Vertical electric business should not be developed in depth

In the past two years, the vertical electric dealers in the category expansion is very rapid, Jingdong, when, where customers and other electric enterprises are involved in different areas of diversified products or services.

Select a single category to facilitate the collection of limited resources to strive for preferential supply channels, control operating costs, to achieve a single category under the richness of products and sourcing adequacy, to meet the user in this category of demand. However, an unavoidable problem is that the early vertical category of the business brand in order to achieve a short period of time to occupy the market, as far as possible to reduce prices, profit space is the maximum squeeze; and the goal of brand development is ultimately profit, profit maximization is the ultimate pursuit, the original single category can not be satisfied Therefore, in ensuring that the current market dominance is unchanged, how to obtain more profits to become a vertical business brand next topic, product category from vertical to department stores become the preferred solution.

The transformation from vertical to department store is not an overnight change, the trend of different brands is not the same, such as the platform to start with 3 C in the transformation of the department store to show a better momentum, and clothing and books to start a platform to transform the resistance is more obvious. What's the point? Some people say, is similar, in order to facilitate the convenience of users to buy. This feels like a supermarket mentality. But the need to think is that all-inclusive's operating model reduces operational efficiency, also deviated from the beginning of their position, slowly from a light industry division into a heavy company; some people say that before the big and deep own category, we must focus on, a hammer is not into the wall, only nails can hit the wall, and then widen, In the early days must know to give up, put down, know what can be done, what can not do, there is, there is not, the later modest expansion, improve the user's shopping hit rate, thereby improving conversion rates.

What are the advantages and disadvantages of the expansion of the vertical category of electrical business? How to grasp the relevance of the expansion of the category of target? More questions to answer, let us look forward to professional answers.