Who's to blame for the electric business in winter

When it comes to E-commerce, Dangdang CEO Guoqing is a figure that doesn't go around. Dangdang, founded by Guoqing, has a 2011 style that resembles its boss, Sharp Mowgli, unexpected: With the success of the U.S. listing expended, and rival Jingdong mall price war from the year to the end, from the book market breakthrough, Rapid killing into 3 C, Department stores field; online E-book channel, to follow Amazon to control electronic publishing channels Recently, when the desire to join hands with Gome, the domestic appliance sales ...

Yesterday, the TIANFU Morning News reporter exclusive interview "Big Mouth" guoqing, "outspoken" 2012 electric business.

Keyword listing

The obstruction of the IPO and the deterioration of the capital environment

Dangdang is China's first listed in the United States, profitable company online shopping mall. For the recent delay in the listing of several electric dealers, guoqing that it is indeed related to the deterioration of the capital environment, the capital market more value your long-term profitability, long-term profit growth than short-term profits more important.

Guoqing analysis said that the cause of electrical business into the winter, external factors have several: first of all, the online media costs are too fierce, advertising costs more and more high, and the electric business enterprises in order to do large-scale to investors to see, have burned money, hit ads, excessive burning of money, resulting in large areas of loss; second, many electric dealers hold the mentality of gamblers to pursue short-term growth, Lack of long-term vision, profit and loss completely can not be balanced, this time the bubble must have appeared, "very few electric business can like Dangdang this endure 10, this 35 years, can earn a earn, not earn, we will pay the money, my youth will spend." "The electricity business enters the winter, should say and the price competition is not necessarily linked, the price war is the retail trade's conventional weapons." Large electric business platform relies on large-scale purchase to reduce procurement costs, let consumers, can bring high growth, but the key is in the price war at the same time, whether flat or profitable.

Key Price

The biggest weapon on the online mall is still the price war

"Price war is still the biggest tool of online mall, on the one hand can maintain share, on the other hand, to give feedback to users; book share online accounted for more than 50%, including offline accounted for 15%, there is room to rise, while price warfare is conducive to increase market share, but will not affect profitability. Guoqing confidently said: "Our average discount, sales discount has been declining year by year." Dangdang Cow Place is not only dare to launch a price war, no matter who provoked the price war I have to fight back, and I fought back without delaying the profit, this point now see only Dangdang can do, will not lose the share? My department store growth rate is the fastest. ”

Changed a turn, Guoqing said, even in the winter, keep no less than the average line of growth is necessary, so for Dangdang, the price advantage can not be lost. "We use the lowest cost of procurement to cover the price war, our logistics, operation and operation of the lowest, we have customer accumulation and reputation, I do not spend market funds, you can win, the profit is not high." This profit can not rely on price increases, our average discount, sales discounts are declining year by year. Guoqing angrily.

Keyword Group purchase

Group buying is the tail-stock market and attractive.

About group buying, Guoqing once said on Weibo, buy is the tail goods market. "Chinese Clothing (000902, shares), shoes, the tail goods market, I know that Beijing has 2, a year also has 20 billion or 30 billion sales, the tail goods market is very attractive." Guoqing that, since someone specializes in cheap, such a good thing in fact, the most should do is Taobao.

Keyword bottleneck

Vertical electric dealer bottleneck in 500 million sales scale up and down

For the vertical class of electric dealers who rose quietly last year, Guoqing predicts that a unique vertical category will grow. "Since it is vertical, I think the annual sales volume will be able to rush to 500 million, which is a bottleneck." Then you take money to cheat others, a video site can do 300 million, and then steady growth, 300 million you do not cheat others 3 billion. ”

Guoqing said, "What is unique?" We say non-standard, style is always unique, then 3C is not counted? 3C is a unique service.

