Clothing wholesale can’t be broadcast live?
With the rapid development of the Internet economy, live broadcasting e-commerce is rapidly changing business scenarios and models, and the textile and clothing wholesale industry is no exception.
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For more than a month, the “ban on broadcasting” in a certain clothing wholesale market has attracted industry attention. How do you view the impact of live streaming on the traditional wholesale market? How does the textile and clothing wholesale market seize the development opportunities under the Internet wave? With these questions in mind, reporters from China Textile News interviewed several industry insiders.
Live streaming has moved the “cheese” of the wholesale industry
Some people attribute the entanglement between live streaming and the traditional wholesale industry to “natural genetic discord.”
Traditional clothing wholesale has many intermediate links, passing through first-level wholesalers, second-level wholesalers, even third-level and fourth-level wholesalers, and then to the retail end and customers. The emergence of online live streaming has compressed the intermediate links of clothing wholesale and reduced the cost of circulation, allowing first-level wholesalers and manufacturers to easily face end customers directly, making the intermediate wholesale links of traditional business formats no longer needed.
“In order to maintain the revenue of stores, ensure the operation of merchants and the overall stability of the market, live broadcasting is prohibited in some wholesale clothing markets, especially markets with high store rents. These professional markets developed earlier in the country and have convenient transportation and supply of goods. With the advantages of centralized and professionaltalent gathering, the market is very popular, customers are all over the country, and store rents are also high. Live streaming can bring products directly to the consumer terminal, skipping the wholesale in the middle. links will inevitably have an impact on the operation of the wholesale market.” Ma Chaoming, general manager of Zhengzhou Daguan International Trade, told the China Textile News reporter, “From the perspective of market operators, I certainly hope that people will come to physical stores to consume, and the popularity will be strong , the profit of our store will be higher.”
“The market itself is a platform for transactions and a reflection of the value of commercial real estate.” Vice Chairman of the Circulation Branch of ChinaTextile Industry Federation, Executive Committee of Anhui Textile Industry Association Chang Yeliang said that e-commerce as a business model exists objectively and should be adapted to different markets in different regions according to needs.
“First-tier cities such as Hangzhou and Guangzhou are regions with good development of live broadcasting economy. They have natural and unique advantages in technology, talents, supply chain, etc. Live broadcasting and e-commerce are relatively concentrated. The wholesale market has chosen to prohibit live broadcasting from bringing goods. As for the market, it has its own position.” Zhang Jingmin, general manager of Yinji Commercial Brand and E-commerce Operations Center, said, “As for whether banning broadcasts can promote the prosperity of the physical market, we will wait and see.”
Will live streaming accelerate the trend of “disintermediation”
Live e-commerce has compressed the intermediate links of clothing wholesale, reduced circulation costs, improved transaction efficiency, and can also directly obtain feedback from consumers to determine production based on sales. So, will live broadcasting accelerate the trend of “disintermediation” in the wholesale market? Industry insiders have different opinions on this phenomenon.
“The impact of Internet e-commerce on traditional wholesale market formats has become the development trend of the times. Even without live broadcast e-commerce, ‘disintermediation’ is the future trend, and it is not based on human will. ” Ma Chaoming said.
Zhengzhou Daguan International Trade Center is located in the core area of the 100 billion business district of Zhengzhou Railway Station. It is one of the 13 markets in the nearby clothing wholesale business district and is also the largest one in this business district. Ma Chaoming said that in order to meet the needs of market merchants for online development, Zhengzhou Daguan International Trade began to build a Daguan live broadcast and supply chain base in June 2020. After more than two years of development, some of the merchants who have settled in Zhengzhou Daguan International Trade Center have seized the opportunity, abandoned their original offline stores, and transformed themselves into online live broadcasts to sell goods. The well-run merchants now have a daily live broadcast transaction volume of 1 million yuan. -3 million yuan; some merchants rely on their own supply advantages to develop into a clothing supply chain, relying on Internet experts and Internet celebrities to bring goods. Over the past two years, the number of live broadcast merchants, high-quality supply chain manufacturers, and live broadcast institutions settled here has grown from a dozen in the early days to more than 170 at present. The annual GMV (gross merchandise transaction volume) of settled + incubated merchants is 3-10 times. Growth, the highest reached 15 times. “Currently, the live streaming volume of clothing categories in Daguan Live Business District is the largest among nearby business districts, and it is also the market with the largest live streaming volume in Zhengzhou Business District. Daguan International Trade has become a brand clothing purchasing and wholesale base that radiates to six provinces in central China. ” Ma Chaoming said.
Zhang Jingmin believes that live broadcasting, as a form of Internet business, is both a sales channel and a promotion tool. No matter what type of e-commerce it is, it depends on what role the user puts it in.
