Dangdang was accused of falling out of the first camp? 2014 years ago or hard to make a profit

Dangdang revenue Composition (Pictures from the World Network)

"Silicon Valley network July 17" Dangdang CEO Guoqing recently a little annoyed, not only once again into the mire of information leaks, but also by CCTV exposure to sell fake Borghese products, even foreign analysis agencies came to join the fun, sharply cut when the target price of stocks, and pointed out that the recent quarterly losses have been magnified, 2014 years ago will be difficult to profit, Directly led to Dangdang's share price fell 5.6%.

Looking back at the end of 2010 Dangdang head of "China's Amazon" concept unveiled in the U.S. capital market, the day than the issue price rose 86.94%. But only after 1.5, Dangdang has become a completely different scene.

Just on the market, guoqing heroic rush to the sky, the price performance unexpectedly calm. "SoSo, General. "Also straighten up, the World War Morgan Stanley female employees" to vent heart evil, and with Jingdong CEO Liu Big Dozen Book War, put words on all price war competitors are retaliate.

Today's Dangdang is somewhat lost. Not only in the electric dealer price war into 9 months loss of 300 million yuan embarrassment, shares also jumped cliff to 5.88 U.S. dollars, the highest share price fell 81.8%. At least 3 million old users lost 2011 years, accounting for 2010 active users of 35%. In the recent electricity price war also difficult to see Dangdang figure, and even the view that Dangdang has fallen out of the first camp, more and more marginalized, and gradually lose the power industry discourse.

As China's earliest manufacturers of consumer electric Company, Dangdang can be the top of the future, but missed the golden decade of Development opportunities, its sound business strategy in China's electric tide was Jingdong Mall, Suning easy to buy, the development of the Sky cat hurricane-style pieces. What happened to Dangdang? Is the sound business wrong? Is it possible to return to the first camp? Where does the future go?

Lost Dangdang: The opponent eats the share experience improper user to lose

In the past 2 years, China's e-commerce market has made rapid development, Dangdang rivals Jingdong Mall 2010 sales of 10.2 billion, 2011 reached 21 billion yuan, 2012 is to put forward more than 50 billion yuan goal. Cat said 2011 sales have exceeded 100 billion yuan, 2012 is expected to break through 200 billion yuan. By contrast, Dangdang's sales figures are dwarfed by the 2010 sales scale of 2.28 billion yuan, 2011 to 3.6 billion yuan, and the gap between the two rivals is growing.

Dangdang also suffered from the loss of users worry. Careful personage contrast Dangdang 2010 and 2011 earnings found, 2011 years at least 3 million old users lost, this is the 2010 active users of 35%. One alcoholic trader exclaimed: "Last year 20 million, this year or 20 million, Dangdang's users have stagnated for 20 million long." ”

Dangdang users lost both from the opponent's snatch, but also from their own user experience did not do enough. Compared with Jingdong and Amazon China, Dangdang has many drawbacks in after-sale service. This May guoqing issued an open letter, frankly grieved because of the quality of service issues, many consumers lose confidence in Dangdang, or even leave Dangdang. Guoqing sincerely for slow delivery, packaging breakage, book appearance dirty, customer service slow response, cumbersome refund process and other problems to consumers to add trouble to apologize.

In fact, in addition to these factors guoqing mentioned, Dangdang this year also experienced a user gift card stolen, the sale of fake Borghese products by CCTV exposure, 10 days customer orders three times when the unilateral cancellation of series of scandals, these virtually make when the brand image is damaged, accelerate the user away.

In addition to the loss of users, the loss is also a big worry Dangdang. According to a snowball finance analysis, because in the department stores and other areas do not have bargaining power, digestion inventory capacity and the limited capacity of suppliers to occupy the capital, resulting in Dangdang 2011 revenue costs Year-on-year increase of 75.6%, the cost growth rate exceeded the revenue growth rate, gross margin from 2010 22.2% to 13.8%. Over the past 3 quarters, Dangdang lost more than 300 million yuan. In the first quarter of 2012, for example, Dangdang cost of 929 million yuan, accounting for revenue than 85.8%, compared to the same year 80.5% 5.3%. That makes Dangdang's gross profit margin only 14%, down 6% from the same period two years ago.

Capital markets are also constantly frustrated. Theoxengroup, the US analysis agency, is set to cut prices by $9 trillion to $6 a week, saying it was hard to make a profit 2014 years ago, and that the stock price would not rise sharply in the short term, leading to a 5.6% plunge in shares. Since the listing, when the share price has slipped. As of July 15 Dangdang shares 5.88 U.S. dollars, the top share price fell 81.8%.

