The misunderstanding of thinking in the transformation of traditional electric business

Source: Internet
Author: User
Keywords Traditional Enterprise

March 1, Suning published performance letters show that the company last year's total revenue of about 105.43 billion yuan, an increase of 7.19%, operating profit of 161 million yuan, down 94.65% year-on-year. Among them, the 2013 online business that is, the revenue of the electricity quotient is estimated to be 21.89 billion yuan, suning online business quarter revenue 5.718 billion yuan, only the third quarter of 5.559 billion yuan slightly increased by 2.9%. Look at the data of its old rival Gome, March 20, the results of the United States reported that the 2013 Gome listed companies to achieve sales revenue of about RMB (same below) 56.401 billion yuan, an increase of 10.4%, the group comprehensive gross profit rate return of 18.4% high, over the industry average.

Compared to the results of two companies, Su Ning's performance can not help but hiss, and as the traditional retail industry, the transformation of the pioneer, why encounter Waterloo? This implicit internal cause is worth all the traditional industries in the transformation of the electricity business reflect, because Su Ning's road to the electrical business reflects the problem, but also the traditional industry of the transformation of the collective dilemma.

The electric dealer is the new sales channel. Today, many traditional enterprises in the electric business, often the electric dealers as their own inventory to reduce the cost of the freight yard, and a higher level of practice is to do as a new sales channel. As everyone knows, the essence of the electric business is the Internet of commerce. If we pull the timeline back to 2014 years ago, 2000 years as the starting point, it will be found along with the Internet economy from the edge to the center, consumer habits have been reconstructed, consumer role from the industrial era of passive response to decision-makers, for the quality of products demanding more stringent, more sensitive to price, This is the manifestation of the Awakening of consumer consciousness. The result is that the traditional industry must carry out from production to sales of the whole process of supply chain upgrade, the consumer-centric business concept into their own business system, which is the real value of doing the electricity business.

Take offline resources as token. Traditional enterprises to do electric dealers often put their own online channel is very strong, how many resources, such as hanging on the mouth. For example, with the fiery O2O, there is a 3C digital enterprise Mister also said to do O2O electric business platform. When asked where the advantage, the other said in the country has 3,000 3C shop partners, can be offline passenger flow into the line. This is very typical of the traditional enterprises to do the thinking of the electrical business. Why are few traditional enterprises to do the success of the transformation of electricity business precedent, why the domestic main electric platform are emerging internet start-ups?

If the electric dealer is grafted on the original branch of the traditional business, it is always flowing in the blood of the traditional enterprise, also can not expect him to bear a different fruit. The traditional enterprise operates online under the space, brand, supply chain and industry chain, the number of stores are the advantages, but to the Internet, play is completely different, no space concept, operating the Internet customer's time, that is, how to make customers willing to spend time on your electronic business platform. In the Internet, your original advantage is not necessarily the advantage, if still in Outworn, with the traditional enterprise line under the set of play basically doomed to the road twists and turns difficult.

Traditional enterprises do not have to give priority to what they have, but they do not have what the market needs, what consumers need.

Enthusiastic slogans of sports. Electricity quotient is a road that needs to carry on ego revolution, but revolution is not shout slogan. Su Ning Weimin said "electric business does not do die, do is to find death", but say and do is two different things. Revolution can not only stay in the slogan, to enter the heart into the marrow, but also to implement in the implementation. Suning last year made a vigorous go to the electrical slogan, the name is Suning "Cloud quotient", is swearing, also made the line on-line same price, O2O and so on many marketing concepts, the light shout slogan concept Last bubble will always burst. Today we have never seen Su ning propaganda these. In addition, Suning easy to purchase site also began to contract, in the layout more focused on their own good 3C and maternal and child areas.

To do electricity is to do the flow. "Do electricity business is to do the flow", has been the electric business practitioners as the golden rule. Flow for the value of the electricity business is self-evident, but more important than the flow is the flow of liquidity. In fact, there are several key indicators, first, the flow of the cost and conversion rate, that is, how much traffic can be exchanged for a customer, the second is the customer unit price, that is, the number of individual customers per client, the third is the rate of repurchase, that is, how often customers buy. These indicators test the level of a team's electric operators. Many traditional enterprises to do electricity business losses are due to ignore these key indicators. A few days ago, a traditional industry owner who had a children's wear said in a letter to a veteran that they had 28 million sales in the sky cat last year, this is their first year of power, if you do not see the cost can be done, but a question to know the final calculation of the promotion costs, labor costs, etc. also lost 1 million. This is a typical case of a traditional enterprise doing electrical business. In fact, whether it is to do their own electric business or to borrow the third party power platform, the flow of the cost of the year is the trend, so the traditional enterprises should pay more attention to the following two indicators.

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.