From the offline to the line of the steel industry competition

As one of the energy industry, Tiero, from state-owned to the transition of private, for decades has been a steady grasp of many domestic industry indicators of the first, but in recent years the steel industry encountered an unprecedented crisis, from 2008 to 2013, the domestic steel price volatility has dropped to 690 yuan/ton. In particular, the past 2013, the steel industry is a tough year, the domestic steel price focus on the basis of the 2012 to continue to move down, at the same time by the real estate and other national macro-control policies, the steel industry suffered a few decades of the first winter, in recent years has been in the state of industry In this context, the industry's eyes aimed at the internet, the fuse was detonated, and steel industry competition from offline to the line.

Why the iron and Steel Electric Chamber is in a blowout

The iron and steel dealer is from the 2013 into the public eye, before this, the popular view that the steel industry as a traditional enterprise, and other industries as difficult to exceed the giant wall of electricity, but let the people surprised the steel industry blockbuster, 2013 blowout trend, Blink has appeared more than 120 iron and steel electric Platform, It's unbelievable.

To sum up, there are at least the following reasons why iron and steel dealers have a blowout:

1, the lack of credit, so that the entire iron and steel industry urgently need a new platform for the establishment of a credit system;

2, the promotion of the capital market, the rapid expansion of the Internet finance, logistics and other industries to force as one of the energy industry, iron and steel industry quickly closer to the Internet, especially the bank in the Iron and steel transaction financing promotion;

3, engaged in steel trading services business to see the iron and steel trading services market deficiencies, Third-party electric business platform just can for sellers and buyers to build a bridge;

4, some businesses need financial security in the transaction, on the one hand, the two sides in the financial connection with the bank is more complex, through the analysis of transaction data, can help the bank quickly into the financing process, on the other hand can also control the risk of loans, and reduce the cost of steel traders financing.

5, the industry development dilemma forces steel companies to move closer to the Internet. Several data can see the basic situation of the steel industry, the relevant data show that 2008 domestic steel prices of the maximum volatility reached 2550 yuan/ton, 2010 for 960 yuan/ton, and 2013 for 690 yuan/ton. Only 5 years, the difference reached 1860 yuan/ton, the continuous narrowing of the steel price volatility makes the traditional profit model no advantage, the rapid collapse of the sales system, steel companies need a platform to achieve online integration under the line.

Current situation and analysis of iron and steel electric dealers

Iron and steel industry is the first in all industries to test the background of hydro-electric, but also in the industry into a more embarrassing state, anti-into the internet, the rapid speed of the electronic business is commendable. According to incomplete statistics, the current iron and steel companies from the May 2013 more than 40 rapid expansion to more than 170, only 2013 years on the line of steel industry platform has more than 120, of which the Ministry of Steel E-commerce tracking service providers have more than 30, enthusiasm continues to soar, 16 steel projects were selected in the 2013-year electronic Commerce Integration Innovation pilot project published by the Ministry of Industry.

The emergence of this situation means that competition in the steel industry has moved from line to network, because of the short development time of the iron and steel, the business did not find out a better operation and profit model, resulting in the existing electric business platform homogeneity of the serious, many platforms to copy a business thinking will inevitably cause the integration of the same type of platform, "hundred Steel War" Situation has already been formed.

1, the electrical business model needs relocation

The current iron and steel platform looks more like an industry site, with a handful of platforms implementing online trading. such as offline traditional enterprises, if the iron and steel industry in the understanding of the electricity business through the network to obtain information on the supply and demand side, and then carry out offline transactions, it is clear that this did not realize the electricity business but based on the promotion of the network.

For the iron and Steel Enterprise's self built electric business platform, not advocating a move to all-inclusive's industry-oriented business-to-business platform has proven that an industry cannot require hundreds of business-to-business platforms and that the industry is integrated, so these companies should take into account business-to-business models, such as the O2O model for trading under line, and integrated industry downstream small sellers resources for small and medium-sized buyers of the business, and some platform can be separated from the steel platform, professional for the steel trading link of the financial electricity business platform, steel enterprises should be around the iron and steel trading links to explore more areas to achieve a diversified electric business model.

