And a lot of people, when Nick Swinmurn to Xie Hua (Tony Hsieh) suggested that a partner would like to open a shoe company to sell online, Xie Hua feel that it is a bad idea: no one will be purchased on-line difference so great that the footwear products .

Swinmurn but pointed out that the U.S. footwear retail industry about 400 billion U.S. dollars in the market, which, through mail order catalog as a way to achieve on the retail occupies a 5% market share, which is 2,000,000,000 U.S. dollars, Hua Xie started Inviting. 9 years ago, Xie Hua Swinmurn to ShoeSiteCom of 500,000 U.S. dollars of investment, and changed its name to Zappos (in Spanish under the “shoes” to amend zapatos come), started its online shoe business.

Xie’s investment in China has not failed. Founded in 1999, the Internet company to sell shoes, Zappos, 2000-year sales of 160 million U.S. dollars in 2001 to 8,600,000 U.S. dollars. Since then doubled to start a few years in a breakthrough very soon 30,000,000, 80,000,000, 100,000,000 U.S. dollars. In 2007, Zappos sales of up to 840,000,000 U.S. dollars, “Time” magazine, “You can not live in or lack of the 25 sites”. In Inc. Journal of the nation’s top 500 fastest growing private companies, Zappos company ranked No. 76. Why this is generally not optimistic about the business so there will be high-speed development? The answer may be as ZapposCEO as China’s Xie said: Zappos position is a service company, it is only by chance that the sale of shoes.

Zappos and in the establishment of the rapid growth of these nine years, Xie China has been strictly adhered to his original conviction?? “To spend the money on enhancing the customer shopping experience, not overwhelming on advertising.” B2C e-commerce model of the weakness in the footwear retail industry is particularly evident in the performance: not to let customers try on the merchandise, slow and chaotic logistics, stock and so on, these issues have become Zappos on the road to the development of the “stumbling block.” Xie and China’s response is equally surprising.

He first in the logistics area under the foot of the effort. Shipping, freight-free return of all, try not satisfied with the returns can be free of charge. This initiative is not the first Zappos is the rapid growth of one of the trump cards. Second, efforts to shorten the delivery time, although Zappos open to the consumer is committed to the delivery time of 3-4 days, but stressed that the best companies in the goods will be delivered overnight. In order to attract more customers, Zappos has also delayed the introduction of after-sale payment, so that customers enjoy the Zappos purchase of goods within 90 days of non-payment, such as flexible payment methods, so that customers buy on-line shoes, bags and Other annex more security and convenience.

In the internal organization and management, Zappos is reflected in the nature of their services. Zappos customers in the center, not the so-called “managerial figure.” Hua Xie believes that the call center, no matter what the manager is able to do and not do the customer service staff. Each customer service through training, to ensure that customers have to be more than happy to be able to hang under the phone. Stylized language customer service did not prohibit race against time to answer the phone more with less each and every customer’s airtime. A surprising move that, if the customer needs in the Zappos site shows that commodities in short supply, customer service staff will guide customers to competitors of the site go shopping. This customer demand to give priority to the selfless, most of the next customer would, if necessary, will first think of Zappos. Statistics show that 75% of Zappos customers are repeat customers, some by family members or friends from Zappos This shows an impressive customer service in the cause of the powerful effect of word-of-mouth marketing. In January 2004, Zappos decided the company moved from San Francisco, “never sleeps” Las Vegas, where there are more willing to engage employees in the service sector, for Zappos customers 24 hours × 7 days of high-quality Services.

Zappos corporate culture is also reflected in its role as a service-oriented nature of the business. Zappos pay standards in the field of e-commerce is not an advantage, and the higher the position, the more so. Zappos high-level managers are probably only got another e-commerce companies pay half of the executives. The outstanding performance of employees, Zappos does not give monetary awards. However, when recruiting new employees, Zappos will provide 4 weeks of paid training for new employees immersed in the company’s strategy, culture and devotion among customers. To start training after a week, Zappos called “bid” time for these new employees will be informed: “If you resign today, we will work according to your time to pay your salary, and we have also provided 1000 U.S. dollars prize money.” This A move appears to be crazy, but it has attracted those who recognized the true value of the company, love the cause of the company’s employees to join enthusiastically. Xie said China, the purpose of this is do not want their staff just for the money to stay in Zappos. Those who choose to leave for the time being may be able to get more money, but in the service industry needs is a degree of enthusiasm and dedication, enthusiasm and dedication and Zappos which is the core values of customer retention. As a result, “more attention to the attitude rather than experience,” Zappos is one of the fundamental principles of the election.

Perfect for the services created to emphasize the good image of Zappos, it has also brought considerable business, but it is also faced with maintaining a high quality of service of all companies will be faced with the problem, and that is the high cost, such as in logistics policy Let’s annual transportation costs of up to hundreds of millions of dollars. In the high-cost structure, Zappos you profitable? Zappos is obviously the biggest challenge facing the future. The company’s services in the huge investment, China Xie not regret it, because he believes that the purchase of goods for customers provide the necessary services is by no means an additional expenditure, but essential to establish a brand image of its investment. This investment in the short term may not receive a good return, but in the long term, is bound to fundamentally deciding the future. Xie firmly believe that China, to the consumers, Zappos brand and services to create value, which is far greater than sales of its own shoes. Such confidence does not appear to be false. Since 2006, Zappos began to profit when the profit margin of about 1%. And in 2007, it is the first and second quarter sales of the two off-season, has low profit. As might be expected Hua Xie, the brand has gone through a long-term accumulation process, Zappos is a steady stride in the direction of the gradual pace of profit growth.