The value of the electric quotient platform behind the small and beautiful cluster

"On the road" small but Beautiful "(second quarter)"

1, "Small and beautiful" further highlight Taobao virtual Shoppingmall platform Competition Differences

At present, the domestic E-commerce model has been very clear: one is to Jingdong Mall as the representative of the business retailer model, there is a kind of online virtual shoppingmall like the day cat model of the pure platform. The sky Cat is the pure open platform mode, the day cat platform is completely does not control the goods. The former is both B and 2 for the vertical type of the business model of the two electric dealers, but B is only 1, both as a seller and as a website; the latter is only a link between B and C 2, the website, and B has n. As a result, their profit patterns were determined differently. The former profit by the sales difference, the latter by the service.

The retail mode of the pure electric dealer is not the ultimate mode of the electric quotient, and the mode of the consumer retailer is transformed into the online virtual Shoppingmall platform mode. But at present, in China's electricity dealers, only Taobao, Pat and ebay and other three platforms can open shop, they have open shop system, shop owner (also known as "dispensers") certification system, shop credit evaluation system, and other electric dealers are proprietary mode, do not have the above three systems, in other words, only these three platforms have " Network Quotient "group exists, while others are called" Electric quotient ". This is the fundamental difference between Taobao and Jingdong, Suning, No. 1th shop, etc. At present, proprietary-type electric dealers are trying to transform themselves into proprietary and online virtual Shoppingmall compound mode.

From 2004 Alibaba Group United China Electronic Commerce Association and the Hangzhou Municipal People's government jointly organized the first network business conference to 2012 Nineth session of the network business, Alibaba is China's only in the country to hold the network business conference of the electric Business platform.

2, "small but beautiful" in the open background of the public power to launch the free precision investment advertising

Suning easy to buy announced the main cosmetics of the music bee nets and main clothing of all the guests settled suning easy to buy after. Shop No. 1th launched the "No. 1th Mall" at the end of 2010 and implemented an open platform strategy. July 2011, the Amazon officially open platform, its "I want to open a shop" project to the seller to implement no fee, no annual fee, no platform use fees, such as the early "zero investment" policy ... Open platform has become a trend of the electric business. In the current round of electric business open platform craze, Taobao from the beginning of the establishment is located in a link between sellers and buyers of the Internet intermediary platform, itself has an inherent openness.

In order to support the growth of SME sellers, Alibaba on October 24, 2010 in China, including Shanghai, Beijing, Guangzhou, Shenzhen and other cities launched the "Light Taobao Road" series of activities. May 15, 2011, Taobao University again United many partners "light Taobao Road" small and medium sellers growth plan. Taobao II will also use their experience to help many small and medium-sized sellers to solve the actual operation of specific problems, including how to play data marketing, how to participate in Taobao official free activities, how to build brand and influence through Word-of-mouth marketing, how to better retain repeat customers, how to compete with big sellers and so on. A large number of businessmen and entrepreneurs using e-commerce means, is forming a "network business" group, over the years, the network business groups in the network business assembly with the accompanying experience from the emergence of survival to the rise to today's ecological and socialization of the whole process. They changed the way of business operation of Chinese enterprises, changed the competition pattern of China's economy, and promoted the Chinese Internet from "Netizen" and "netizen" to "net Merchant" era.

Taobao these SME sellers support program has multiple purposes, one is for investment, the second is to cultivate sellers, the third is to expand the social influence of Taobao brand, but also to cultivate buyers. The Internet and small and medium-sized enterprises are Taobao two soul, Taobao is the combination of the two, using the Internet to grasp the needs of small and medium-sized enterprises. Seize the small and medium-sized enterprises will have roots, and seize the internet, there is a forward-looking direction.

Taobao sellers through the word of mouth, "to start on Taobao", "to open the shop Taobao", "to shop on Taobao" has become the first reaction of people. and open electric business platform, aimed at small and medium-sized enterprises stationed in, and support them to thrive on the platform, this is the electric Business Platform service mission and competitiveness source. SME sellers as their precise investment customers and provide a full range of growth support solutions, Taobao is China and the world's only electric business platform. Taobao is one of China's few small and medium enterprises to be seen in the platform shop operators rather than supplier identity of the electric business platform.

