land first. Zhongshan went to see a plant. It is precisely because of this eye, Tencent has a operator, and Zhong Yingming has waited for her own partner.
Zhong Yingming is the traditional entrepreneur. Xu Ming’s approach is a timely rain. Zhong Yingming founded a factory in 2003 and became a “World Light” Zhongshan Ancient Town, Zhongshan Guzhen, Jiangxi Ji’an people who have born in 1980, digging the first bucket of gold in the export trade tide, and later trapped It is only trying to go to Taobao to save self-help, and understand the talents of the online e-commerce operation to Xu Ming, just supplement his short board.
The two registered a romantic European name “Oslos” (hereinafter referred to as Osi) settled in Taobao Mall, Xu Ming was set up an operation center in Hangzhou, Zhong Yingming resides ancient towns and tutorial production, and from this Osloss entered the rapid development. The track, in just five years, it laid the Top3 status of Tmall lamps and became a brand of annual sales over 100 million.
Amiba transformation of supply chain
With Zhong Yingming’s control, Xu Ming’s experience in network retail, and Taobao’s traffic dividend, the early development of European is very rapid, and the annual sales growth in 2011-2013 exceeded 100%.
As the brand continues to expand, European begins to expand its own supply chain, and the Zhong Yingming, the very familiar Zhongying, who is very familiar with the ancient town, decided to adopt “Amiba” model.
The ancient town is the largest lattime cluster in the country. The share accounts for 70% of the national lighting market. The local industrial segment has been quite mature, and the local industrial segmentation has hired local people who are good at this style. The factory manager, by the group, funds and venues, the factory manager, set up a team, recruiting workers to carry out production. The ideal state of each plant is about 150 people, and the annual output value is from 20 million to 30 million.
In this organizational architecture, the factory manager’s role is more like a professional manager, in addition to holding a fixed salary, there is also a profit of profit at the end of the year. This model makes factory management very flat, and the factory generally needs to set the length of the group, without the need for redundant middle management, which is convenient to manage, and also reduces human cost.
Reducing costs are not profitable, but for insurance. At present, the Europea Group has a six factories, which is the “brand quotation system”. The factory itself can do not lose money. This harsh quote allows the factory often immersed in the past to do foreign trade, and the illusion of foreign retail dealing with Wal-Mart – these foreign retail giants require high, low quotation, and the net profit of the Chinese factory often only 5%.
Therefore, in addition to the Order of Europe, the six plants also takes about 50% of other brands, and other brands of orders have become the main profit from six factories.
The earliest package price lighting
If it is just “throne” for the supply chain, then European still wants to “open source” in various ways. With Taobao’s traffic dividend era, especially in the home improvement, the consumer loyalty is not high, Europe wants to maintain a rapid growth, only by “crushing” factory is not enough.
Xu Ming and Zhong Yingming first “crush” people are themselves, as the original shareholder, they have not been divided into red in the past few years, and the annual profits have been put into expansion
Xu Ming started to operate in operation. He found that many consumers will want to help them choose a room with the lights, unify them, and install them together. Therefore, in 2014, Oshen Innovative launched the lamp package, such as 1599 yuan two-bedroom package, 1999 three-bedroom set package, 6999 yuan villa package, at the time of the lighting industry, no one did this. Although the profit rate is lowered, the total flow has risen, and the total profit of the large tray has risen. The unit price of the store is also high.
“Take a bit, sell a light to earn 100 yuan, sell three lights package to earn 200 yuan, I will of course choose the latter.” Xu Ming’s logic is very simple, the worker is in the door to install a lamp and install three lamps. There is too much difference, but the difference in the middle profit can provide a larger space for the brand development subsequent service.
Taste the sweetness of the package, Xu Ming put more energy on the R & D package, 2015 double 11, Europe’s one-time launched eight packages, the price is 1111 yuan, still spent a big blood, please come Eight beautiful women made spokespersons, at once, more than 5,000 sets were sold, the total turnover of Double 11 exceeded 18 million, and the top three in the industry. In the store, the sales of the package is approximately 20%.
Xu Ming is the Mayor of Linyi, introducing the development of Osi.
Said so much, actually in order to do
If you just want to be a quiet Taobao brand, you will have more than a thousand people, you have gained a good rankings in the industry, then European has done it. But they all enlarged the profit space so that they are subsidies to become a service company.
“Tianxia.com” is in the interview with Tmall home improvement, he said that the current online home improvement industry is facing transformation, in addition to competitive products, it also needs to build its own service system, forming a barrier, can we be The ship’s shuffle is not eliminated by the market. And this year is the important node of the home improvement industry, and the brand is beginning to start.
This phenomenon is particularly fierce in the lighting industry, because the lighting itself is a low-door industry, Xu Ming said, clearly feeling that many lighting brands are chasing after the body, constantly use lower prices to escalate the market share. This kind of urgency is forced to enhance the brand to build your own moat.
Although the lamp decoration industry is low, the current trend is changing, the reunification cycle in the home improvement industry is shortened, the family in the consumption upgrade begins to realize that it is like lighting this kind of lightweight product, even if it does not move, you can change it. A set; even if I haven’t seen it for a few years, I can also find someone to clean. This type of consumption concept makes Xu Mingpent feel the value of the precipitated user.
At present, Euro is fully implemented a “five-year warranty, lifelong warranty” service commitment, but Xu Ming told reporters that Euros will also have value-added services such as refreshing, free toiletries, but through these services, not only can extend the lives of consumers In the cycle, you can also drive word of mouth. In order to honor these commitments, Master Eucli and Tmall home improvement reached a deep cooperation. At present, the master of the Master provides the service to install the household for the household, follow-up warranty and other services are also provided by the master.
There is no doubt that Xu Ming regards the service as the core competitiveness of Europe’s future.
Brand poetry and distant
Products, served on both hands, and the heart also hides poems and distant.
In the past few years, the best product of Europe is a bronze lamp. This is a “Chinese character”, and the foreign countries pay attention to product design. It turns out that Chinese consumers most valued product material. The copper is a precious metal, which serves a thousand years of currency in China, forming a deep-rooted value recognition.
“As a company, I am willing to see the consumer to buy a relatively expensive copper lamp, but as a brand, I think it is a bit sadness of the material as a value-added reason.” The material is not a way, but the design is thousands of change, design value It can be embodied by operations. Xu Ming hopes that Horsi is a brand that is designed with a design. Europe currently has a design of 237 lighting, which spends millions of costs per year.
This year, Osi also hired the lights of the lamp design industry to take the lighting design, and plan to sign an agreement with foreign designers from Italy, Finland, the United States, introducing more design light decoration. But he also said that the introduction of designers is a bit risky, because the current China Lighting Market can only be considered in the primary stage, consumers are still in sensitive, and the designer’s work is easy to call.
The European Presses “计 计” in the profit space, but the service and design are extremely generous. This may be like the micro-conscious company, and the smart business has begun to see the huge space in the future market, they use Service shuffle opponents, conquer users with design.