China's electricity business faces unprecedented pressure

Absrtact: This year, our online sales first appeared below the expected growth rate of the phenomenon, I am afraid only to achieve 80%-85% growth scale. July 19, Tang Shi, deputy general manager of the electric business, said in an interview. It is understood that the Tang lion electric Business independent operation since 2008

"This year, our online sales first appeared below the expected growth rate, I am afraid only to achieve 80%-85% growth scale." "July 19," Tang Shi, a deputy general manager of the electric business, said in an interview. It is understood that the Tang Lions since the independent operation in 2008, sales have been growing at a rate of 100% to 200%.

This is not an accident. In fact, with the international economic environment grim, export trade slowing, and China's economy is facing a "hard landing" crisis, domestic demand weakness and other factors, China's electricity business is facing unprecedented pressure.

But on the other hand, when the macro-economic downturn, more consumers will turn to online consumption, driving the overall development of E-commerce. The industry is widely expected to increase the overall sales of China's electricity dealers this year, but gross profits may be reduced. At present, the major electric power companies, as well as with the traditional enterprises are on pins and needles, want to be in the limited interests of the largest share of the pie.

This has also led to an unprecedented competitive "price war" in the electricity business. This week, Jingdong Mall CEO Liu announced that the third to fourth quarter of this year will set off the "largest, most tragic, most comprehensive" price war. The cat then made a strong response, "the second half will be invested in a total of 1 billion yuan concessions." Suning easy to buy (micro Bo) also decided July, August "E18 activities", increase promotional efforts.

This war is no longer the competition of horse race, but the relationship between survival and death. For Beijing-East, its listing is slow, the capital pressure becomes big; the cat bears the huge capital demand that the 7.1 billion US dollar repurchase Yahoo 20% shares after the group privatization, Su Ning also faces the transformation challenge of "fail to succeed".

And in the wolf in the face of competition, "hand-to-hand combat", only a relatively stable, calm, that is, Tencent electricity. July 19, Tencent Electric Company convened since the independence for holding companies after the first foreign communication will be announced, QQ Online shopping open platform officially launched. In the field size control, only more than 300 businessmen came to participate.

This and Beijing east frequently tens of thousands of partners, days and cats hundreds of thousands of partners, Tencent's size is actually very small. So how will the Internet company, which has been criticized for missing the "electricity quotient" gene, ultimately win in the fierce competition?

Find their own competitiveness

Tencent Internal, once the development of Tencent's future analogy to climb Everest

July 19, Tencent Electric business QQ online open platform to start the ceremony, Tencent CEO Wu Night Light said, "E-commerce is the next wave of the development of the Internet a major industrial opportunity." In the next 5 years, we are faced with a 2 trillion-year market size to look forward to. ”

In the face of this tempting cake, Tencent decided to separate the electricity dealers into holding companies, and plans to invest 1 billion of dollars. At present, the industry has seen that this is known as the Internet "Big Mac" companies are fully ready to put the electricity business "tough battle" preparation.

But the problem is, in the enemy separatist, mutual PA side of the field of electric business, has been like "warm fire boiled frog" Tencent electric business How to create a world of their own. Tencent electric Business insiders told reporters, "In fact, we see that China's electrical business is how similar, completely subversive, the alternative is a very difficult thing." ”

The development of China's electric business has been more than 10 years of history, "Tide Amoy Sand" after the most successful mode is nothing more than Taobao as the representative of the Open platform model, and to the Beijing-East as the representative of the business model. At present, these two models are also gradually merging.

"Taobao Mall with customer advantage by increasing the entry threshold to the B2B2C model of the evolution of the Beijing-east through the supply chain open with the industry to share service advantages and extend to the customer advantage. "Tencent Electric Business Operation Department general manager Hou Yanping Introduction said."

In these two modes, Tencent adopts the principle of "do not give up", both the Xun net as the principal of the proprietary platform, and the open platform of QQ net purchase to attract the joining of the third party.

In other words, Tencent has not explored a new path in the business model. "Such a pattern of positioning, even let the outside feel ambiguous." "said a business practitioner and journalist.

In this respect, Wu Xiao said: "In fact, Tencent has been doing more long-term thinking: how can we do to adapt to the trend of industrial upgrading." Tencent Internal, once the development of Tencent's future analogy to climb the Everest, we should climb the south slope or climb the North Slope? The North Slope road is straight but difficult, the South Slope road smooth but relatively long. ”

"Follow Taobao Road, just like climb the south Slope, the front has the industry eldest brother constantly try wrong, we will be very smooth, but can not create a unique competitive advantage." "Wu Guangguang," the use of Tencent in products, technology, traffic and data mining industry leading edge, to create differentiated core competitiveness is like climbing the North Slope, difficult, challenging a lot, but as long as the realization is a broad road. ”

Wu Guangguang said that the use of nearly a year of reflection and practice, Tencent's road has been clear, that is to seize the "consumer experience upgrade" the future trend.

