An important year of e-commerce in China

2014 is an important year of e-commerce in China. Because this year, several representative, heavyweight enterprises of domestic electric power companies will start their most important milestone in the capital market-ipo. The first is the vertical type of electric business website, May 9 night, the way cattle network officially landed on the Nasdaq listing. May 16, the cosmetics Electric Dealer website gathers the beautiful product to be listed on the United States NYSE listing. On the night of May 22, China's largest proprietary electric dealer, Beijing-east, landed on Nasdaq. And then, perhaps in the second half of this year, Alibaba, China's biggest maker of business, will also be listed in the US.

These companies represent three of the most typical models of China's electricity dealers, namely:

1, Alibaba's Day cat, Taobao represented the platform of the electric business model. The merchant does not sell the goods directly, but provides the electric business Platform service and the marketing. This type is similar to the traditional retail shopping mall (shopping center) model. Businesses to provide venues and other services, is responsible for attracting passenger flow, recruitment of retail brands stationed. Earn income by collecting rent or joint ventures.

2, to Jingdong, 1th stores as the representative of the direct sales model. Self-completion of commodity procurement, sales, logistics, customer service and other functions. Realize value by integrating the supply chain. This type corresponds to the traditional retail department or supermarket model.

3, to gather the United States excellent products, the only product will be representative of the special type of vertical electric business model. This pattern is similar to the line of the Austrian or professional brand store.

In the course of the IPO of several major electric companies, they also issued their respective prospectus, which allows us to have a more detailed understanding of each company's financial position, operation status and strategic layout in the past few years. This article hopes to analyze the data of different electric dealers, on the one hand, understand these hundreds of millions of funds of the electricity dealers, their business coverage, and how to achieve today's results. On the other hand, for more enterprises that want to enter the electric business, including the traditional enterprises want to enter this area, need to pay attention to which points, cultivate what ability. It is possible to share a piece of the world in the electricity business. Let's look at the past of the electrical quotient to see where to go tomorrow.

Alibaba's prospectus can be seen, the Ali listed in the scope of the main business including China's retail business sector (Taobao, CAT, Poly cost-effective), domestic wholesale Business (1688.com), International commercial Wholesale (Alibaba.com,), International commercial Retail (Ali Express) , as well as cloud computing and Internet infrastructure, other businesses (such as microfinance). This includes its main electrical business, but Alipay is not placed in it, which may be because Alipay has more room for imagination. Similarly, Ali's mother is not listed in the range. For the sake of comparison, we only analyze and explain the data of Ali's retail business (Taobao, Cat, and cost). At the same time, to explain that Ali's financial year is not the domestic commonly used natural year to calculate, but the annual deadline of March 31.

The business modules mentioned by Jingdong in its prospectus include its business operators (direct and pop platforms), O2O, supply chain finance, etc. But its main source of income, or Jingdong mall business mainly.

Next, we will share with you the core data and ideas in our respective prospectus. Because, Jingdong and Ali in electric business positioning is a different mode. Therefore, there is no complete comparability of data. Local number of good or bad, does not represent the final outcome of the enterprise. Because, in the field of E-commerce can adhere to today, and sustainable development, is already a winner.

1, from the size of the business to see

Two companies represent the first in the domestic business market, and the first in the field of direct electric business.

2013, the total volume of GMV annual turnover of 125.5 billion yuan, the growth rate of 71% per cent, of which the self-employed accounted for 75%. Net revenue of 69.3 billion yuan, an increase of 68% per cent. Gross profit margin 9.9%

Ali's 2013-year retail turnover of 248 billion U.S. dollars, about 1.5 trillion yuan. Income of 49.1 billion yuan, of which, 351.67亿来 from the Chinese retail business sector.

In terms of the size of the transaction, the two occupy more than 70% of the size of the domestic electricity dealers. And the Cat is a solo show, Occupy half. Many other domestic electric business enterprises are also in different positioning or differentiation to seek their own way of survival, or catch up, or in the pursuit of death.

2, from the income model to see

Direct business model of the Beijing-east, the current main source of income direct merchandise income, but from the pop platform income is also growing, 2013 to 25.3%. 2013 Beijing East's gross profit margin of 9.9%. Before the loss, 2013 to achieve break Evan, net profit of 224 million yuan. Net interest rate 0.3%.

BEIJING-East Income structure

As a platform model of Ali, his revenue comes mainly from offering internet marketing services to sellers and commissions from trading volumes. Taobao through the sale of display ads, search keyword bidding, etc. to obtain income, the Cat Mall, the good and fast selling general rules from the business turnover of the Commission and the collection of technical services fees, 1688 and Alibaba international station through the collection of membership fees and provide Internet marketing services to obtain revenue.

2013, Ali operating profit amounted to 21.118 billion yuan, operating profit margin of about 51.2%; net profit of 17.742 billion yuan, net profit margin reaches 43.8%. It can be seen that the profit margin of the electric business Platform service is far more than the profit margin of pure goods. Perhaps Ali has a deeper understanding of the Internet. Use the resources of the Internet, such as traffic, long tail to create value.

