2013 Electric dealer main profit war non 3C category become when the breach

[Guide] 2013, with the comprehensive electric business platform in the logistics distribution, information systems, supply chain system, such as the huge investment in the ending, the electric business will step out of the high investment period, the turning point of profit.

Capital in the cold, the electricity business started from the previous pursuit of scale to pursue profitability. After the Beijing-east, Fank demand for profit stop, including when, litters group of electric companies, such as the company pointed to the profit target. 2013 Electric Business industry war leading role, will be before the price war blood, abdicated in the profit competition, 2013 electric business industry or profit inflection point.

December 26, 2012, "Daily Economic News (blog, Weibo)," the reporter learned from Dangdang, Guoqing (Weibo) has determined that the 3C category as a self-hematopoietic base, in order to achieve the 2013 quarterly profit target.

It commentator Cao Yuping that 2013, with the integrated electric business platform in the logistics distribution, information systems, supply chain system, such as a huge investment in the ending (already has a certain scale), the electric business will step out of the high investment period, the turning point of profit.

Non-3C category into a profit breakthrough

Reporter from Dangdang inside understand, recently, Guoqing called Dangdang more than 10 front-line senior executives in Beijing, Kowloon Resort to convene a meeting. At the meeting, Guoqing determined Dangdang's future strategic layout: In the next 3 years, when the positioning will focus on the high-end, and the category map will be more focused on books, baby, clothing, daily necessities and other four categories, soft hundred and digital business for the cultivation of category.

According to one when the executive revealed that as early as 2009, when the Chen Tenhua as Dangdang Market vice president when it is hard to open up 3C category and Guoqing had a dispute. Chen Tenhua that, if not open up 3C category, when sales will soon be surpassed by competitors, after all, a book average price only in 20~30 yuan, and mobile phone, notebook prices at thousands of. And guoqing that, 3C category margin is quite low, the other warranty, service, logistics and other costs are higher than other categories, as a convenience category is acceptable. If you put your full effort into it, you will fall into the trap of long-term deficit, which is not in line with business logic.

In fact, the "profit" has been a widespread "topic" in the electric business industry, and the 3C field is popular because it can rapidly enlarge sales figures, gain market share, however, the 3 C gross margin is too low also become the biggest problem.

According to the executives revealed that at the meeting, Guoqing will be the situation in Beijing and east analogy, before the outflow of 2011 financial report, the revenue of 21.1 billion yuan, gross margin of only 5.5%. Guoqing that such a low gross margin has been unable to meet tens of billions of dollars or even hundreds of billions of yuan platform construction. This is why the guoqing only 3C as a convenience category and moved to a non-3C field.

Aiming at the promotion of gross profit

Shou, an international senior analyst at Analysys, said: "Net revenue, gross profit margin, operating expenses are the three key indicators for the evaluation of electricity quotient in the capital sector." Capital in the winter, gross margin is more like the sword of Damocles determines the power of life and death of the key. ”

Dangdang released a 2012-year Q3 earnings show, the quarter net revenue of 204.9 million U.S. dollars, an increase of 42%; Gross profit margin of 15.2%, compared to the same period of 13.8% and this year's 13.1% Q2, the next day after the earnings, Dangdang shares soared 13.86%.

Reporter noted that, in 2012, Dangdang's investment platform has 14,000 merchants, quarterly contribution rate of more than 40 million yuan, which is also known as guoqing to improve the gross margin of the main reason.

March 25, 2012, when the United States and Gome (micro-BO) to create a professional home appliance retail Platform Gome (micro-bo) city officially running, and launched a strong 3C home appliances price war, April 19, Jiuxian Network and Dangdang announced the two sides reached strategic cooperation, Jiuxian network will be exclusive operation Dangdang liquor channel; May 10, Dangdang and a Amoy network announced the cooperation, Dangdang to a Amoy network Open Data interface, while joining the latter's one-pass system, allowing consumers to use Alipay account directly when the current purchase.

A series of seemingly dazzling movements behind, in fact, is disorderly in order: each step of the foothold of chess is aimed at raising gross profit margin.

According to the Dangdang earnings show, even in the fierce price war at present, its book category gross profit margin is still 20% fluctuation.

In the new business development, to when the best products for example, the current monthly sales breakthrough tens of millions of dollars, as its own brand, its gross profit margin reached 40%~50%, and the cultivation of category E-books net profit can reach 20%.

Dangdang vice President Jiangqiang earlier in the "Daily economic news" reporter interview, said that the reason to do self, is to improve the overall gross margin, self will be compared to do the brand to sell at least 10%-20% higher. A ready-made data can refer to: Only the goods will be 2012 Q1 quarterly display, its gross margin of 21.2%.

