A A-share company's electric business to survive

Absrtact: August 18, the only product will be held two quarterly performance statement will be announced for seven consecutive quarters of continuous profit. On the same day, Jingdong announced the "Fashion Bazaar" to reach strategic cooperation, enter the field of apparel, playing fast fashion differentiated brand. Analysts point out that this undoubtedly

August 18, the only product will be held two quarterly performance statement will be announced for seven consecutive quarters of continuous profit. On the same day, Jingdong announced the "Fashion Bazaar" to reach strategic cooperation, enter the field of clothing, playing "fast fashion" differentiated brand. Analysts point out that this is undoubtedly the site of the robbery. However, the same is the competition from the platform-type electric business giants, compared to overseas listed vertical-type electric business enterprises, the A-share market involved in the transformation of the traditional manufacturing and retail companies in the days of more difficult.

Platform-type electric dealers continue to dominate

August 15, Beijing East handed over to the U.S. listing after the first report card. The data showed that the total volume of transactions reached 63 billion yuan in the second quarter of 2014, an increase of 107%, net income of 28.6 billion yuan, an increase of 64% per cent year-on-year. The number of active users and orders increased rapidly, the number of active users in the quarter rose 94%, two-quarter completed orders year-on-year growth of 126%. It also means that almost all the core figures in the capital have doubled in comparison with the same period last year.

Behind the growth of the Beijing-East core data is the growth of daily necessities category and open platform. In fact, Jing Dong is tearing off the label of 3C stores, clothing, day hundred and other categories are focused on creating a "stylish" atmosphere. August 18, the Beijing-East announced with the "Fashion Bazaar" strategic cooperation, the main "fast fashion" differentiated brand.

At present, Jingdong is in the pipeline to sink and open more online sales platform and logistics platform to rival Ali to align. Analysts point out that, relative to the low margin of the platform, the open platform through the flow of cash, its advertising, commission profit model makes gross profit margin higher.

Alibaba's financial performance has also supported analysts ' views. Alibaba June updated financial data show that Alibaba Group in the 2014 fiscal year (as at March 31, 2014) Total revenue of 52.504 billion yuan, an increase of 52.1%, the profit of 23.403 billion yuan, the year-on-year increase of 170.6%.

Analysts pointed out that Ali and Jingdong owned capital, active users, category, operating experience, other new entrants are insurmountable, but also to the development of other electrical barriers. Some statistics show that the current market share of the Beijing-East electricity dealers reached 54.3%, compared with the last year up nearly 6%, thus squeezing the market share of the second-line electric dealers.