At the beginning of this year, more exposed DCM, IDG, Tiger Fund, Morgan Stanley, Citadel Five major institutions to empty its direct holdings as a stake. Ericjackson, founder of hedge fund Ironfirecapital, dumped his holdings, saying bluntly: "I don't think that when it is China's Amazon, successful IPOs are the result of investment-banking hype. ”

Ericjackson's words are not unreasonable. Amazon has strong technology development capabilities and computing resources, spend a lot of money to build warehousing logistics systems, data centers, these resources not only for the Amazon itself, the Treasury, distribution system resources can also be leased to thousands of lack of experience in warehousing logistics Third-party sellers, more valuable is that many IT resources themselves can be as "cloud" products are sold And when it's just an online retail company.

With Jingdong Mall, Suning Easy to purchase fierce expansion, Dangdang's base of the book field is also suffering from encroachment, in the entire business market, Dangdang market share is also falling. According to the data from the iris, Dangdang in the first quarter of 2012 in the independent sales of the field of business accounted for only 3.9% of the share, lower than the 50.1%, Amazon China 7.8%, Suning easy to buy 6.8%, only ranked 4th, or even quickly be xun beyond. Only two years ago, when the market share of 8.9%.

Dangdang to occupy the market share (Tencent Science and technology with map)

On the market performance of Dangdang, an industry personage openly pointed out: "Dangdang instead of relying on the capital market and then the upper floor, instead of losing." Even the media asked: "How long have you not been in the current order?" Once, it is to accompany many people many years of reading platform, but now the same many people consciously unconsciously forget it. ”

Dangdang Self-Help: Relying on department stores and "please come in + go out" strategy

is to sink down or upward, is placed in front of a difficult problem. Although Guoqing has openly said that the scale is not a competitive advantage, and called on Jingdong, suning do not want to "burn money to burn competitors." Domestic business market is not a capital-take-all, money needs people, strategy and implementation.

However, obviously when facing the opponents are not "angel", Jingdong, Suning easy to buy, cat performance growth in addition to eroding the traditional industry, will not relax when the share of the snatch, pray for opponents to relax on the Dangdang field offensive is obviously unlikely. How to obtain the advantageous position in the intense electricity merchant competition, has become the important question which the guoqing ponder, actually, since this year Dangdang also frequently moves, to the department store, the opening strategy and so on high hopes.

It is understood that Dangdang last year to achieve sales of 3.55 billion yuan, including 1.1 billion Yuan department stores, books and audio-visual 2.45 billion yuan. Book business has been faced with the growth of the ceiling, department stores may become a new force point. Earnings showed that when the first quarter of 2012 commodity revenue for 367.9 million yuan, an increase of 124%, which has been Dangdang has been a department store for several consecutive quarterly year-on-year growth of more than 100%.

World Network operators said that Dangdang received a supplier background profits may reach 10%. However, when the 1.1 billion-yuan department store sales, wiring the next department store size is not, let's say when the bargaining power is still in serious shortage period. If there is a chance to grow up, there is room for improvement in Maori.

Dangdang in the area of department store another move is to push its own brand "when the excellent product." Dangdang excellent products mainly around the high margin of clothing, bedding and so on. When Vice president Jiangqiang said it was mainly for raising gross profit margins. Dangdang recently announced that when the excellent products June sales breakthrough 10 million yuan, to achieve profitability. Jiangqiang is full of confidence said, relying on Dangdang original 20 million registered users, this year the target sales broke 200 million yuan, Dangdang superior product profit margin over the book.

In addition to betting on the department store, Dangdang another move is to push the "please come in + go out" platform strategy to seek cooperation in the competition. Jiuxian Network, Gome is the "Please come in" strategy model. Especially in the electrical category, Dangdang set up a special "Gome" channel, take the way of inverted water, to the United States exclusive operation.

People familiar with the matter pointed out that Dangdang not only to avoid the electricity category bloody price war sharpness, but also in the price of melee profit, and when both increase product category, enhance the site stickiness, but also "nothing to steal music." Dangdang is indeed "stealing music", former Dangdang CFO Yang Jiahong said that the first quarter from Third-party Partners Commission close to 20 million U.S. dollars, with the transition to large merchants, will sign more contracts, this part of the revenue will be significantly increased this year.

In addition to with Gome, Jiuxian network cooperation, Dangdang will also be on the site to buy open API, the introduction of F Group, high peer network, tick group, etc. are also being negotiated. This will also be followed by the Beijing-East after another to group buying website Open API website. Earlier, Dangdang's chairman, Yu, said it was considering cutting costs and taking a series of targeted measures, including handing out lower-margin categories to third parties to operate and guaranteeing the profitability of Dangdang through commissions. Guoqing also said: Dangdang model is the essence, at the same constant storms always sound operation, absolute cost leadership.

Dangdang on the other hand is "going out", Guoqing announced in May this year open API interface, with a Amoy comprehensive cooperation. At the beginning of July, Dangdang announced the exclusive operation of QQ network to buy books channel, and is preparing to settle in QQ network to buy mother and child channels. In addition, has been the rumor that Dangdang will also work with the day Cat Book channel cooperation. A series of actions also verified Dangdang's "go out" strategy.