Ali revenue Model structure (China retail business sector)

3, from the user and the number of transactions to see

2013, Ali active user 231 million. About 11.3 billion deals were reached in Alibaba's "China retail platform", with an average of 49 purchases per buyer and a turnover of about 136 yuan. The annual active sellers over 8 million.

In 2013, there were 47 million active users in Jingdong, and each active user purchased 6.8 times on average. Pop platform sellers 29,000.

4. Category structure

From the product SKU point of view, platform model focused on the long tail, while direct sales focus on relatively standardized, single product sales.

Beijing East 2013 SKU number of 40 million, mainly to focus on consumer electronics and household electronic products. accounted for 63.6%. This is also the cause of the low gross margin of Beijing east. Jingdong's gross margin was 9.8%, below Amazon's 27% and Suning's 15%. After this round of listing, I believe that Jingdong will be the expansion of its existing categories, including cosmetics, clothing, fresh goods should be increased in proportion to improve the level of gross profit margins.

5. Moving End

Mobile End is the future military battleground. As a result, each of the electric dealers attaches great importance to exerting force in this field.

December 2013, a total of 145 million active users through the mobile end of the visit Taobao, Cat and the cost of the platform. 2013 mobile phone turnover of 232 billion yuan, accounting for 19.7% of total sales, accounting for 15% of the total platform turnover.

BEIJING-East 2013, mobile-end commodity transactions accounted for 15% of the total deal.

At least in this new battle, the two sides stand at the same starting line. More noteworthy is that the Beijing-east and Tencent cooperation, so that it has the domestic mobile end of the main import resources, hand Q and micro-letter. This in the future battle, seize a very advantageous opportunity.

7. Logistics supply Chain system.

In the past few years, Jingdong has invested heavily in its own logistics business and built up a high barrier. As of 2013, Jingdong has 7 first-level logistics centers in the country, 36 cities have warehouses, 70% orders are delivered on the day, 43 cities provide 211 services, and 256 cities achieve the next day.

Similarly, Ali in this field, also active layout, 2013, invested billions of dollars, to participate in the establishment of rookie network. It is planned to build an intelligent logistics backbone network that can support the daily average of 30 billion online retail sales within 5-8 years.

Believe in the near future, by the large electric dealer-led "Trunk Logistics + Regional distribution Center + Landing" mode, or will seriously impact the traditional end-to-end distribution network model, to promote the future development of the electrical business logistics market, and drive the development of warehousing distribution and terminal distribution mode. Electronic logistics platform, such as open logistics warehousing to the community, it is possible to turn the logistics center into a profit center, forming a new profit growth point.

8, operating data to see:

2013, the total operating expenses of jingdong accounted for 10.3 of the operating income. Among them: logistics accounted for 5.8%; market cost accounted for 2.3%; technology 1.3%; Management 0.9%. Logistics cost accounted for 7% of 11, down to 13 5.8%, reflecting the continuous improvement of logistics system efficiency. However, there is still room for the total operating costs to fall.

It should be pointed out that the current BoE investment in technology accounted for only 1.3%, which compared to the same type of Amazon 7-9% technology and content cost rate, slightly less. Perhaps in the end of this fundraising, technical input will increase.

According to Ali's earnings, Alibaba 2013 years later three quarters of research and development spending for 4.047 billion yuan. Accounted for about 10% of total sales (due to no single list of earnings, estimated to be used in cloud computing and other aspects of higher technical income). Perhaps this is a reflection of the nature of the enterprise is not the same side.

Ratio of operating cost structure of Jingdong to Amazon

Operational efficiency, 2013 Jingdong inventory turnaround days for 32 days, more efficient than other direct operators. Accounts payable days are 39 days, lower than other major electric dealers. Bargaining power needs to be enhanced.

Operational efficiency Comparisons

From the domestic major E-commerce companies listed can be seen, the main electric company basically walked the first stage of the journey, that is, from the robin to the wings gradually plump, in the lake has a place.

It is believed that in the next few years, the domestic electric oligopoly in the following areas of confrontation will become increasingly fierce.

1, O2O, online and offline integration and experience. As an extension of the online customer experience, the next major battleground between the two sides is bound to focus on the line at the same time.

2, from the original one or two-line city online consumers, gradually to the three or four-line city expansion, customer base is increasing, at the same time, customer demand is more complex and diversified.

3. The trend of mobile shopping is increasing, and the comparison of mobile side shopping will be the new growth point of the future. That's what it is. Home appliances companies in the prospectus to highlight the layout of mobile internet services.

4, Data + finance, through the hands of a large number of consumer data, as well as supply chain data, to carry out supply chain finance and other business.

5, platform-type business competition. Including Amazon, Jingdong and other companies are involved in the business platform, so the next few years Ali's platform business will also face more incentive challenges.

Although from the point of view of different electric business mode, slightly different, but the integration of the electric business is intensifying. The business of the Big Electric Business enterprise is not only the simple mall business, but the construction of the integrated business system around the electric business ecological circle. Competition will begin in various fields. See who can build a moat in the subdivision area. The decisive factor may be the forward-looking strategic layout, the integration and utilization of resources, continuous innovation, and strong team execution.