At present, the future of iron and steel in the pattern will certainly be a large and full business-to-business platform, the subdivision of other electric platform supplemented, of course, the premise is mainly service.

2, the three sides do platform, integration into a trend

The entire industry from the middle to see the electric business platform, and a third party also saw the iron and steel market in the huge demand in the trade, so the upstream and middle of the industrial chain of businesses have built their own electric business platform, trying to solve the market and sales from the electric business platform. An industry can not be the entire industrial chain to do the platform, those resources multi-channel wide platform will have greater competitiveness, early evening to integrate industry resources, integration of other platforms.

3, Business, Enterprise, platform competition

The electric business platform that the iron and steel Enterprise makes, solves the problem that the merchant looks for sourcing and buying, many businesses will be assigned to this platform, in order to increase sales, there will be a variety of promotional strategies, but also the possibility of a price war, which is not a good thing to run the electric business platform of Steel enterprises, low prices will also touch on the price of their own steel products, How should this be done?

The competition of the steel electric business platform is not only the competition of each platform in the industry, at the same time, there is the competition with large-scale business-to-business platform, such as Alibaba, China manufacturing and HC network such business-to-business platform, the development of early, in the user, resources and so on have a lot of advantages, iron and steel should be how to consider this problem?

4, Free mode will drag down the small platform

Free mode can give a large number of businesses a big dividend, long-term free also will increase the consumption of electric platform, for the iron and steel enterprises without money, this may be just bucket, for third-party platforms and other small electric business platform is a kind of burden, not every platform can burn so much money.

5, unable to provide users with more services

There are many things a steel electric trader can do, the Business-to-business platform is more for the supply and demand of both parties to provide information on the sale, the purchase of both parties after the transaction even if completed, the seller for the buyer to provide services to stop here, the purchase of products after the business if there is a new demand, basically This service gap, which is the first mentioned in the future will be the emergence of a platform for business, if the assumption is established, the future of this area is limitless.

6. Iron and Steel electric business and finance

Before the article has been learned that people are talking about Internet enterprises vigorous financial, iron and steel enterprises are attacked to the Internet power platform to do finance, naturally this is a demand within the industry, can provide buyers and sellers more quickly and easily and reduce the risk of services. It is reported that China's annual iron and steel transactions amounted to tens of millions of dollars, iron and steel platform to intervene in financial services, the equivalent of the bank counter forward, this is called "Online supply Chain Finance" model "development prospects."

In the past, when we read the Internet finance, we usually say that the line to the bank invasion, through the case of iron and steel, we can see that the bank has been through many industries to achieve the first step of internet finance, even this step in front of the internet finance.

The importance of the construction of electric business logistics in iron and steel

The traditional steel sales, the logistics supervision is very fragile, the industry in the capital will be steel traders to flee the incident. The Electronic business platform in the logistics needs to do, the first is to improve the supervision of logistics capacity, strengthen the control of the real right, avoid the warehouse list of duplicate pledge or empty single pledge phenomenon; Secondly, according to their own conditions to create a unique supporting logistics, without the help of Third-party logistics distribution and other supplies to complete the delivery, this can be a greater risk avoidance.

2013 is known as the iron and steel electric business year, we saw too many iron and steel electric platform with their dreams to rise rapidly, as the commentary, their opportunities and challenges coexist. From the capital point of view, as long as the rapid development of the industry means that the emergence of foam, in the absence of a clear industry operation mode, each steel electric platform is stones, its own not lack of money and the investment of foreign capital, will let these electric business platform rapid expansion, competition or vicious competition will let a lot of platform die without power.

Perhaps, the arrival of this day is not far, in the future, whether a few home alone or more contend, we hope that the entire industry can do more and more, more businesses because of these platforms and benefits.

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