A price war? The electric trader is fighting the open platform and the industry chain this year

How does Amazon make money?

There is a point of view that Amazon can maximize the cost of logistics to reduce, thereby turning a profit. In this respect, Jingdong, an apprentice to the Amazon, can learn this. China because there is no DHL, UPS and other large national logistics and distribution companies, so in the logistics industry, "debris demand" led to the "debris supply", and "debris supply" and led to the industry price competition, through such logic proved the inevitable of the construction of Jingdong logistics, and in such a heavy asset model, Jingdong in the logistics implementation costs although there is a decline in the space, but it takes more time to spend more difficult and more.

In addition, since the second half of 2012, the open platform to become several tens of billions of of billions of large-scale electronic platform of choice strategy, have increased investment. Typical practices are:

1 The Beijing-East pop platform and the first store of a mall (due to the business qualification issues also set up a subsidiary to do the Open platform),

2 gome Online Mall renamed Gome On-line, in the background to fully integrate the acquisition of the Bowser network, and the Bowser network positioning as an open platform, Gome online for the consumer-owned mall.

3) The ferocious suning easy to purchase at the end of this month officially issued "cloud business" strategy, in fact, the main goal is still two, one is to accelerate offline and online and integration, the second is to vigorously promote the construction of open platform.

After these two phenomena are superimposed, in the territory of China's electric business, the Beijing-East was a very important part of the open platform, and it is a very valuable and core competitive part, and it can be a part of the parallel competition between the open platform business and the day cat. Su Ning emphasizes its part under the line, at the same time will cloud service, the logistics distribution joins in.

Of course for Ali, Logistics has been a piece of heart, in 2010, announced a high-profile investment 10 billion construction logistics Treasure self-built Logistics Project finally ended in failure. With the 2012 Beijing-East open platform development, Ali for the construction of logistics on the agenda again, and announced that 100 billion and third party logistics enterprises to build Ali's large logistics system to serve millions of of personal sellers and a hundred thousand of brand businesses. Plus Ali Finance, Aliyun These years of development, as China's first and largest B2B2C open platform, already has a complete electrical business chain.

Of course, Jingdong and Suning also do not forget the layout of the financial sector, the end of 2011 Beijing East announced that no longer use Alipay, the end of 2012 to buy online banking, the third party of their own payment system has been the foundation, in the acquisition of network silver at the same time began to pop platform to provide loan services Suning is in the establishment of an easy to buy when the "easy pay" of its own third-party payment tools!

From these retail giants and electric business giants, finance, cloud services, logistics will become the future open platform, the most important means of competition and profit way, and for Tencent's Xun and QQ network shopping, the future integration from the present layout, in addition to the relatively lagging logistics construction, Its finance (Tenpay) and cloud services are already well ahead of the competitors mentioned above, in particular, through the micro-letter integration line under the entity business, as an Internet enterprise has been in the construction line to the line, line to line flow and service closed-loop, and then through the Tenpay to form payment closed loop, the formation of a strong electrical business system, This may make many industry experts generally believe that Tencent in the field of electrical business, but finally in the development of mobile Internet may be unexpected.

Just under the three core drivers of finance, logistics and cloud services, how these retail and power giants can achieve differentiated competition is a major part of the competition, which includes three main areas:

First, the technical framework: from the development of the cat, business more and more do not like the operation of the cat, because it is from Taobao such Consumer-to-consumer platform developed, as an individual, in the spare time Taobao does not care too much personal time and input-output ratio (ROI), more will experience open shop and operation to promote the fun of shop.

I contact a lot of female network shopkeepers, they open Taobao shop a word: Anyway idle is also idle, and good fun, clothes if not sold out on their own wear! Reflects the mentality of their shop, the last 80% also really wear their own. In this context, Taobao over the past few years with the increase in personal sellers, sellers backstage functions more and more complex. Coupled with the pressure and the need for profit and to serve more than 4 million of the sellers dispersed flow resources, a variety of marketing methods and supporting the charging methods more and more complex operation. Perhaps the individual sellers can regardless of time and regardless of cost to accompany Taobao play, but as a profit demand for the brand merchants, they can not this time and patience.

In the absence of an open platform in Jingdong, brand merchants can only endure, but with the development of the company from the Beijing east to do the open platform, in the technical framework more inclined to brand merchants of the Beijing-east pop platform was greatly recognized and welcomed, plus the guarantee of sales, Jing-dong's pop attracts more and more brand merchants.

The above is my as Taobao early sellers and brand merchants to communicate after the summary of the feedback. Tencent's QQ online shopping in the technical framework of the same problem, but through the development of easy to network, if the future by the easy to lead the Tencent open platform for the development of electronic business, it is bound to be able to obtain more business in the technical framework of recognition.

Second, business standards and services: This problem and the above problems have a very large similarity, as Consumer-to-consumer developed Taobao, in the establishment of business standards has been lagging behind, the reason is that the employees inside Taobao also do not know what is the standard, because did not do the real. Jingdong and other employees for goods invoicing, logistics distribution, mall operations management, after-sales service is experienced, and in the course of the development of several years not only established standards also formed the industry norms and competition barriers (such as 211 service).

Consumer-to-consumer developed B2B2C (day cat) is strong front-end (such as mall operations and marketing) weak back end (supply chain), the development of the B2B2C is strong back-end weak front-end, but the front-end easy to fill the back end difficult to complete. There is in the business services, because has been in contact with the need to purchase merchandise agents dealers and manufacturers, the operator has been very standardized in the operation of various commercial rules to a certain degree of integrity, will not easily change the establishment of a good system, and will not easily appear big corruption incidents.

Third, the degree of openness: This aspect Taobao do is the best, and this and from the Consumer-to-consumer still have to contact, for personal sellers, there is no good confidential, public on the public does not matter. Plus Taobao as a platform, but also has an open mind, so there will be the establishment of the "Data cube" products, and now the prosperity of the Taobao ecosystem, which has a very high degree of openness and a very big relationship. In this regard, Jingdong may be better, Tencent second, Suning, Gome and a store as a traditional retail enterprises, in the open mind of the book is still a long way to go.

When it comes to differentiation, recently as the bowser of the United States as an open platform, the star opened the shop route to vigorously promote the construction of open platform.

Although Sina Blog, Sina Weibo is a great success through the star effect of the model, but the star open shop can create Bowser platform is not necessarily. This is because from Xu Jing's "open" jewelry to Xie's "Huan-type" women's clothing has failed to form a benign development of the situation, which from the Fank and show Network Sales "opened" the performance and now "open" the ornaments of the silent can get some corroboration. Perhaps for Bowser, in the absence of logistics, cloud services and finance these three strong advantages of the case, can only hope that the use of the star open shop to quickly develop its open platform.

The industry's homogenization of the open platform in addition to the strategic layout I mentioned above, there is also a hidden concern is the homogeneity of brand merchants, but in fact it is more.

As a manufacturing powerhouse, although the Chinese people have not been able to compete with international brands, but the ability to put a card into a "brand" is very strong, there is this as the basis for the future in the open platform of the competition environment and education, in various platforms because of different positioning, operating levels of different, The different consumer groups and so on each platform will appear differentiated brand, these platforms will continue to support their own death loyalty brand business, such as the original Cat original (Amoy brand) and Jingdong in early 2013 just announced to cultivate and develop their "Beijing brand", Perhaps these are the open platform will not lead to homogeneous competition, the development of the open platform marks the Chinese electricity business from price competition to the overall competition of the industrial chain!