Where is the road for electricity merchants?

The essence of e-commerce is the online manifestation of retail trade pattern

E-commerce is a form of business model, only the use of the Internet to integrate traditional industry into the internet, so that the traditional industry is difficult to overcome such as regional, temporal, population attributes these problems have been solved. But after all this is a business model, the essence of the business model is profit, not charity. But domestic e-commerce seems to be doing charity, are in the loss, now think this is a strategic loss bar. To understand E-commerce, we must recognize the nature of the offline business.

The offline business form is actually a buying or selling form or retail form, earning the difference in the sale of goods. In fact, the retail form is divided into two phases: trading business and platform business. Trading business is the first choice of good goods, talk about good prices and various conditions, and then buy goods in, and then through its channels to sell to consumers. The platform industry is actually like commercial real estate, does not participate in the operation only provides one commodity sale place, through gathers the crowd, the rule, puts this place to fry the hot, then collects the transaction the Commission and the rent advertisement expense as its business return.

The essence of the buying and selling form lies in the ability of controlling the goods, choosing the right goods, making the price concessions, organizing the proper sourcing, and then earning the difference in the stock turnover, which earns the money of efficiency. The platform actually does is commercial real estate, earns is the flow of money. To discuss the two forms of which is easier, from the ease of speaking, platform model is more difficult, where the need for a large number of human, material and financial expenditure, but the platform model once successful, its value is immeasurable.

Retail mode

Retail is actually a product from one terminal to the other end of the flow of a process, retail profit is the circulation efficiency of money. Retailers make profits by reducing the cost of single-room goods through large-scale purchases. The core of the retail company is to organize the specialized sale, the marketing team, use the specialized ability and the specialized knowledge to make the source more accurate organization. The retail company pursues is the commodity control, the stock turnover optimization. So you should know why the world's most cattle logistics team is Wal-Mart, one of the most cloud computing companies have Amazon, because they are operating their own core-operating efficiency. At the same time, among the top 10 companies in the Internet, Amazon is the internet company, and the rest are the traditional companies entering. The reason is that the traditional enterprises have more professional buyers for commodity organization and marketing, through the line of online coordination to make a single piece of goods cost lower, so as to achieve profitability. One key point to emphasize here is that Amazon can be defined as a technology company and a retail company, not an internet company. Amazon's early losses have been doing two things, one is to build logistics but to get their own system. The aim of these two is to maximize efficiency.

Platform mode

The platform model and the retail have the essential difference, the retail pursues the efficiency platform pursues the user scale maximization. Platform companies need to bring a lot of consumers to the platform to attract consumers to buy and then the platform operators through the collection of rent, sales deduction or similar network platform to collect advertising fees and other forms of fees. The difficulty with platform mode is how to organize the large-scale user, the user is the core rather than the merchant user.

Advantages and disadvantages of home electric business platform and Business-to-consumer

Retail mode in the efficiency, platform mode in the number of users. Home electric Business is an extension of the traditional home industry, but the platform or the business, but need some consideration. Let's take a look at the business model. The advantage of the traditional home industry lies in the back-end, which is logistics distribution, supply chain grasping, marketing and resource integration. It is risky to enter the platform model without any experience but simply recruiting some internet practitioners. and platform mode is the most concerned with traffic, from 2008 to date, network traffic is high, the cost of network marketing is also getting higher. In the case of Baidu, the number of customers in the third quarter of 2012 was 300,000, and the average contribution of each customer was 12,000 yuan. But in the third quarter of 2013, the number of its customers grew to 464,000, with an average contribution of 19,100 yuan per customer. The main reason is that a variety of enterprises began to shock, in the key words and the promotion of the demand, because of the reason for the bidding rankings Baidu's revenue growth. Do the platform difference two things, money and flow. But Tencent and Baidu have tried to do a comprehensive big electric dealer, but died, the main reason is the problem of thinking. In the existing pattern of Taobao, and then use life to imitate Taobao, will naturally be eliminated.

Home Electric Shangjianping The failure of the example, which is the cattle litters and Red Star Mei Kai Lung. Ngau WO Network has now closed down, but the reason for its failure is due to the broken capital chain, the essence is not enough flow support and customer retention is not basic, most of the money has been cast as a diversion volume such as Baidu Company. Ngau wo nets in the absence of customers, the first set up business groups, and then go to buy traffic to promote transactions. The risk of this model is derived from customer viscosity and the formation of the market has not yet arisen. Red Star Mei Kai Dragon in a year ago set up their own electric Corps team, at first the scale of nearly 400 people, investment hundreds of millions of but in exchange for tens of thousands of yuan revenue, input-output ratio does not match completely. The money spent is mainly used in two aspects, one is the wages of the other is the flow. It seems that all these electric dealers can't escape a problem, traffic. In fact, also overlooked another more substantial things, that is, the same as the retention of the customer, can also be understood as the accuracy of customers.

What is the path of the electricity merchant? Via, acquisition, new mentality

The advantages of traditional home enterprises lie in the understanding of the home market, supply chain and product mix and marketing. Take the platform of the route is bound to give up their advantages to go to the disadvantage. At this time, the traditional home enterprises should be via and born. Via is a good starting point in the initial phase of electric shock. Unless it's a strong brand like Apple, it's hard to get enough passenger support to build your own website. To take a simple example, last year, 11, Dangdang chose to put their entire site in the form of the store into the cat, why? The cat has traffic, this part of the traffic generated by the transaction profits offset the cost of the purchase flow. Is there a new home brand in the flow of the volume? The author found that at present, the amount of turnover produced by domestic electric dealers is largely derived from other mature network shopping platform, such as Cat, Taobao, Jingdong. Another route is to take the acquisition route, Suning in the electric business route is not intended to be limited to a field of home appliances, but to take the general purpose of strategic thinking. At first, home appliances into the internet, and then like books to expand, but how to expand the department store? Su Ning's idea is to buy red children, using red children's channels and resources for the mother and child market layout, with a few short months of time to complete the other mother and infant years of expansion. Traditional home brands in a short period of time to aggregate a little internet effect. Of course, if the traditional home enterprise must be Internet, must have a new business, new companies, have zero mentality. Although the line has advantages, but there are many different points on the line and offline. Wal-Mart's electric trade route is the best example, and Wal-Mart has been exploring Internet routes in China for a long time. Finally have to take the purchase of a store strategy to re-enter the market. The author finds out from the examples of these failed traditional enterprises, traditional enterprises such as the Internet must have three ideas: the formation of a new professional team, do not rely on the line of the team to enter the Corps team to operate; the second is to the new electric business sector as an investment, do not make a slight mistake immediately to take layoffs and other measures Should instead abandon offline resources and have a zero-starting mentality.

Author profile: Zhang Internet Data analyst, e-commerce observer, Mailbox zhanghui_james@qq.com

Micro-Credit Account: Zhanghui_james