What Song Guanghui is praised for is not only his classic case of winning the popular single product of compression bags, but he has also become a typical representative of Yiwu online merchants running factories. Online merchants setting up factories has also become a trend in the development of China's e-commerce, especially in a place like Yiwu where the manufacturing industry is concentrated. In 2008, when Song Guanghui was working on the Internet, he was just doing it in a small way. In June 2009, Song Guanghui invested more than 2 million yuan and rented a 4,000-square-meter factory building in the former Zhejiang Guoao Knitting Co., Ltd. in Qingkou Industrial Park, Yiwu. For production and office use. This month, products produced at his factory began to be supplied to the online store. At the beginning of production, Song Guanghui bought 7 tons of raw materials, and as much as 100,000 yuan of scrap material was spent just testing the machine. Later, he encountered problems such as "it was difficult to find machine operators." Even in the normal production stage, problems arise from time to time. One time, two customers came to inspect the factory. When they entered the warehouse and saw the goods piled up in a mess, they looked embarrassed and almost lost their order. But after he started setting up his own factory in 2009, his online business also experienced rapid growth. "For online merchants, whether to set up a factory or not varies from person to person." Song Guanghui believes that as a Taobao seller, the monthly sales of a single product must reach about 100,000 yuan before you can try your own production, and you must do a good job in all aspects. Preparation work, otherwise it is better to entrust professional manufacturers to produce. Although some online merchants are great at online marketing, they may not be able to set up factories. “There are far more specific problems that you may encounter when running a factory than when you just run an online store.” In addition, “Producing compression bags by yourself allows consumers to directly communicate with us in terms of design, making it easier for consumers to buy more personalized products; In addition, setting up a factory is good for building your brand and expanding your influence," he said. After the product started selling, Song Guanghui did not rest on the joy of success. He felt that sales volume alone was not enough. Brand is the long-term solution. Moreover, the concept of the brand had already been established when he was doing sales in Guangke and Dahaoda. At first, the compression bags he produced were actually unbranded foreign trade packaging, but the sales were very good. He felt that products without a brand could sell well, and it would be better to create his own brand. So in 2009, he registered the Tianxi brand, which was positioned as a high-end brand. It is now doing very well. Later, he registered Wenbo, which was positioned as a mid-range brand, and he felt it had great potential. It was his main brand. Because mid-range products also have better sales and profits; there is another brand called "Jingpai Renjia", which was purchased from a peer in Guangzhou for 6,000 yuan and is positioned at the low end. In this way, the high-end and low-end markets all have their own products and brands, and they have great advantages. Although the high-end market has high profits, it is not conducive to sales, but it can build a brand image. The mid-end market is a link between the past and the past, neither high nor low, and is occupied with good strategies. The market; and the low-end ones are based on quantity to support workers. There is a factory, and workers always have to have goods to make. At the same time, we also cultivate customers and slowly establish a long-term and stable cooperative relationship with them. With his own factory, he can control the supply chain, and he has a multi-level and multi-brand brand extension strategy. Song Guanghui is very confident in his sales and market position in the compression bag industry. In addition to the multi-brand extension of single compression bag products, Song Guanghui is also trying to make various new products of compression bags to expand the variety of single products to meet the needs of different customers. After two years of doing business online, he has become a typical representative of Yiwu City's transition from trade to production, and has twice become a classic case in the "Taobao University" textbook. Judging from his development history, he has not missed any of the hot words that are closely related to the development of online merchants, such as single product success, supply chain integration and control, group development, and brand building, although there are also some strategic issues. Mistakes, but his pace is undoubtedly consistent with the general direction of Taobao's development. This may be the more important reason for his success in a short period of time. The competition among online merchants in the future will be the competition between supply chains and brands. At least Song Glory is already on the road, and the practice is pretty good. In early 2012, Zhejiang Wenbo Daily Necessities Co., Ltd. won the honorary title of China's Well-known Trademark.In addition to running his own business, Song Guanghui also organized the Yiwu Internet Business Association and served as the president, organizing everyone to communicate and share offline, and organizing outings and real-person CS training. In 2010, during the severe drought in the Southwest, he organized several online businesses He is willing to recruit some employees from Yunnan to help local people find employment. In 2010, he also organized people to go to nursing homes for charity activities; currently he is organizing the Yiwu Henan Chamber of Commerce, and the initial website has been built. Helping others is to give back to the society and do something useful. Meaningful things. Internet business research expert Shanghai Weiya said: Now we have reached an era of relationship building, brand building, and even more, an era of resource integration.