The most ruthless form of gold absorption

No future strategic losses

The power of the electric business of the traditional enterprise collective inferiority, think not to do the electricity business is flooded by the torrent of history; in fact, you do the electricity quotient, still will be flooded by the torrent of history, because you will face than the line under the fierce many times the competition.

More than 8 million merchants, hundreds of millions of products, how do you stand out? There are tens of thousands of of them competing in "no integrity" in every detail. Desperately playing advertising, chasing a good deal, blindly chasing sales, as if only doubled the growth to let them feel that they are still in the power of the team, to prove that they have more cattle, as for the profit, The godfather of the electric business said, It will take years to be a power dealer to show you are a visionary.

Do you really think this strategic loss will prove your foresight? Last year, an article of the newspaper "a traditional business operator of the Tears of blood experience," caused by the collective reflection of the electric business, a 200 million of the traditional clothing brand, still do not make money, another famous food group trader also said that they can achieve 100 million sales this year, but will not be profitable.

Will they make a profit in another 10 years? Even if two companies may, there will be another large number of continued unprofitable.

A lot of shops are dead, just pretending to be alive, and more shops, though alive, are just bracing themselves. Taobao once on the scene of the shop, are fading, or committed to his home. The suffering of the electric dealers, only to know, and those false high people, still yell to let more unknown truth merchants into the Chung.

But in fact, they do not know, the soul of Taobao is a traffic traffickers, their own traffic to auction out a higher price is all the purpose of its business design, which is destined to Taobao only to let the business more intense contention for traffic only to highlight their value.

This is the karma of Taobao, this is "more" fate, put so many stores to a platform, in the convenience of consumers, but also doomed him only to ensure that about 10% of the business hard-earned profits, for the vast majority of businesses, this is a no nutritional business.

Therefore, "more" means the fierce competition, means that most businesses can only do "small", want to grab a meal, meaning that everyone can only rob a "small" mouth.

Small and beautiful, Ma Yun's another round of brainwashing tools

So, Taobao to avoid their own because of "more" and the shortcomings brought forward another round of brainwashing tools: small and beautiful!

They criticize the traditional business people: you people in the traditional enterprises, is the death of brains, one want to big, why not to think about it? Taobao is simply a "go big-name" platform, the brand does not do is normal! Is the trend of history! The future world does not need big brands! Big brands will disappear!

To！ Big guys also don't busy, how to do not do little, small and beautiful bar, those now 2 billion or 3 billion traditional brands, not to mention what the five-year target, ready to be Taobao decomposition it.

Would you believe that? Only those who put their heads in the Taobao cage for a long time can come up with such a wicked theory. Open eyes every day is Taobao, do the whole network marketing is a little idea of people, how many people are standing in the business environment to do overall thinking?! How many people know the big game of the traditional business interest chain? How many people have studied the consumer psychology seriously?! I am really very strange, those conversion rate is only 2, 3, rely on large advertising by overtime test with Taobao mixed relationship is supported by investors on the money to hit the growth rate of Amoy people, how strong the heart dare to come to such a conclusion?

To put it plainly, Ma Yun's "Small and beautiful" is following the "channel cost theory" after another round of brainwashing tool, is on the confused business "Ammin", is to hint at you, peace of mind, and then he secure your sales of 20%.

We do not intend to criticize brainwashing, brainwashing is the inevitable demand for cohesion, each from naïve to mature people, have to go through countless rounds of brainwashing, successful brainwashing called Faith, not successful brainwashing is called brainwashing.

However, we just want to reveal the nature of this crazy business, to give you a wake-up call, in the direction they pointed out, will it be a road or a trail?

Input-output ratio difference, the most ruthless absorption of gold industry

But the crux of the matter is profitability, the difficulty of earning money on Taobao, but the problem is blurred by Mr Ma.

Many of the businesses attached to the platform are now aware that advertising is too expensive and business models cannot support it.