Dangdang inside thinks, oneself chooses is a seemingly softer route, abandon direct competition, turn to share user traffic with other electric dealer. Tencent's 700 million users, the day cat more than tens of millions of daily IP traffic. If the "go out" strategy can be practiced, the whole electric business giant camp will form competition and cooperation of mutual checks and balances, forming a subtle interest chain, far-reaching.

Of course, in the face of user churn, upgrade services are also included as a key consideration. In fact, service is the second most important factor for consumers to choose the standard of electricity quotient. Dangdang set 2012 as a "customer service improvement Year", Guoqing said Dangdang significantly cut the advertising investment, invest hundreds of millions of yuan to improve the customer service quality Dangdang.

According to official figures, Dangdang has been in 16 cities nationwide to achieve the day, the day of 150 cities on the day of the order, the next day of service, hundreds of cities served on the following days, 278 cities to provide goods to the card service, and recently in Beijing, Shanghai and Guangzhou, 9 core cities in the country opened 120 from the point.

The loss situation of electric business enterprises will continue for 2-3 years

Amazon is the originator of the website of the consumer, not only in the online retail area is a leader, in the cloud computing, e-books and other fields are outstanding. However, Amazon's profit margin peaked at 6% in 2004, followed by a few percentage points in the five-year period, down from around 2% in 2011. Part of the decline came from Amazon's subsidy for logistics, which has been improving and is now accounting for more than 5% of revenues. Amazon has slashed profits to lure customers.

This is also the embarrassment of domestic business enterprises. A joke, an Jingdong mall market Personage invites the media friend to eat, ordered hundreds of yuan of food, eat half, jingdong people feel less food, put forward to add vegetables, media friends said: "Do not add, know you are not easy, this table dishes to sell how many electrical appliances to earn back AH." "Jingdong mall that friend face embarrassed."

In fact, even though the business enterprise scale is bigger, it is still difficult to get rid of the low margin, even the loss of the state, especially in the period of price war, the electric business enterprise widespread loss phenomenon. When has been known as the steady, in the electric business is not a typical loss of business enterprises.

Talking about the development of the electric business industry, Jiuxian Network CEO Shang pointed out that the domestic electric business enterprise strategy is now a little contrary to the law of enterprise Development, like the original color TV war, Tcl, Changhong, such as the Rainbow, now into a twinkling mist. "There is much in common with the competition between electric dealers and color TV, even more so." ”

Shang does not agree with Dangdang's marginalization, saying, "It doesn't matter whether the first camp or the second camp is important, it's the survival of 5-10 years." If you run fast, you may not win, but you might die early. Shang For example, group buying in 2010 and the first half of 2011 had a large-scale expansion, to the present basic silence. Shang that the loss situation of the electric business enterprise will continue for 2-3 years, the final outcome of the previous three strong in a big price to pay the end.

CMO Xu believes that, from the current view, the entire electric business industry users growth is slowing, not only a dangdang. At present, the electric business industry is more concerned about the scale, but how to improve the order and gross profit margin, how to reduce costs, how to increase risk control capacity. "The electric business is full of loopholes, how to enhance the company's main departments to control the risk of the need for innovation, and means that my innovation is to sell goods." "He thought that with the Jingdong, Suning easy to buy bigger, Dangdang More is loses the electricity business industry the discourse power."

For the current dilemma, Dangdang internal look optimistic, an insider on the Tencent Technology, Dangdang various business department did not lose, including 3 C, books, department stores and other brands are meager profit, mainly in the logistics construction. "We do not look at the short time scenery, and ultimately the left to the king." ”

However, a senior person in the electrical business industry is not optimistic about Dangdang's sound business model, said that the internet is also a sound operation of the death is similar, because the Internet model is essentially a "high substituting story." Like Millet in the past 2 years to lift quickly, become a valued 4 billion dollar company. "Otherwise you are the traditional mode. ”

Internet analyst Xie believes that Dangdang only reduces external expenditure can be profitable, the question is whether the guoqing is the Internet as a channel to sell books or the internet to sell books, if Dangdang station is just marketing platform, lost the Internet the greatest value.

Xie to Dangdang, "should be the Internet way to find a way out, the most stupid method is to continue to learn Amazon, Amazon do what when as what, such as cloud computing, e-readers, platform strategy, each Amazon is a revolutionary impact, need dangdang bones." "Xie that the cat, QQ online shopping, the introduction of Gome, Jiuxian nets are surface work, and will not have too much substantive significance, the introduction of electronic readers is worth a try, although too late," but not stronger.

It is reported that the current electrical business industry is the cat, Jingdong Mall, Dangdang, Amazon China, Suning easy to buy + gome online shopping mall, QQ shopping, where the seven-man products of the era of hegemony. Electric business giants in the price war is more hand-to-hand, at the expense of competing. Industry insiders pointed out that Dangdang missed the golden Decade development opportunities still have the opportunity to reverse the crisis, so Dangdang still has more than 1 billion of cash assets, the vast majority of the electricity business is not good days. For Dangdang, holding on, means everything. (Tencent Science and Technology Lei Jianping)