Dangdang is vigorously developing innovative business to enhance the speed of scale expansion and the level of gross interest rate

The first of the innovation businesses is the one with the profit margin of 45% of its own brands. Currently, when the own brand "when the best product" has been on line more than 1000 SKU (specification) products, covering men's, women's, underwear, baby clothing, home textiles, six categories of protection, in the design and production process of 400-500, the end of the year will reach 2000 SKUs.

Dangdang CEO Guoqing that the retail industry, whether supermarkets or department stores, must have 10%-20% is its own brand. Wal-Mart, Carrefour, big run hair and other traditional retailers are 10% of their own brands. As an online retailer, Dangdang's involvement in its own brand business is also conducive to higher profits, provided that the procurement cost advantage is ensured.

In doing its own brand, Dangdang is the first in the domestic electricity business. Daily necessities, the current household items in 20% is when the own brand, but other categories, when the ownership of the brand is still low. In the future when the private brand sales will be accounted for the total sales of 10%.

Guoqing also intends to target a specific customer base, to create differentiated, personalized goods, and by the supply chain to reduce the advantages of large-scale production costs.

Also out of the consideration of raising gross profit margin, Dangdang also vigorously develop e-book business. At present, when the E-book platform has launched 100,000 kinds of electronic books for users to download, as a complementary measure, Dangdang recently launched its own reader "see" in order to establish a "content + Terminal" profit model, to achieve the bundling of paper books and E-book sales. While it's not making money on the reader's hardware, the net profit of E-books can be around 20%, far exceeding the profit margins of paper books.

In the ascendant of the Community business, Dangdang also carried out a strategic layout, the introduction of the QQ according to the crowd group model based on the interests of the class Pinterest products "when sharing." The industry believes that when sharing is intended through the user's collection, making friends and sharing interactive behavior, enhance user stickiness and user repeat purchase rate. Before the mobile phone Dangdang launched the "When Pictorial" has shown a certain share of shopping guide value.

"Good companies should focus on customers and seek differentiation to create competitive advantages." Guoqing said that by opening and mode innovation, excellent electric dealers will create the competitive advantage of business alienation, avoid homogeneity of the competition misunderstanding, rapid and large scale, and have the scale, can provide customers with a one-stop shopping fun, to provide low-cost, convenient and assured services, and the electric business enterprises can also reduce more costs, In order to build the advantages of supply chain and service, in the industrial chain to establish their core competitiveness.