3. The commercial ecological value of "small but beautiful" to the electric business platform

(1) The big seller in the platform and the small and medium sellers coexist co-prosperity

2010, Taobao announced the implementation of the "big Taobao" strategy, open the Business platform strategy for all retail forms of full openness, on the one hand, the introduction of more than 70,000 brands and 50,000 merchants into Taobao Mall, including Uniqlo, Lenovo, Dell, Li Ning, Uniqlo, Gap, Ray, Procter and Gamble, Kohler, Jack Jones, Trimebutine Home and other traditional brands settled Taobao. On the other hand, the introduction of vertical Web sites, such as every guest net, hundred Li Net, a shop net, Bowser net, silver Thai net, wheat test forest network, easy to network, Lok Amoy NET, new Egg net, good buy net, red Child net, walk show net, only product will net, etc., also advance in Taobao Mall, This makes Taobao has evolved from the network retail shopping platform into the Web retail shopping consumption portal.

But the problem comes with it. Taobao launched the day cat, Taobao become too big too bloated, more and more days of cat users occupy too much resources. And the day cat customers because of financial strength, occupy the flow entrance this restricts the performance of the shop to enhance the core resources of the dominant power. With a variety of resources to the cat tilt, but also gradually cut off the Taobao market, small and medium-sized sellers finally confidence, so that they become increasingly unprofitable. A large number of crowded shops to expand the homogeneity of the competition, but only by limited access to promote their own channels. No matter what an online shop sells, it will be found that a lot of people are selling and using the same marketing tools-the same site template, the same picture, the same purchase channel, an online shop is difficult to stand out from. Taobao is no longer a small seller of heaven.

Compared with previous years, the opportunities and advantages brought by diligence are not obvious, with the presence of major enterprises, these elephants will certainly impact the entire ecological environment. In addition to being eliminated from small and medium sellers, there are not too many alternatives. This is the inevitable result of the development of China's e-commerce environment. Alibaba faces a dilemma, either by choosing a big seller, a big brand, or by choosing a small or medium seller, or both. Taobao abandoned once to help it grow up small and medium sellers, Taobao will never do so.

(2) to vicious competition, to reshape the benign competition ecology

As Taobao is the online virtual shoppingmall type of pure platform model, with the problem is the same quality of the sellers, price competition and other vicious competition phenomenon prominent, the ocean like shop and net goods lead to the product of the personality submerged. According to Taobao official statistics, Taobao men as an example, Taobao on the number of SKUs for 20 million pieces, but if these goods are merged, 93% of them are the same, that is, 20 million of the merchandise, only more than 1 million of the goods are personalized goods, a large number of goods are overlapping. These overlapping products because of search rankings, the explosion of access to the vast majority of traffic, the more than 1 million of personalized products submerged.

Taobao GMV (gross merchandise Volume, a certain amount of time to deal with the total) route has become a breeding ground for fake and inferior products, although the low price attracts a steady stream of passenger flow, but the quality of the vendors ' supply is deteriorating, shanzhai, parallel imports, Taobao is blamed for the fake concentration camps. 2010, Ma Yun announced the launch of 100 million yuan everyone rights compensation fund, thoroughly clean Taobao environment. Previously, 14,000 outlets had been punished. In April this year, the Shenzhen customs in the "Shield of the country," the large-scale arrest and seizure operation, captured a involving more than 500 million yuan of large electronic products smuggling gangs, captured 104 people involved. including Taobao five crown shop Blue excellent digital. Blue Excellent digital is the main Apple products, monthly sales of Apple and other electronic products nearly 20,000 units, ranked Taobao mobile phone category of the top 10 sellers, in nearly hundred cities nationwide have joined stores.

Taobao in the development also feed a parasitic industry-taobao brush hands. In order to obtain a higher level of credibility, access to the front of the ranking and more window promotion, many sellers chose to brush the credibility of this "shortcut." Professional brush hands to use sellers to seek the credibility of the mentality, forcing it for the target sellers brush points, if there is a violation will immediately report Taobao, in order to obtain huge profits. Taobao's business competition model is in a vicious circle. Taobao does not change, almost no way, to the transformation of "small and beautiful" first is to suppress fakes, followed by the crackdown on fake and inferior goods, and again the crackdown is brush the hydraulic, and these three are harmful to Taobao business ecosystem of the black sheep.

The core of "small but beautiful" lies in the greater satisfaction of consumer demand, such as customer experience, warehousing logistics, product structure and product model. "Small but Beautiful" competition is the operation of businesses and commodity characteristics, as well as the level of awareness of consumption. Online hundreds of millions of of consumers enough to support small businesses bigger and stronger, the future winners, must be the characteristics of the business. This "double 12" becomes the watershed of Taobao and the cat, the day cat to standardize and brand, to achieve the direct sale of well-known brands to end-users, Taobao to create "small and beautiful", towards community and personalized, to build long tail goods and brands.