In his eyes, China has not yet appeared a physical category kill shop, Book class appears a Dangdang. "Gome, suning in the 3C shop is also, why it can be done vertically?" is the service, because it needs professional shopping guide, in addition to mobile phones, laptops can not return, other things how to return, at this time the expert shopping guide, and even should open a telephone shopping guide, which is very important, this is the vertical characteristics. ”

Keyword Purchasing

Luxury purchase will have a place

"E-commerce is a revolution, offline entity stores sooner or later will be impacted by e-commerce, because the traditional channel fare increase rate is too high, and e-commerce directly eliminates the middle of the channel link, so do not need to increase so much, nature can give customers lower prices." "There is room for competition at the speed of the guoqing," he said. He thinks there will be a number of convenience stores, and the convenience store may be in the same city or across the city. "The largest space is the former shop after the factory, before the factory like clothing, shoes, handbags, jewelry, traditional models are 3 times times the retail price, the use of network advantages, this space is very huge." I think, the former shop after the factory can achieve annual sales of 100 million, as long as serious hack in, you find that the needs of customers have not met, you can do 100 million. Such a space, 100 home, 1000 can have. Guoqing said that the future of the electricity market, luxury shopping will also have a place. Luxury of course for the kind of brand credibility of the business enterprise there is room and opportunity.

Keywords Winter

Even in winter, the average growth should be maintained.

Guoqing's "Big Mouth" in the industry famous, this year Beijing's liberal arts college Entrance examination, Peking University Scholar's character is like "Shan Pu" Straight! Facing the question of the reporter of Tianfu Morning Post, went straight to the topic. "Today's electricity to enter the capital of the winter is a fact, it should be said and price competition is not necessarily linked, price war is the normal retail industry, the real let the electric business into the winter, is a quick success of the gambler mentality." ”

Guoqing said, large-scale electric business platform relies on the large-scale purchase to reduce the purchase cost, lets the consumer, may bring the high growth, but the key is in the price war, whether flat or profitable. "Retail industry is always very low gross margin, saving every penny to improve customer service, this is our eternal philosophy, is a long-term mentality of doing business." We think that a short-term look at an ad may bring a lot of traffic, but we do not think that the retail competition is a year or two of competition, but a long-distance running. "Guoqing final.

In his view, however, the electric-quotient bubble would not have broken down in 3 years, as many had imagined. He believes that, in fact, from the consumer market, tens of millions of customers still hold the currency to buy, customers look forward to more and richer category, so from the consumer side, the electric business industry is still "spring."

How does the electric business enterprise spend the winter? Guoqing's experience, "You always have the money for the winter, balance the slight deficit with the high growth." Of course, even in winter, it is necessary to keep the growth of the average line, so the price advantage can not be lost, the customer experience can not be lost, so we have to constantly improve the customer experience. According to Guoqing revealed that Dangdang in the third quarter of the logistics invested 130 million yuan, but also invest in cloud computing research and development, building warehouses, large-scale platform construction, category expansion ...

Expert Analysis >>>

"China Amazon" when there is potential

As a veteran of the domestic electric business enterprises, to book the start of Dangdang in the online book sales field has an unmatched advantage. Yesterday, Yanyan, an international analyst at the country's renowned consultancy and analysis agency, said it had the potential to do "China's Amazon".

Yanyan introduced that China's digital reading market has gradually attached importance to the national level, and issued a corresponding policy and opinion support, publishers, publishers and book companies and other content providers have slowed down the previous cautious attitude, in addition to the increase in user awareness, the electronic publishing industry as a whole better, there is a huge market space.

Yanyan that, Dangdang operating over the years, the company has formed a cultural gene and books in the field of thinking, this is the company's soft culture, in addition to the public Heart brand image and other factors, are conducive to attracting content partners to become their ebook partners. In addition, Dangdang book channel strength is currently in the industry leading position, about 2.2 billion yuan per year of income level for Dangdang, paper book upstream content resources easily converted into E-book partners, and relatively low cost. So, when you have the potential to do "China Amazon".

Reporter Quick Comment

See Guoqing Weibo, is a "madman diary." But as the domestic qualification of one of the oldest electric business enterprise Dangdang's head, guoqing a lot of speech for the current domestic electric business industry pattern, are resounding, to the point.

From a simple online bookstore, to the integrated class of electric business platform, through 2011 years of Dangdang has been gorgeous transformation. 2012, "Madman" under the leadership of Dangdang, I am afraid still will not follow the common sense of licensing, its digital, home appliances, electronic publishing expansion will give every competitor continues to cause no small trouble.

Tianfu Morning Post reporter Mengmei Chenghao