Marginal Dangdang

You're not in the current order. How long ? Before it is to accompany many people for many years of reading platform, but now, too many people have slowly forgotten it.

As China's first E-commerce Web site Representative company, when this can win Jingdong, Suning easy to buy, but because the missed Golden Decade development opportunities, when there is no way and Jingdong launched a positive tug of a battle, after the listing in 2010, When another misses----the blind price war, the expansion of disorder. The person said to the Tiger sniffing network, when it has been slowly marginalized.

The following is a comparison of the share of the electricity quotient between the quarter of 2010 and the quarter of 2012. As can be seen from the chart, when two years of market discourse in the decline (from 8.9% to 3.9%).

Some predict that in the future the first faction of the electric quotient, when will be absent. It's not nonsense. According to the report of billion state power network, guoqing himself is becoming the witness of the gradual departure of Dangdang old customers, he had to use an autographed mail to detain users stop.

Last year 20 million, this year or 20 million, Dangdang's number of users stopped at 20 million for a long time. "said the head of a liquor dealer who declined to be named.

Terrible。 In the 2012 changes in the pattern of e-commerce competition, when the transformation of self-help measures, will retain customers? is the capital market going to pay? Can the couple's founders still survive the cold winter of the internet and withstand the pressure of investors, calmly and resolutely, as in the past?

Before answering these questions, let us see: What steps have been taken in the 18 months since the listing of the company, the halo of China's first listed company?

1. Deal with price war

In this year's electric business war, when the absence, but look back 2010-2011 years, when the active figure, but appeared in the Beijing-East Battle of the price war.

The tiger sniffed the "process" when the price war: in 2010, Jingdong launched a big promotion in the book when it was listed. Immediately guoqing response "We are all price war competitors will take retaliatory retaliation", since then two opened the prelude to price war. March 15, 2011, the price war escalated, when launched retaliation, Beijing east is threatened to fight 5 years. April when the United publishing house launched a price war. May Liu published a book plan, donated 1 million yuan to fight piracy, to Guoqing "challenge." June, when the 3C business promotion, directed to Jingdong. Yu is also said that Dangdang department store for three years does not consider the profit. September when the Beijing-East 3C home appliances to take a large-scale price war, only for "snort." December, Jing Dong, when the Second War ebook. Until February 2012, Dangdang statement implied that Beijing East coerce suppliers forced when bidding.

This "bleeding from the throat" competition is not just listed when the financial can withstand. When last year's gross profit margin continued to fall, from 13.8% last year to the latest quarter of 10.5%, share prices fell in the last year (ups and downs, but still half a year ago).

E-commerce observer Ruzenwang once said, do not think that the channel cost of electricity is below the line, for the channel class, such as when, Amazon, the general need for 20% of the basic operating costs, this is compared to the traditional and no less than the tradition, the price war is a one-way street.

When the fight with the Beijing East has its own helplessness. However, some observers pointed out that when the capital to play in Beijing-east with the offensive price war, can choose not to challenge, consumers will not be exquisite every book, each category to do price comparison. When the challenge, put yourself in a trench with Jingdong to fight bayonets. But Jing Dong is not the same as when, Jingdong did not go public, jingdong to deal with a large amount of financing, Jing Dong is the light of the successor-these are, when the factor is not.

2, crazy industry and not very good at attacking when

Guoqing and Yu, the stable couple, apparently did not expect rivals to launch such a reckless offensive.

Even after the celebration feast after the listing, Guoqing also concluded that when the experience is a sound financial strategy, suitable for the standardization of the book products--Gaumauli profit category. His subtext is clear, Jingdong 3C products do not make money.

However, the two years in China, the electricity business is not a profit route, crazy. Tiger Sniff before the article "Compared with Amazon, China's electricity quotient gene is simply weak burst", enumerate the electric business industry financing burning money, regardless of cost expansion, excessive commitment of all sorts of strange, this is obviously not guoqing and Yu business style----By the end of 2006 to complete the third round of 27 million U.S. dollars of financing, They have not refinanced for more than four years, and they are more accustomed to budget-minded businesses. However, Jing-dong, suning easy to buy, the cat's predatory attack apparently let when unprepared, the result is books fall, new product line hastily launched.

Compared with the aggressive Beijing-east, when not too good at active attack.

There are comments that when this can be from the main 3C business from Jingdong "in an", use small scale 3C promotion, launched Counterattack, out of the price of self-book war, but when it gave up, because "do not make money."

An example of this is: at the February 2011 earnings Communication Meeting, Dangdang chairman Yu said that at present when the business is small in the electronics market, and said that due to the market profit rate is low, Dangdang is temporarily not interested in the industry.

Unexpectedly, do not attack oneself does not mean that opponents are polite. Subsequently, the Beijing-east launched the book online price war, to copy when the bottom, when forced to rush to challenge.

3. department store didn't do it.

Since 2009, when the external signal to the outside world, from the book to the platform-wide product expansion, Dangdang joint President Guoqing so painted the blueprint: "The next three years, when the annual growth rate of department stores will reach 300%, including the Consumer-to-consumer market, the average growth rate of domestic e-commerce is about 90%, We will be 3 times times the average growth rate. ”

However, compared to the Beijing-east from the 3C to the entire platform, when the transformation of the department store's skills obviously slightly less than a chip, when the last year to achieve sales of 3.55 billion yuan, of which department stores 1.1 billion yuan, which is not even inferior to the line of a department store on the scale.

Then look at the margin, the world's network of analysts said, after the death of the book industry in Beijing, when the gross margin of the book fell about 10%, from 25% to 15%. As for the department store, 0 gross margin!

