This article is based on the four super member users of Youcan Society, Pei Yanqing, David, Beep and Shizuko, who have extracted some of the core information based on the in-depth research of the industry completed in March, and hereby thank them!
Baozun E-commerce is the only listed company in the field of e-commerce agency operation, and it is also a well-deserved leading enterprise.
As the only listed company in this field, its market value is about 20 billion, and it has cooperated with 250 globally renowned brands such as Nike, ZARA, and Bosideng.
In the past 3 months, Youcan Society's monthly stable "in-depth research on leading companies in the industry" activity, our 4 users Yanqing, David, Beep, Shizuko conducted in-depth research on their core business and produced a very detailed report, combined with the exchanges and discussions between me and them, there are some interesting information or observations about Baozun E-commerce Company, which can be shared with you, and may also help you quickly understand the industry of e-commerce agency operation -
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The business of Baozun E-commerce is divided into three major aspects, namely: agency operation, distribution, and value-added services. Details are shown in the following figure:
The so-called agency operation is to take over the e-commerce store of the corresponding brand, responsible for traffic, transaction, GMV, ROI and other business-side work, but not responsible for back-end work such as delivery and distribution, and collect commissions from the brand store according to the proportion of annual GMV;
The so-called distribution business is to select and purchase goods by yourself, operate your own stores, and manage your own warehousing and distribution, and earn the sales price difference of the corresponding goods.
Among them, the core revenue of Baozun is the agency operation business, followed by the distribution business, and finally the incidental value-added services.
According to its 2021 financial report, its annual total GMV was 71.054 billion yuan, and the distribution GMV was 4.335 billion yuan, and the proportion of value-added service revenue was lower than that of distribution business.
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Baozun's main customers are concentrated in the fields of clothing, home appliances, food/health products, 3C digital and other fields, including Nike, CK and other well-known brands.
Baozun is also an Ali-type company in which Alibaba is deeply involved, Ali is its major shareholder, and in the past, Baozun's business was mainly based on the Tao-related platform.
However, in Q4 2021, the GMV generated by Baozun's non-Tmall trading platform and channels accounted for about 30.7% of the total GMV in the quarter, compared with 25.7% in the fiscal year 2020.
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Agency operation is the core business of Baozun, and its business core is the service industry model.
The core logic and model of this business is: the agency operation of a store, with an average annual revenue of 100 million, requires a team configuration of 1+15 people to complete the service.
That is, 1 operation trader + 15 e-commerce operation executives, responsible for the operation of a store a year, the output of 100 million GMV.
On the basis of the above assumptions, according to our calculations, a store operation business with an annual GMV of 100 million yuan can bring about 1.75 million yuan of business net profit to Baozun in 1 year, and the estimated logic is as follows.
Under the above logic, the higher the GMV of a single store, the higher the output value of Baozun's unit personnel as a service-oriented company.
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Under baozun's agency operation business, the team configuration of 1+15 people, in addition to 1 trader, the remaining 15 people are partial basic jobs, similar to the basic execution work of goods on and off the shelves, customer service, store art, traffic delivery, platform activity docking and so on.
Among them, the trader is responsible for formulating a store's commodity strategy, traffic strategy, overall operation strategy and rhythm control, while the remaining owners only need to implement the strategy in place according to the trader's thinking, the trader is the first responsible person for the operation goal of a single store, and basically the only core responsible person.
At the business level, Baozun's core capabilities can be understood as:
1) The ability to form a set of standardized play methods for specific e-commerce platforms and specific categories;
2) Cultivate + retain the ability of store operation traders;
3) The ability to continuously acquire customers for B-end large consumer brands + do a good job in customer relationship maintenance and generate long-term benefits;
Baozun's basic operating model of continuously obtaining traffic + realizing conversion on each e-commerce platform centered on the store can be seen in the figure below.
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As can also be seen above, Baozun is a typical labor-intensive company, and its internal employees are said to be nearly 4,000 people.
In this context, the mobility of Baozun's front-line operation personnel is also very fast, and many front-line generation operation basic staff will have job hopping and loss in an average of about 1 year.
Therefore, at the organizational level, Baozun has strong recruitment capabilities + the ability to highly SOP various basic jobs and reduce the cost of new talent training.
On this basis, Baozun will then select a small number of high-potential talents from the front-line basic operation personnel and train them to become traders. At the level of "selection-use-education-retention" of personnel, Baozun also has a relatively mature organizational management model.
Therefore, a very realistic thing is that if you work in the front line of the e-commerce agency operation industry, you must understand: the industry itself is definitely an industry that "will become a thousand bones".
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Baozun's distribution business is basically consistent with the business model mentioned in point 4 above at the business level.
However, most of the main categories distributed by Baozun are food, beauty and other products. Most of the brands cooperated with are also brand parties with heads and a small amount of waist.
These categories have a characteristic: they are all impulsive high-frequency consumption products, and it is easier to quickly see ROI.
In this context, the business playing method + staffing of the stores operated by Baozun itself and the stores operated on behalf of the stores are almost completely consistent. Even, for some new people who have joined the team, they may be allowed to practice in the self-operated store first, and then go to the customer's store.
The simplicity and consistency of the overall business support the scalable growth of Baozun as a company.
Correspondingly, the business revenue structure of Baozun E-commerce's distribution business is estimated as follows:
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To highly standardize the business of the entire e-commerce store operation, there are several key points -
1) Standardization of platform traffic policies;
2) Standardization of different category commodity strategies;
3) Standardization of user operation strategies.
In the above 3 points:
At the level of 1), Baozun started from the Amoy system and also obtained Ali Holdings, and is very familiar with the entire platform traffic strategy of Tmall and Taobao. Since then, the business expansion has basically adopted the logic of gradually involving various e-commerce platforms, such as gradually starting to develop platform businesses such as JD.com and Pinduoduo, which is essentially the fundamental difference in traffic, conversion rules and strategies of major e-commerce platforms.
At the level of 2), Baozun solves by focusing on making clothing, 3C digital, food and other categories, the commonality between these categories is greater than the difference, and it is more suitable for explosive product drainage and other profitable products to do high profits, and through the product matrix to occupy more consumer demand and scenes of users, there is also a better chance to generate impulsive purchases and repurchases;
And 3) the level of Baozun has its own set of "user life cycle + LTV management" model and tools for the whole platform, which can be roughly referred to the following figure -
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Finally, Baozun's biggest challenge may come from the rise of platforms like Douyin.
Compared with the operation logic of traditional e-commerce platforms centered on "stores" and "goods", the core transaction scenarios of Douyin are often in the live broadcast room, and the traffic logic is also very different from that of traditional e-commerce platforms, and even the team organization model will be very different.
This may lead to the core business competitiveness + organizational competitiveness accumulated by Baozun in the past will be completely invalid on this type of platform, and it is almost impossible to reuse.
The above is some key information sharing after the analysis and research of Baozun E-commerce, a leading company for e-commerce operation, for your reference.
If you want to get a more detailed version of the research report, please pay attention to the "Huang Youxuan" public account and reply to the keyword "Baozun" in the background to get it.
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