Too expensive really mean: input-output ratio is too bad.

Over the years, in the face of this difficult situation of business, Ma Yun did not directly face, but in the fuzzy real focus, in the transfer of the topic. He wanted to put everyone's depressed to "business do not do" on, and then explained that I am here to manipulate the flow, because I pursue a small and beautiful philosophy, but the problem is not the size of the enterprise, but regardless of size, are making money difficult problems.

Do not make money small enterprises of course can not be big, you are large brands in general, may not make money, but also to work Taobao.

Frankly speaking, Taobao is a kind of "suck gold industry", last year's revenue more than 20 billion, net profit on tens of billions, and many businesses in the profit and loss of the edge wandering, a year 20 million of sales, 3 million or 4 million to send Taobao. Think next year will be better, but every year is faced with no end of the variable-say, you really think that one day you can touch the law of Taobao grow and develop?

Many businesses see other businesses doing well, it is thought that they did not do in place, is the through train did not master the key, is the page is too bad, is the supply chain is not keep up, is the traditional channel constraints, but did not think of two of the most core problem: Taobao this industry and how to explore consumer demand. They are trapped in a variety of Taobao tools to learn the exchange, but forget the core of business-profit.

Some strategists will certainly despise this kind of talk about profit thinking, that this is a small pattern, lack of strategic thinking performance, is petty, destined to be a small figure.

Even if it is, we are little people, so we just stand in the perspective of millions of small sellers to look at the problem of survival.

Why do we cling to the question of "profit"? Because profit is the survival and evolution of the ecological environment, this is the core of all ecology, no profit of the business ecology is a hoax!

The great to you, profit to me, this should be the basis of the game with Taobao, but the reality is that the great to you, profits are yours (Taobao annual net profit on the billion, still high growth), and I only in the subsistence line struggle. It's not science!

Ma Yun has always stressed that the big Taobao ecology, are around their own profit to design, business profitability is the most need to consider the problem.

The electric dealer was very simple, but was complicated by Ma Yun. This, in the book "brainwashing-how to logically convince others", is very vivid:

Like a bridge, do you see whether the bridge is a straight line or a curve, and then calculate: How many steps do I need to walk through? How long does it take? When the results come out, this is the price you pay for crossing the bridge. But more people may focus on something else. For example: What if I fall down? If I can't go down, how can I return it? What if someone is in the opposite direction?

These are all complex problems, but when you think about them, you throw away the most essential logic and fall into a logical path that is easily shaken and changed.

If someone says, do young people buy insurance? Buy a life vest? You will be shaken.

When you see the bridge over the complex, there will be endless complex things to come to the door. He made you no longer sober and forgot what you were going to do.

When you are stuck in all kinds of Taobao tools, all kinds of data models, when you spend money dramtically, you tend to forget that you are going to serve consumers this most root purpose. When your mind is only Taobao rules, not the rules of human nature, when you are confused.

Find the most quiet and sober when you ask yourself, can you win in Taobao? Do you have a down? Do you believe that?

Imbalance: the "gun bubble principle" that cannot be hid

Many businesses, fierce competition, input-output ratio, but also a lot of people into the flame of the investment Taobao, which brings imbalance. Now Taobao is like six o'clock Beijing North three ring, has been very blocked, but there are many people want to go to the corner overtaking, reality?

The traditional business circle, the first business district Rent High, why many brands or waiting for rent? As long as he chose this place, do not worry about people, this high rent is equal to Taobao's high promotion: are in order to attract traffic, as long as the revenue can cover costs, even for strategic considerations, even if the loss of money, will also be the first level of business, two level three business district also have their corresponding price, which has formed a balance, a reasonable deal, The cost of passenger flow should be kept at a reasonable rate.

