At present, these vertical areas face many difficulties

At present, these vertical areas are facing many difficulties: first, the O2O business model is not clear; second, the flow of access by the Internet large companies control; third, the production control of goods is not enough, bargaining power is limited; four, from Internet financial products and payment platform control vertical field cash flow pressure. Although faced with many difficulties, these vertical areas still have the opportunity to swing, such as through cooperation with the giant companies to build consumer scenarios to guide, pay the transaction link, forming a profit chain and capital chain closed loop.

Often heard about the vertical field of subversion and innovation, then what is the vertical field? To do a limited, vertical area, refers to the real estate, home, automobile, tourism, education and medical and other large non-standard consumer goods areas. The purchase of these goods accounts for the largest portion of our daily consumption. Relatively fast-selling goods, these large non-standard goods are not high repurchase rate, and from the Internet seems very far. In the next few years, the industry with subversive changes is likely to appear in the vertical field.

The "Dilemma" in the field of vertical bulk consumer goods

Dilemma one, the concept as a method

Undeniably, today's internet has changed all aspects of our lives, from looking for people, looking for information, looking for goods, even to find someone to borrow money, the internet has provided us with a better solution. As the daily consumption of the chain is the longest, the highest complexity, the largest amount of consumer goods in the field, the inevitable trend towards the Internet.

Presumably the o2o of the concept would never have imagined that in China this concept would have spawned so many business forms. From the initial "thousand wars" to the constant infiltration of traditional fields, the Internet seems to attract practitioners from real estate, automobiles, tourism, and even medical and educational fields. It seems that the Internet is closer to the traditional industry because of the O2O. However, in less than 3 years, to talk about O2O, we think of is no longer an opportunity, but disgust, a concept of excessive packaging after the aversion.

Let us carefully dismantle the O2O chain, the so-called online part, we define him as drainage, and offline is to realize the original line of service. Many companies do a few years o2o things, and finally found that online turned into a new situation in the advertising portal, offline but the same live less dry. Over time, many traditional areas of the boss will think that the so-called O2O, nothing more than the ads moved to the mobile phone, get a micro-blog, micro-trust public account. Online and offline completely fragmented into two pieces of skin. What does that mean?

First, the development of the industry is not enough to generate changes in the business model, the tipping point has not yet arrived. Second, our crisis consciousness is too weak, do not know the truth of worries.

Dilemma two, entrance in the hands of others

Now let's look at a picture:

As shown above, several industry internet companies, to complete the online and offline layout, the approximate path to complete is: drainage-Transformation---transaction---services, several key steps. These steps may not be strictly separated, and sometimes they overlap.

In addition to the "vertical field of offline scene" (for example: the user went into the home museum to buy goods, or automatically into the travel agencies, educational institutions to buy services) The entrance is still in their own industry, the real upstream diversion core portal has been in fact been held. 10 years ago, this is not terrible, because the internet leather is the life of traditional media, its tentacles have not yet deep into our lives. As long as the advertising fee, the completion of several activities on the OK.

But to this day, these entrances are not just vertical-field money, they're plotting vertical "life." This is not alarmist, for their own interests not to be squeezed, these portals will find ways to penetrate all aspects of life, when relatively standardized goods (such as: 3C digital, clothing and footwear, etc.) gradually swallowed up, we live in the scene of another part, buy a house, buy a car, education, Even medical care and so on will gradually be put on the table of the Giants ...

Three, we are not the producers of goods

What is even more troubling is that, in addition to user access, the areas of real production, such as car manufacturing, housing construction and renovation, training schools, pharmaceutical plants, hospitals and so on, the vertical sector of the company's control of the strength is very limited. In the past, we argued that "the channel is King", "content is king" or "Commodity is king", in fact these statements are right in a specific period, but the core or "user is King". The more value you bring to your users, the closer you get to the position of the boss in the industry.

However, if the production control of the commodity is not enough, its own channel value is not strong enough, it will inevitably lead to a limited bargaining power, the ultimate value to users will shrink, and thus lead to further decline in channel value. This constitutes a vicious circle.

Dilemma Four, the lethality of Internet finance and payment platform is fatal

Another example:

Someone wants to buy a 300,000 car, from Baidu or micro-letter to find the relevant website or application, by looking at the model, price, sales location and other information, decided to buy. At this time, suddenly found a shortage of 100,000 dollars of money. If at this time, the micro-credit payment, Alipay or ping An bank to provide you with a 5-year, 0 interest rate of financial products (if you need to put the remaining 200,000 through Alipay or micro-letter payment for the guarantee transaction), if you will do?

If it is me, I will choose this 5 year 0 interest rate financial products ... The result of this story is that when the cash flow in the vertical field is dominated by Internet financial products and payment platforms, the leaders of these vertical areas will slowly become workers.

Of course, this is a bit of a sensational smell today, because the industry leaders are still alive and well in the foreseeable future, whether they are in the car or at home, or in the fields of housing, tourism and education. There are many other thresholds and a bit of Under Table in addition to the precise user and data accumulation they have in their respective industries. These barriers to competition can be reversed only by the flow of traffic. Moreover, in these areas, the vast majority of services online, after years of deep and precipitation, these companies have accumulated enough talent, money and contacts.

