Gome to plan big, electric business open platform layout speed up

Recently, a lot of media have received Gome online 3rd this month in Diaoyutai Guest House platform Strategic Invitation letter, it is reported that the meeting is expected to be on the platform of businessmen or more than 500, Gome online will be announced on the day of "heavy" news, lifting the outside appetite.

Before a period of time, Gome Online has not deliberately emphasized its platform strategy, and the price of the east "expensive on the compensation" and other shocking feat of the industry also declared limited to proprietary goods. This gome online suddenly speed up open platform, what is the signal to release?

For a reason.

The author thinks, the Gome on-line exerting force opens the platform "the deliberate has been long", but chooses at this time point, has at least the following three reasons:

The first is the need for self-development. August 25 Gome Group released the first half of earnings, not expected to remain profitable, profit of about 690 million yuan, an increase of 115.2%. Unexpectedly is the development speed of the electric business, Gome online turnover rose 53.7% year-on-year, independent user visits (UV) year-on-year growth of 43.8%, in the domestic market share of consumer net purchase has risen from the 9th in the first quarter to 5th.

From the first half of the data disclosed, Gome Group President Wang Junzhou internal mail in the "end of the year strive to surpass Suning easy to buy" goal seems to be not difficult to achieve, but simply rely on home appliances 3C clearly can not fully support the high growth of gome online, need more categories to add rich sku, enhance turnover. For clothing department stores and other categories, gome online open platform to attract third-party investment, "step".

The second is consumer demand. August 22, Gome Online "Friends" symposium, there are old members of some necessities of life, gome online existence of less brand choice, the hope that the category more rich. Gome Online Chairman Guixian put forward the idea of creating a one-stop shopping ecosystem, and "spoilers" the September 3 platform investment will be the key to the full benefit of the user protection.

Shangui first always emphasizes the user experience of the 23 major links, 63 details, including the critical jump rate, conversion rate, repurchase rate and other indicators and category richness is directly related. Attract new users, retain the old users, must be a shopping closed loop, covering all the categories of life needs, and even the category of the first brand. Otherwise, once the user can not find the goods they need, they may immediately transfer to other sites, the electrical business hard to cultivate shopping habits. The supplement of daily necessities and so on is important for open platform.

Finally, the impact of the industry situation. The top ten electric dealers in the market of the company see the platform business as the most important, even if they rely on a single category to start their own Dangdang, shop No. 1th, every customer prudential products, has never neglected the platform. Compared to proprietary models, platform models are clearly more likely to expand rapidly, and are more profitable and less risky. Only Ali's first advantage is too obvious, so that the latter are struggling, but the temptation is still huge. Ali last year's profit of 3.558 billion, not only in the electric business ahead, or even more than Tencent and Baidu.

In the earnings announcement, Gome further defined its own positioning, vertical appliance business as the core of the entire channel of goods and services platform. Clearly, Gome online to the home appliances as an unshakable "core", while expanding to the whole category. This also makes Gome online "platform or vertical" of the dispute thoroughly settled. September 3 's investment will be more proof Gome online in the second half will increase the development of open platform.

Challenges remain breakthrough soar

However, Gome online development of open platform will not be overnight, in addition to starting relatively late, but also face three major challenges.

The first is to balance the interests of different business platform. As we all know, the cat mainly relies on collecting business traffic promotion fee profit. There are data shows that the current tenants of the cat, its total operating cost has reached more than 40%, of which advertising costs accounted for 15%-20%, logistics costs accounted for more than 5%-8%, platform commission fees accounted for 5%, warehouse distribution costs accounted for 5%, staff wages accounted for 10%, if the gross margin of 50% to 15% The promotion of the cost is very normal, the traditional enterprise to do 200 million of the year, of which 40 million to the settled platform, basically to the platform to work. Double 11 a year, only 10% days of cat business can be profitable, most of the "loss to make a yell" state.

In the overall difficult to profit under the premise, the day cat merchants still exist strong stronger, weak weaker Matthew effect, polarization serious. Taobao era "small and beautiful" Amoy brand rise in the cat is difficult to see, the cat strong basic or offline already has a strong strength of the big brand, willing to spend a huge amount of traffic costs, get better promotion position. Small and medium businesses in order to profit, save money to do promotion, often in the quality of goods to cut corners, fake so repeated, become Ali listed one of the biggest worries. How to let the vast majority of platform business benefits, Gome online needs to be new in the strategy.

The second is to balance the relationship between self and platform. Jingdong has a strong proprietary and self-built logistics, most of the resources to the proprietary category tilt, the third party suppliers in arrears is very serious. In order to create high-end image, Jingdong Platform Commission is non-standard, will give some big brand commission, to Small brand Commission high, to some extent, raise the threshold of small brands to join, and if there are some platform merchant goods and Self-and competition, especially in the 3C category, Jingdong will be through some means to ensure the proprietary interests, Even turn the platform directly into self. This kind of problem in the Amazon, when the self-employed as the main platform of the same electric dealer.

Gome online current self and platform business from the category seems to be entirely separate, the core of home appliances 3C to Self-and, supplemented by the platform, clothing department stores and other categories are mainly platform, but the two still overlap part. Currently, Gome online clearly need to think about the proportion of self and platform, and how to balance the interests of both to achieve complementary advantages.

Third, the long-term appeal to users of protection. As a result of the platform vendors repeatedly exposure quality, after-sale and other issues, leading to consumer fear, in addition to the cat so already have a very large amount and visibility of the platform of the electricity business, the other electric business open platform almost into a flow crisis. Jing-dong, suning platform compared to Self-and is still in absolute disadvantage, especially in logistics, platform merchants often can not reach the level of self. Gome online based on the accumulation of brand and professional advantages, in the self-trust of the electricity, it should allow users to Gome online platform to generate the same confidence.

Suning once in 818 before the mammoth roll paper, sanitary napkins to buy two to pay an activity, Gome online will buy two to pay one of the scope of expansion to the mask, towels, underwear and other large quantities of daily necessities, achieved greater momentum. Short-term low price promotion can attract new users, but for the old users, it is necessary to strengthen the platform supply chain, logistics, after-sale, user experience, such as a full range of supervision and control, so that it maintained with the same level of home appliances. Different categories have a very different market environment and competitive strategy, while in the various platforms open shop on the Gome online platform can enjoy different treatment, so that its resources, services, the trend of Gome online platform, or determine whether Gome online open platform to attract users long-term key.

Gome online at this time to push open platform, there must be some "killer" has not yet been exposed. There is news that Gome online to launch the "First year free Commission" policy, although Gome Online commission is not high, but the total exemption is still a huge profit. If the news is true, a large number of businesses may be attracted in the short term, but access eligibility is another issue. How to avoid cohabitation, to ensure user rights, Gome online needs to have more explicit measures. All these answers are to be announced on the day of September 3.