Domestic e-commerce industry faces "winter"

Source: Internet
Author: User
Keywords Domestic

Recently, the domestic e-commerce industry facing the "winter" topic caused by hot discussion, can provide evidence of the fact that more than E-commerce enterprises "in the cold wind shivering figure."

A recent example is the Wooha network. December 5, there are media reports, the same day, the home page of the site was hackers hung a huge picture, hackers seem to be the site of their own employees. The picture says the company's employees have been defaulting on wages and insurance for six months, and the founders are now unaccounted for.

It is reported that the network is the top 10 of China's fashion E-commerce Web site, is a luxury e-commerce field of early entrants, before this has been a good reputation. Although the network incident was interpreted by the industry as a fashion-type electric dealer website closure of the tide of a beginning, but the scale of the network is actually not so big, and can not stop other similar sites where it fell to continue to move forward. Shang, Jiapin, excellent and other sites have been tens of millions of dollars of investment, even do 3C started the Jingdong mall has been eyeing the luxury of this "tang".

The surface scenery is infinite, inner Lengnuanzizhi. "Chill" is the dilemma that all electric business enterprises can feel and have to face. The vertical business model of deepening operations in a particular industry or market segment has been the subject of a boom in E-commerce. These days, however, these electric dealers are not having a good time. November, the clothing category of electric dealers who goods in the overseas IPO Midway sudden Change; The largest electric Shang network in footwear although this year's sales rose by 500%, but it is hard to hide the pain behind the loss, known as "China's first stock" of Macaulay, today's share price has shrunk by 90%.

Comprehensive class of E-commerce site to keep warm, but at the moment also busy for their own tailor-made. October, Taobao Mall significantly increased access to the seller's technical services and default margin; in November, Jingdong Mall resumed the "free shipping" signs, saving logistics costs to deal with the current crisis; Dangdang made a profit last year, but in the recent two consecutive earnings losses.

As a branch of E-commerce, group buying industry "bubble burst" has become an indisputable fact. Since this year, high friends, Litters Regiment, group Treasure Network has burst a large area of layoffs; November, the group buying industry ranked the top ten "24 coupons" because of tight funds and resulting in staff wages can not be issued in the short term, group buying industry "top" handle nets, after several rounds of financing, its IPO has been considered as a lifeline for the entire industry , but failed to go public in the end.

Let the electric business big call "The wolf Comes" The reason is the unceasingly high marketing cost and the increasingly fierce price war.

Dangdang CEO has said that the electric business regardless of the cost of advertising investment is leading to the electrical business into the cold winter important reasons. Electric Business enterprise hit money advertising has two purposes: one is the brand promotion, the other is to import traffic, pull sales. Many electric dealers in the early stage in order to hit the visibility of crazy to seize eye-catching advertising. This phenomenon is particularly evident in group buying sites. The result of competition for advertising is that the price of advertising has hit a new high, selling ads of the joy of "rich", the end of the advertising "loss to make a yell." Handle Network CEO Wu that the effect of advertising and investment has been far from proportional. Industry insiders predict that more than 90% of the group buying site is not the same cold winter.

In addition, the products continue to sell, profits are declining. November, Suning easy to buy, Jingdong Mall, Dangdang three big Book wars between the major competition is particularly fierce. This from "0 yuan purchase book", "the whole book 50 percent caps", "book full 100 return 200" and other advertising language can be seen. Price competition is easy to achieve, effective and fast, which forces the electric business enterprises can only maintain a lower price than others to win more customers. Lok Tao Net CEO Bi Sheng said that the vicious price competition between the electric dealers has made the net's gross profit from 2010 to 30% of this year's 17%.

Some experts say that the continued weakness of the global economy has led to the financing problems of electric companies, coupled with the lack of their own profit model, this winter looks exceptionally cold.

Recommended reasons:

When everyone is still for the e-commerce industry "Winter said" suspicious, the network burst out of "arrears of wages" as "Winter said" and add an example. At present, in the global economic downturn and domestic CPI rising in the background, the electric business enterprises should decisively abandon the previous bold, aggressive way of development, instead of taking control of costs, innovative profit models and other self-help measures to obtain self-protection. There is a good saying: Winter is coming, can spring be far behind?

Related Article

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: info-contact@alibabacloud.com and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.