China's competition in the field of the business market, has been the Battle of the seven-male hegemony

In the electric business, Dangdang CEO Guoqing regrets that 3 years later, China's electric business will certainly only have 3 platform companies. In other words, the electric business industry will eventually have 3 platform enterprises in turn "eat meat" "Drink soup" and "stare." At present, China's business sector of the company, after a number of battles, the final commercial logic is in the industry three "tickets" of the war, and ultimately did not get the first triple ticket enterprises, waiting for it, it is likely to be incorporated or death.

At present, China's business competition in the field of E-commerce, has been the beginning of the Battle of the seven-man hegemony: Alibaba's cat, Jingdong Mall, Suning easy to buy, Gome, Tencent's Xun, Amazon China, Wal-Mart Holdings of the 1th stores, the seven major electric competition has plunged into white-hot.

In the second phase of the "Xun" series, we selected the "spoiler" and "calf" shop 1th as a sample analysis. The former backed by the strong capital of Tencent, enough in the logistics, customer, price, etc. to other "contestants" brought great challenges, the latter by the global retail giant Wal-Mart, once properly integrated, timely exerting force, the 1th store for the entire electrical industry competition pattern caused by the impact will not be underestimated.

In the context of the continuous accession of the Forces nouvelles and the deepening of the industry competition pattern, "the electric quotient seven male", the sky Cat already occupies China to be half of the electric business domain, nearly booked an industry first three tickets in advance, its role can be described as "the Overlord Day Cat", but the remaining "six male" pattern is still to be determined. Who can finally join hands with the cat in the top three, let's wait and see.

"Catfish" Xun: Tencent is coming!

"2012, let's have a battle between men." ”

Late December 2, 2011, the first snowfall in Beijing. At Pangu Hotel, which is not far from Jingdong Mall office building, there are two years old friends eating and drinking together, chatting about the future of China's e-commerce. One of the men spoke to the man across the street with a smile that seemed to be without.

The speaker is Xun Network CEO Bu Guangzi, and he opposite the man, is in the field of electric business concern is quite high, the boss of Jingdong Mall, Liu.

Liu may not have imagined that a joke at the time would become a reality in the next few months.

Xun, the top-ranked 3C shopping website in the company's share rankings, quickly became a veritable "catfish" in the industry after becoming a holding subsidiary of Tencent. Backed by Tencent this big tree, let Xun have more capital in logistics, price war, supply chain, platform, marketing and other fields to stir the whole electric business industry.

"Tencent has so much input, and ultimately hope to enter the industry's top three." "Bu Guangzi to the daily economic news reporter said that China's electric business platform for the competition has entered the" warring "state, but the pattern is far from mature, in the future who will become the leader, or unknown.

The abacus of Tencent

When it comes to Xun, the most impressive one is the "8 15 price war". In the Liu release Weibo to Suning easy to buy "declaration of war", Bu Guangzi the first time in micro-blog to Daiju dongfa Battle book: "If Liu really want to lower prices, in their main business 3C (computer, digital, mobile phone) on a try, and easy to compare who is the lowest, Xun will start promotion, Tencent cast 300 million yuan." ”

Just half an hour before Liu's microblog, board members, including Tencent Group president, ECC chairman Lau and Tencent's CEO Wu Guangguang, are running a company-run meeting. After seeing Liu's microblog, we discussed it quickly and decided to join the price war. "Bu Guangzi said.

Bu Guangzi, from May this year in Tencent after 7 years after the second organizational restructuring, the electric business became the only independent operation of the company (ECC), and has been Tencent up to 1 billion U.S. dollars capital injection.

"The electricity quotient has risen to the company's strategic level, although the electricity trader is split independently, but Tencent still gives the biggest platform resources support." "A senior Tencent insider, who declined to be named, said.

Earlier, Tencent has also passed two rounds of additional capital to acquire the Xun total of 80% of the equity. This May, Xun and QQ online shopping to get through, to assume the Tencent power business part of the self-employed.

