Analysis of the future development trend of electric business and entity

1th page Electrical and commercial articles

Electric Business Articles

If 2012 is the Battle of the world, then 2013 is the Battle of the integrated platform. Self-self-marketing accelerated platform is the inevitable trend, since the mining has no way to go, only to realize the platform to achieve profitability. From the beginning of "reading", Dangdang began to "play computer" at the moment, the two sides in order to compete for users can only bargain with each other, but the frequent price war squeezing the original because of the logistics caused by the very low profit space, but if not a price war, the electricity quotient will be eliminated by consumers, over the term, The whole industry will go into a vicious circle, so the electric business bosses have transformed into a "third battlefield" ...

This year, Gome on its own platform based on a complete acquisition of Bowser network, and at the same time with Dangdang to cooperate. It is expected that the future appliance chain will continue to carry out the integration of electric business by means of open platform, strategic alliance, Investment Equity, merger and acquisition, and finally realize the integration of online + offline, and create a new mode of Chinese retailing in the internet era. and Suning easy to purchase began a large-scale financing, mergers and acquisitions, the power of electricity sales, sprint 30 billion yuan, and set up an easy to buy regional management company, with the physical stores keep abreast, President Kim said: In the last year, Suning easy to purchase 5.9 billion yuan sales based on the plan this year to achieve 20 billion yuan sales, the challenge of 30 billion yuan.

New thinking

electric quotient

Suning also contributed 66 million U.S. dollars to acquire mother and child products mainly "red children", to undertake "red children" and "Plantronics purchase" two major brands and the company's assets, business, comprehensive upgrade suning easy to buy mother and child, cosmetics operation. Online part, Suning easy to buy mother and child channel renamed Red Children Channel, and retain red children, Plantronics purchase of independent domain name, the formation of the front two major entrances; under the section, Suning will be in the Expo Super shop, Le buy shi Life Square vigorously expand maternal and child category, set up a red child zone. On the Gome side, Gome's Bowser Shopping Network also announced a comprehensive strategic cooperation agreement with the domestic infant and child industry leader, the baby child. This is not only the demand of market competition, but also enrich the sales scope of the electric dealer.

At present, in addition to the traditional advantages of 3C products, suning easy to buy, Gome's three major electric dealers have achieved a wide range of operations, involving the field of sports outdoor, automotive supplies, mother and child toys, children's wear, gifts, such as more than 20 of non-electrical goods.

Signs have shown that, as an increasingly sophisticated form of commerce, the electric business has become increasingly important for consumers and businesses. With the resource advantages of physical stores, Suning, Gome and other major household appliances chain special emphasis on the "line under the unified" concept, but not only on the line. The electrical appliance chain store enters the electricity merchant to need to obtain more resources to support, therefore consummates own system, expands the resource scope to become very important one link. Acquisitions, mergers and so on to become suning, Gome and other expansion of the scope of the main mode of operation of the electric business.

Taobao more than 1 trillion this year has no doubt, and the self-employed mainly for the business this year on the scale of 150 billion, assuming that in the next 5 years Taobao will only maintain the growth rate of about 20% per year, and the business growth rate of more than 60%, to 2016 Taobao still occupy half of the market. Forecast, Taobao in the future may be 1 million-10 million medium market to meet the personalized needs of users. The cat is the brand effect of the onslaught, take the world's leading brand of the direct Camp flagship store route. The location of the cat is no doubt to all the platform to do a comprehensive consumer raised a question, since there are brand direct flagship store, and the price is more favorable, then why do users have to come to your place to buy expensive?

Just past the "double 11", the sky Cat with 19.1 billion astronomical figure defending the champion throne, in this astonishing number, the cat Electric city has contributed 2.8 billion yuan, this amount is equal to Hong Kong August daily average retail sales 930 million yuan nearly 3 times times, is last year "double 11" turnover 5 times times. One of the days of Andy letter to the cat flagship store created 95 million yuan of single store records, Haier, can good digital shop single shop also turnover over 60 million yuan. As of 2012 3, the cat Electric City cumulative sales have more than 30 billion yuan Cat also predicted that the annual turnover of electrical appliances city is expected to exceed 50 billion yuan.

This year, about Jingdong mall controversy a lot, from "618" to "815", the most interesting is the May at the end of the Hong Kong peer meeting will burst data. Gross profit margin of 5.5%, cost rate of 10.4%, which accounted for more than 6.6% of the warehouse, advertising accounted for 2.3%, technology and management costs accounted for about 1.5%, net loss of about 5%.

Whether this data is true or there is water, but under the siege of many electric dealers, jingdong excessive overdraft of its own credibility, leading to negative word-of-mouth spread, and the government policy is unfavourable, the new users can not achieve the expected target, low margin of operation under the pressure of the operating department is indeed indisputable fact. The author suggested that it adopt the famous chief strategist Bowen to the Ming emperor Zhu Yuanzhang's strategy: High build walls, wide grain, slow king.