When talking about “disintermediation”, Zhang Jingmin has his own opinions. She believes that the traditional second-batch market has its own value in the professional market. “The second batch of merchants do not simply rely on earning wholesale price differences to survive. After years of accumulation and accumulation, they have a very keen perception and control of the market. They also have a better understanding of customer needs and are not only able to keenly follow market trends. Quickly put together a package of goods according to customer needs, and be able to provide customers with better services.�Due to these advantages, many second-batch merchants from Zhengzhou to the rest of the country have also achieved great success when developing upstream. They can allow downstream customers to make money along with them, which is the embodiment of the value of the second batch of merchants in the market. ”
“Based on the changes in market conditions over the years, all the second-batch merchants that can succeed have a strong sense of service and management.” Zhang Jingmin said, in line with the principle of “price of the first batch, service of the second batch” The development concept is that Yinji links upstream and downstream manufacturers and integrates dozens of stores – manufacturers have product advantages, merchants have operational advantages, manufacturers ship goods, and merchants provide operating services. Through remote management, the circulation of goods has geographical breadth and The depth of sales also solves the “disintermediation” problem commonly faced by market operations.
Where is the development space for the wholesale market?
With the continuous acceleration of the transformation of direct-to-user business models, where is the transformation and development direction of the clothing wholesale market?
Ye Liang believes that currently, live broadcasting and online shopping have become a trend in diversifying transaction models. “In Anhui, the impact of live streaming on the secondary wholesale market is smaller than that on the origin market. Therefore, we have no clear objections to live streaming in the market. For example, in Wangjiang County, Anhui Province, live streaming e-commerce combines local characteristics with Children’s clothing products can be better brought nationwide and to the world, which is much more beneficial than relying solely on offline sales in wholesale markets. Therefore, in more remote county areas, we still support e-commerce live broadcasting, which can make up for the wholesale markets in remote areas. It has the disadvantages of insufficient penetration and influence. Increasing the promotion and dissemination of the brand will be conducive to the development of the county economic model.” Ye Liang said, “In provincial capital cities like Hefei, it is more suitable to rely on on-site sales and popularity. Drive the prosperity of the market and commercial real estate, and drive the economic development of central cities.”
“Nowadays, a lot of market traffic has shifted from offline to online. Some of our merchants are unwilling to return to offline after they have started to operate online. There are also some merchants who have achieved simultaneous development of online and offline. One store It not only does offline retail and wholesale, but also does online live broadcasts to bring goods, and also supplies goods to celebrity anchors,” said Ma Chaoming.
Ma Chaoming said that merchants in the wholesale market will choose whether to conduct live broadcasts based on their own positioning and development plans. For example, the customer goal of some merchants is to develop franchisees and open counters in department stores through franchisees. The products of such enterprises are usually positioned at mid-to-high-end, and most of them do not engage in live e-commerce. In order to increase sales, some clothing brands have specially registered online brands, and put together another batch of goods to sell through live broadcast, so as to distinguish them from the original brand products offline. Shops that have transformed into live streaming e-commerce generally sell single products or mid- to low-end clothing, and there are also many wholesale merchants that have transformed into live streaming e-commerce. According to the needs of market merchants and end customers, the market is divided into different areas for online and offline operations, taking advantage of the situation and developing simultaneously.
“Any new thing has two sides, some people embrace it, and some people reject it. We use live broadcasting as a channel and tool to promote the brand’s characteristics. Through live broadcasts of store visits, interviews with people and other forms, online and offline integration, and for What I use, rather than ‘either one or zero’ or ‘kill with one stroke’.” Zhang Jingmin said, “In the past two years, the textile industry has accelerated its transfer from coastal areas to the inland, and industrial innovation and upgrading have accelerated. This is very important for the textile and garment industry. It is a new stage of development. We regard online as a platform, model and business format, and think about how to better use and use this tool to develop in a more prosperous and innovative direction. How to choose the parts that are beneficial to us, in the physical Whether you can find a balance between live broadcast and live broadcast depends on the beholder. Some businesses are both online and offline, some use online as a promotional tool, and some abandon offline after doing online. Use live broadcast as a platform to find the one that suits you It’s best to use your talents to my best advantage.” Zhang Jingmin said.
When talking about the future development direction of the professional wholesale market, Zhang Jingmin believes that different regions, different genes, and different paths will also have different paths. “Based on past and future goals, the professional market should have specific plans and measures to improve core competitiveness and operational capabilities. In terms of strengthening operational service capabilities, it not only relies on property leasing, but also by improving operational servicesQuality can bring traffic to merchants so that all parties can have room for development.” Zhang Jingmin said.
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