And in Bu Guangzi view, Tencent wants to be in the entire electric business competition to stand out, the most important thing is to do a user Word-of-mouth model of the electric business. But which platform will the word of mouth eventually hit? Tencent has discussed this for a long time, according to the insiders. At that time, mainly inclined to two paths: the first is to enlarge the Xun, and then on the basis of Xun open platform; the second is to enlarge the Xun at the same time, the QQ mall upgraded to consumers Word-of-mouth excellent quality shopping platform, and then achieve a junction. Finally Tencent chose the second road, Xun as a sharp knife soldiers, to kill the reputation of low prices.

"Sharp Knife" melee Beijing East Superior

Tencent to the user's Word-of-mouth model to kill a way out, Jingdong Mall became a barrier to the past.

According to Iris data show, in the two quarter of this year, Tencent Electric business (only including QQ network shopping platform, QQ Mall, Xun) and the company to buy Suning easy to purchase and Amazon China, to 4% of the market share leaped third.

"Daily economic news" reporter noted that from the beginning of this May, Xun the muzzle of the Beijing-east, in its store before the promotion through Low-cost promotions to compete for users ' enthusiasm for shopping, Xun in the "8 15 price war" also adopted the same low price strategy. Xun even launched a "parity system": Jingdong Mall commodity prices as the benchmark, as long as the Xun than jingdong expensive will be compensated.

Liu, who has always hit rivals with a low-cost strategy, has met more ferocious rivals.

"In Tencent's view, it is difficult to profit from the self-employed model, which is more valuable in the platform flow sedimentation." Bu Guangzi said that Xun will continue to low price strategy for a long time, to pull the entire Tencent platform traffic.

In addition to the Low-cost strategy, Xun more important function is to assume the Tencent Electrical business Warehouse logistics construction.

"Tencent will definitely not be biased in a corner, so the layout of the national." "Bu Guangzi said.

It is understood that Xun began in 2011, including logistics, supply chain, such as the pace of national distribution, which benefited from Tencent's strong financial and technical support. Earlier Wu Guangguang to the "Daily economic news" Reporter said that the Xun logistics system layout and the national core city distribution are available, in turn can serve the open platform of the merchant.

The prototype of Tencent's electric business empire looms

Earlier, Wu Guangguang said Tencent hopes to build a consumer-centred platform through its foray into the electricity business within 5 years. As Tencent's new business growth point, the goal of the next 5 years is to achieve 200 billion yuan in turnover.

Tencent in accordance with the integration of the plan, with a series of vertical categories of consumer settled, the QQ Mall's core sellers and quality merchant group gradually transferred to QQ online shopping. This also means that, under the same category channel, QQ Online shopping will appear many business and brand, distributors, suppliers coexistence situation.

"The future of the network will still be and QQ online shopping integration." Bu Guangzi said Tencent's development trajectory is still a model of Amazon, but it will follow the business model of the consumer.

"Xun's layout just makes up for Tencent's short board in the field of electrical business logistics warehousing." "In the future, all Tencent users can be closed from social platforms to shopping," said Zhigang, an industry source. That is, users use QQ, and from another user to obtain information and create shopping needs, shopping cart function as a fixed entrance will be in the shortest possible time will flow directly into the QQ network shopping platform, and Tencent Network, browser, window, QQ space, micro-blog can also be introduced into the flow of advertising channels.

Bu Guangzi that, for Tencent, the biggest significance of the electric business is to be able to Tencent's entire internal system of a large number of user traffic to be realizable.

However, there is still a distance from Tencent's desire to achieve this. Wu Night light earlier to reporters, as a full network of general traffic platform, Tencent is currently focusing on the direction, still is how through the interaction between friends to improve the conversion rate of E-commerce.

It is worth mentioning that Tencent's micro-credit products only have information flow and social relations, once integrated into the logistics and payment, its users in micro-credit products to achieve closed-loop shopping will also become possible.

All kinds of signs show that Tencent's eco-chain has been built successfully, how to blossom in this land, depends on Tencent's future investment.

In any case, for each of the electric dealers, the emergence of Xun means: Tencent!

"Calf" No. 1th shop: Online Wal-Mart?

Miss Jingdong, Wal-Mart has got the number 1th store.