No matter how subversive the tradition, the electric dealer cannot overturn this commercial balance principle. But too many people are scared by the "trend theory". Taobao department no matter how propaganda, his logic is to let the traditional enterprises go to the cat shop, whether it is to subvert the traditional industry (intimidation), or yell "Consumers here, Speed" (inducements), or large data, Alipay, big logistics These flag-waving layout, is to show one thing: I am here is the first level of the Internet business Circle. But they did not say white, the traditional first-level business district, just a few shops, you grab, it means your position; but there is no limit to Taobao, no limit means that there is no protection, all have the advantage, it means that everyone has no advantage, victory is always to seek the comparative advantage.

They will never tell you, if the big account, Taobao has caused the overall social efficiency of the low. The level of efficiency is not that you let the society run fast and slow, but the total return on investment.

The online cost is not lower than the offline, but why is the price of the line lower than offline?

Someone must have paid for this part of the cost, thousands of young people advance the time cost, a large number of traditional enterprises to advance the loss of capital costs, and some VCs, these advances are not sustainable, a large amount of capital investment in fact, Taobao "donated" money, this game, only Taobao undefeated, there are 10% Businesses follow the profit, the vast majority of the cannon fodder.

Business game, there are two major principles: the first is the principle of equilibrium, the second is foam and cannon fodder forever into a direct proportion, referred to as "bubble gun principle."

Any high price and low price of the industry competition, is to follow the principle of balance of equilibrium, the beginning of low-cost industry has an advantage, but with the entry of a large number of capital, gradually piled up a higher cost, become a high-priced industry, the original high-priced industry is constantly adjusted, slowly to balance. Ka and distribution channels of contention is so, the electric business and traditional channels of contention is the same.

When the principle of equilibrium is broken when the "bubble gun principle" plays a role, a trade or an industry could not have produced such a great value, but Leng have excess capital and redundant personnel to enter, the winners are doomed to be few. This is particularly evident in the Internet, the dotcom bubble is exaggerated more seriously, it expert Wu in the top of the wave, wrote in the Silicon Valley, can become Google's enterprises are few, but the dream to become Google's business has hundreds of thousands of, but the vast majority just to Google to do foil.

Electric business is the same, in Taobao success too little, most of the cannon fodder, foam more, cannon fodder more. The barbaric pattern of the platform determines the fate of the dwarf of most sellers.

Electric businessman, do not in the failure, a runny nose a tear to the forum post, tore heart crack the summary said, oneself could have succeeded, just a little bit, if not a few employees mutiny, if the boss does not give support, but the early transformation of their supply chain .... In fact, in a crowded bridge, any of your weaknesses may let you fall, is considered a pretext for failure, but why do not you reflect on the direction is not right?

Way out: How to break the fate of the parasitic Taobao

From imbalances to equilibrium, where does the power to pry leverage come from?

Everyone is saying, electricity business is the trend, Taobao occupies nearly 80% of the online share, do not do taobao do? It sounds sensational, but how much does it break down into your industry? How many companies compete on this platform? Of course, fear of competition is not a hero, the question is, this competition has the right to the age?

History of all ages, all rely on the platform, because the brand is too weak, the United States is not this situation? Why is this not the case in developed countries? Today, the platform of China's electricity business is so serious, it is simply because the Chinese brand is too weak.

Professor Zheng of Tsinghua University has made a statistic, the world's top 500, there are 75 Chinese enterprises, but, the world's top brands, there is no Chinese brand. Chinese enterprises are now the biggest mission is to build brands, rather than electricity, the electricity business is only auxiliary means.

So the electric dealer won't do it? Electricity dealers have no future? Of course not, Taobao must have a great value, for many shops, is still the most important battlefield, but, when this kind of industry becomes one of the most ruthless "suction gold industry" after, it is necessary to consider a new way of thinking to do the electric business!

Network Open Shop Practice is only the narrow sense of the electric quotient, the real broad sense of the electrical business should be integrated use of various resources, using a variety of it technology to achieve the consumer's full contact management, we can call it "big electric business strategy."