Electricity business polarization, Dangdang customers below the industry level

The growth of electric companies is polarized: according to Analysys International data, in 2012, the trader market volume reached 479.26 billion yuan, an increase of 99.2% from 2011, if the benchmark, only the goods will, Beijing-east, the cat, etc. are more than this number, and Dangdang and every guest to 30%- 50% per cent growth is well below industry levels.

When Fank farewell to high growth

When the results of the fourth quarter and the full year of 2012 were disclosed, the figures showed that when the total revenue for 2012 was $5.1938 billion, it grew by 44% in the 2011 fiscal year, compared with the 2011 and 2010 growth rates of 59% and 56.5% respectively.

Not to be optimistic, when quarterly growth slows, from 73% in the fourth quarter of 2011 down to 31% in the fourth quarter of 2012. According to the expected, 2013 first quarter revenue will reach about 1.3 billion yuan, year-on-year growth of only 20%.

There is also the slow growth of Van Gogh goods. According to the data published by the visitors, the past few years where sales have maintained a high growth, annual sales growth has remained at about 200%, the highest or even 285%. However, the media reported that 2012 years ago, three quarters, where sales growth of only 30% per cent.

And aged in an interview with Sina, said the hope that 2013 annual sales growth rate of about 50%.

And when every guest in sharp contrast is, jingdong and the cat, only goods will continue to maintain high-speed growth. According to the figures disclosed by the media, the growth rate of Beijing east from 2007 to 2011 was 350%, 266.67%, 203.03%, 155% and 105% respectively. Beijing East 2011 sales of 21 billion yuan, 2012 to 60 billion yuan, the growth rate reached 185%.

The number of cats released is that 2011 sales of 100 billion yuan, 2012 years ago 11 months of sales of 200 billion yuan, the growth rate of 100% to. But the electricity merchant Black Horse only goods will 2012 revenue to reach 692.1 million U.S. dollars, compared to 2011 fiscal year growth to 204.7%.

These numbers mean that as a "predecessor" of the electric business, when and where the guests have withdrawn from the high growth camp. In fact, the slowdown in growth is both a matter of choice and when compared with other electric dealers-hoping to raise interest rates by cutting costs to make early profits.

The choice of two kinds of development ideas

Starting from the end of 2011, every customer began to rethink and aggressively comb the product line, cleaning up the digital, home appliances and department stores inventory, but also carried out a staff reduction. All this has led to a slowdown in the growth of passenger sales.

For a sudden decline in the growth rate, where the CEO aging that the measure of a company's health standards, in fact, profitability. "We want to have both profitability and growth," he said. "Aged in the interior issued 2013 years must be profitable requirements."

This is also the use of radical strategy, large-scale marketing visitors, after the blind expansion of the contraction and reflection, and began to choose a conservative strategy-first to achieve profitability.

The same cautious Dangdang, although the listing has been with the Beijing east after a fighting, but has been reducing marketing investment since last year, and in Jingdong, Suning easy to buy and Gome crazy price promotions, resulting in the loss of users and orders. But as a public company, when it is more desirable to make key data look good, such as boosting the company's net profit.

In every guest, when outside, is competing with each other cat, Jing Dong, suning easy to buy. For them, "profit" is not the current important assessment target, more important still is to attract users and market share. And to seize the important guarantee of the market is the capital, Jingdong continued financing, Suning easy to buy the restructuring is to get more market share to do bedding.

Because every guest locates the Internet original brand, so it and the development of Jingdong is not the same, but not optimistic that the original Internet brand living environment is bad, such as the first moment, Massamasso are facing financial difficulties, where customers through the reduction of expenditure to achieve break-even, it is difficult to usher in another growth outbreak.

When the situation is more difficult, the business almost overlapping with the BoE, sales are less than one-tenth of Beijing East, in the case of continued slowdown in growth, it is possible to fade out of the mainstream.

Analysts believe that at present the development of electric business in China is still very elementary, there is bound to be a constant price war between the standard category of consumer platforms, which brings large-scale users and traffic to promotional sites, which is still the most effective development method for the current stage of China's electric industry, and only the company that has maintained a high growth rate, Will be in the pursuit of capital and users. (Tracy)