Li Ning Can Still Make A Profit Even After Spending As Little As 10% To Eliminate Inventory

Li Ning (exclusive store) held a 48 hour sale on the official website of Fanke at a price as low as 10%.

An insider revealed to the reporter that Li Ning Company may "sell" its inventory goods to the website at a price of less than 10 yuan. Therefore, although the price of e-commerce "limited time sale" products has been reduced to 10%, high profits can still be obtained. "

　　 The original price of 199 yuan sneakers is only 19 yuan

On Sunday night, Xu Xiaohui, the vice president who recently returned to Vanke, suddenly said on his microblog, "At 11:00 tonight, Vanke will release important news", which attracted netizens' speculation.

The so-called "big news" is that Fan Ke and Li Ning have launched a special promotion. Dozens of products are sold at a discount of 1 to 4 of the original price. Some sneakers with a market price of 200 to 300 yuan are sold at a discount of only a few dozen yuan. One sneaker with an original price of 199 yuan is even sold at a low price of 19 yuan.

Low price goods are still very attractive to consumers. After the answer was disclosed, netizens quickly began to rush to buy them. One hour after Li Ning's special offer, Xu Xiaohui said "sales speed is too fast". By about 6:00 yesterday, most of the special merchandise had been sold out.

According to the reporter, this "limited time sale" mode is transferred from abroad to China. For example, MYHABIT, a subsidiary of Amazon [Weibo], sells various high-end clothing at extremely low prices. This mode is also known as "flash purchase".

According to a person close to Vanke, as the sales of "flash purchase" in the first water test exceeded expectations, Vanke will launch "flash purchase" of other brands in the future. Some sports and leisure brands with heavy inventory may be launched in the near future.

　　 As low as 10%, e-commerce can still make huge profits

An insider of Vanke said that this time, Li Ning and Vanke are in deep cooperation. All the special merchandise should be inspected by them in advance, and then enter the warehouse of Vanke. The logistics is delivered by Rufengda, a subsidiary of Vanke. As for whether the "flash purchase" mode of ordinary customers is profitable, the person said that he would not disclose it on the grounds of trade secrets. However, according to the reporter, even if it is a 10% discount, e-commerce still has considerable profit space. It is reported that the purchase price of some special commodities may be only a few yuan for ordinary customers.

At the end of last year, Vanke took out its own products for several promotions, all of which achieved good results, which also led Vanke's CEO to develop the idea of "flash buying" over the years. According to insiders, we visited many clothing brand enterprises early this year, just to prepare for the "flash purchase" of ordinary customers.

　　 E-commerce "flash purchase" discount is lower than outlets

At present, Vipshop ihush、 Zoux.com, etc., of which Vipshop has been listed in the United States. Its business model is to sell the inventory products of brand names. Its business category has expanded from the earliest clothing, shoes and hats to household and cosmetics. "Big brands" such as Nike (exclusive stores) and Adidas are clearing inventory on these websites, and the prices are basically lower than the discounts of some outlets. According to the annual report of Vipshop, the gross profit rate of last year was as high as 22.4%, which was enough to make other e-commerce websites jealous.

Take Dangdang [Weibo], which operates its own products, for example. In 2012, the gross profit rate was 13.8%. Suning, Gome, Jingdong and other large e-commerce companies were affected by the price war, and the gross profit rate was lower, and they generally lost money. These websites are far less profitable than e-commerce websites that sell inventory goods.

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　　 Brand or borrow "flash purchase" to clear inventory

The cooperation between Li Ning and Vanke has attracted attention in the clothing and e-commerce industry, because there are still many domestic clothing brands in trouble like Li Ning. Statistics show that the total inventory of six domestic sports brands, Li Ning, Anta, 361 °, Tebu, PEAK and Dongxiang alone, exceeds 4 billion yuan.

Since last year, Li Ning has started to clear up the inventory by increasing promotion efforts and opening discount stores and factory stores, but the effect is not optimistic. On March 27, the annual report of Li Ning Group showed that it had a loss of 1.979 billion yuan in 2012, which was the first time that the company had suffered a substantial annual loss since it was listed eight years ago.

The unsalable products and the increasingly high operating costs of traditional stores have led clothing brands such as Li Ning to close their stores on a large scale, and the inventory clearing has also shifted from offline to online. An industry insider said that clearing inventory has become the number one problem for domestic garment enterprises. "There is storage cost when idle in the warehouse, so it is better to sell to e-commerce at a low price."

Some mature e-commerce platforms have huge traffic and stable customer base. In addition, the cost of Internet marketing is far lower than that of opening stores. People in the e-commerce industry expect that "flash buying" may become a hot topic this year, and there will be more and more discounted clothing products.