Solve the mystery of vertical electric quotient

Although spring to winter is the eternal law of nature, but for the vertical electric operators, since the end of 2011 to now, has been more than 1 years of winter seems to have no intention to leave, the industry has been looking forward to a long time in the springtime is too late, disappeared.

In the March, there were some vertical electric goods cards caught in the business predicament. For example, the main slow fashion of clothing dealers sold to all customers, has been the first stock of China's Mai Lin, was also reported by the media on the one hand in the large-scale contraction line store business, on the other hand, online business m18.com also forced with the Korean brand fun days joint venture, and by the latter holding.

Of course, the industry has become a stranger to these rumors, because it is only the continuation of the plight of the vertical electric operators since last year. At the end of last year, a capital winter, as well as the resulting Massamasso, red children, Yao Point 100 and so many familiar, and even before being designated as the benchmark of the vertical electric dealers have plunged into various operating difficulties.

In the face of a series of difficulties, the vertical electric operators have also begun a variety of transformation attempts, which abandoned the original platform of the electricity quotient, from independent vertical electric dealers to brand-type Electronic business transformation, has become the choice of most enterprises. In this context, a large number of vertical electric business to Jingdong Mall, shop 1th, Dangdang, Suning easy to buy and other platform-type electric dealers closer. Vertical electric operators look forward to the use of comprehensive platform has a huge flow, reduce operating costs, expand sales, lower cost and high yield shortcuts to achieve transformation.

In just determined to brand business transformation, the vertical electric business is still facing a successive blow.

At the end of February, Meng, the founder of the oil brand, said that the company's brand was withdrawn from Jingdong Mall 4 months later, the east side still did not settle the cooperation period owed to all of the loans, and said Suning easy to buy also has owed the loan for a few months long. He also said that the electric business bosses are claiming to have invested tens of billions of in a big price war, and that their high capital investment comes from squeezing suppliers ' loans.

This is not the only case in which the media has disclosed the embarrassment faced by a vertical electric trader facing a platform electric trader. Last year, "8.15 electric business War" before, well-known clothing brand Jasanwood burst because of unbearable to bear Jingdong Mall will its competitive price competition cost to suppliers, by the supplier to pay the Overlord clause behavior and announced the exit from Jingdong Pop (selling point ads) platform.

Vertical electric dealers suddenly found: they rely on the platform of the electricity quotient is far from the previous thought so beautiful, confusion continues.

Profession: Deep depth of industry and life

In my opinion, the confusion of the vertical electric dealers is not surprising. For the electric business, in order to survive and development, there are only two ways to go: horizontal expansion of product lines, vertical deep digging industry chain.

With the help of the existing flow advantages, the cat, Jingdong Mall, Suning easy to buy, when, 1th stores and other platforms, such as platform to expand the product line without exception, hope to be able to reduce its average cost through more SKUs, and its future profit model must be offline "store" mode: Relying on low prices to attract huge flows, The use of traffic to attract many brands, including the vertical distributor, the platform business through to the suppliers to collect entry fees, advertising fees, technical service fees, etc. to achieve profitability, the product itself to bring the difference in the income of the entire revenue system in the proportion will be less and less.

However, the profit model of Taiwanese businessmen is not suitable for vertical electric operators. With the horizontal expansion of the platform electric Quotient, the space of the vertical electric quotient will be compressed continuously. Vertical electric business to survive, it must have its own characteristics: first of all, the choice of market segments are large enough to have market potential; Secondly, the service and products on the relatively personalized, to provide large sales venues can not provide professional, personalized products and services.

Industry depth determines the vertical electric business life and death. A lot of vertical electric business encounter predicament, the root reason lies in its industry area depth is not enough, cannot construct the industrial chain superiority, establishes the competition barrier.

The reason why the wine network chose to import red wine as an entry point, is that the wine market is very large, in the past five years on average annual maintenance of 70% growth. We estimate that the market capacity of the next five years is at least 200~300 billion.

Second, red wine is largely a non-standard commodity, not only different wineries, different brands, even the same winery, the same brand, the year is different, wine taste and price are different. And a large number of wineries and wine brands, only "The world's godfather," said the wine master Parker as more than 90 wine to more than 2,600 species, involving the world's 156 top wineries.

The non-standard nature of red wine determines the variety of wine and the establishment of a wine based on the complex wine culture, it is difficult for consumers to rely on their knowledge to choose their own wine. As platform-type electric dealers, they are more to provide users with standardized services, it is difficult in red wine this more emphasis on personalized subdivision of the field of huge human, material and financial resources to meet the specific needs of users.

As a result, vertical electric operators can use the integrated electric platform to improve product sales, but not too dependent on them. In addition to the integrated electric business platform, the vertical electric business should also find out the right way according to its own characteristics.

O2O: Enlarge Service Value

To the experience of wine in the United States network, in the field of wine, the user is familiar with the line under the online purchase path to provide a unified standardized professional services, is the wine of the United States such a vertical electric goods brand relative to flat Taiwanese the greatest value. Through the O2O way, realizes the price, the user experience on-line under the effective coordination, is one way out.

In fact, both online and offline mode, have its advantages and disadvantages: Online channels to break the offline system of time and space constraints, to achieve the user at any time, anywhere to buy, but its most fatal weakness is to achieve anytime, anywhere to buy, but users can not do the field, hands-on experience, its products are suitable for their own judgments, Mainly from the description of the product itself and other users of the evaluation, and can do hands-on experience is exactly the bottom line channel system's biggest advantage.

Thus, if the vertical electric operators can be online under the combination of line, keep the line under the goods, prices and promotions on the basis of synchronization, through the line of two channels to ensure maximum user experience: Online can become a traditional brand breakthrough space and time limit of the closed store Line of each channel system can become the region's users of the experience of the site and the local warehousing center, brand promotion will continue to line up under the support of online. In this way, vertical electric operators through the line under the effective synergy, mutual support, optimize the user experience, to achieve "1+1>2."

Under the guidance of this idea, the wine United States in mid-September last year officially opened the O2O strategy, the nationwide open offline system, in the last year opened more than 30 experience shop. In the next three years, the plan will increase the number of online experience shop stores to 500.

Of course, to realize the integration of line under the system, the difficulty is not small, the need for traditional brands in the process management, supplier management, and so make great changes. In the experience of wine beauty, these can be realized through the innovation of IT technology.

For example, the wine-American network, on the one hand, with the help of customer database management system, through the daily data comparison, analysis of customer consumption habits, consumption levels, personal preferences and other content to provide targeted product promotion and after-sales service, at the same time customers can be feedback to the local online experience shop, and further improve customer relationship maintenance.

At the same time, the United States also set up an offline system management platform to achieve commodity inventory, price and promotional information line under the synchronization, headquarters through the platform can be seen at any time under the line of all store sales, customer records, inventory and other information.

More importantly, through O2O, the vertical electric operators can take the initiative of survival and development in their own hands. As a vertical electrical business, only to achieve specialization, there is the possibility of profitability.