Analysis: The foreign Trade electric dealer goes perpendicular direction suitable?

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I find it interesting to see this problem. I do not do foreign trade, but engaged in vertical electrical business related work, want to have a big environment also have similarities, but foreign trade enterprises have more detailed restrictions.

The first question to answer is: Is there a future for vertical electric operators? I don't think that's a problem, from Amazon to Jingdong, who doesn't have vertical origins? Obviously have a future, very promising! The real problem is, now Amazon or Beijing East Taobao such a super comprehensive electric platform Unified Lake, The small vertical electric quotient's living space receives the very big extrusion, did not have done well before, the future is continues to dig vertically, or to the comprehensive development?

How can the living space of the vertical electric dealer be squeezed? Nothing more than two aspects of purchasing sales. Most vertical electric operators have limited plates and limited sales, so they have little bargaining power with suppliers. and comprehensive large electric power in the procurement of this piece is very oppressive, no matter how the actual sales, platform traffic this piece of pie, it is necessary to force suppliers to the lowest purchase price. And in the price, the comprehensive big electric dealer usually lower price route, domestic and foreign are so, so will appear the entity shop experience product online consumption This let the entity business angry trend. A large U.S. department store target in order to sniper this behavior, and even began to use a special barcode for the goods to prevent users in the store price. and small vertical electric operators have no way to prevent the user's parity, to sell only lower prices. Between sales and gross profit, the cost of high price is low, of course, survival is difficult.

But wait a minute, is not the vertical electric dealers by the procurement sales of double-sided sniper it? Colleagues upgrade Iphone5, to match a telephoto lens, is bought on the Photojojo website.

I looked at the price, and it was a shock, because similar products usually do not exceed 20 knives in Amazon Marketplace.

Asked her why she didn't buy it on Amazon. She replied, "Really?" Photojojo a lot of fun little things, I did not expect to go to Amazon to see. Amazon is a big seller, but it's not the only seller in the world. And the biggest problem of the comprehensive big electric power business is, because the SKU is too many, the product kind is too whole, not all product of the category all have sufficient information. This includes related products, user reviews, supplier information, customer service, and so on, which is the strength of the vertical electrical business. Although the products sold are the same, the user experience provided is different. Although Photojojo's product price is nearly one times higher than amazonmarketplace, it is the difference of more than 10 knives. Most users are not willing to pay the price difference of the 10-multiple knives, but for a contract that has not yet expired, the iphone 5 can be compensated for by the user experience. Obviously, such users are not mainstream, but it is enough to feed Photojojo.

For price-sensitive users, whether vertical site can not catch them? Another example, for domestic friends is a relatively partial door of a vertical (favors) A few months ago, my daughter's birthday, I bought a bunch of very cute little candles on Beau-coup favors website, this is the C-Little monkey.

Beau-coup is the U.S. favor vertical high-end site, the price is generally slightly higher. Favor products I do not know how to say Chinese, but most of them are homemade, I naturally think, can go to aliexpress to see if there is a bargain. Sure enough, the product is there, but the price is not much cheaper.

AliExpress on the least buy 50, although it is free shipping, but it is the domestic air parcel come over. On the Foreign Trade website, people know that the general packet is about 3 weeks to send, if the unfortunate encounter customs clearance on the more slowly. If the 50 to buy, even if the freight, Beau-coup is also cheap, delivery is much faster, then I have any reason to buy foreign trade station products?

AliExpress is a comprehensive foreign trade station, but it is still small sellers. Although the production cost of this small candle may be very low, but the cost of selling may be very high-the seller is probably not the manufacturer, to the small batch of goods, packaging, send International express, counted down 50 sold not cheap but perhaps not much profit. Of course, AliExpress is a platform, the above are independent sellers, but the truth is the same. It is not possible for a comprehensive power supplier to purchase all products at the lowest price, and it is not possible for all products to be stocked-this is not to say that they cannot, but that the cost of doing so is too high and not cost-effective. As a result, when the vertical sales of the long tail/partial gate occur, they are not necessarily more competitive than the vertical electric dealer. In fact, this is the important motive for Amazon, the new egg, to open up the market platform--we can't get the goods ready for the third party's small sellers. This solves the problem of the product integrity of the big electric dealer, but makes the user experience different.

In the case of candles, the sellers on the aliexpress are actually small businesses. Regardless of the price factor, as a user I am in the purchase of time for mailing, sellers credibility, problems when the customer service processing also have doubts, so it is not a complete and fair comparison. So it looks like a completely identical product in the vertical and comprehensive electric Dealer website contrast. Keep talking about the birthday party. Children's birthday will have a theme, tableware supplies are the same theme. I found this paper towel on Beau-coup's website, and then when I joined the shopping cart, I could see a series of related cups and tablecloths.

Then went to Amazon to find this product, is Amazon's own products rather than marketplace FBA, cheap 5 cents, but can enjoy 25 knives above the free mail order. Amazon's shopping cart does not have the same series of prompts, only from the bottom of the relevant products to find, this is not perfect, but probably enough. More effort to check products, can save 10 a few knives postage is also good.

