E-commerce market "losing money is the hard truth"?

"If you make a penny for the company within three years or earn a penny in five years, I will expel all of your entire department!" "Yes, you did not hear wrong, this is Jingdong Mall CEO Liu's words, published in his Sina Weibo." In order to make his book department can win and when the war, Liu always put a ruthless words.

Not only does the book department have no profitability, is the other department profitable? How much money can you make? has been questioned by outsiders. Jingdong's most commendable is also its financing capacity, according to official data, this year has accumulated financing 1.5 billion U.S. dollars, about 10 billion yuan! This is probably the latest in several Chinese http://www.aliyun.com/zixun/aggregation/11963.html "> Internet listed companies to sum up the financing!" It seems that the more lose money is optimistic, has become the Internet industry development law.

At present, "lost enterprises" more and more, and premature announced that most of the profit has been out, even the name has been forgotten. This is the Internet industry, is it coincidence or law?

First of all, the Internet companies mostly identify a set of laws, "lose money to lose the array"! These years, the exhausted, the financing, more than spending money abound. This stems from many of our products do not have any innovation, we do is a thing, just changed a vest son, and all feel is the other side moved their own cheese, so for those a bowl of eating competition is to be ruthless, to the death of the whole land.

Take financing this matter, you release words to melt 10 million dollars, I bite the bullet also have to say 15 million, who house the law did not say "cheat" illegal ah. Actually how much money really get only the entrepreneur understand.

Because shouting low or not respond, there are the following disadvantages:

1. No face. This is tantamount to the side to admit their own than others, the project is not favored by investors.

2. No money. If you don't shout out, maybe tomorrow the staff will move the server and run to the other company to work.

3. The media like to report this thing, casually shout two can on the newspaper, on TV, free promotion le AH?

Second, the Internet industry is only the eldest to survive the industry, in each subdivision of the field of too many enterprises. Therefore, in the business model and product proven feasible, urgent to do is not to make money, but horse rodeo, Rob users, grab resources, grab brands and rob the market, in short, can rob all.

And investors are more familiar with this, the super smart people do not expect to rely on your margin to live, but hope that after the IPO, his initial investment can play a few rolls or even dozens of of rollers, and then wait for a chance to cover. So, it is necessary to burn money, in order to expand the scale, this process is not a consistent loss, because as long as we recognize this area, one day you put all the competitors down, there is time to consider how to make money.

E-commerce conforms to the above and is the most consistent. Because other user-type products (community, forum, blog, etc.), after the size and large number of users, but also to consider whether there is a good profit model, if not, there is no scale of light. And E-commerce itself is a ready-made profit model, is not to consider the issue of transformation.

This is why E-commerce has become the main battlefield of the recent struggle, in order to be the boss, burning money is at the expense of, because some policymakers believe that the industry seems to "lose money is the hard truth."