Editor's point: Blink of an eye has arrived at the end of 2012, the upcoming 2013 for the Electric business industry is a crucial year. It can be expected that all the electric dealers will be stable, but some people run fast, some people run slowly, depending on the strength of the foundation. According to the report released by Eric, Suning was second only to Beijing-East in 2011, and its sales amounted to nearly 5.9 billion yuan. But for Su Ning, who started with the traditional 3C retailing, to realize the expansion of the whole category of the comprehensive platform, we must first guarantee the construction of the supply chain and category talents, if we pursue the short-term scale and the development speed will be haste. Gome from its acquisition of Bowser to the launch of its brand independent business, obviously in its electric business strategy is still in the strategic exploration period, but as a traditional channel advantage of the old retailer, if it can further optimize its electric business strategy, in 2013, the hope is still very big leap. For the entire electric business industry, 2013 is likely to be the acceleration of the year, but what will be, we are still unknown, hope to be able to give us some surprises.

2nd page Entity

Entity Chapter

2012 is the electric business of the road of the year, round after round of fierce price war, the whole industry to speed up the shuffle. Ikea's layoffs explain the impact of traditional physical stores increasingly obvious, the entity shop is in the gap between survival. From a few yuan of small ornaments to thousands of yuan of home appliances and tens of thousands of hundreds of thousands of of jewelry and even automobiles, the trend of replacing physical stores is becoming more and more obvious. Taobao, Jingdong, Suning, Gome and other electric dealers to price and courier advantages, and so that customers get no less than store goods, Alipay and other Third-party payment platform so that both sides gain enough confidence in the transaction. But the entity store still has some advantages which the electric dealer does not have, still has the support of the fixed consumer group. So, what is the reason for supporting the physical store to go down?

Traditional physical store relative to the network virtual platform, has a shopping guide for consumers real-time service, but also allows consumers to experience the intuitive product details. Many consumers say that while physical stores are more expensive than online, but when the purchase can be seen at a glance product details, can also communicate with the shopping guide, timely understanding of product use and all aspects of the situation, although the Internet is a little more expensive, but also not how much, still in their own economic ability to withstand the scope. Many Web site user experience is very poor, after the sale is not perfect, and integrity is not guaranteed. Have a friend because the net buys the big commodity to have the question, although the final question solves, but also pays the extra logistics expense, the problem processing cycle is also very long, the net buys lets the person not be completely relieved. This shows that the entity store still has its reason to continue to go on, relative to the network platform, the real store's biggest advantage is the user experience and services. For people who don't like online shopping, physical stores are their choice.

But the entity shop also faces the malpractice, some clever buyer, usually treats the entity shop as is the experience place, the line chooses, the online purchase. As the network sales channels are maturing, the goods are marked with price, model, product information can be found, coupled with affordable, natural attracted a large number of consumers. But with the offline entity store Suning and Gome launched the "line of the same price" strategy to let this headache problem solved.

So in the current situation, the electricity dealers will not completely replace the physical stores, the existence of physical stores will allow consumers to have more shopping options. The current market situation is, where there is the opportunity, where the business will develop. In this way, the electrical business will also be saturated. Therefore, the combination of their own advantages, tailored to the development of enterprises is the Evergreen Road. From the current situation of the electricity market, there is a "line + offline" advantage of Suning easy to buy and Gome Mall is likely to lead the development of furniture electric business. Industry insiders have pointed out that the electric dealers can not completely replace the entity business, entity businesses can not ignore the importance of the electricity quotient, the future market pattern will be the electricity and the entity merchants complementary line under the common development situation.

Suning Chairman Jindong clearly said that "Suning appliances (002024, shares) in the electrical appliances two words removed" to accelerate the "go to the electrical" process. In the entity stores, suning continuous new products with manufacturers to release cooperation, the introduction of Microsoft Surface tablet computer, and so on, to maintain the physical store high man.

There are many indications that stereotyping can no longer be viewed as a chain store that started from home appliances. In due course, the traditional appliance chain enterprises are likely to be transformed into a store-like entity stores, to achieve the expansion of diversified areas.

Compared to the rapid development of electrical appliances stores in the electric business, the expansion of traditional appliance chain in the physical stores slowed down. On the one hand, because the first half of this year's sales situation is not good, the overall market sales scale has slipped more than 20%, until the second half of the "11" after a long holiday gradually warmer, the entire 3C industry sales profit has become thinner; on the other hand, this year, the situation of the electric dealer In this context, home appliance chain generally abandoned the previous large-scale expansion of the practice, do not seek "quantity" and more "quality", the entity stores more attention to efficiency.

Editor's point of view: The rise of the electrical business of the real store impact is indeed very large, in the future of the entity shop in the direction or from the coverage and user experience two angles to consider. Because physical store shopping is a way of life in some way, for example, shopping is our life is a very normal experience of social activities, you pull friends to go shopping to see the film no one will say you are sick, but if you say: Today all come to my home on the internet to buy things, buy us to see an online movie. This way I guess people will think you have a brain problem. This kind of consumption which originates from people's daily life is also not possessed by the electric business model which is highly targeted. Therefore, the author predicts that the electrical business to replace the entity is almost impossible, because both have their own advantages and shortcomings, in the future will only complement each other, forming two kinds of consumption for different groups of people.