[China Glass Network] Some time ago, Huang Dehua, a practical and research expert in marketing, interviewed Sun Ying, the editor of Xinhua News Agency's "China Brand" magazine, on topics such as online marketing, online flagship stores, and flash sales. The interview was published in the "China Brand" magazine on March 11, 2010, and is now organized for your reference. Wenzhou 101 optical Co. Ltd , https://www.101optical.com
1. "China Brand": Online shopping has now become a common way of consumption, and many businesses have launched their brand flagship stores online. These online stores often offer better quality and assurance, but when it comes to pricing, they tend to be consistent with physical stores, which limits their competitiveness in the online market. What advice do you have for online brand flagship stores? How can they differentiate themselves from physical stores and work together?
Huang Dehua: This is a challenging and important issue. Online flagship stores are still a new concept, and most companies are still learning how to operate them effectively. The financial crisis accelerated the rise of online shopping, making it one of the key strategies for businesses to overcome sales challenges. Many companies have started to explore this space. In terms of operating a brand flagship store, my personal recommendation is:
First, build a perception that online products are convenient rather than cheap. Due to various reasons, people often believe that online goods are sold directly from manufacturers to consumers, implying fewer distribution layers and thus lower prices. However, in reality, online shopping involves multiple service providers, such as logistics, third-party payment platforms, and online advertisers. These costs are simply shifted from traditional retailers to online influencers, delivery services, and digital marketers. For example, many Taobao merchants spend heavily on Baidu ads to gain clicks, as competition is fierce and visibility is crucial. It's common for some to pay tens of dollars per click, and advertising on major platforms like Sina or even Taobao World also requires significant investment. Therefore, in the near future, online goods will no longer be synonymous with low prices—convenience will be the core value.
Second, companies need to make strategic decisions when setting up their online stores. Should they launch a full range of products or just select items? Should it be a standalone online store or integrated into an e-commerce platform? Most companies start by launching a limited product line on popular platforms like Taobao and then gradually expand to their own e-commerce sites or chain stores. The goal is to have three channels coexist: physical stores, brand flagship stores, and the company’s own online portal.
Third, the pricing strategy between online and offline stores should be similar. The competitive edge of online shopping lies not in price, but in convenience and quality. Prices may fluctuate in the future due to rising channel costs, including online advertising expenses. Unless manufacturing costs drop significantly, promotional discounts (like flash sales) can help attract attention. If pricing differs, consider separating product lines—online stores can offer different styles or versions compared to physical stores.
Fourth, focus on delivering value to customers. Online stores can provide fast delivery, easy access, and competitive pricing. Physical stores, on the other hand, should emphasize in-person experiences, personalized service, and immediate availability.
Fifth, train sales staff differently. Online salespeople need strong communication skills and the ability to use online language effectively. With a wide audience and high visibility, they must manage customer reviews and respond to inquiries promptly. Meanwhile, in-store salespeople should focus on face-to-face interaction, visual merchandising, and product display. They also need to handle deliveries, especially since some companies integrate online fulfillment into their physical stores.
2. "China Brand": In addition to Taobao, Li Ning plans to build its own online shopping platform next year. What do you think about this move?
Huang Dehua: This is a great question! Over the next 3–5 years, almost all offline businesses will develop their own online presence. Brand flagship stores and self-built e-commerce platforms will coexist. The Internet has become a crucial channel for consumers—especially younger generations—to discover products. Online shopping has become part of their daily lives. Platforms like brand flagship stores help consumers easily access brand information and product details.