Why the electricity dealer's profit is inferior to the entity

Business friends around now to see me complaining about the real shop business difficult to do, physical store quickly become "corpse shop", or desolate, even if the crowd will not be too busy with the same gate, because most people are in the physical store to see things, try to feel good about secretly put the brand, model down to buy online.

These friends have recently asked me not to turn the store to Taobao, my answer is generally "oh, the pattern Tucson broken." But a lot of people do not believe that the electricity business is the general trend, we must turn the line, it is really discouraged, I generally recommend them, take a small amount of resources to Taobao on the test water, good words and then turn. There are not to listen to, six months ago a friend selling computer hardware to rent the façade of their own back, their own home Taobao open shop, the results of 2 weeks ago have to return to the façade plate, honest open entity shop, shut not mention open shop.

After the double 11, many people complained that although the sales are high, but can be a good capital preservation, why? Why is there less cost of layers, less shop space, less taxes and more profits than entities?

1. Online attention resources are more scarce. At the time of the line, even if every city has only one business center, there are 657 attention centers all over the country. Online, sorry, Taobao accounted for 80% of the traffic, that is, 80% of the attention in Taobao, people's attention is limited, we can browse the first few pages of Taobao display. All the people in order to be able to display in these several pages desperately hit the money, your competitive pressure suddenly big 657 times times, on the Taobao through train, the speed of the price increase is obvious to all to say.

Some people say, after the electric business platform is more than good, wrong, even if more than 10 Beijing east, 10 Suning, even if Taobao a single big status is broken, and how, consumer website attention page on the previous pages, how much competition can reduce?

2. The online "Matthew effect" is more pronounced. People with general knowledge of economics know that laissez-faire market competition will eventually go to their own negative-monopoly, a completely without regulatory intervention of the market, monopolies more easily formed and more serious. In the electricity market, the leading companies can use the price war to defeat their opponents: when the price war to the temporary, you do not follow? With, the opponent is bigger, can kill you, not with, consumers run to their opponents, you in this vortex will slow death.

Since the line is the Wolf's Den, the line is a lion, all so difficult, we can not do nothing, sitting ducks.

Remember the words of Warren Buffett, fear when others are greedy, greedy when others are fearful.

No amount of resources are competing for all, everyone can be divided into inevitable, since everyone wants to go online, why can't we do the opposite?

That is, online coping with competition and winning.

What is the reason for the success of the electric dealer? Low price, easy to choose, easy to compare, express rapid development. If the line with the same strategy to defend the line, is the short attack on their own, will surely fail.

So how to deal with online low price competition?

Brand, Brand, Brand!

is low price invincible? No, Liv let the Lauder disappear, Silk Street let LV disappear, Chery QQ let BMW disappear? No! Low prices are not invincible, Brand is a magic weapon to check and balance the low price.

What the brand is, for consumers is a good user experience to bring psychological impression, this experience is the value of things, is more than the heart expected products and services.

Once the brand is formed, it will form an impression with other products, the brand can offset the advantages of other products, so that they win the trust of consumers.

and online compared to the offline also has its own strengths, face-to-face communication, real-time experience, easy after-sale. This is the line can seize the opportunity and success of the establishment of the brand, success does not need to be all the same, only a point to the other side far behind can be-as Baidu's search, Ali's electricity quotient, Tencent's social.

With my experienced hardware friend, open shop online, consumers are near the city, bought hardware, he can also help installed, computer failure, he can help low-cost or even free repair, buy more things, but also to help send to the doorstep to help install. But on the line, we fight the low price and promotion costs, consumers from all over the country, even if they want to help repair also helpless.

In short, under the line is the Wolf's lair, although the competitor is many, but everybody body volume is similar, the line is a lion, a lone big, want to resist helpless, oneself fit to go where, oneself weigh weigh.