With "flow" to make the Princes

"Can let more than 80% of businesses in QQ online shopping to achieve profitability"

When the outside world in the big promotion, accelerate the flow of money, Tencent appears very quiet. "We are not too anxious to compete head-on with others, or to establish a core competitive advantage." Wu night Light said.

In the opening of the QQ online shopping platform, Wu night Light announced, "The first batch will intervene in more than 300 top businesses, and plans to introduce 1000 before the end of this year with a certain sales scale and good service capacity of the merchants settled in." ”

Moreover, with other electric business platform large-scale investment is different, QQ online shopping in the initial stage will be invited to join the invitation of the business model. In the extremely appealing commodity category rich electric business profession, the Tencent electric business strategy appears quite conservative.

But, on the other hand, Tencent has smashed a considerable amount of resources for the merchants. For the first batch of merchants, Tencent will be all exempted this year, including entry fees, advertising fees, buckle points, such as the full cost, and commitment to invest a large number of marketing resources to help store UV (Access users) on average three times times.

As we all know, the flow of resources has been Tencent's biggest weight in the competition, this time, betting on the electric business also do not despise. According to Hou Yanping, Tencent has invested heavily in traffic from hard and wide resources, fixed entrances, user subscriptions and portals. According to the industry's rough estimate, these flows if converted into commercial value, will be worth about 1 billion yuan of marketing investment.

Like a traditional store, when a store has more customers, natural sales go up. In general, the manufacturers often spend hundreds of millions of dollars to obtain the cost of a single new customer, for the flow of costly distress, Tencent's advantage is indeed unique. In this large-scale investment, Wu night light self-confidence way, "can let more than 80% of merchants in QQ online shopping to achieve profitability." ”

In addition, Wu Guangguang said, "Tencent is the only company in China that can operate a social platform and E-commerce." "In the future, hopefully through the backstage, so that Tencent will be able to dig more in-depth user data, from user habits, access frequency, physical attributes and other multi-dimensional to grasp, understand the user's needs."

Talking about the current "price war" among major electric dealers, Wu Xiao said, "We will participate moderately, but we will not put our energies into this." Tencent Electric Business is a long-term strategy, we hope that through strict service and merchandise quality, first in the user and sellers to establish a good reputation, and then bigger and stronger. ”

Biosphere or will be rebuilt

The current situation of increasing capital gap in Chinese electricity dealers

In fact, after more than 10 years of development, China's electrical business has not been removed from the "box" status quo. However, this mode of operation has shown weakness.

In China's electricity business, in addition to Taobao, there are few profitable companies. Like the video industry, the electric business community once pursued a game of "horse-rodeo-financing-listing-re-expansion". Two years ago, in the capital hot, the electricity business enterprise frequently melts heavily, Jing Dong is one of the representatives, a total of 1.53 billion dollars.

However, the decline of the global economic environment, as well as the Sino-US shares in the United States suffered "integrity crisis", "Vie structure" and other blows, Chinese companies to go to the U.S. listing is much more difficult. At the same time, the financing mode and operation mode of China's electric business enterprises also decide that it is very difficult to listed in China A-shares.

In this context, the survival of China's electrical business as a swamp, struggling. On the one hand, the huge logistics expenditure makes its capital demand urgent, on the other hand, the low gross profit makes its financial statement unable to be positive. There is a widespread shortage of funds in China's electricity dealers.

"China's electric business to the pursuit of healthy gross profit, the early cash flow to draw a key stage." Especially for newly founded companies, entrepreneurs need to consider how to really do a good job of market segments, not only to attract financial investors, but also the introduction of strategic investors, the real industry to do a good job, strong. "Ecapital Capital (Weibo) CEO ran (Weibo) said.

Wu Guangguang said, "China's electrical industry has just completed the first phase, starting from 2005, Taobao representative of the electricity dealers broke the barriers to traders, so that users enjoy the richness of online shopping." Now, China's electricity dealers are entering the second phase, the key point of this phase is how to improve the user online experience more perfect. ”

"The key of this stage is to improve the transparency of supply chain and logistics information." "The traditional supply chain will have a qualitative change, the enterprise can through data mining more accurate knowledge of different regions, different genders, different age consumers ' preferences, needs and provide customized goods." Logistics side, through the data and information docking, so that consumers know the precise state of each node. ”

"Chinese electric dealers have been learning Amazon, but what it really learned is only 1/2, just to get users and ' move boxes ' to the extreme." Amazon's operational services and data analysis are its real core competencies. "Ran said.

According to Cao, dean of the Research Institute, the data from the 10-year review and trend reading of the electric business show that 2006-2012 is the high-speed growth period of China's electricity dealers. However, 2012 is a node, from 2012 to 2012, China's electricity business entered a mature period, the growth rate will fall from 2012 54.5% to 26.8% in 2015.

In other words, China's electricity business is moving from extensive growth into a delicate stage. In the process, China's new wave of consumer demand will show, but the electric business of the ecological circle and the competition model will also be rebuilt.