(3) A large expansion of the platform category, upgrade the self-drive SKU

Because the platform is open, the network retail object "does not cap", namely satisfies the network retail object and the marketing bottom Line Foundation, any goods and the service can become the network retail trade object. From the beginning of the creation of the thousands of categories of commodity development to today, the transaction object in meeting the "legal" and "moral" of the arbitrary expansion of the bottom line ... Trading commodity categories from large durable goods such as automobiles and real estate, to gold, diamonds, jewelry and other luxury goods, to clothing, household items, food and other necessities of life, to fresh farm products and cold chain food, and then to shop operation training, trusteeship, decoration, photography, network goods quality inspection services, but also including network game equipment trading area, Virtual currency trading area, water, electricity, gas, rent, material management fees, lottery tickets, beauty salons, tourism and so on.

According to Statistics, 2011, Taobao currently has 600多万家 online shop, Taobao trading network goods have reached more than 100 large categories, more than 1000 Asian categories, 10000 kinds of small, 100000 kinds of goods, 1000000 models, styles, colors, 10000000 types of offline and offline service-oriented products and creative products. 2012, the number of Taobao products has reached 800 million pieces. But the real number of goods Taobao can not be simply measured in billion units, "small but the United States" strategy will jump to the billions of level of the net goods category. In human history, there has never been a department store, shopping malls, shoppingmall or shopping market with such a large and rich product category.

Similarly, Taobao will channel, tools, etc. to the network at all levels of the network retail body Open, which for the entire community of goods and services innovation for the marketing subject of innovative activities to create an unlimited space, providing an unprecedented tool and means. Thus, the whole society's product development and marketing innovation, creativity in the online retail era unprecedented burst out, you can imagine, in the future on the platform of Taobao any creative goods and services will be created and realize its value. and category expansion, SKU Upgrade All of this power does not come from the Electrical business Platform product category planning, nor from the power of the super "buy hands", but the electrical business ecosystem self-development expansion after the natural results.

(4) "Small but Beautiful" is the main customer of the value-added service of the electric business platform

To provide value-added services to customers is Taobao virtual Shoppingmall model of the pure platform of one of the profit model. Even if not the advertising system, Taobao to the seller to collect money value-added services project has reached nearly 20. Although each item is optional, but some services, the merchant has to buy. Taobao "Wang Pu" is the most commonly used value-added services, the purchase of the service needs 50 yuan/month, is actually the two version of the shop interface, free open shop not "Wang Pu" version of the picture small, poor interface. In addition to "Wang Shop", if the shop to use their own pictures, their own video, etc., also need to pay space fees. Taobao through the module split, scattered charges, the store often one months to bear the cost of dozens of yuan. Order the "Member Relationship Management" service, which is 90 yuan per quarter. In addition to the above tools, there is a class of data analysis tools, through the table to provide store traffic, consumer information, merchandise statistics, and split into different units for charge. For large sellers, there is a high price of independent shop services, the price of 3600 yuan per year. At present, Taobao Shopex as a major shareholder in its value-added services to provide customers with SHOPEX products package, to provide independent shop and Taobao shop services, in addition to the collection of 3600 yuan per year of rent, but also a 1.5% transaction tax.

In addition to value-added services charges, Taobao additional revenue from advertising, such as Taobao's internal search auction system. 2010 New Year's Day, Taobao again revised, the most obvious is to highlight the search box, the bidding rankings as the main way of advertising. In a word, only by Taobao itself, the import resources are always limited, Taobao is putting every import resources are now, but even so, still can not meet the needs of many sellers. In the longer term, the threshold of Taobao will become more and more high, for small and medium enterprises and entrepreneurial students, there is no chance. For so many value-added services charging items, if Taobao shop on the tens of thousands of shops only small but not the United States, or even very "ugly", have a "Amoy", even pay platform value-added service fees do not have the ability to platform "beauty"?

(5) "Small but Beautiful" is the main customer of third-party software providers

After the opening of the platform, ISVs ultimately hope that the Electronic business platform to bring their own business value. For the software business platform, there are two kinds of profit model, one is software sales, that is, the application of SP, software vendors can be fixed monthly, annual fee;

Taobao, Taobao box on the shelves of software revenues in the following 150,000 yuan, Taobao and software developers are divided into more than 150,000 yuan, The ratio of software vendors to Taobao is 5.5:4.5. Taobao is well aware that only a large number of applications have been developed, Taobao itself can be in the massive application of the new value generated by the increase in income. Therefore, Alibaba Group strongly supports these independent software developers, and even set up 10 million funds each year to support excellent developers. Cooperation with ISVs has come to a path: Taobao opens its own platform, allowing a large number of collaborators to create more business models. At this time Taobao is like an angel investors, with their own resources to invest in the future through the derivative of the business model of the proceeds of the split. The secret of the Open platform's "big Taobao" is the Open API (Application interface) as an opportunity to form a multiple interface open platform to attract a large number of partners into a business ecosystem.

