The 28 laws of traditional business society are being constantly subverted by the long tail theory.

Source: Internet
Author: User
Keywords Traditional
Tags .mall business business model consumer consumers consumer-to-consumer consumption cost

The traditional Business Society's 28 law is suffering from the long tail theory unceasing subversion, but has not always been the card to draw the card to deal with the hand Ma Yun This time is the latter this trump card.

No longer aim at 20% of the high consumption, and will look to the remaining 80% consumers, that the latter's contribution to the total sales and profits, not necessarily lost to the 20% of the customers in the head, the market in the long tail (80% of the consumer consumption of profits generated).

Taobao's foray into the online supermarket, although its transformation from Consumer-to-consumer to the other masterpiece, but not a thing, but also to see upstream suppliers, downstream consumers and the middle chain logistics industry These three are "to face", after all, to do "online Wal-Mart," such as platform-type online supermarket, is to encounter the former after Matt and other professional online supermarket, Carrefour and other traditional retail industry after the double attack of the online supermarket.

Taobao will invade supermarket mode

Say back to the recent October 18, the reporter from Taobao insiders learned that Taobao Mall in Shanghai to hold investment activities, invited to participate in almost all businesses involved in the supermarket retail industry. Since then, its secret to build online supermarket news spread.

An enterprise personage who participated in the above investment meeting said, Taobao Mall gives the temptation is, "businesses can share Taobao more than 200 million users, and do not have to build their own trading system and promotion, the business needs to do is to do their best in the sales services, that is, to obtain a huge market." ”

And the reporter learned that there are online supermarkets on the internet, but the use of vertical mode of business, that is, their own purchase of their own sales, at the same time need to build a trading system. In the forefront of the number of shops and after the 1th Mart.

"In this way, the site's construction costs and marketing costs are very high, while such online supermarkets also need a long time to accumulate popularity, suppliers can not focus on their best professional ability, lost the best possible period of joint venture." "There are experts to parse.

From the user volume of this simple measure, the use of platform-operated Taobao supermarket has its advantages. "The huge net buys the user crowd, the ultra strong attraction new Netizen ability, and has already operated for many years has the certain operation experience and so on the superiority Taobao, is absolutely any attempt in the convenience electronic commerce to make a difference the company must consider the competitor." "The concept of business solutions to Taobao to make sure."

Taobao Mall Online supermarket project general manager Maxuejun in an interview also defined Taobao mall is platform builders, not involved in commodity price formulation, commodity prices are entirely by the market itself according to supply and demand relationship and cost to decide. And the net buys the commodity price often cheap, all because its pattern has eliminated the channel profiteering.

Look at the supplier's face:

More important than providing a platform is the actual purchasing power

However, providing a platform, given the user volume is only a "pie", can be converted into actual purchasing power is what the supplier wants, and even if someone came to buy, logistics distribution, background data processing and other costs will be transferred to the supplier, the supplier's profit can be maintained or higher than the level of operation under the line? Furthermore, will Taobao sacrifice the interests of some suppliers for the sake of branding and reputation, so that these suppliers can launch Low-cost sales? Also, once the supplier on the online promotion, whether the offline to follow up, whether to reset the price system, in order to ensure that the supplier online profits, but not excessive damage to the physical circulation of the next part of the interests of distributors? These questions are enough to give the supplier a deep thought about not working with Taobao.

For the above price problems, e-commerce experts gave a "three-dimensional price strategy." For example, the definition of price-sensitive goods and hot goods, and the development of targeted levels of price policy, promotional pricing strategies and limited-limit of various promotional activities. Through multi-dimensional price concessions so that consumers feel "business promotion is very sincere, strong," and because it is not a large range of long-term price reduction, suppliers and distributors will not be a big deal, Taobao platform itself to bear the cost of promotional costs can also be controlled.

"However, at the operational level this is not easy, the final effect of the quality will be determined by the selection and promotion strategy." and the selection principle and promotion strategy will be based on different regions, different periods, different platform positioning, different categories or brands, different target customers and other factors, and this needs to be carefully planned. ”

The suppliers themselves are straightforward, as opposed to the pundits ' academic rhetoric. Always unrestrained marketing of heaven and earth One, its insiders, Ms. Lin in an interview with reporters, said, "online supermarkets, but also to see the products sold and market conditions." For example, for our native pig, Guangzhou has more farmers markets than supermarkets, the main consumer is those over 40 years old, they like to go to the scene to pick, the shopping process requirements higher than the result of shopping. And online supermarket, if still just follow Taobao such system, to us and our products consumers are not attractive. ”

It even felt that if you want to do online supermarkets, must be able to establish a new business model, not copy Taobao system is possible.