Another important reason is that in the field of consumer goods, although the user's repeat purchase rate and the number of repeat consumption is not high, but wins in each of the unit price is high enough, the profit space is relatively large. These are the reasons the leaders are still living well.

Second, "subversion" is just beginning.

"Subversion" is a very popular term recently, probably over the past 2 years, the rapid development of mobile Internet, bring a lot of uncertainty, caused some panic and anxiety. I think, far more than anxiety so simple. In many industries, it is a precursor to subversion. And this change, more radical and intense than more than 10 years ago, if not actively, some vertical companies in 2 years will be quickly shuffle out.

So far, daily life, the most subversive mobile internet is not office, not to send and receive mail every day, not to invest money, not to write investment reports, write code, not to do drawings and other work scenes, but similar shopping, friends, games, watching news, looking for restaurants, looking for a house, see the travel strategy, booking tickets, inquiries car information, Watch video and other entertainment and living scenes. And many of these scenes are highly coincident with the scenes in our consumer-goods field. The core of the mobile internet era, or in the hands of those giants, in the PC era, the plight of the existence of today still exists.

"Subversion" one of the simple drainage has not solved the problem, the construction of the consumer scene is the way out

When people access the Internet scene, gradually from static to dynamic, from simple to become complex.

Diversion of the way, from the previous Baidu to buy traffic, Tencent to buy imports, packet channels, micro-bo raise large size of the simple rough, gradually transition to "through the construction of consumer scenarios" to achieve.

Why is that so? The reason is that if users have very low cost of access to information, the user's reliance on information and loyalty is very low. This ultimately leads to a higher threshold for the user to transform your platform until the final transaction is completed.

"Micro-believers" are aware of the problem, that is, "the construction of the consumption scene is more important than the drainage effective", micro-letters and "tick-tick-taxi" cooperation and share of the public comments, the purpose is to use the two companies in the vertical area of the construction capacity of the consumer scene to prop up the micro-letter as a mobile interconnection and mobile payment platform for the value of the portal. Micro-letter in a general situation, the next step will be the most common people's clothing, food, housing, row, eat, drink, play, music and other fields of company cooperation, build consumption scenes and ecological circle.

This concept may be a bit of a virtual one, but we still take the example of buying a car.

Suppose a car website A in the micro-letter "my bank card" Riga a "buy a car" entrance, this short-term will let a company's traffic increase. A Company will be online through a variety of marketing means to convert users, to the offline completion of the purchase of cars and continue to follow up services. But this move will never be a killer.

Why do you say that? Because the user's perception of micro-credit is still on the chat tool and the tool of making friends. Although the micro-letter clothes, food, live, row, eat, drink, play, le people daily life of the scene is very close, but it still needs and other vertical areas of cooperation, to build the whole consumption scene, in order to achieve the user's training, not only rely on drainage and other conventional means. In particular, for the purchase of cars, housing, decoration, education, medical care, and micro-letter awareness of a large difference in the scene, it is necessary to build a complete consumer scenarios to enable users to complete transactions and offline services.

Therefore, I think that in the vertical area of the Internet companies, which can be the first and the giant companies together or independently complete the construction of user consumption scenarios, which will be able to "subvert" the industry other companies. Otherwise, it is dangerous.

"Subversion" bis, for vertical-sector internet companies, internet finance is not a portal, but a crisis

The probability of Internet finance being mentioned recently is very high, everyone is cheering, it seems that a lot of vertical internet companies have found a way to upset others and enlarge the opportunity to seize the entrance. Calm down and think, it's not. The entrance is not in hand, money is not as big as the giant, more than the same as the super tyrants of Ping An company. So what is the reason to cheer about Internet finance?

When users want to invest, or lack of money, he will first think of the big companies, because the capital and brand strength more reassuring. In addition to the accumulated user habits, can be lower cost to convert users, this is the advantages of the Giants.

For vertical companies of consumer goods, the danger of internet finance does exist, but there are still opportunities for other rivals in the industry.

The first step, in the company's original ability to generate Trade Points on the force, improve the company's Internet financial products chain. Or take the car website A Company example.

A company and a lot of 4S shop engaged in electric or group buying, through a variety of concessions and deduction of the way to deposit funds in their own platform for conversion, if you encounter replacement or a gap in funding users, as long as the rate of loans and other Internet financial giants equivalent, the lender is fast enough, can be favored by users. At the same time, it can help users to complete a series of procedures and services to buy a car after the loan, so that users in your consumption scenario, there is no reason to jump to other Internet finance companies to complete the loan business.

Second, for some people and institutions in the industry to lend, they can launch and their own domain-related lending financial products, which can be put into the pool of money, penetrating the entire industrial chain of B-side, such as production, manufacturing, logistics, sales and other nodes. So play, through the interests of the chain, capital chain, combined with B-and C-end, it is possible to keep their positions and "subversion" in the industry other leaders.

Specific products in the home industry for example, consumer goods Internet financial products will probably be such a model:

For the vertical area of consumer goods, "subversion" is not a day, it can be done in a year. The penetration and transformation of the Internet to traditional industries is the general trend, full of risks and opportunities. The next 2 years, will be these areas in the shuffle of the important 2 years, only as soon as possible to build their own consumer consumption scene, and gradually form an industry of interest chain and capital chain closed loop, in order to build the best defensive barriers to prevent the giant subversion. At the same time, it is possible to subvert the Giants.