(6) "small" is an important potential customer of Ali Finance

At present, Arrey Finance has become the platform, the data after the three strategic pillars, its economic value is obvious, playing the electricity business is playing finance, with money to make money than to sell real goods, this is the eternal truth! No brand, there is no capital, not even the purchase of Taobao shop in the beginning must be very small, or even very ugly, but it can be in the electric business finance, Third-party software and other platform services to grow and develop, realize "butterfly change", from small to big, from ugly to beautiful.

As early as June 2007, Alibaba officially with China Construction Bank, Industrial and Commercial Bank of China to determine the financing of small and medium-sized enterprises to launch strategic cooperation, Ali called this business as "Ali loans." October 2007, Alibaba joint Industrial and Commercial Bank of China launched the "Easy to access" product services, for "good faith" member network to rely on network credit to obtain unsecured loans to remove the barriers. June 2009, Ali loan from the business-to-business business split out into the Alibaba Group, the establishment of Alibaba Financial division, responsible for all the subsidiaries of the group's platform financing business. March 2010, Zhejiang Alibaba Micro-Loan Co., Ltd. was officially approved.

Ali Financial announced that as of the first half of 2012, its microfinance business loans 13 billion yuan, since the 2010 self-employed small loans accumulated 28 billion yuan, for more than 130,000 small micro-enterprises, individual entrepreneurs to provide financing services. July 20, 2012, Ali Financial realized one-day interest income of 1 million yuan, to calculate the year Ali financial interest income will reach 365 million yuan. This is a loan model that is likely to solve the problem of microfinance, and its business is also a miracle, especially its number of loan pens.

Income from credit interest differentials

The profit of commercial bank mainly comes from the difference of deposit and loan interest. At present our country deposit interest rate is 3.5%, the loan interest rate is 6.56%, spreads spreads over 3%. Since Ali's credit finance is mainly aimed at merchants who cannot normally borrow through banks, the loan interest is as high as 20%, which far exceeds the interest rate of commercial banks. This spreads mainly from the high risk of this part of the merchant, because at present our country, the citizen individual and Enterprise's credit system is not perfect, each department and the area are constructing the credit data system, but because of each kind of complex reason, these data are not mutually open, causes the bank loan in the credit appraisal aspect to be difficult, Thus restricting the financing way of small micro-enterprises. And the cat and other brand big customers have mature credit and financing channels, there is no need for Ali financial credit. Only the SME network provider lacks the financing channel and the ability is the potential customer of Ali Finance, the credit interest difference income can only come from this customer group, this is very obvious.

Large Data value-added applications

Through the analysis and utilization of the data, the electric dealer generates huge amount of data through the customer accumulation and transaction, which can produce a lot of value-added business and commercial application. Ali Finance is able to lend so efficiently, mainly because it has a large number of transactions based on Taobao, Cat and other E-commerce site customers left a lot of data. The most important factor of credit is cost and risk, Ali Finance solves these two problems through collecting and integrating data.

Enhance the stickiness of medium and small-sized network business Platform

Ali Finance on the one hand to meet SME financing needs, on the other hand feed their own business, enhance user stickiness. Ali's financial services are mainly aimed at Alibaba member enterprises to provide short-term financing, on the one hand, the establishment of Ali small loan company lending, the use of its own funds, on the other hand with the bank loans, the use of bank funds, Ali acts as guarantor and credit information provider role.

Enlarge the production capacity of seller's platform sellers

In fact, many self-employed network operators are facing the problem is that the original capital and expanded reproduction of the capital is not enough. Prepaid is used for consumer up-front consumption of the payment, divided into personal account deposit or advance payment, the former is not certain specific purchase properties, the latter determines the specific purchase of goods attributes, its role is used for future consumption of funds to pay. Credit is used to prepare the production to pay for the production, for the start-up or expansion of the elements of the funds to pay, while the electricity business credit has expanded the capacity of small and medium-sized network operators.

Conclusion: "Small but Beautiful" is a new strategy put forward by Taobao in its own interests, but it has a significant external economy, is to realize the benign development of the platform itself, and promote the independent entrepreneurship, self-employment, free to create a "three-self" type of social development molding. "Small and beautiful" conveys such a message, that is, the new Taobao will protect the interests of small and medium sellers on the basis of doing their best to promote the growth of small and medium sellers, so that more small and medium-sized sellers from the foundation of new Taobao quickly grow up to provide more employment opportunities for the community, to create more consumer opportunities, At the same time, Alibaba Group is committed to building an open, synergistic and prosperous e-commerce ecosystem in an indispensable part of the common promotion of the development of new commercial civilization.