No. 1th Store Chairman counter electric Trader Cold winter on self-exposure online supermarket gross profit margin

Source: Internet
Author: User
Keywords Winter gross profit margin self exposure
Tags bulletin business control controlling controlling shareholder counter customer daily economic news
Every reporter Ziwenting from shenzhen This August, the Ministry of Commerce issued a notice that the additional restrictive conditions approved Wal-Mart acquisition Niu Holdings Limited 33.6% stake. After the transaction is completed, Wal-Mart will become the controlling shareholder of Niu Holding (from 17.7% to 51.3%) and gain control over the online direct business of shop 1th through Niu Holdings. According to the "restrictive conditions" of the bulletin, NIU's acquisition is limited to the use of its own network platform directly engaged in the sale of goods parts. Recently, 1th store chairman Gege in the daily economic news reporter said, to build online Wal-Mart is the 1th store team in the beginning of the business has been wanted to do, the "restrictive conditions" of the acquisition of the "no" will not affect the future development of shop 1th has a significant impact. Online copy of the wall code "We at the beginning of the start, take into account the use of online supermarket sales of consumer goods, you can achieve sales category full, audience wide, viscous strong advantages, a few years of exploration proved that online supermarket conversion rate is really high, and repeat the purchase rate is very good. For example, store 1th has a conversion rate of more than 10% in Shanghai. At present, shop 1th has more than 70% of the orders from the old customers, and has achieved more than 24 million of the Internet customer base. "Gege said. It is reported that shop No. 1th was established in 2008, the annual sales of 4.17 million Yuan, 2009 reached 46 million yuan, 2010 to 805 million yuan, is expected this year's sales will reach 2.5 billion ~30 billion. Prior to that, there are media inventory of China's 100 electrical business survival status, many appliances are described as "moribund", there are comments that the electrical industry has been collective winter. In this respect, Gege held the opposite view. He said that the so-called electricity business cold, actually refers to the enterprise financing is more difficult, but from the customer demand and market development, is currently the electric business industry absolute spring. "In fact, the level of gross margin of online supermarkets is not low, the world's largest enterprises are retail enterprises, 3C digital products gross profit margin is generally about 10%, but the traditional department stores have more than 20% of gross profit." At present, shop 1th still has about 20% of the monthly growth, it can be said to have reached the expected, and did not see the slowdown. "he said. Solve the logistics "dead point" there are insiders believe that "a shop" to start with daily necessities of the electrical business model, because the customer unit price is too low, may not bear the high cost of logistics, this is a daily-use commodity electrical quotient of a dead point. In order to achieve efficient light asset management model, shop number 1th introduced the "store shop." According to Gege, 1th stores play the role of platform, through the entry of the business qualification audit, has absorbed more than 200 stores. This increases both the product category and the geographical coverage. It is understood that the current number 1th stores in 5 cities have 15 warehouses, and in 34 cities with more than 100 logistics sites, the year will reach 300 sites, 70% of the merchandise through its own distribution system completed. "The logistics system is partly owned by us, partly in cooperation with third parties, and warehousing is rented rather than built." We want to do light assets, logistics inputsThere will be a gradual increase in the future, but we will not invest aggressively. "Gege said. Before, Jingdong Mall and Suning, gome price war caused widespread concern. Gege said that the nature of the price war is "wool out of sheep", it can only in a short period of time to allow the minority to gain benefits, but the majority of customers lose interest. "Electricity price war, in fact, virtually improve the operating costs, because more people need to deal with orders, while the number of inventory and customer service will also increase, ultimately these costs will be split in the customer." At the same time, the price war on the shortage of frequent, but will damage their brand and reputation. "Gege said.
Related Article

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: info-contact@alibabacloud.com and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.