After a lengthy negotiation, Wal-Mart, the world's retail giant, finally completed its holding of store 1th on October 26. Last May, Wal-Mart traded 65 million dollars for a 20% stake in shop 1th, and in February this year Wal-Mart announced plans to increase its investment in store 1th, increasing its actual holdings to 51%. In August, the Ministry of Commerce approved the Wal-Mart's holding agreement for store 1th, which increased its stake to 51.3% per cent.

But after accepting the investment of Wal-Mart's solid capital, store 1th also had to "break the wrist", and its No. 1th Mall would be stripped out of the company. Since the Ministry of Commerce approved the replenishment agreement, it added a restrictive clause: Wal-Mart's No. 1th store can only do proprietary business. This means that in addition to store No. 1th, the group 1th, famous selling and so on will not belong to Wal-Mart Holdings.

"Daily economic news" reporter learned that in the industry, the electric business platform has been the trend of the times, although the number 1th store access to capital and supply chain advantage, but to be under the control of foreign capital under the operating constraints, whether it can really become "online Wal-Mart" has yet to be tested.

Profit puzzle

Just last month, Wal-Mart officially joined the 1th store to operate China's E-commerce launch ceremony in Shanghai.

At that time, Wal-Mart's Global E-commerce CEO and CEO Nier Ash told the media that it was a mature management team and a competitive supply chain management system in store No. 1th.

Before that, Wal-Mart had tried in China's e-commerce sector. At the end of 2010, Wal-Mart member stores launched online shopping services, but limited to Shenzhen, the business has not been fully rolled out. As a result, Wal-Mart began to look for better shopping sites in China for acquisitions. Wal-Mart was said to have aimed at Jingdong mall, but failed.

Liu, chairman of Jingdong Mall's board of directors, has revealed on his personal microblog that Wal-Mart and Jingdong mall negotiations have broken down because Wal-Mart is trying to fully hold Jingdong mall, but Jingdong Mall executives are not satisfied with the withdrawal.

1th Store Chairman Gege said that after the completion of the stock exchange with Wal-Mart, store 1th will share the advantages of Wal-Mart supply chain and logistics resources, the two organizations will not adjust the structure of the listing has been listed in the company's future development goals, but the details of the listing site are not yet set.

Public information shows that shop No. 1th was founded in 2008, the sale of goods involved in food and beverage, beauty care, kitchen cleaning, electrical appliances, such as the top ten categories, a total of more than 100,000 kinds of goods. Last year, store 1th sales amounted to 2.7 billion yuan, a trend that seems to be continuing this year, compared with the 805 million yuan in 2010, which grew more than twice times higher. But at present, the company has not yet achieved profitability.

Since joining Wal-Mart, can No. 1th store become "online Wal-Mart"?

Wal-Mart's "Save every penny for customers" purpose, the reason why the global retail industry no one can and the "Big Mac", it is due to the cost savings and in the logistics distribution system and supply chain management capabilities.

By contrast, shop number 1th is still a "pupil". At the beginning of the venture, Gege selected a comprehensive, low-cost online supermarket business model, at the same time, shop 1th has gradually extended its products from daily necessities to 3C electronics, fashion toys, cosmetics and so on. It looks like store 1th was imitating Wal-Mart from the start, except that it started on the Internet.

In an interview with the Daily Economic news, Li Chengdong, a power trader Observer, said that Wal-Mart's holdings would be a great help in improving logistics, information systems and supplier relationships, and that Wal-Mart's E-commerce platform had already begun to take shape, and the cooperation between the two sides was a major change in the E-commerce market. But he believes that this will not be a shock to other domestic electric sites, because the business direction is inconsistent.

Consolidation challenges

In fact, the impact of Wal-Mart holding No. 1th to other electric dealers is something, the urgent matter is whether the integration of the two sides can smooth transition.

Shop 1th Insiders recently told the Daily Economic news reporter that Wal-Mart China's previously owned electric Corps team has been merged into shop 1th, and Wal-Mart's own-brand products have been on the shelves in shop No. 1th. "But Wal-Mart does not directly interfere with its operations."

Wal-Mart China has also made it clear to reporters: with the formal launch of the two sides, cooperation will be reflected in all aspects, such as the sharing of goods, "at present, Wal-Mart's own brand can be bought in shop 1th, we will also strengthen mutual exchanges and learning in the talent."

