Business downturn, China trade net trend growth

Source: Internet
Author: User
Keywords nbsp the contrarian the profit model the downturn
In February this year, the Alibaba Group made an offer to the board of Directors of Business-to-business companies, raising questions about the business-to-business Outlook, calling Business-to-business a dead end. Affected by the global economic situation, the entire business-to-business industry, the number of customers reduced, revenue and profits have declined, Alibaba, HC, global resources and so on have met the development bottlenecks, the Dunhuang network also spread a large number of layoffs news.





Why are the big-business-looking business-to-business businesses faltering?





China's business-to-business is an army across the bridge, in addition to their own concept of playing and size is not the same, its profit model, provide the kind of information are similar, whether it is the business of the network Sheng Bao, Alibaba or wisdom, we are all the same. Even the gold and Silver Island, Dunhuang nets such as the so-called online transactions of Business-to-business Enterprises, are also forcible, enclosure important.





in China's business-to-business market, because of the low threshold to do the supply of information, and the procurement of information at least a certain background, or the price requirements are very harsh, so almost all e-commerce enterprises mostly provide supply information, and procurement information is seriously scarce, leading to homogeneity of the competition is very fierce. This is like some talent information sites, 90% of the information from job seekers, and business recruitment information is always very small.





existing business-to-business platform development is facing the constraints of the limited buyer resources, that is, the buyer's resources are relatively fixed, but the number of suppliers is increasing, the effect of promotion is declining, and to ensure profitability, will increase the membership fee. As a result, there are more and more charges, but the spread of the effect of increasingly poor this irreconcilable contradictions.





mode upgrade, differentiated competition, is the way to win.





, expert member of China Electronic Commerce Association, Guo, chief executive of China Trade Network, said in an interview that "the current business-to-business platform homogeneity of the competition is extremely serious, from the business model, profit model, to serve the same, service methods, promotional methods, and so on, out of the homogenization of competition, differentiation strategy, is the winning way."





Although China's online business-to-business E-commerce has been developing for more than 13 years, its main profit model-"paid membership"-is not enough to prop up the market. According to Analysys International data statistics at this stage in the pay membership system under the profit model of the number of domestic accounts accounted for less than 1% of the number of registered accounts, this data fully demonstrates that the pay membership system can not meet the needs of most small and medium-sized enterprises, so from the entire domestic business-to-business E-commerce market, The paid membership system is not the most suitable profit model. China Internet Association expert member, China Trade Net chief executive Guo, said in an interview with reporters: "Pay membership System" this profit model caused by the high rate of customer churn, the introduction of value-added services can improve the efficiency of the use of paid customers, and further enhance customer stickiness. Value-added services will become an important source of revenue and drive the overall market development.





According to the reporter understands, In the China Trade Network (www.shangor.com) suppliers can enjoy the large amount of purchaser resources provided by their platform without paying any membership fees. can also be free to use the first-hop platform for order operation and management, free of charge to the buyer to display qualification certification and promotion of their own, free release company profile and product information, free access to domestic and foreign industry latest developments and information. And even if the final deal is reached, the supplier does not have to pay any fees to the platform. For Alibaba, Hui Cong for the representative of a large number of business-to-business enterprises, membership fees become the main source of income, and China trade network mainly through value-added services to increase revenue, such as advertising fees, consultancy fees, Third-party application of the partition. At present, small and medium-sized enterprises are encountering the "capital shortage", "raw material shortage", "job shortage", accompanied by the continued tightening of credit policies, economic growth into the slow growth cycle, small and medium-sized enterprises are encountering a general survival crisis, free platform can undoubtedly help small and medium-sized enterprises to reduce the cost, ease the





"Free value-added" of the new business-to-business e-business model to achieve the enterprise, Third-party service providers, web platform, a variety of mutual benefit and win, this may be China trade network to achieve the root cause of the trend.
Related Article

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: info-contact@alibabacloud.com and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.