E-commerce enterprises are afford

To low prices to gather popularity, accelerate expansion and competition to open distance, drag down the opponent and then raise the industry's gross profit margin, to meet the profit inflection point, has become the logic of the electricity dealers crazy price war. The price of the electricity business competition intensifies, Dangdang and so on even inconceivable to play "to be the Black Sheep" slogan, hope to attract more clicks to buy.

Accelerating expansion leads to price war "Sequela"

The company's own hematopoietic function is not perfect, more rely on foreign funds of blood transfusion, and once the external capital environment has some changes, then the development of enterprises will be a fatal impact.

"If the annual growth rate is not two hundred or three hundred, you are embarrassed to talk to investors." "This is Bowser CEO Zhiquan's description of the development speed of the 2011 business market." However, in the e-commerce industry surface prosperity behind, but the wind bursts. According to the IRIS statistics 2011, the total number of dealers trading volume is still increasing, but the ratio of quarter-on-quarter growth per quarter is below 15%, the growth rate is falling.

In the first half of 2011 also enthusiastic E-commerce enterprises, in the second half of the beginning difficult to obtain investors favor. The "electric business Winter" argument also began to be popular in the industry, the reason why the Electric Chamber of Commerce was questioned, the essence is because of the unhealthy mentality of the capital market. Eric Su Yanyan, senior analyst with the group, said this is related to the development mode of our early E-commerce website, in this case, the company's own hematopoietic function is not perfect, more rely on foreign funds of blood transfusion, and once the external capital environment has some changes, then the development of enterprises will be a fatal impact.

"2011 Years of market is a bit misshapen, when an enterprise has 1 yuan income, then its capital market valuation is 1 dollars." "Jiapin CEO Yang Peifeng talked about the state of e-commerce companies last year.

In order to scale, by the power of capital for rapid expansion, 2011 of many E-commerce enterprises are still playing the game of burning money, but Chew Day is not easy.

To low prices to gather popularity, accelerate expansion to and competitors to pull away, drag down the opponent and then raise the industry's gross profit margin, to meet the profit inflection point, became the logic of the electric dealers crazy price war. The price of the electricity business competition intensifies, Dangdang and so on even inconceivable to play "to be the Black Sheep" slogan, hope to attract more clicks to buy.

January 31, a Amoy network released data, said last year four quarter, the whole network of the overall trend of the total price, the average increase in 3% to 4%. In the four major business, Jingdong Mall price increases of 5% to 15%, higher than when, Amazon and the cat net. "Jingdong is neither and absolutely impossible to increase the price of 15%, that is purely suicidal behavior." "In the face of being pointed out" lead up E-commerce, Jingdong Mall quickly made an exciting response. From this, the domestic E-commerce site two big giant Jingdong Mall and Taobao's saliva war at the beginning of the new Year.

Whether Jingdong Mall is really a substantial increase in prices, once the price of commodity prices in the war is suppressed, to be in the rebound and let consumers accept, than the fact that is difficult to admit. But this has not yet divided the Battle of the war but increasingly obvious to the industry that the current cooling of the capital market, the industry's understanding of E-commerce gradually return to rationality.

From "losing money to making a yell" to healthy business

More than the "smoky" price wars and indiscriminate advertising campaigns, the recommendations of friends and the experience of the products used, the unintended story of the product will impress consumers

How not to "lose money to make a yell" still can in the competitive electricity market foothold? May I take a look at the foreign countries on the scale and capital are far less than the domestic electric power quotient of the website, is how the successful healthy development. The fashion shopping website of a kind is Claire Mazur and Erica Cerulo was founded in New York in November 2010, different from the way to hit the scale of the price station, rather than the site selling clothes, rather than selling stories.

Claire, who had worked as an editor in fashion magazines, found that the stories the editors had written could make clothes sell more. For example, when an editor writes an article about the history of skirts, it receives a lot of readers asking where the skirt can be bought, and after seeing the direct influence of the story on sales, Erica thought maybe these stories could be made to make money.

Unlike the general E-commerce site, of a kind text occupies almost every 50% of the space, a large paragraph of text description makes the product page become more like a page magazine. To make story marketing work, it's important to establish a relationship between the customer and the product and the story. In Claire it seems that the link between the customer and the costume is definitely not a delivery courier.

A good story, the first element to be included is the resonance between the customer and the designer. For example, the site used a limited 20 pieces to sell a "surf sweater," the story of a kind more focused on its designer Jesse Kamn, rather than the dress itself. Aside from the overall and detailed display of some of the clothes on the top of the page, the rest of the space is filled with the process of acquaintance with Jesse and her good friends and her childhood experiences. You can even see that it was a vacation in Panama, so Jesse knew a few more than 50-year-old surfers, which gave her inspiration for the waves. A kind wants to impress customers with any detail of the story, and let them find out, "Oh, there's a little place between me and this designer." By emphasizing the designer's personal background and life attitude, we try to establish an emotional and life-value relationship with our clients.

Because can not be real touch, high-quality goods can not be felt through the texture, the description of words has become an important substitute. "A leather backpack made in China could sell for 100 dollars, while a leather backpack from France would be 1000 dollars." But if you put their pictures together, people may not think the two packages are any different. "Shauna said. So if you want customers to pay for a 1000-dollar bag, tell them where the cowhide comes from, how the tanning process is, how the craftsman built the bag, and show its value, otherwise the customer won't open his wallet. This emotional marketing, so that the establishment of a more than a year of the electricity Business of the light blog online already has 35,000 of followers.

For increasingly picky consumers, they have seen too much noisy marketing. But in fact, whether it is a bloody price war or a sky of advertising campaigns, all just stimulate the consumer short-term shopping mood, and no real and consumers have established emotional contact.

Compared with the current "smog" of the domestic price war and indiscriminate advertising campaigns, friends and the use of the product experience, inadvertently heard about the story of the product will make consumers more profound, the excitement of the story-sharing also makes it easier for consumers to become interested in the product.

2012 Noisy E-commerce whether the great leap forward after the shuffle continues, price war is still the mainstream, or from price war to service warfare, brand warfare, logistics warfare, E-commerce Enterprises have afford, the market is the fittest, the winner of the King is the eternal operating rules, a large number of e-commerce companies die, this is inevitable, The future will gradually from the burning of money to healthy operation of the road.