Didn't make money, did you get the eyeballs? After all, when it has become a one-stop shopping platform. However, when the flow and active degree are falling. Last year, at least 3 million of old users lost out of Dangdang, 35% of active users in 2010.

Why is it when the reverse expands?

Netizen Kaitokid in Snowball finance once said, when whether to do clothing or mother and child products, are lack of genes. To when 4 months of inventory turnover days, do the book industry is OK, but if do clothing, then not enough, even if do such as Fank such "success", rely on the current gross margin is still not profitable. If the strong increase in gross margin, it is possible to shake when the accumulation of the user base: When the order price for many years under 100 yuan. This is accustomed to the gross profit margin when the product, down to do low gross margin product dilemma.

4. Book Ceiling

2011, when the book audio-visual income of 2.45 billion yuan.

A microblog of financial observer Shenyin has sparked a heated debate:

At noon and the publishing company friends Chat, asked the financial books network sales. When the current is still the largest, sales accounted for about 50%, only last year, the development of the Beijing-East is very fierce, sales accounted for the total ratio of 30%. Excellence has fallen to No.3. They speculate that the proportion of male users in Jingdong is larger. Another interesting thing is that excellent users do not like to evaluate, Jingdong's users more and more real. And when, the publishing house operation evaluation phenomenon is obvious.

In fact, when the publishers have been proud of the cooperation model is being challenged. When it boasts more than 2000 suppliers, it has an exclusive supply agreement with some of the book suppliers that have long cooperated. This agreement was used to be binding when a single big one. However, after the rise of Beijing-east, Suning easy to buy, it's bound to what? The world's web operators reported that when the book SKU71 million, ebook 50,000, the two have been real less than jingdong, and in terms of price, when compared to Jingdong is not an advantage. When should you take what to parry Jingdong?

Does the above situation mean that when the books and audio-visual business which relies on fortune has been effectively attacked by the people of Beijing and the east? Meet the ceiling?

Look at E-books, too, when they say they don't expect e-books to be profitable in the short term.

5, open platform, quite hanging

When will the future go? 2012, when a series of open platform strategies were announced. Since March, when one after another with Gome, Jiuxian Network, a Amoy network to announce the cooperation, for example, Dangdang to a Amoy network Open Data interface, while adding the latter's one-pass system, allowing consumers to use Alipay account direct landing when the current purchase.

However, this side when the voice with the United States has not yet fallen, gome to buy Bowser, Zhiquan exit news is flying. Gome's choice of partnering with the United States is clearly a temporary arrangement: Gome needs to be the flow of time in the short term, when it needs Gome's product line. But in the long run, when it is difficult to share user information with Gome, Gome will not rely on when an online platform, not to mention its own and Bowser and Gome Mall, so the cooperation between the two is at best a short-term loose cooperation.

Ruzenwang once wrote the article "When Life hangs open platform", he commented that over the past few years Dangdang has been attracting Taobao sellers to participate, to build Dangdang sellers platform, trying to shape the core competitiveness through the long tail category, while the core category of standardization is Dangdang purchase and sale system of main varieties. The result of this arrangement is that Dangdang's open platform has been marginalized. In the weak Dangdang open platform has been tepid. But at the same time, the Sky Cat and Jingdong open platform business quickly, the cat has reached nearly hundreds of billions of dollars, Jingdong also quickly in 3 C, makeup, home and food and other categories of open business to complete the layout.

"China Business Daily" in an article pointed out that when the open platform is also experiencing internal interests of the choice, two issues are obvious: 1, users get more and more expensive situation, when how to choose which self, which to open business? 2. Who is the pricing power? The current strategy is to negotiate pricing, can go far?

Yu actually value this piece of business very much. In the Shi Shi meeting, she said, strategy, when the center of gravity has been fully turned to the online market, small merchants to transfer to large merchants, will not be involved in the price of Suning easy to buy war.

But competition to attract third-party businesses is becoming more intense. Compared with the cat, Jingdong and Amazon China, "Dangdang back-end of the power is weaker, including logistics layout has not yet completed, delivery speed and efficiency is not high, open platform technology system is imperfect, open category and the cross marketing of proprietary category has no background data support." These are constraints on their development, but also need to quickly solve the problem, "Ruzenwang said."

6. Loss of professional managers

For a listed internet company, senior management turnover, whether from the external or internal, will have a very big impact on the company, including stock prices, corporate image, market recognition, staff psychology and so on.

April 17, 2012, Dangdang CFO Yang Jiahong resigned. Yang March 2010 joined when, once led single when IPO, escort IPO mission has been completed, now Yang Jiahong has joined the Kai UK Network, responsible for IPO matters, this may be the professional managers +ipo animals inevitable choice.

Before Yang Jiahong, COO Huang Jo resigned in June 2011 when the company's management structure was transformed into a business model. Yellow March 2010 joined when, responsible for the publication of merchandise, department stores, sales department, sales department and other departments work. And the background of management structure adjustment, it is when to play 3C price war with Beijing east.

Following the first loss in the fourth quarter of 2011, Dangdang's loss status continued in the first quarter of 2012. In the past 9 months, the cumulative loss of the Dangdang has exceeded 300 million yuan. In fact, in the Beijing-East invasion of books, the high growth of the Amazon, the current Dangdang has been difficult to borrow books and audio-visual products of high gross profit, the overall business gross profit margin back to the IPO before the 20%.

What else is there?

In order to enhance the margin, attract users, when the open strategy: with QQ network shopping, cat and other platforms grafting cooperation, and internal product development and optimization to improve user stickiness.

These measures, or can improve when the profit margin, let when back to a health company on the track.

But what about the ambition and reality of going into the first camp of the Business-to-consumer?