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Yinxiang Sewing Thread: Talking about the pain points of traditional enterprise transformation
Release time:2020-06-16 Browse:63 Times

The Provincial E-Commerce Promotion Association's Cross-Border E-Commerce Special Committee Yiwu has come to an end, but the follow-up research and work have not stopped. Recently, the Yiwu Household Textile Industry Association held a symposium to carry out in-depth discussions and research on the pain points of the transformation of traditional enterprises, and reached the following consensus.


Ability to independently develop products is low


Most of the products produced by traditional enterprises in Yiwu belong to the low-end, and the same products are often produced at the same time by different manufacturers. These traditional enterprises do not have their own self-developed products, lack representativeness, and are not easy to impress in the vast ocean of small commodities. For manufacturers that have gradually expanded from small workshops before, self-developed products are a big problem. Copycats and selling are often their way of survival. Therefore, in the face of today's competition for innovative products, these manufacturers are naturally unable to do so. In e-commerce, all kinds of products are fighting against each other, and products without special characteristics cannot stand on their feet. In the process of transformation, this is a difficult problem that manufacturers must overcome.


At present, the offline trade of traditional enterprises tends to be mainly wholesale, with concentrated products and convenient procurement, which are the advantages of offline wholesale. But on e-commerce platforms, sellers are mainly retailing. Facing the sales of small orders, traditional enterprises are often difficult to operate and lack of experience. Different products are sent to different regions. Among them, distribution, logistics, after-sales and reception are problems that traditional enterprises rarely encounter before.


Lack of e-commerce professionals


The development of e-commerce platforms is very fast. Perhaps before many traditional enterprises have time to respond, e-commerce has invaded their markets. In the face of so many strange e-commerce platforms, traditional enterprises are also overwhelmed, and lack of professional talents in the enterprise, do not understand how to operate and operate. However, re-entering the platform requires a lot of time, manpower and resources. Therefore, traditional enterprises often hope that they can enter the e-commerce platform as a supplier and provide goods for platform sellers without having to personally conduct online sales.


Nowadays, the export volume of semi-finished products continues to rise, and the profits available to traditional enterprises are gradually declining. Labor in regions such as Central and Eastern Europe and Africa is often cheaper. Sellers buy back semi-finished products and use cheap labor to sell to other regions at a higher price. Over time, the focus of the low-end processing industry will be completely shifted, and the sales volume of finished products of traditional enterprises will also be greatly affected.


Give full play to the advantages of brand and supply chain system


Facing the transformation of traditional enterprises, small and medium-sized enterprises are easier than large enterprises, because their production flexibility is higher and the response speed is faster. In e-commerce trade, there are often personalized and customized products, which are produced to meet the personalized needs of buyers. The demand for such products is not large. For large enterprises, it is time-consuming and laborious to change their production lines in order to produce a product with low sales volume. Therefore, large enterprises often accept ordinary products that are acceptable to the general public. For small and medium-sized enterprises, shorter production lines can often be easily changed to meet the needs of individual buyers, and the profits from them are also greater than ordinary products.


Facing the transformation, traditional enterprises have many problems to be solved urgently, but they also have irreplaceable advantages. The first is the brand advantage. A good company can survive the competition of big waves, and its brand influence can't be underestimated. After the successful transformation, the profit brought by the brand benefit is incalculable. Secondly, after years of exploration and development, traditional enterprises have generally established a complete service system, which includes the sales experience, customer groups, and logistics operations accumulated by the company for many years. For e-commerce, these operations must face the link. Therefore, traditional enterprises have adjusted slightly on the basis of their original ones, and their experience is unmatched by new-born e-commerce enterprises. In addition, the inventory of traditional enterprises is often large. If you enter the e-commerce platform to promote your excellent products, you don't need to worry about the supply of products. It can be seen that, taking full advantage of the existing resource advantages in brand efficiency and supply chain system, the transformation and upgrading of traditional enterprises still has promising prospects.


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