But in less than half a month after the "marriage" between the two sides, the top of shop 1th changed, the former vice president of shop 1th Guo Dong east to vice president of food and beverage, former vice president of human Resources Liang Yong vice president of Business ethics, and the replacement of the two Song Jinwen and Dai Qing from the holding side of Wal-Mart's E-commerce team.

An analyst who declined to be named said the company's architecture determines efficiency and synergy costs, and that efficient business chains need to integrate all channel resources to form a company-level unification, which is the only way to maximize performance. "General mergers and acquisitions will ultimately involve personnel adjustment, this is no doubt, but also the biggest test of the enterprise, not bones." ”

Personnel adjustment is only 1th shop faced with one of the many problems, leaving the trouble of Gege and 1th Mall of the trend.

In examining the merger, the Ministry of Commerce added restrictive terms to the deal, in the interest of antitrust competition and restrictions on the operation of foreign-related operations. Store 1th is operating an open platform business that can only be carried out outside of Wal-Mart's investment structure, while shop 1th, 1th, and famous sales will be injected into a new company called Shanghai Biography Electronic Commerce Co., Ltd.

Reporter learned that, from the end of September, 1th Mall has enabled the independent domain name. This has worried the industry, some analysts said to reporters, "it is hard to imagine how the 1th mall completely stripped, whether it is technology, platform-dependent or logistics are inseparable from shop No. 1th." Without the support of the No. 1th store, what is the 1th mall going to compete with the cat and the Beijing East? ”

In addition, the original holding party No. 1th in China Ping ' an (601318, shares bar) after the profit will be more efforts to support the number 1th shop is also unknown. In the future, the number 1th stores that are favored by capital will really have to think about how to make a breakthrough in market size and profitability. And the lighter qualifications of shop 1th, and the variables that Wal-Mart may bring, are the biggest challenges for shop 1th in the seven-ticket battle.

"Target" Jing Dong

Role positioning: the target

Status: In addition to the six-day cat outside the pattern, Jingdong Mall is temporarily in the lead position, but also because of this, Jing-dong became a major competitor of the target, thus becoming a veritable "target."

Competitive Advantage: In addition to the initial booking of a first three tickets of the cat, Jingdong in the remaining six of the competition, temporarily in the leading position.

Competitive disadvantage: In the seven-male, Jingdong is the only one without "godfather" electricity, so its financing pressure is the biggest.

"Overlord" Day Cat

Role positioning: A single big

Current situation: The cat has occupied half of China's business market, is the undisputed overlord of the industry, and almost booked an industry in advance of the first three tickets.

Competitive Advantage: Dominance is the biggest advantage.

Competitive disadvantage: The only opponent is the cat itself.

"Catfish" Xun

Role positioning: Aggravating electricity quotient

Status: Tencent's Xun, is carrying Tencent's capital and flow advantages, menacing, the sword refers to "a ticket."

Competitive Advantage: Backed by Tencent.

Competitive disadvantage: Tencent, the main entertainment and games, lacks commercial genes

"Camel" Amazon

Role positioning: Sidelines

Status quo: Amazon China has been deeply suffering from "acclimatized" disease, but the "cold" camel is still a camel, and has been to China's electricity market remain indifferent to the trend.

Competitive Advantage: Amazon.

Competitive disadvantage: not acclimatized.

"Shadow" Gome

Role positioning: Personal Press

Status quo: Gome, who is temporarily behind, is in the war as a "follower", but the followers also have the opportunity to grab tickets.

Competitive Advantage: The retail gene in the blood.

Competitive disadvantage: Internet gene deficiency + strategic opportunity period is not much.

"Assassin" Suning easy to buy

Role positioning: Waiting to move

Present situation: The full power transformation electric business Su Ning, is carrying the line under the supply chain superiority to seek the machine to move.

Competitive Advantage: Offline supply chain integration capability.

Competitive disadvantage: Internet gene deficiency.

"Calf" Shop No. 1th

Role positioning: Catching up

Status: As the fastest growing company in the field of electrical business, and now find "Godfather" Wal-Mart, the strength of course can not be belittled.

Competitive Advantage: Calf + "Godfather" Wal-Mart.

Competitive Disadvantage: Young + Wal-Mart holding the "acclimatized" risk.