Look at the face of the logistics industry:

standardization and turnover capacity to be tested

And despite the price issue, suppliers and e-commerce experts disagree, but in the online supermarket outlets, they are in line with the target of the logistics industry.

Heaven and earth one of Miss Lin said, online sales are generally relatively low prices, but for suppliers, the price system is not the most fundamental problem. In her view, network integrity is the biggest sticking point. "As our suppliers, not only to face the buyer's credit problems, but also to face the credit problems of middlemen." For example, to the logistics distribution system, our product world one is a glass bottle, then there is a distribution of security issues, another distribution time is also a problem. ”

"In fact, E-commerce online retail mainly provides the traditional 4C value model, namely price (cost), communication (communications), convenience (convenience) and customization (customization) four aspects." Among them, according to the general E-commerce customer experience, price and convenience is the main reason for customers to choose E-commerce. The experts say.

This "convenience" depends on the logistics industry. But the reality of the moment is that the logistics link has become the most expensive and the most difficult part of the electric business. It is reported that although Carrefour opened the online mall, but the order price must be greater than 100 yuan. "Logistics and distribution scope is limited to Beijing, Shanghai, and if more than a certain range of distribution, will be charged 50-100 yuan logistics costs." "Carrefour China PR manager Chen said. And the Hundred Union Group E City Distribution range, covering only Shanghai, Jiangsu, Zhejiang, Guangdong, Anhui, Shandong, Fujian and several other areas.

Reporter also interviewed Taobao mall, although Maxuejun to reporters, "due to the preparation, the specific circumstances are not convenient to disclose." But Taobao's actions had to be reminiscent.

As early as June 11 this year, Taobao also announced the official launch of Taobao Big logistics plan. Its logistics platform director Gongtao said at that time, the platform will be fully open through the API interface, so that logistics service providers, Taobao sellers and external businesses and all kinds of e-commerce sites can use the Treasure platform to achieve order transaction information, logistics information and the merchant's own ERP system comprehensive information through. "No longer need to manually import data information into the export, all of this will achieve electronic operation, back-end logistics management system of the powerful functions and offline logistics distribution system seamless docking will be fully reflected." ”

Analysys Business Solutions Company issued an analysis of the large logistics plan Taobao evaluation said, must solve the problem of warehousing management, because E-commerce Warehousing center and traditional warehousing, not heavy in storage and heavy turnover, that is, focus on access to the library and sorting efficiency and minimize the error rate. And this to the personnel quality, the system to the demand meticulous realization degree, the storehouse hardware, the management process refinement and the ease of use and so on request are quite high.

Look at the consumer's face:

High quality and low price, fast and convenient is my request

And the construction of the price system and the promotion of the big logistics model, in the final analysis, are to satisfy the consumers.

The success of the vertical business model has been trying to attract consumers, expanding the size of the market, in recent years, it not only expands the category, but also to create a platform, open platform. Macquarie's suppliers now include brand manufacturers and manufacturers designated agents and distributors (are gradually skipping agents and distributors, direct and brand business cooperation), as well as some foreign trade enterprises.

But with the large increase in the amount of Mai Lin orders, customers more batches of small batches of orders to increase the complexity of logistics center operations, due to the wrong hair, leakage caused by customer returns, as well as the resulting decline in customer satisfaction, and so on unexpected service problems are pouring in.

When the reporter threw these questions to Taobao Mall, Maxuejun once again to "is under construction, the specific situation is not convenient to disclose" reply, but it said, "for consumers, they want to be more convenient and efficient, pay a lower cost to get the goods they need, at the same time have a better shopping experience." "The accuracy of the customer mindset has always been one of the elements of Taobao success."

And look at all want to get on the horse and the online supermarket running companies, they "monkey nasty" reason is only the problem behind the other side of the flowers too tempting. Last year, Chinese online retail sales rose 117% to $39 billion, according to market research firm Eric. McKinsey, a consultancy, recently said in a report on Chinese internet habits: "Chinese netizens have about two-thirds Internet age in 3 years or less, and half of the internet age less than 2 years, according to past experience, netizens need at least three years of age before they become online shoppers. Assuming that this transition rule continues to be established, tens of millions of of new e-commerce consumers are likely to emerge. ”

For reference, the 1th store was officially on the line on July 11, 2008, as of September this year, the number of registered users has been more than 4 million, sales maintain a monthly growth of more than 30%, sales have achieved more than 100 times growth.

Perhaps one day, China's online supermarket sales of goods coverage is broad enough, and the cost of commodity production is low enough, Ma Yun Hope Long Tail theory will achieve maximum effect. This day should not be far from China.

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