But the problem arose, my son said he did not like the truck, now like animals, had to look at the beginning, so that the difference came to see the picture:

This is Amazon's

Obviously the relevance of beau-coup queries is better than that of Amazon. This is not to say that Beau-coup's search function is more powerful than Amazon's, but only because Amazon's product line is too long, so even though the subdivision is more detailed than Beau-coup, the object is subdivided. It's like I'm getting a championship in the breaststroke competition for the men's middle-aged group in the company, and it's easy to get a championship at the London Olympics because the environment is different, Bisunyang. In spite of the difference, the champion is the champion. Beau-coup can be 10 times times 20 times times more complex than Amazon, but search results are better than Amazon, which is a natural subdivision of the vertical. To meet the specific needs of users, subdivision of the vertical must be easier than the comprehensive web site more easily implemented, and achieve lower cost.

One more step, assuming that the user has determined the product, the product itself is no difference, the user will choose a vertical or a comprehensive electrical business? To take another example, this is a very popular remote control helicopter. First look at the vertical web site Xheli:

This product Amazon itself does not, is marketplace sellers in selling, pay attention to sellers have no price advantage. It is understandable that sellers may be smaller than Xheli, with limited sales and a weaker bargaining power. Amazon itself is too expensive to manage the long tail and has no interest in doing it, so the price has been defeated for a while.

Then there is the bigger problem. If you are serious RC players, not buy a remote control plane is over, to use, to maintain, to upgrade, to repair. What if you encounter problems during use? to ask Amazon,amazon's customer service will be very happy: this is marketplace sellers, please contact directly, if there are quality problems can be returned. Marketplace Sellers will have a good answer? It is hard to say that such sellers are likely to buy integrated small electronics, what money to sell, no expertise in the product itself. I have written before a large dragon RMA Bowen, is aimed at domestic comprehensive electrical business customer service. Not necessarily customer service do not want to do a good job, but do not have this knowledge coverage, to and fro communication efficiency is very low. You do not want to return, may just want to figure out how to let the plane back to fly, the results of a few emails down the unbearable, people are still guiding you how to install batteries, "I will return it!". I don't know if Xheli will handle it better, but it's obviously better prepared.

If Amazon doesn't have a price advantage, as a regular user, I would probably choose Xheli. If Amazon has the price advantage, as an RC player, I still have the possibility to choose Xheli. This is the vertical electric dealer's brand premium.

The comprehensive Big Electric dealer also has the brand premium, moreover the scope is more broad the effect is stronger. Amazon shopping I do not worry about quality, because the return is not a problem, do not worry about freight, because its quantity guaranteed the express bargaining ability, not anxious words, UPS delivery are free; not to worry about information security-amazon must be more nervous than me. It is difficult for vertical electric dealers to deal head-on with these advantages of the integrated big power dealers. But the vertical electric dealer also has its own advantage: long tail commodity and related commodity's combination, even the upstream and downstream link deep excavation (the vertical electric business OEM own brand, even according to the demand request the supplier to increase the product), as well as the complete user experience (shopping flow, customer service, knowledge Base). These are very difficult to implement by the comprehensive big electric power supplier. There is a key difference between a vertical and a comprehensive distributor: the target customer. The vertical electric dealer must have the clear understanding, cannot with the comprehensive electric dealer rob all customers, but must have so one customer base is the comprehensive electric dealer is very difficult to snatch. This customer base can be very narrow, but to have sufficient quantity and consumption ability, can afford this subdivision vertically.

Back to the question: "Small foreign trade electric enterprises are not suitable for the road of vertical?"

This short blog post has not provided the answer at present, but the answer has been provided in the question: from the beginning of the vertical need a lot of time and development to accumulate, whether the enterprise itself or capital side have no this patience? My opinion is: vertical electric business is very promising, subdivision vertical is an expanding market, But most small foreign-trade electric dealers may really not be able to live to qualify for a subdivision perpendicular to that day. Several examples in Bowen are very successful segments of the vertical electricity quotient. Beau-coup has been 10 years, Xheli has 7 years, Photojojo latest, also has 6 years. These segments are fiercely competitive vertically, and they do not know how many opponents have fallen over the years, and they have been successful today. Now Shenzhen has so many foreign trade electric business, who want to repeat that a few big players two or three years of wealth experience, with this mentality to do subdivision perpendicular, certainly is not. Especially in the foreign trade electricity quotient, the subdivision vertical cultural difference threshold is very high. Take Beau-coup as an example, most people do not know what favor is, even if there are all the relevant products, how to meet the real user needs? Each subdivision vertically below, has the heavy cultural accumulation.

Want to earn some quick money, do imitation, do synthesis, fast. But to really make the electric business bigger and stronger, I am afraid to take a step by step. First go to comprehensive low margin products, in the process of accumulation of experience to find their own interests and director, to dig their own vertical subdivision. The vertical electric dealer that goes to the brand premium, must not make the brand premium. To have love ...

Original: http://ggtheory.com/2012/10/26/verticalb2c/