Liu Xingliang, an Internet veteran observer, pointed out that "the power companies are struggling with the price war, in addition to the huge capital chain pressure, margin contraction, a price war also needs to cooperate with supply chain management, category management, marketing, logistics services and other departments, the internal communication costs are enormous." He stressed that the 2013 demand for electricity companies to seek a more intense, because of this, the electricity business will return to the essence of business, to find the profit category will be the mainstream.

According to Guoqing for Dangdang book, Baby, Day hundred, clothing and so on 4 laps, Dangdang's profit pace will emerge in 2013 gradually. According to Analysys report, non-3C electricity market share, the cat, Jing Dong, when occupy the top three, of which mother and child, clothing, books are Dangdang core profit category.

According to the reporter understands, the current Dangdang's book gross margin still maintains in 20%, occupies 39% net buys the book market share.

Mother and child, as the month when the second largest revenue for the blood supply department, with the red child user viscosity is only 2-4 years different, responsible for Dangdang Baby department vice President Wang said: "When the baby child is mainly for 0~12岁 children, child books can be glued to the baby after weaning a long time, which is different from other platforms, After the baby period will lose a customer's drawbacks. ”

Clothing also becomes a profitable category. According to when the internal disclosure, last year, "Double 11" the same day, Dangdang clothing platform sales reached 22 million yuan, only to cultivate 1 years when the clothing platform, through the Merchant settled commission to obtain profits. On top of that, Dangdang has maintained a growth rate of more than 50% for 7 consecutive quarters.

Extended Reading

Litters Group announces profitable group buying industry transformation or trend

Following the September 2012 full network announced the realization of "1 Yuan" profit, the same year December 26, litters Group announced the company's profits in the month.

Litters Mall Chairman and CEO Xu Maodong told the Daily economic news reporter that last December, the scale of profits in the millions of. This also means that the litters group of the previous integrated mall model strategy has been effective.

Up to now, the full network and the group Treasure Network have been announced to achieve profitability. Last December 26, Wang Huiwen, vice president of the United States Group Network, said that the majority of the U.S. regiment of nearly hundreds of stations have been profitable.

Industry insiders believe that the litters group, such as announced a "profit", so that group buying industry has a new hope. Last November national group buying report data showed that the top 12 site turnover accounted for the national group buying market 39.5%. Among them, 12 strong in the top six websites and the post six strong website turnover appeared obvious differentiation. In the next few months, the top six group buying site to achieve a greater likelihood of profitability.

In fact, continued profitability has been a difficult problem for group buying sites. Xu Maodong that the model of earning money at the expense of market share through a massive contraction strategy is not a real business model, and it is a big challenge for any electric trader to maintain and increase its market share and to be profitable.

In fact, last May, the litters group announced the transformation into group buying and merchants distribution of the integrated category Mall model, and the group buy into the mall plate. Mall mode is similar to the business, merchants enter the platform to open stores, pay a certain entry fee or commission. and the main promotion of the group purchase mode, the mall pattern of higher gross profit margin. Under the pressure of profit, 2012, including handle nets, Poly-Mei excellent products, such as transformation of the mall model.

In Xu Maodong view, the group buying mode to provide the merchant is actually a promotional services, advertising services, this model is low profit or even no profit. and monopoly merchants do distribution, is the income and profit-oriented, this model also changed the original group buy and merchant cooperation discontinuous, discontinuous short board.

Another transformation of the litters group is that 2012 years of focus on the life Service electric business, the kind of transactions in the litters group revenue accounted for less than 3%. In Xu Maodong view, the Life service type electric quotient is advantageous to realizes the zero logistics, guaranteed the gross profit margin. According to him, the current litters Regiment's gross margin is probably in 8%~10%.

Previously, the industry has calculated that group purchase sites to continue to profit, a threshold is the monthly turnover of 300 million yuan. Last year the most likely to achieve this breakthrough of the independent group purchase site only litters Regiment, handle and the United States Regiment 3.

"IPOs are certainly an important strategy for the litters group, but not the most important," Xu Maodong said. The strategy of the litters group in 2013 is still centered around opening up the supply chain, centering on the mall to improve the experience of the merchant and the consumer, and especially providing a very large layout of the IT system for our merchant. ”

Last January 11, Thomson Reuters-owned IFR reported that litters group planned to go to the U.S. IPO, raise money 100 million ~2 billion, but the listing plan was shelved.

Analysys International analyst Shou sent, "No matter Tencent, Baidu, Ali are doing life service category projects, but how really fell to the offline service users, these things the Giants are not accumulated." Shou said, this kind of electric business is the most difficult to serve the ability of the offline merchant, which needs a new group to highlight, change the current market pattern.

It critic Zhigang that the domestic group buying industry market size is still in the growth trend. Regiment 800 of the data show that 2012 years ago 11 months, group buying industry monthly turnover of 1.75 billion, the year-on-year increase of 90%, 2012 annual total trade turnover is expected to exceed 21 billion yuan.